@ Gbawe - It is when our leaders have finished deceiving us and have sold us to the highest bidder that they start to talk in Parables and Figuratives.

Nigeria spends 700M everyday to subsidize. That is just 700 nigerians chopping 1M per day a meager amount as compared to 120M population Deregulation could just simply mean another 700M per day to share around.

If Nigerians are being asked to cope with substandard conditions of living, then Government too should be able to cope with 700m per day subsidy until they fix and build more refineries

sometimes i conlclued that nigerians have been morally molested by our leaders and it is already affecting the way we think

Gettolove:

sometimes i conlclued that nigerians have been morally molested by our leaders and it is already affecting the way we think

Yes ohh we need to deregulate our thinking

Gbawe:

In the same respect deregulation , even if we think we have 'managed' without it, is totally and absolutely unavoidable if we want to be an industrialised nation. It is lack of deregulation that ensures non of our refineries work efficiently and we then have to refine our oil abroad. It is lack of deregulation that ensure we miss out on billions of dollars from the sale of refined derivatives of crude oil !!!!

You are wrong here to say that the lack of deregulation has in turn made our refineries not work.
The reason is purely corruption and nothing else. Put your points right huh.

Gettolove:

sometimes i conlclued that nigerians have been morally molested by our leaders and it is already affecting the way we think

This is an understatement!

We have been basterdized mentally to say the least. We can only see on d surface.

Gbawe:

Let us then not even begin to talk about the various cartels and mafias making illegal money , to the detriment of average Nigerians, from the fuel subsidy racket , insider oil bloc allocation, crude oil bunkering , etc.  Noteworthy , for example,  that crude oil bunkering and piracy would be vastly reduced  if we reduce significantly the quantity of crude oil sent outside Nigeria !!! Deregulation is vital . It is the job of the FG must  to devise strategies to mitigate the harsh short term effects . The wastage, innefficiency and corruption engendered by the lack of deregulation in the downstream sector  be halted if we want to become even a moderately developed nation.

As much as I'd like to agree with your point here, this government has proven itself times and again how ineffectual and sloppy it can be in implementing the most basic policy not to talk of something that touches our livelihood as this.  They are going to bungle this like many policies of the past and Nigerians will be left to reel in an unprecendented pain, lets watch.  A government that cannot hit the backside of a cow with a banjo, what a waste.

emiemi:


This is an understatement!  

We have been basterdized mentally to say the least. We can only see on d surface.

and who says there's anything wrong with the surface  

Of course deregulation causes hoarding and price increase in the long run. Before now, AGO or Diesel has been deregulated, see the effect- from about 85 naira per litre then to more than 150 naira now. black markets have also emerged strongly.

De-regulation of the downstream sector is good no doubt. (in a sane economy like ours)
How is this supposed to
1: increase competition in the industry
2: bring about innovation and efficiency
3: reduce products prices
4: ensure availability throughout the nation


We all hear and read about the benefits like we do the celebrity gossip in gossip magazines (for entertainment sake)

What are the specifics.
1: Does the activity of marketers ensure supply-side behaviour that will drive down prices for the common-man
2: what efficiencies are we talking about anyway, it is not like Conoil or Oanda or AP have refineries that make the product.
3: what innovation!!? I laugh in swahili

Deregulation does not exactly bring about reduced prices and product availability. let us not forget that we do not exactly produce petrol for local and export consumption. we simply import, and with the huge debt crisis in banking sector (majorly from oil marketers) and the global price of the product, how can FG be sure they can manage the resultant backlash. can the marketers determine a fair price (when global prices and taxes determine how much they can profitably import).

In countries that have deregulated prices, pump prices fluctuate daily, but their prices are still sky high. The primary culprits are the oil marketers who reap obscene profits. The FG and NNPC also create the necessary environment to sustain this malady by not reducing or totally removing levies on importation of the product, Since they refused to build or maintain or repair our refineries (all we here is this scandal here and that scandal there, all involving billions of US dollars that might have corrected deficiencies in the sector)

Now to the crux of the matter Inflation and oil prices deregulation.
It is a known fact that Nigerian figures on inflation are doubtful, you could add three zeroes to whatever figure CBN gives you and you would not be too far from the truth. yet we run an economy based on manipulated figures (just like our elections) then we expect the right things to happen like in the text-books. (deliberate and willful ignorance at best), Sanusi is right in saying the deregulation will fuel the already desperately breakaway inflation this nation has experienced since the global drop in crude prices (not forgetting the Niger-Delta crisis).

@ lagerwhenindoubt

Nothin do u, u are highly mouthed

How much is fuel @ petrol station now?

emiemi:

You are wrong here to say that the lack of deregulation has in turn made our refineries not work.
The reason is purely corruption and nothing else. Put your points right huh.  

Yeah, the reason is corruption. But what do you suggest? Fight corruption? if yes, please suggest ways to fight this menace in a way that will stop because we can not wait for long.

emiemi:

My dear, it's just fear for their lives and that of their families that make such people go back
on their words especially in the case of Remi Ayoka. If you take count, none of the murders
in Nigeria has EVER been resolved. But in any case, whether or not we fear, death will come
someday. They are only being humans (and being more specific, Nigerians).


As for deregualtion, as much as we support deregulation (which I also will advocate for), we
should consider sectors like the telecommunications (already deregulated) and do a thorough
analyses of the state of that sector. Are consumers still being 'ripped off''? Yes. Why? Because
the same govt that should regulate their operation decide that 'e no concern them'. I see similar
trend for a deregulated downstream sector. It will just mean direct deregulation into the pockets
of the government allies as usual. Some basic necessities ought to preced deregulation to make
it serve the good intended as opposed to how it is being practised in Nigeria. Consider that we
basically do not have power (electiricity) as at now!

Statistics show that between 1999 and 2009, total telephone lines increased from less than 1million to over 50 million. Have you noticed that people can now afford to make calls more than what it used to be even though prices went up? It is economics, when money goes around, it comes around. Over 12billion dollars has been invested in Nigeria's telecomms sector. You sure dont think the money went into the lagoon. It goes to people. buy equipment (this goes abroad though), you install, you maintain, you manage, you market, you sell, you do a lot of commercial activities and people are engaged in the process. People get employed simple. when they are employed, they get paid, when they are paid, they settle people. MONEY GOES AROUND. That is commerce. It is not absolutely a negative that prices go up, if more people are able to afford the services. If 50million people can afford to have phone at call rate of N30/min than the 1million when it was N10(NITEL), I think the N30 season is better. Hope you understand?

Thats what this is all about. You will see we ultimately will be exporting petroleum products to all west african countries within a space of 5 years if we deregulate. I can place a bet on this

hydroking23:

You are so correct. I've noticed putting the Cart before the Horse is the Nigerian Standard. Make the refineries work then DEREGULATE.

God bless u and 'My Joe". U guys have spoken my mind.
its either they give us stable electricity or fix the refineries. FAILURE will forever be the portion of those cabals seeking to enslave Nigerians in the name of deregulation.
They want Nigerians to be at their mercy. They dont ever pay for the said fuel, so they dont know whr it pinches.
We'll never have to beg for electricity, watch our refineries rot away while we are busy importing fuel, and then pay high (into sm pples pocket) for fuel.
Olorun o ni fun won se!!!

this man talks with both sides of his mouth

To Buttress gbawe's earlier point, if we are ever going to be serious as a country, deregulation in the downstream has to be enacted. I understand the fears and misgivings of Nigerians about prices going up but if the industry is to be sanitised at all it has to deregulated. Nigeria as a country is loosing out heavily in terms of investment in refineries, nobody will build refineries where the govt dictates the price. Sanusi's point about inflation is right but the govt can take steps to cushion the economy in the short to medium term while deregulation takes place. Sure there will be pain initially but if we dont deregulate we will continue to live in a false economy, we cant continue to allow a small cartel monopolise the situation.

Omo_Alex:

@ Gbawe - It is when our leaders have finished deceiving us and have sold us to the highest bidder that they start to talk in Parables and Figuratives.

Nigeria spends 700M everyday to subsidize. That is just 700 nigerians chopping 1M per day a meager amount as compared to 120M population Deregulation could just simply mean another 700M per day to share around.

If Nigerians are being asked to cope with substandard conditions of living, then Government too should be able to cope with 700m per day subsidy until they fix and build more refineries

guy u are the only1 that have nailed the point.Many pple are just posting on what they dnt know.One of the 1st menace of deregulation in Nigeria is inflation,which i analysed on page one how deregulation will bring about inflation,Secondly our unsincere leaders says 'we spend N700m daily on subsides'. Fine with the amount they claim they spend,there is still corruption and poor implementation of budget annually which gives excesses to govt a/c evry year.Which means Nigeria has excess money at the end of a year.so subsides they spend doesnt affect the country's purse.The issue is, by the time they stop payment of subsides, there will be more money that will be eaten by corrupt officials.Imagine without deregulation and N600b spent on subsides, Bode george stole N85b,likewise many others in d senate past govs and other officials of govt, these only means that Nigeria has alot already to be stolen by corruption.By the time u remove subsides cause of deregulation,Nnpc and yar adua will add more money to be stolen by corrupt officials.This is one point that many pple are shouting against.The few pple that are eating the national cake will have more to eat.Why cant they fix our refineries so evry1 would benefit or eradicate corruption completely that the N600b can be used to fix roads, electricity and health care so that yar adua will not go to germany to treat his failing health.Then evry1 will benefit.But anything outside these,Nigerians should just forget as only the corrupt officials would benefit from deregulation.

George_D:

this man talks with both sides of his mouth

Na wa-ooo!!

assetstrip:

To Buttress gbawe's earlier point, if we are ever going to be serious as a country, deregulation in the downstream has to be enacted. I understand the fears and misgivings of Nigerians about prices going up but if the industry is to be sanitised at all it has to deregulated. Nigeria as a country is loosing out heavily in terms of investment in refineries, nobody will build refineries where the govt dictates the price. Sanusi's point about inflation is right but the govt can take steps to cushion the economy in the short to medium term while deregulation takes place. Sure there will be pain initially but if we dont deregulate we will continue to live in a false economy, we cant continue to allow a small cartel monopolise the situation.

You are right the costs of building, expanding or maintaining existign refineries is humongous, but then South Africa is de-regulated, Angola is, India is and my word they have working refineries and an economy that is not built on intentional failures, did you not just hear that the 2009 Budget is admittedly a failure?!! so what is the gain if the FG continually fails in its policies and expects the people to succeed (survive more like it) after their next round of text-book policies that lack thorough implementation, we are still reeling for a USD16 billion dollar investment in IPP that the Ota farmer orchestrated.

It would be nice to know what recently N51.7 billion naira in contracts are for or what the reps intend to do with N500 billion "Capital Projects" or why 10% is going to the Niger-Delta or what the NDDC have been doing before MEND got out of hand.

Nuttin do de-regulation and yes we do have fears and mis-givings, as we did when our Steel smelter at Ajaokuta has not produced enough to make Padlocks that we still import from Asia or that NAFCON has done enough to have our local agricultural landscape determined by NOTOREibori or White Farmers from Zimbabwe.

Like you rightly said, we live in a false economy which is why our solutions (like DE-REGULATION) will defy all economic principles and fail.

Remember SAP and Fiscal policies in the Austere days of IBB , how well-intentioned those were those days

SGN:

As much as I'd like to agree with your point here, this government has proven itself times and again how ineffectual and sloppy it can be in implementing the most basic policy not to talk of something that touches our livelihood as this. They are going to bungle this like many policies of the past and Nigerians will be left to reel in an unprecendented pain, lets watch. A government that cannot hit the backside of a cow with a banjo, what a waste.

I share your reservation because I know how inept the current FG is. Nonetheless , and specifically because of the very same ineptitude of the FG we complain about , we must welcome anything that removes the incompetent and corrupt hands of the FG from vitally important activities that affect Nigerian lives immensely !!!! Profit remains the greatest motivator in business. Our refinery will work optimally and innovatively if , for example , they are privatised !!!

The FG should deregulate the downstream sector and do same for the power sector . Within five years the accrued benefits from these initiative will be immense for Nigeria and Nigerians.

emiemi:

You are wrong here to say that the lack of deregulation has in turn made our refineries not work.
The reason is purely corruption and nothing else. Put your points right huh.

What do you conclude has led to the unchecked corruption in the sector if not the fact that , as usual with Nigeria , the FG appoints itself as boss over processes it does not have the competence to understand ? Are Nitel and NEPA/PHCN not examples of ineptitude personified ? With the deregulation of the telecom sector can you compare MTN ( a profit-driven South African entity) to NITEL ? The answer to the question is a small indicator of why deregulation is required especially as it will usher in diminished involvement of a highly inept and corrupt FG in our downstream sector .

Deregulation is obviously good for the economy, however its sad that none of their refineries are working; The sixth largest oil producing nation has to import it own oil products, aint that a shame? Deregulation will obviously force competiton and push prices down. However, if they deregulate, they have to set up an oversight regulatory agency that would be responsible for all aspect of govt activities in charge of operations, environment, licensing and so on kinda like what the Department of Energy does.

manny4life:

Deregulation is obviously good for the economy, however its sad that none of their refineries are working; The sixth largest oil producing nation has to import it own oil products, aint that a shame? Deregulation will obviously force competiton and push prices down. However, if they deregulate, they have to set up an oversight regulatory agency that would be responsible for all aspect of govt activities in charge of operations, environment, licensing and so on kinda like what the Department of Energy does.

We can only hope it all does not ultimately turn out as most potentially beneficial projects in this country do,  Oooooops, we goofed someone will pay and oh,  you can give us another chance to make it right again 

OK OK OK OK OK If you still insist on Deregulation then there is no problem.

We are ready to pay NGN105 per Liter of Petrol or whatever "market price" the almighty market forces determine only if you make sure that the refineries are up and running, New refineries are built to satisfy internal demand and The NNPC cartel is disbanded or reorganised into a more transparent and accountable entity.

If they are telling us to sacrifice and embrace a new lifestyle, then business definitely cant go on as usual for them also

Is that 2 much to ask?

i wonder when nigeria would focus a little more on renewable energy, ther are so many nigerians in the diaspora that have come up with viable models on renewable energy. our overdependency on fossil fuels is a very myopic approach

blingg:

i wonder when nigeria would focus a little more on renewable energy, ther are so many nigerians in the diaspora that have come up with viable models on renewable energy. our overdependency on fossil fuels is a very myopic approach

I wonder what effect this approach will have on our food product.

deregulation is the key to economic growth and consumer satisfaction.
BUT our leaders are just plain stupid, simple economics; it cost telecoms company $10,000.00 to get operating lisence in South Africa, while it cost same companies more than $100m to acquire same in Nigeria.
Now, the funniest part is this; after all the extortion from these GSM multi-national corporations, the dumb government went ahead and shared these funds among itself and states with the name "Proceeds from GSM lisence" what we experience afterwards in the hands of the operators could only be imagined.

the picture above dipicts what's obtainable in all sectors of our economy.
if government deregulates the oil sector, with the interest of its citizens at heart, Nigeria would export gas, PMS and all its by-products.
It is very irresponsible for us to import fuel as a nation.

we all know what happened to the vaswani brothers, reprieve just came their way. what was their crime? they provided healthy competition to Dangote who tries or has a monopolistic hold on rice importation. their business of providing cheap staple food to the tables of Nigerans was a threat to his business. now its is common knowledge that Dangote donated FOUR HUNDRED MILLION NAIRA  to PDP fund raiser that got OBJ into power. that was how Dangote could manipulate their deportation.
Otedola also at a fund raiser donated 1 billion naira to PDP, these guys are giving lisence by government to "kill"its citizens in the name of deregulation

it happened to soludo, now it is sanusi turn,will they listen to him?i mean govt.
vasani brothers are back
we thank God
see what OBJ did to IBETO, what of savanah bank
we dont have any govt

what most of you fail to recognize is that Nigeria has defiled the law of economics.when the price of crude oil went down, the prices of petrol in other countries were going down in other while it never went down in Nigeria. Because of the corrupt nature of those who control the economy of this nation such as those who own petrol stations. what is deregulation? it simply means the government can know longer control the prices of whatever is to be deregulated. so if a marketer decides to sell a litre of petrol for 200 naira, then the government has no right to reverse his actions. Do not compare deregulation of telecommunications with deregulation of the petroleum sector. Telecommunication is not a necessity but petrol is a necessity as it affects transportation,food, health and every other sectors of the economy. take for example if the price of petrol rises to 200 naira per litre then the taxi driver will increase his fares and the farmer will increase the price of his products as a result of the increase in transportation.
In the other hand if a gsm company increases the prices of call rates it will never have any impact at all on the cost of transportation or cost of food.
People may say competition will bring down the price of fuel but that will not happen because as I earlier said Nigeria has defiled the law of economics because of corrupt business men, Fuel is a necessity and most business men know that Nigeria will pay whatever cost to buy it even at 200 naira per litre.

'deregulation' based on insincerity will fail woefully.

Pls, could the authority concerned look into this honest advice of the CBN governor. I think he ment well for this country. If deregulation will adversely affect the country, then FG must have a re-think on its plan to deregulate the down stream sector.

which of the cbn governors are you talking about?