mrkoma2012:

Another loonie stepping up to repeat the same old crap

Evil Brain:

If and when the federal government deregulates the downstream sector and removes the subsidy, here's what will happen:
1.  The price of fuel will shoot up dramatically
2.  All of us will suffer for a few years while the private sector rushes to build new refineries and take advantage of the high prices.
3.  Everything will eventually settle down and Nigeria will become a saner, less corrupt and less wasteful place.

This also applies to electricity, and we are still going through the same process in telecoms (we should be coming out of phase 2 any moment from now).

The fact is that we need new refineries and the government doesn't have the money (and is too corrupt and incompetent) to build them. The private sector is the the only way forwards and they won't take the risk as long as there is a subsidy.

I'm sure there's no one here who thinks the phone companies will be spending all this money on masts and fibreoptics and transatlantic cables if they weren't sure they could make their money back. And say what you will about MTN and co but nobody wants to go back to the days when it was just Nitel

High Profit Margins + Competition => High Investment which is what Nigeria needs right now. And only the private sector can do it. GLJ and Aganga know this, even Obasanjo knew. The problem is that the people in government aren't willing to do what must be done. Because they don't have the guts, or because they are making too much money from the status quo.

Long story short, they should remove the gaddem subsidy. Let all of us suffer together.

For a better future, sacrifices have to be made.

1. The price of fuel will shoot up dramatically
2. All of us will suffer for a few years while the private sector rushes to build new refineries and take advantage of the high prices.
3. Everything will eventually settle down and Nigeria will become a saner, less corrupt and less wasteful place.

Dis Guy:


why do people actually believe that price and competition theory works in nigeria? all of us will suffer for a few years? what they sell the products for 230N then after 6years they compete against each other reducing the price to what N200 brilliant isnt it?

Tell me where this price and competition theory has worked in Nigeria outside of agriculture? Banks loans, Telecoms, cement, mortgage, ?? ??

and i like the way people put it- in a few years like every thing else with stand still?
Well i dont blame some of you you are busy reading economic theories in Philadelphia thinking the 80% poverty stats is just on paper!!


Removing subsidy is a brilliant idea but bad timing, if they want to do anything they should remove the bureaucracy involved with importation, remove/reduce the so called wastage in the importation wastage first then ensure the refineries are built!

Al those certificates they sold in the past few years and nothing useless MOU up and down the place with nothing concrete to show for it!

Evil Brain:

The laws of economics, like the laws of physics, are universal. The only reason it seem that things are different in Nigeria is the overwhelming effect of government (and its corruption) distorting the markets. Take away the excessive government interference and we're no different than any other country.

The only reason why things aren't working here is because we aren't doing what we're supposed to do. We only pretend to do it while actually doing something else. We pretend as if we're investing in our infrastructure when all we're interested in is sharing out big contracts as political patronage while trying to look good on camera. Everybody is just trying to make money for himself.

And thats the real reason why we haven't deregulated yet. Because if the government didn't own the power companies there'll be no excuse to award multi-billion dollar contracts that politicians can get rich off. And if there was no fuel subsidy then the river of free money in Abuja would dry up.

I have strong suspicion that Aganga's plan is just more pre-election bullcrap (like Obasanjo's "commissioning and commissioning" and that as usual, nothing significant will change. But lets wait and see sha.

Its not like we can do anything about it.

MIBB:

recap this


The Minister of Information and Communications, Dora Akunyili, yesterday got more than she bargained for when Enerique Fernando Arrundell, the Venezuelan Ambassador to Nigeria, used the opportunity of his visit to her office to tell Nigerians some hard lessons on how to manage, develop and utilize their God-given natural resources for the benefit and good of all.

The envoy, who was responding to an appeal by Mrs. Akunyili to help woo some of his country’s investors to come in and establish refineries under the federal government's planned deregulation of the downstream sector of the nation's petroleum industry, advised Nigeria to rather look inwards and to take full control of the industry.

Though, he acknowledged Venezuela as a prominent member of the Organization of the Petroleum Exporting Countries (OPEC) like Nigeria, he said his country will be willing to collaborate with the federal government to develop the industry.

The hard truth

Mr. Arrundell said, “In Venezuela, since 1999, we’ve never had a raise in fuel price. We only pay $1.02 to fill the tank. What I pay for with N12,000 here (Nigeria), in Venezuela I’ll pay N400. What is happening is simple. Our President (Hugo Chavez) decided one day to control the industry, because it belongs to the Venezuelans. If you don’t control the industry, your development will be in the hands of the foreigners.

You have to have your own country. The oil is your country’s. Sorry I am telling you this. I am giving you the experience of Venezuela. We have 12 refineries in the United States, 18,000 gas stations in the West Coast. All we are doing is in the hands of the Venezuelans.”

The envoy said, “Before 1999, we had three or four foreign companies working with us. That time they were taking 80 per cent, and giving us 20. Now, we have 90 per cent, and giving them 10. But now, we have 22 countries working with us in that condition.

It is the Venezuelan condition. You know why? It is because 60 per cent of the income goes to social programmes. That’s why we have 22,000 medical doctors assisting the people in the community. The people don’t go to the hospital; doctors go to their houses. This is because the money is handled by the Venezuelans. How come Nigeria that has more technical manpower than Venezuela, with 150 million people, and very intellectual people all around, not been able to get it right? The question is: If you are not handling your resources, how are you going to handle the country?

“So, it is important that Nigeria takes control of her resources. We have no illiterate people. We have over 17 new universities totally free. I graduated from the university without paying one cent, and take three meals every day, because we have the resources. We want the resources of the Nigerian people for the Nigerians. It is enough! It is enough, Minister!”Government’s plea

Earlier, Mrs. Akunyili thanked the Ambassador for his visit, saying it is a demonstration of his love for the African continent, pointing out that there has always been some level of bilateral trade between the two countries, though very skeletal, as a result of the low awareness of the latent potential of Nigeria as an investor’s goldmine.

Drawing attention to the huge potential in the nation’s telecommunications sector, which is being exploited optimally by South African investors, the Minister noted: “There has been trade between the two countries actually, but we do not have many Venezuelans setting up manufacturing outfits in Nigeria. I want you to use your good office to send a message across to your people that Nigeria is a goldmine for genuine investors. We want them to come invest just as other investors are doing in the telecoms sector.”

She gave the assurance that government will give them the full cooperation, adding that President Yar’Adua’s administration is working hard to ensure that the country’s economy is taken to the next level through the initiative of the seven-point agenda and Vision 20-2020, designed to make Nigeria one of the largest economies of the world by the year 2020.

http://234next.com/csp/cms/sites/Next/Money/Business/5485512-146/story.csp


The Punch Version I read yesterday had the man shouting @ Dora Akunyili " Minister this is enough!! Enough is Enough

oladayo042:

The Federal Government plans to remove fuel subsidies within six months and also put $1 billion into the Sovereign Wealth Fund (SWF) when it takes off next month, the Minister of Finance, Mr Olusegun Aganga has said.

The subsidies cost the government N1 trillion ($6.6 billion) in 2009, said the Central Bank Governor Lamido Sanusi in June.

And the nation imports more than 80 percent of its refined fuel to meet local demand due to a lack of adequate refining capacity, according to the country’s petroleum ministry."

In three to four years’ time, Nigeria will be a different country," Aganga said in an interview in London, yesterday. He added: "We have a great story. The numbers tell you that."

Importantly too, Aganga said that the Federal Government plans to put $1 billion into the SWF when it kicks off next month, just as he noted that the nation is targeting 10 percent economic growth by creating an oil-financed infrastructure fund while pushing for foreign investment in the power industry as it backs off fuel subsidies that have drained the national purse.

"Today, we have a government that is committed to encouraging investment and also ready to deliver infrastructure, he said."

Power outages are a daily occurrence in Nigeria, where demand for electricity almost triples the current supply of 3,000 megawatts. Nigeria, Africa’s second-largest economy after South Africa, has a population of about 140 million.

Boosting growth to a minimum of 10 percent in coming years is "achievable" as investment in infrastructure climbs, Aganga said. The economy expanded 7.4 percent in the first half of the year, compared with 5.9 percent in the same period last year, driven by growth in the non-oil industries, he said.

The SWF will replace the Excess Crude Oil Account, which the government has often used to finance expenditure, Aganga said.

Part of the new fund will be dedicated to savings that the government can’t touch unless oil prices plummet, while most will finance infrastructure projects, he said.

The Excess Crude Oil Account should reach about $1 billion by the end of the year, from between $500 million and $800 million currently, Aganga said. That will be transferred to SWF and act "as a catalyst for both local and international investors," he said.

A third part of the sovereign wealth fund will be a stability fund, which will be similar to the current Excess Crude account, though harder for the government to access, Aganga said.

Already, Nigeria has received interest from investors for a proposed $500 million Eurobond, which the government will sell in October or November, according to Aganga. Investors have asked the Federal Government to increase the size of the bond, while the government has appointed advisers for the bond sale, he said.

The Federal Government believes that the sale of Nigeria’s first Eurobond will act as a benchmark, so that companies can price their bonds accordingly, Aganga said. The government has already selected advisers for the sale and is in the process of appointing book runners, he said.

Foreign investor interest in the planned Eurobond has been strong, with some investors asking Nigeria to increase the size to $1 billion, Aganga said.




http://thenationonlineng.net/web3/news/12104.html

Ibime:

This Aganga sef. I saw him on CNBC yesterday and the guy no even comb him hair. He just look like tramp.