PoliticalWitch:


Subsidy is still being paid. They call it underrecovery, and NNPC is paying it.




1.NNPC is now the sole importer of fuel since 2017.

2.A lot of people selling fuel at government prices also sell across the broder to Benin, Niger and Cameroon, where fuel costs N300 per liter..and make profit.

3.Before 2017, a lot of importers were losing. hence a big part of the reason why we kept on having fuel crisis. Since NNPC took over, things have sort of changed.

4.Until subsidy goes, domestic refining cannot improve. And Dangote refienry won't save us. It is planned to be producing at half capacity by 2030.




1.Well, businessmen are in it for profit. Or what do you think they are? Charity workers? Not only do they have to make profit, but they have to make sufficent profit to pay workers and make new investments

2.Here is how subsidy works. I buy shirts at N3000 per piece. Want to sell them at N3500 a piece. Government steps in, tells me to sell at N1500 and then pays me a subsidy of N1000. Not only do I not make a profit, I lose money on every sale.

I cannot expand my business, cannot pay staff, cannot employ new staff, etc.

Same thing is happening in the oil sector. Paying a subsidy means no profit made. You import fuel at N200, sell at N137, all government gives youis N63 per liter. No profit....nothing.





Power supply is another discussion. Suffice it to know that DISCOS cannot rsie sufficent money because the law setting them up essentially forces them to charge prices below the price of production of electricity...so they don't have enough cash to pay GENCOS....and thus reject power.

Then many Nigerians don't pay their power bills. (Yes, it is true, and no, I am not accusing you of being one of them, so relax).

.

Irrelevant to our discussion, plus rice improters increaisngly get forex from private sources. CBN has been increasingly hositle to allowing them obtain forex from the government. And then there is massive smuggling...which is parly why the broders are closed today.

Your analysis of subsidy is wrong....I'm not in support of subsidy but just so you know subsidy made alot of fuel importers billionaires.
I stand by my last statement

loswhite:
Your analysis of subsidy is wrong....I'm not in support of subsidy but just so you know subsidy made alot of fuel importers billionaires.
I stand by my last statement

Yes it did...and removing it would not only make them much richer, it would also attract investors who those rich guys would have to compete with..which would lead to our economy prosepring.

Also,prior to 2017, many of those subsidy billionaries made their money this way...because subsidy was forcing them to sell at a loss, they

1.Made false subsidy claims....money in the bank

2.Smuggled across the broder...money in the bank

NNPC taking over imports has snuffed out no 1. Smuggling still happens because why sell fuel at N145 and make a profit of N8 per liter...when you can sell at N300 in Benin and make a profit of at least N160 IN BENIN

That's why I support removing subsidy...because when the investments flow in and the money gets used to impove local production of PMS....then price will come down, and we would experience the benefits here...while also seeing icnreased exports...after an initial priod of harship.

That is why, since 2012...I have been convinced ....oil subsidy has to go.

PoliticalWitch:


And the beauty of democracy is that you are meant to hold your leaders accountable.

The thing is, most Nigerians (me inclusiive) won't do the hard work of democracy...ie accountability. They just think that it is all about voting X or Y and then go home.

Go and sleep.
Every country give their citizens peculiar privileges.
What are we benefiting from Nigeria if not subsidy?

Please, i need someone to borrow me 10k to take to the hospital. My inner right ear aches badly. The pain is really unbearable. I promise to return it by month end. 0808.1. 473.5.39.
This Scam na old one

You are the customer one way or the other. What do you want? More value in your currency or more currency with less value. Only despots close the border against food importation.

spiritedtete:
In as much as it also affect my personal business... it is still a good move..

If people know the amount of guns.. and other illegal stuffs coming in through the land border. We will not open it anymore...


People smuggle Guns in through rice containers, and other goods. Which systematically increases the rate of crime.

Another area to tackle gun runners... is to watch those people from Togo and Benin republic, that come in through the water ways... some via smaller boat and some via smaller vessels from the Neighbouring countries.


And please tell the marine police to stop collecting bribe... this arm guys uses the usual faces the Securities knows to be frequently passing a particular route to smuggle in alot of things...

As much as it helps curbs smuggling activities temporarily but you can't deny that there are lots of Nigerians living on the other side of the border trading legal and needs the border open for the smooth movement of goods and of course passage ..
What about students studying there ... You people should reason at times
This is making things more difficult and don't just ignore because you have no business outside the borders

PoliticalWitch:


And the beauty of democracy is that you are meant to hold your leaders accountable.

The thing is, most Nigerians (me inclusiive) won't do the hard work of democracy...ie accountability. They just think that it is all about voting X or Y and then go home.

I quite agree with you from the 7 points highlighted.
the truth is Africa and Nigeria democracy is determined and influence by the power of gun.
the fear of gun is the beginning of wisdom and average man let alone a Nigerian.
The Animal Farm by George Orwell, come to mind.

Emyogalanya:
Still more stories cos the Rice issue was busted yesterday. this story is a cover up. Now they can't blame opposition it now our neighBours they want to blame

make sure

iretemide:
It's well

even inside well

spiritedtete:
In as much as it also affect my personal business... it is still a good move..

If people know the amount of guns.. and other illegal stuffs coming in through the land border. We will not open it anymore...


People smuggle Guns in through rice containers, and other goods. Which systematically increases the rate of crime.

Another area to tackle gun runners... is to watch those people from Togo and Benin republic, that come in through the water ways... some via smaller boat and some via smaller vessels from the Neighbouring countries.


And please tell the marine police to stop collecting bribe... this arm guys uses the usual faces the Securities knows to be frequently passing a particular route to smuggle in alot of things...

so how does Boko Haram get it's guns and why haven't these measures of closing the borders not implemented throughout the Northern borders?

So 9ja has

84land borders

And

1400 rougue route


I hail thee

Twalee

PoliticalWitch:
Well, one solution is to remove fuel subsidies...

Here is the thing. Fuel is being smuggled to neighbouring countries...because

1.In Benin, fuel is N298. In Niger, it is N370, and in Cameroon it is at least N300 per liter.

2.Subsidy works this way. Importers buy fuel at N200 per liter, and sell it to depot at N137. Government pays the difference (N63) between the cost of importation and sale...meaning many importers cannot make a profit.

3.So importers import fuel, smuggle some across the border....and make a cool profit.

4.Also, a lot of fuel marketers make a lot of profit by smuggling fuel across the border too. Buy fuel at N137...sell across the broder at N300 and above....that 's a tidy sum made.

5.Deregulation, while being hard on Nigerians (before you shout at ,me, I am fully aware that removing subsides is going to be harsh, and God knows I wish it was not so), would end this smuggling.

6. We could save over N500billion annually or more from removing subsidy...which could eventually lead to making improvements in trasport, education health, etc.

7.Investors in our oil and gas sector would be attracted, which means more refinereis, and crucially more jobs.

Bro! Well spoken!!! I wish our people will reason this way so we can move forward....

2extremes:
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naijapower:
Published October 13, 2019
Nigeria’s countless and unheeded calls to her neighours to stop aiding and abetting smuggling, which is damaging her economy, led to the closure of her land borders in August. The action, earlier meant to last for 28 days, has entered the third month with its end date still indeterminate.

At issue is the unremitting smuggling of diverse products across the country’s borders, including the smuggling of rice from Benin Republic. Benin imports 1.2 million metric tons of rice annually, against the backdrop of its population of about 11 million people. The country is not alone: Niger Republic, Chad and Cameroon form the other members of the devious quartet in this sabotage. This is seriously threatening Nigeria’s domestic rice production, which has unprecedentedly spiked with the Central Bank of Nigeria’s rice Anchor Borrowers Programme. As one bright spot in the economic recovery effort, it has helped official rice import from Thailand to plummet from 644,131 metric tons to 20,000 MT annually, as of 2018, said the Minister of Information, Lai Mohammed.



Undoubtedly, the closure has opened Nigeria’s eyes to new economic realities; and enamoured of them, the authorities have vowed not to reopen the borders until the affected countries learn to conduct themselves responsibly and in line with the principles that undergird the ECOWAS protocol on free movement of goods and services.

The Comptroller-General of the Nigeria Customs Service, Hameed Ali, at a recent meeting with the Senate and House of Representatives Joint Committee on Finance and National Planning, lauded the initiative. He said, “There was a day in September that we collected N9.2 billion… It has never happened before.” Currently the country ratchets up between N4.7 billion and N5.8 billion daily revenue from imports. According to the Customs boss, with borders closed, cargoes that used to go to Benin Republic to berth en route to Nigeria “are now forced to bring their goods to either Apapa or Tin Can Island, and we have to collect duty on them.”

Equally revealing is the drop in fuel consumption by eight million litres a day, says statistics from the Minister of State for Petroleum Resources, Timipre Sylva. Smugglers ferret out this volume of fuel daily across the borders. Besides the halt in rice and fuel smuggling, the border closure has become a boost to the local chicken market, while car malls with suspected smuggled automobiles are being raided by Customs to compel payment of duties. So far, the operation has been successful, largely due to the joint nature of the taskforce; Customs, immigration, police and military personnel are involved, coordinated by the Office of the National Security Adviser.

President Muhammadu Buhari is excited about the revelations from the operation and has threatened not to end it as long as our neighbours do not play by the rules. He should not capitulate to diplomatic pressure or the misguided nudges of local mercantile operators to end it until he is satisfied that the border haemorrhage is under control.

However, since the closure is not a permanent solution to this unabashed bazaar, government should not lose sight of the original intention of the action: to allow security agencies formulate effective strategies to stem the scourge. That blueprint ought to have been designed by now. Nigeria has one of the most porous borders in the world, aggravated by corruption of Customs officials and other state actors. The deployment of hi-tech in Nigeria’s 84 land borders is critical to addressing this systemic breakdown of border controls, while the challenges from the over 1,400 rogue routes, according to the Immigration authorities, should be faced squarely too.

Ali was forthright to admit that compromised Customs officials and the police helped to promote trafficking in contraband at the borders. He warned such officials of dire consequences if caught. But such thunderous countenances have not been in short supply from him; what the situation needs is a deliberate measure, not happenstance, to weed out tainted officials from the system. Without it, sanity will never prevail.

Nigeria’s “big brother” posture towards her neighbours has become ruinous to its economy and corporate existence. Therefore, enough is enough! With its small population, it is difficult for Benin to justify why it is the world’s sixth largest rice importing country, according to statistics by Worldatlas, if not for its illicit border trading activities, with Nigeria as the target. Through these breached borders, illicit arms are also trafficked into the country – a fillip to the epidemic of banditry, armed robbery, cattle rustling and, above all, Boko Haram jihadists who have killed about 100,000 people in their 10-year-old campaign to establish an Islamic caliphate.

No serious country allows its economy to be sabotaged by neighouring countries. ECOWAS protocol is hinged on free movement of “legal” goods and “legitimate” services. Nothing more. As economically advanced as the United States is, it is still deeply concerned about how to effectively police her border with Mexico to ward off illegal immigrants and prevent smuggling of contraband. Now that Nigeria seems to have woken up from her slumber, the border mayhem cannot be eradicated without systemic ports reform. No question, Apapa and Tin Can ports are disincentives to business in their present state: scanners are scarcely available, physical contacts of persons govern daily operations in this digital age and cargoes are not evacuated through rail transportation, but by tankers and trailers that queue for months, mired in bad roads. Many countries have corporatised or engaged the private sector in their operations for optimal efficiency and profit-taking. Massive technology deployment and decentralisation of tank farms are critical.

From the seaports of Antwerp, Belgium, Singapore, Amsterdam in Holland, Nigeria has a lot to learn in 21st Century port reforms to boost her economy. In the present circumstances, therefore, decongesting the Lagos ports by opening up the under-utilised Warri, Port Harcourt and Calabar channels has become inevitable.

PDP WILL NOT LEARN FROM THIS SANE CRITICISM, NA AS DAURA WAN MARRY SMALL WIFE FOR BUHARI DEM GO FOCUS ON. AWON GUNRUN!

ridbell01:
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2extremes:

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2extremes:
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start from that