It's high time

At $38, I dont even know why we are still buying fuel at N87

allanphash7:
You are right bro




Japan has no single natural resources and yet they still survive

dey av good governance

dats supercede any natural resources u can imagine

yes

West Bank,world bank,sorry, should mind their business and keep their leprosy infected fingers from our
economy and affairs. Our currency is dying by the minutes and they want subsidy removed so that our
economy will collapse finally....

Last days are hard indeed.

Am i the only one who thought subsidy never existed

EUROBOMBER:


Are you serious?

Gbawe
Beremx

http://www.vanguardngr.com/2015/07/if-theres-no-subsidy-well-end-up-buying-a-dollar-at-n500-dangote/

See the bolded below which was issued before bubu came out with his " I do not have enough reasons to scrap subsidy "

If there’s no subsidy…, we’ll end up buying a dollar at N500 – Dangote
July 04, 2015 at 8:05 am in Special Report FacebookTwitterSMSWhatsApp
Aliko Dangote warns on the biggest mistake a businessman can make
Media men had a piece of Aliko Dangote last weekend. And when they were done many appreciated why he is one of the richest in the world. In an interactive session with senior editors Dangote discussed state of the nation while explaining some details in his businesses that are geared towards a better life for Nigerians.
His tremendous knowledge in many areas awed the audience. But what moved them most was his patriotism. He called on Nigerians to invest at home and create jobs. “Five to 10 people can make Nigeria a great economy,” he said. And what with the power situation in Nigeria? “We’ll not have meaningful development until we sort out power problems in the country,” he tells government.
Dangote spoke from his heart. Here’s Africa’s richest man who doesn’t own a house abroad. His is about how to make Nigeria a better place. And, again, his humility thawed many especially those meeting him for the first time.
Below are just a few of the things he said on the night, his own words as captured by ONOCHIE ANIBEZE

On oil subsidy

The issue with subsidy is that government needs to block all loopholes. If there’s no subsidy, it will affect our foreign exchange, we’ll end up buying a dollar at N500, because there’s no VAT on petroleum products. That’s why the import of petroleum products is taking about 30% of our foreign reserve. We just need to make sure that there’s no siphoning of money. The refining business requires volume. If you don’t have a massive volume, there’s no way you’ll make money. Most of the refineries in Africa are running at a big loss. It’s not possible for government officials to successfully manage oil businesses. It’s good enough if they remove the subsidy, but you can check with neighbouring countries like Senegal. If a poor person in Senegal can afford to pay subsidy, why can’t a poor person in Nigeria afford to pay. I think there must be something for the masses, which should be in terms of power, social insurance, good education system, good roads etc
.
Factory in Ethiopia

Dangote commissions cement industry in Ethiopian
By the end of 2017, we would have invested in about 16 countries and these are very heavy investments. I’m going to announce the expansion of the plant we just commissioned in Ethiopia. This is just to expand our operations. It is taking 40 Megawatts of power which is more than what Kano is getting today which is 38 Megawatts. We don’t have generators on standby. There is nothing like generator there which we normally have everywhere in Nigeria. It’s one of the few countries that is growing at double digits because they have power and because they are a bit more serious than we are in Nigeria. You hardly find potholes on their roads. A factory like that in Nigeria would need about 60 Megawatts of power and 30 Megawatts on standby which is a total of 90 Megawatts and it would have cost us about 130 million dollars. The cost of doing business there is less. In the last twelve years, they’ve had an average of 10.8% GDP growth. This year, they are running at 10.6% GDPA.

Investing in Nigeria

This requires determination and seriousness. These things are humanly possible and we should be able to do them. It’s not really the work of the government to make a country prosperous, it’s the work of individuals because the duty of the government is to facilitate, but government will not have the money to invest.
That’s why it’s shameful that some Nigerians go and keep their money abroad. It is very difficult when we have a huge chunk of our money abroad and we want foreigners to come and invest. They won’t believe that the environment is good. It won’t work that way.
The only way is for us to lead, even though we can’t do all, but that leadership will pave the way for others to invest their money in our economy. In fairness, it’s difficult for people to find a place where they can make good money like Nigeria but it is also very tough. Once you are in business in Nigeria, you won’t be able to find enough sleep. Doctors always advice that we sleep for six to seven hours. I don’t think people who sleep for that long can operate businesses in Nigeria(laughter).

On payment of taxes

People don’t pay taxes because they don’t see what they are being used for. Initially, Lagosians were upset about tax payment, but they realised that it’s important to pay taxes because they started seeing that the money is being used judiciously. The issue of not paying taxes is really reckless. The first thing I always think about is paying my workers’ salary. We are all on the brink of danger if so many states are not paying taxes and are heavily indebted. If you do a financial analysis, you’ll discover that some of the states are technically bankrupt.
I tell people that when you own a company, the government is automatically a shareholder.
They are even guaranteed shareholders because whether you make money or not, they’ll make money. If I open up a factory today, first of all, I’m risking my money. I have to pay interest on money borrowed from banks. From my profit the government will take 30% as corporate tax and 2% education.
The only way for me to make money from that business is to declare dividends and when I declare dividend, they’ll also take 10% holding tax. You realise at the end of the day that in your own business, government is taking 42%. You begin to wonder if it makes sense. Of course it does. There’s no way the government can function without taxation.
If the partnership is only for us to enjoy and not pay taxes, it’s not sustainable. So definitely, someone has to pay the taxes, I’m not supporting an increase in taxation, I’m calling for an increase in VAT because when I did the numbers, I realised that 5% additional VAT will amount to about 900 million. The most difficult thing to do in any organisation is to reduce salaries. It’s much easier to reduce the number of workers. No country operates on 5% VAT, the minimum is 15%. What we don’t want is social acrimony. The last strike cost us over N15 billion and we’ve not gone back to the normal situation, it takes time.

On power

The most dangerous thing that could happen to an entrepreneur is for him to go into a business he doesn’t understand. You need to know the A to Z of the business you are doing.
That’s the only way you can succeed. That’s the biggest mistake most people are making. I don’t think that most of the people that have invested in power really understand what it is. It involves three things; generation, transmission and distribution and all the three require heavy investment. There are a lot of issues that we have to resolve and I think with seriousness, we’ll be able to do them.
We have gas, but we shouldn’t use gas alone. We took the decision that by the end of the year, all our cement plants will be using coal. The coal is there and Nigeria will not be competitive in exporting it because we don’t have the infrastructure to take these coal for export. We’ve started using coal and there’s no emission, not a single dust anywhere.

Technology has changed, 38% of power being generated in America is by coal. In our own operations, we’ve discovered that running on coal is cheaper than gas. We need to see how we can build a lot of infrastructure because that would help to open up the economy and make us independent. The government has to sit down and find a solution to power.
We will not have any meaningful development till we are able to sort out the power issue. We won’t have an inclusive GDPA unless we tackle power. The power issue is a great one and it’s preventing everyone from progressing. In Uganda, they increased the power to 230 Megawatts and the next year, their GDP grew by additional 4%.

Time management

The biggest problem we have in Nigeria is that we don’t quantify time. That’s why people will sit in traffic from here to Ikeja for two to three hours. If you invite me to a place and if I’m totally free and available, I’ll look at how many hours it will cost me. If it will take five hours of my day, I won’t go except I’m going for business purposes. That’s my policy. I put a lot into consideration and do some calculations, if I’ll need to send someone to represent me, I do that.

On refinery

[size=18]
We are building a refinery and our refinery will make more money if there is subsidy. [/size] We have changed the size of the refinery three times because we are looking at the maximum we can do that has ever been done. We started with about 400,000, then we shifted to 500,000. Now, we took it to 650,000 barrels per day. That’s the biggest ever single line thresh of refinery. It’s a huge plant and it comes with a lot of challenges, but at the end of the day, it will save us a substantial amount of money. Presently, about 38% of our foreign exchange goes to petroleum products, so I think that will totally eliminate it and eliminate all the imports. We will also be able to export and we won’t do it all by ourselves. Other refineries will produce. Even if other refineries are not working, we’ll be able to satisfy 100% local demand and we’ll be able to export massively. Five to ten people can make Nigeria a great economy. We have to encourage Nigerians to invest at home.
On Agriculture
I think there will not be an improvement in job creation unless people go into Agriculture. I know even in Agriculture, there’s money. We are also doing four sugarcane factories. We want to export sugar. We are doing a lot of sugar and rice and I think that in the next four to five years, we’ll be able to create about 180,000 jobs.
There are only two countries in the whole of West Africa that eat parboiled rice – Nigeria and Sierra-Leone. Other neighbouring countries eat white rice. So, what’s the business of Republic of Benin collecting ships of parboiled rice to Niger.
How can Niger eat two billion tons of rice? We have no business importing sugar, there’s so much land and water here. God has given us these things and we have to use them. Today, Ethiopia is growing rapidly, but the mainstay of their economy is agriculture.
Jokes
It’s only a Nigerian that calls an airline and even when he’s told that they have 20 people on standby, he still carries his bag to the airport. We are the only people God has created that way. He will say ‘Don’t worry when I get there first’. When he gets there, he starts shouting and complaining, whereas he had already been told.
On gas generation
We’ve been wondering what the issue is, why we’ve been unable to get gas. The total amount of gas that is being supplied out of the entire trillions of fields of gas that we have is only about 6.7billion of which 3.5 billion is for export energy, 1.25 billion flares, while about 1.3 is for their own operational use. A little over one billion is what we get for domestic use. We pass part of it to the West African gas pipeline in Togo and Ghana. There is a lot of gas in the east but there’s no usage. Majority of them are in the shallow waters. Nobody will spend their money to generate the gas unless the infrastructure are

RockMaxi:




I can't believe my eyes that people like you still exist with this sentimental and uninformed mindset about subsidy under GEJ.

YOU ARE A HYPOCRITE

so world bank has the right to dictate to buhari now? i just hope we are not dealing with a puppet now.

Firefire:
If dem born Buhary well make he try that nonsense.


APC & Buhary have no moral justification to remove the fuel subsidy having canvased against same in time past.

That's the way the cookies crumble

Some people still believe in buhari

Naughtysite:
Let us be sincere about this fuel issue. For the past one month, i like most Nigerians have been buying fuel between N130 to N300 per litre.

If subsidy is removed, at what price will a Nigerian buy fuel ? If it isnt more than N130, let subsidy be scrapped and let MARKET FORCES, and PRICE OF CRUDE determine the price of fuel..

What a wise government should do at this point is to pay off the outstanding amounts owed importers of fuel and inform them that subsidy ceases to exist in December 2015

Then Nigerians will witness how massively these importers will import the product such that competition among them will drive the price down..

CHAIRMAN,I concur. YOU are a true ECONOMIST. Let Market forces of DEMAND AND SUPPLY determine the prices of fuel SHIKINA!!!!!!!!!

But I tot d amount on subsidy should have reduced cos of reduction in cost of crude oil

jojomario:
End users are currently buying at #130- #150. The most important is the availability of the product. If the removal will weed the corrupt individual, then, SAY NO TO SUBSIDY.

If removed it will end the lose govt is incurring and, very likely, be the start another pattern of sharp practice whereby the marketters will make bogus claim on landing cost and start regulating it for profit.

But Bubu said he doesn't see any reason why GEJ should pay subsidy. We all clapped for him that he is the Messiah. The Messiah is here now. Let him remove subsidy nah! GEJ wanted to remove it we all took to the street and call him names. A man that signed FOI bill into law that allow us all to call him all sort of names. Now under your nose the bill is going to be amended and there is nothing you can do. You don know the value of what you have until you loose it. Just prepare and get ready to buy fuel at 300/Liter. This is just the beginning.

Least I forget. We have have all forgot #BringBackOurGirls. - Obi is happy and resting now

Sai Baba till 2023

Imagine the comment, " If there is no subsidy, Nigerians will buy dollar at N500. Lets be sincere with ourselves.

January 2015 dollar equal to N200.

December 2015 dollars equal to N250.

There is still subsidy.

Asumming Naira devalues against dollar by N50 every year.

December 2016 dollar equal to N300.

December 2017 dollar equal to N350.

December 2018 dollar equal to N400.

December 2019 dollar equal to N450.

So why are we still keeping subsidy ? Are we just being bamboozooled by a superior economist/capitalist ?

Most Nigerians do not spend more than 10% of their monthly income on fuel. So i do not see how removal of petroleum subsidy will affect the exchange of Naira to dollar. Rather a robust Agricultural sector which will cut down on food importation and encourage local farmers is what will weigh heavily on the exchange rate of the Naira to dollar. I personally spend about 30% of my income on FOOD, and 10% on FUEL.

There are still Nigerians who live from hand to mouth who spend 50% to 70% of their monthly earnings on food. Fuel comes a far cry in their lives..

Meriekriss:
I thought fuel subsidy didn't reflect in the 2016 proposed budget..




Check my signature for your total interior decoration solutions..

did you read the write-up at ll or you 're just here to advertise....

I'm with the world Bank on this one, in my opinion as rightly supported by some NL members, fuel already sells at N120-N150 per litre in most parts of the country. But a few years ago when the govt (GEJ) removed d subsidy in diesel, most of us protested and held the country to ransome, I think it's because we didn't understand the economics behind the subsidy removal, now AGO sells for N108-N115 per litre around the country (I stand to b corrected), this is because market forces (competition) has crashed the price.
Same should be replicated with PMS and DPK (good thing there are clear signs DPK will b deregulated) so now all the govt has to bother with is value for money, just like the telecoms industry.
Many ppl esp the masses have never bought Kerosene for N50, yet a handful of ppl have made billions from the yearly budget the govt pays to subsidise it.
Nigeria does not need to have fully functional refineries to remove subsidy, all they need do is allow the so-called marketers import the product and sell to d masses, with control on quality and transparency, if that happens, masses will just drive to d outlet with the best deal to buy white product. Hence they'll b forced to crash prices.
Don't get me wrong, these products will start with high prices before it stabilises (say 2-5 yrs) but I blv it'll stabilise faster coz of the rate of consumption in Nigeria. Over time say 5-10 yrs, when refineries can produce white products that's enough for domestic consumption, then we gradually phase out these independent marketers.
I feel the govt WASTES too much on fuel subsidy, have we ever paused to imagine what would've happened if education and health sectors were subsidised?
In my opinion every Nigerian deserved access to subsidised health care and education, but not every Nigerian must have a car or run a generator.
I'm not a PDP supporter, but if there's any longterm initiative that GEJ administration conceived right it was SUBSIDY REMOVAL.
Again this is my PERSONAL OPINION

waterhouse071:
Nigerians are obviously not benefiting from the subsidy. Imagine the subsidized fuel is currently being diverted to neighboring countries by greedy marketers.

Bro, we have several tankers heading to cotonou mostly at night selling it high for those people hence while there is temporary scarcity of fuel.

1shortblackboy:
When oga Jona wanted to remove d subsidy. D misinformed illiterates were protesting. Make una continue

"Despite last Friday’s attempt by the Organisation of Petroleum Exporting Countries, OPEC, during its 168th conference to maintain its production quota so as to stabilize the crude oil market, the price of the commodity slumped further to $37.89 per barrel on Monday from $38.09 on Friday".

The above refers. Nigeria experienced oil boom with $120 per barrel between 2011/12: how has our economy being diversified to cater for time like this? Why did we still experienced depletion of reserves during the past regime? Why did Nigerian Universities went on 11 months old strike, which was the longest in Nigeria history? Why did the past administration milked the unemployed youths during immigration exercise? Why did power sector not improved? What has been the effects of partial subsidy removal carried out by the last administration on Nigerian so far? Why did FG needs to borrowed to pay FG workers even till the end of the past administration? Why did Finance Minister said that Nigerian economy will face much difficulties till 2015 ends despite his World recognition?

Put sentiments apart! The fact is that this administration will face much problem in terms of finance than any other government.

what is wrong with this country? is this country cursed or wat? I can't just understand my country. why are they not talking about building refineries or even if giving license to private companies. Nigeria you dey make me sick...jeez!

Standing5:
If removed it will end the lose govt is incurring and, very likely, be the start another pattern of sharp practice whereby the marketters will make bogus claim on landing cost and start regulating it for profit.

i believe there will be a better practice to checkmate the activities of the marketers compare to the inability to cub the activities of the so called cabal hiding under fuel subsidy. Our money could still be used to cater for urgent needs. In this case, you sell what you buy.

MKO4ever:
I believe this is just an advice and not an order

Why is the World Bank asking Nigeria Govt to remove Fuel Subsidy, the fuel in the UK, France, Germany
and other Western Countries is Subsidized. Only in Africa Will the World Bank tell countries to do things that
have no Economic sense "smh"

1shortblackboy:
When oga Jona wanted to remove d subsidy. D misinformed illiterates were protesting. Make una continue

GOD BLESS YOU MY BROTHER FROM ANOTHER MOTHER

martinosi:

Why is the World Bank asking Nigeria Govt to remove Fuel Subsidy, the fuel in the UK, France, Germany
and other Western Countries is Subsidized.

Where did you get that info from? I'm actually writing this in the UK, and can tell you that nothing could be further from the truth! On top of international fuel prices, the British government imposes hefty additional taxes on domestic fuel consumption, and the same is true in France, Germany and other European countries.

Only in dysfunctional countries like Nigeria and Venezuela will you find governments subsidizing the consumption of such a highly polluting product, rather than discouraging consumption through taxation.

No

NewIdeas:
Sometimes i just wondered what Nigeria could have looked like without fuel.Other countries that have no fuel still survive.

interesting.