urahara:


No , it's actually about 24 percent.

its 70%

https://www.cfr.org/blog/debt-servicing-tax-revenue-and-oil-nigeria

grandstar:


its 70%

https://www.cfr.org/blog/debt-servicing-tax-revenue-and-oil-nigeria

Yes but that's for debt servicing to oil revenue , not for debt servicing to the budget itself.the budget is higher than oil revenue .

urahara:



Yes but that's for debt servicing to oil revenue , not for debt servicing to the budget itself.the budget is higher than oil revenue .

Okay. Point clear.

At the end of the day, it is revenue that carries the day because that is what the government actually has.

mechanics:
So what's the way forward?

Get rid of the dubious “subsidy” and deregulate the sector...
That should attract investment, create competition and jobs in Nigeria, and have us exporting products rather than crude.
>

grandstar:


Okay. Point clear.

At the end of the day, it is revenue that carries the day because that is what the government actually has.

Still I don't see any reason why fuel subsidy should be removed ?

9jaRealist:


Get rid of the dubious “subsidy” and deregulate the sector...
That should attract investment, create competition and jobs in Nigeria, and have us exporting products rather than crude.
>

How does fuel subsidy deter investment ?

urahara:
Yes but that's for debt servicing to oil revenue , not for debt servicing to the budget itself. the budget is higher than oil revenue.

grandstar:
Okay. Point clear.

At the end of the day, it is revenue that carries the day because that is what the government actually has.

The budget is higher than revenue only because we keep BORROWING even more to finance our deficits...
Racking up more debt service obligations and merely kicking the can down the road until the day it inevitably catches up with us.
>

urahara:
How does fuel subsidy deter investment ?

Because investors will not build refineries locally if they are forced to sell their products below market price (at the government-decreed N145 price). That’s why (as I previously noted) the Dangote Group insisted on market-determined pricing for its products.
>

9jaRealist:


Get rid of the dubious “subsidy” and deregulate the sector...
That should attract investment, create competition and jobs in Nigeria, and have us exporting products rather than crude.
>

Nice one, but you mean subsidy is a scam abi?

mechanics:
Nice one, but you mean subsidy is a scam abi?

It is a scam on many levels...
But fundamentally, it’s an economic own-goal.
>

9jaRealist:


It is a scam on many levels...
But fundamentally, it’s an economic own-goal.
>

hmmmm, economic own-goal, don't understand.

9jaRealist:


Because investors will not build refineries locally if they are forced to sell their products below market price (at the government-decreed N145 price). That’s why (as I previously noted) the Dangote Group insisted on market-determined pricing for its products.
>

But if they are forced to sell their products below market price , won't the government then pay them subsidy which is the difference between the actual price and the govt decreed price?

urahara:


Still I don't see any reason why fuel subsidy should be removed ?

I take this comment back.

NgwalandAbia:


Busy body how did you know, as if your tribe hate money.

You fit kill even ur mama + papa for money wey no go follow you reach heaven

foreshore:


You fit kill even ur mama + papa for money wey no go follow you reach heaven

Let's kill you first to see if any value will be added.

NgwalandAbia:


Let's kill you first to see if any value will be added.

Na your village people you go kill

mechanics:
hmmmm, economic own-goal, don't understand.

It's an economic own-goal because we are effectively shipping refining jobs abroad (along with residual benefits for the greater economy).
>

urahara:
But if they are forced to sell their products below market price , won't the government then pay them subsidy which is the difference between the actual price and the govt decreed price?

That may "work" for the short-term...

But building refineries is not a short-term investment, and there would be major investment UNCERTAINTY regarding what would happen if there is disagreement with the government over what is owed the refiners. It's not like importers who just stop importing until their claims are settled.
>

9jaRealist:


It's an economic own-goal because we are effectively shipping refining jobs abroad (along with residual benefits for the greater economy).
>

okay, I grab.