At the backdrop of the continued comatose state of the Nigeria’s local refining capacity, the country may have spent about N10 trillion in the provision of pump price subsidy on imported petroleum products from 2006 to 2018. fuel-pump A research report by BudgIT, a public finance focused Non-Governmental Organisation, NGO, said this amount came from the price shocks in the international energy market as well as the exchange volatility. However, the report also indicated that the subsidy regime has opened Nigeria’s public finance to huge corruption and illegal exportation of petroleum products to neighboring countries.

The report titled, “Nigeria’s Petrol Subsidy Regime: Dilemma of the World’s Most Populous Black Nation”, stated: “Nigeria currently imports an average of 91 percent of its daily petrol needs, thus disproportionately exposing local petrol prices to price shocks from international factors of production and exchange rate volatility. “There is a near perfectly inverse relationship between the fall in the value of Naira and the rise in the cost of imported petrol. That is, when next the Naira is devalued, Nigeria’s subsidy bill can be expected to jump.” It stated further: “The continuation of petrol price regulation perpetuates safety nests for exceptional forms of corruption within the country’s subsidy regime. Import subsidy creates petrol price arbitrage – the differential between the regulated price in Nigeria and the high petrol prices in neighbouring countries – which is big enough to incentivise smuggling of subsidized products to neighbouring border towns.” On the implication of the adverse development, the report stated: “BudgIT notes with dismay that fuel subsidy deprive Nigeria of funds needed for critical socio-economic development as it discourages investors, who generally prefer a deregulated industry, from investing in the downstream sector especially in the area of refinery construction and operation.

For instance, the 10 trillion consumed by the subsidy regime is sufficient to construct 27,000MW of electricity or build about 2,400 units of 1000-bed standard hospitals across 774 local government areas of Nigeria, found our research. “We equally note that the Nigerian masses worship low oil prices. More so, the political class fears that increases in petrol price (and in the cost of living by extension), occasioned by a deregulated price regime, and could become a flashpoint for mass uprisings and political instability. Nonetheless, we can never shy away from the opportunity cost of the corrupt subsidy regime.” Related NIGERIA’S FUEL SUBSIDY: A palliative, a burden

Source: https://www.vanguardngr.com/2019/04/nigeria-spends-n10trn-on-petrol-subsidy/

I remember buhari saying that
subsidy is a scam
that his government will remove it, that was in 2015

can i shock you??
Buhari's government has ended up paying more in fuel subsidy that GEJ did

#Hypocrite

There is no subsidy, it's under-recovery! Says the people who seek to deceive the gullibles!

GolDRoger:
I remember buhari saying that
subsidy is a scam
that his government will remove it, that was in 2015

can i shock you??
Buhari's government has ended up paying more in fuel subsidy that GEJ did

#Hypocrite

So, should Buhari stop paying subsidy?

DMerciful:
There is no subsidy, it's under-recovery! Says the people who seek to deceive the gullibles!

So, you agree government should let fuel prices rise by ceasing the payment of under recovery?

I think they should, but you people don't want to pay 200 per liter and above re fuel. That's why government is paying under recovery.

Bubu should explain why he is paying far more than GEJ!

tactius:


So, you agree government should let fuel prices rise by ceasing the payment of under recovery?

I think they should, but you people don't want to pay 200 per liter and above re fuel. That's why government is paying under recovery.

Funny people

To all those who complain about fuel subsidies and how Buhari is paying a scam.

If Buhari had stopped paying subsidies, and had stopped controlling the price of fuel and had allowed marketers to set prices.

Fuel would be selling at 220 and above by now.

And you people would be calling the government anti people.

But the truth is, subsidizing fuel needs to stop. The 10trillion we have spent since 2006 could have been used for other things.

GolDRoger:
I remember buhari saying that
subsidy is a scam
that his government will remove it, that was in 2015

can i shock you??
Buhari's government has ended up paying more in fuel subsidy that GEJ did

#Hypocrite

Are you minding that living dead

After increasing fuel price.

Subsidy miraculously increase instead of reducing.

Now we don't even know who is importing the fuel, no accountability.

Fight corruption, my foot

DMerciful:
Bubu should explain why he is paying far more than GEJ!

You haven't answered my question.

Should Buhari have stopped paying subsidies since 2015 and allowed marketers to set prices of fuel. ?

Would you have complained if fuel prices had risen?

Me, I think that Buhari decision to pay subsidies us harming our economy. But if he had stopped, prices would have gone up, but you people would have been calling it anti people .

Subsidy is there because Nigerians want it. You do want it

I thought our president said we never paid for subsidy again...

tactius:


So, should Buhari stop paying subsidy?

No, he should double the amount

“There is nothing like subsidy. When I was there, we didn’t have it. It is just something by the government to loot money”....Buhari 2015

Buhari increased the cost of petrol from N87 to N145 to remove subsidy and ensure out refineries are working. What’s the result?

This man has no business as financial minister but he will still be cheered on by your likes

Kkkk ...... Wehdone

I laugh in Swahili. karma is a bastard

tactius:


You haven't answered my question.

Should Buhari have stopped paying subsidies since 2015 and allowed marketers to set prices of fuel. ?

Would you have complained if fuel prices had risen?

Me, I think that Buhari decision to pay subsidies us harming our economy. But if he had stopped, prices would have gone up, but you people would have been calling it anti people .

Subsidy is there because Nigerians want it. You do want it

Ogbeni shut up, what you just typed here is rubbish

tactius:


So, you agree government should let fuel prices rise by ceasing the payment of under recovery?

I think they should, but you people don't want to pay 200 per liter and above re fuel. That's why government is paying under recovery.

You people are irredeemable.

You protested when Jonathan wanted to increase price to less than it is now, and remove subsidy.

You are now paying higher than that amount, and government is paying double subsidy, and you are still supporting pure sabotage and mediocrity.

You are irredeemable.

ITbomb:
After increasing fuel price.

Subsidy miraculously increase instead of reducing.

Now we don't even know who is importing the fuel, no accountability.

Fight corruption, my foot

In 2016 the cost of importing a liter of fuel was 132 naira, and we were selling fuel at 87 naira.

Government raised prices to 145 naira, ending subsidy.

But eventually cost of importing fuel went up to 150 naira and kept rising.

Subsidy was reintroduced because government does not want to be removed from power over high fuel prices.

Buhari should have removed subsidies from day one. Yes, fuel would cost 200 naira per liter, but there would be investment in new refineries, lots of foreign investment, and at the end, prices would fall.

Stop supporting nonsense and explain why Buhari said subsidy was a scam and is now now paying more than GEJ did.

tactius:
To all those who complain about fuel subsidies and how Buhari is paying a scam.

If Buhari had stopped paying subsidies, and had stopped controlling the price of fuel and had allowed marketers to set prices.

Fuel would be selling at 220 and above by now.

And you people would be calling the government anti people.

But the truth is, subsidizing fuel needs to stop. The 10trillion we have spent since 2006 could have been used for other things.

ITbomb:
After increasing fuel price.

Subsidy miraculously increase instead of reducing.

Now we don't even know who is importing the fuel, no accountability.

Fight corruption, my foot

My exact thought. He never believed Jonathan’s government was truly paying subsidy. Buhari went ahead to increase pump price yet, subsidy payment increased along side.

Subsidy to private firms stimulate the economy and create jobs. This current nnpc subsidy regime helps no one. It cant be tracked too

tactius:


You haven't answered my question.

Should Buhari have stopped paying subsidies since 2015 and allowed marketers to set prices of fuel. ?

Would you have complained if fuel prices had risen?

Me, I think that Buhari decision to pay subsidies us harming our economy. But if he had stopped, prices would have gone up, but you people would have been calling it anti people .

Subsidy is there because Nigerians want it. You do want it

His question is very valid, why is subsidy payment higher now than it used to be despite increase in fuel price by almost 100%?

In essence, Why does the govt say we consuming more fuel now than in a time of plenty?

tactius:


You haven't answered my question.

Should Buhari have stopped paying subsidies since 2015 and allowed marketers to set prices of fuel. ?

Would you have complained if fuel prices had risen?

Me, I think that Buhari decision to pay subsidies us harming our economy. But if he had stopped, prices would have gone up, but you people would have been calling it anti people .

Subsidy is there because Nigerians want it. You do want it

U are not getting the point, thought ur same buhari said nothing like subsidy?

My friend keep quiet

tactius:
To all those who complain about fuel subsidies and how Buhari is paying a scam.

If Buhari had stopped paying subsidies, and had stopped controlling the price of fuel and had allowed marketers to set prices.

Fuel would be selling at 220 and above by now.

And you people would be calling the government anti people.

But the truth is, subsidizing fuel needs to stop. The 10trillion we have spent since 2006 could have been used for other things.

tempest01:


You people are irredeemable

For telling the truth?

Subsidizing fuel is wasting money.

Yet. Govt. Does it because they don't want to be forced out of power.

You cannot criticize lifeless for not removing subsidy, and then say that removing subsidy is bad for Nigeria.

Subsidizing fuel is a waste

GEJ pushed for its total removal all hell was let loose and there were protests both in the north and south but when Buhari pushed for its removal heaven didn't fall but the hypocrites rather expressed their support.Why are we still having subsidy they said it has been removed?

So we are still paying huge amounts on subsidy.

I thought Apc said Subsidy was a scam....hmmm.m

I think we should sell these corn tree... Abeg i don taya..

Shame on the man of integrity and his hypocrisy

emror4u:
My friend keep quiet

So, what is your alternative solution?

If we deregulate, sell Nnpc, prices would shoot up, but investment, local and foreign would. Increase, which. Would. Mean prices fall.

We. Saw this in the GSM industry