Satanic combo of good for nothing impoverishers!

Pathetic bunch of useless baaaastarrrds!

adamsmith914:
Nothing like NEPA it belongs to Private companies, Eko Electric, Ikeja Electric, Bedc, ibedc & co, same people like you that are here on Nairaland.

I know. I just use the name to refer to them in general

Fourwinds:


We have been urging people to do the needful... Endsars was one way of holding government accountable.. Did you see the way they handle it...people go out for peaceful protest, what government now do is to bring in hoodlums and thugs to make it look violent.. Even here on Nairaland, you see the pathetic palliative zombies supporting clear fail government....
I don't know how some foolish Nigerians reason...all because of #30000 per month...they sold their generations to useless politicians

Well, one quote i like from the BLM people...the struggle is a process

We need to understand our economic dynamics first and look for economic solutions that suit our peculiarities.

backbencher:


And remove price controls...because one cannot do business and be having government control his or her prices.

Plus GSM did not go through capital market then...

Gsm was a new field and govt never controlled it. Instrad they brought competition and it crashed down price. The Nitel thay was sold was done though the capital market(transcorp group). You cant have Eko distribution controlling IKEja this and that and call that privatisation. You need to give consumers opportunities to choose who they get service from

This body called IMF had never done Nigeria any good. They should pack well with their useless economic policies.

Poanan:


Gsm was a new field and govt never controlled it. Instrad they brought competition and it crashed down price. The Nitel thay was sold was done though the capital market(transcorp group). You cant have Eko distribution controlling IKEja this and that and call that privatisation. You need to give consumers opportunities to choose who they get service from

Which is what I hope they would do...cross border competition among DISCOS. (You cannot pay Eko bill...get a Kaduna disco meter and pay cheaper!)

But someone once told me it means using some tech which we don't have yet...

backbencher:


Well, one quote i like from the BLM people...the struggle is a process

The Nigerian government is an oppressive government... The only language they understand is violence

latuntop:
This body called IMF had never done Nigeria any good. They should pack well with their useless economic policies.

IMF has given us a lot of loans over the years, that if they had not given us, by now we would be talking of three years of unpaid salaries !

They give us loans because the oil we sell is never at a price that can sustain us fully.

dallyemmy:
It is not realistic. Have you heard about Structual Adjustment Programme and its negative impact on Nigerian Economy? Do a little research on it.

Where are the professors in Economics from this country? They need to help our government to develop realistic economic policies

With the teaming number of unemployed people in this country, how the hell do you expect them to pay the high tariffs ensured by the removal of these subsidies. The IMF advicing you to remove all the subsidies pay their people unemployment benefit and Covid-19 allowance in the United States.

Barryseal:

With the teaming number of unemployed people in this country, how the hell do you expect them to pay the high tariffs ensured by the removal of these subsidies. The IMF advicing you to remove all the subsidies pay their people unemployment benefit and Covid-19 allowance in the United States.

Well, the subsides are forcing us into debt and more debt...especially as we spend more of our oil revenue on subsidies...meaning we have to take loans to keep our head above water....so either way..it is high tarrifs for a little while, or more debt..which we would keep on paying.

backbencher:
On a more serious note, removing subsides on fuel and power means two things

1.Government stops spending money on subsides...which means that more money gets saved...plus due to investment flowing in, there is more taxable income from jobs and company earnings..more money for government

2.Second, since there is no subsidy, the electric and power companies now work at a profit, which means they would earn enough money to build more refineries, power stations, etc. They would also be able to afford to buy cables, wires, transformers , so that power customers can stop buying those things. And there would be foreign investment because now people can make profits in the sector...and finally more and more jobs.

Finally, a note on subsides.

Government controls the price of power and petroleum...which they set below the cost of productionmeaning that power and petrol companies run at a loss...meaning that subsides have to be paid to keep the companies from going bust.

But because the cost of production rises, and is never static, the government sometimes has to reduce the amount spent on subsidies to save money...and that manifests as a price increase.

The ideal would be for subsides to go and price to be in the hands of companies in the petrol and power sector...so that they earn profits to fix and upgrade services....and also competition would bring down prices.

The high price aspect of removing subsides...and the knock on effects (food price increase for example) is why most Nigerians oppose subsides. That shock can be mitigated by government doing as was done in some other countries..paying some money to car owners to mitigate subsidy related rises.

This is for a country that works not a complex society nonfunctional one like ours. This is what will happen; Our government saves no money they embezzle it that's number one. So expect no savings but massive stealing and corruption. As Inflation rises, more businesses will shutdown,more unemployment,poverty and hunger, increased insecurity leading to low investment.
Things are Designed to fail here.

Amhappy:

This is for a country that works not a complex society nonfunctional one like ours. This is what will happen; Our government saves no money they embezzle it that's number one. So expect no savings but massive stealing and corruption. As Inflation rises, more businesses will shutdown,more unemployment,poverty and hunger, increased insecurity leading to low investment.
Things are Designed to fail here.

1. Actually we save money. That we don't save more isn't just due to corruption...we also subsidize everything. (In case you don't know, education and health in government institutions is subsidsied...which is why when you gain admission into a Nigerian government uni you don't pay N3 million per session or higher)

2.Nigerians also don't hold their government to account because of laziness and also because many Nigerians are hoping their side will win so that they can get into power and enjoy the corruption there. Fighting corrupt rule is against many Nigerian's self interest....which is why many Nigerians are so cynical about government

3.Remove subsidy, and since in principle, there is no price control, meaning one can earn enough profits..there would be more investment and more investors...meaning more jobs long term and price falls due to competiton. (We could even be an exporter of refined petrol and stuff!)

PrinceOfLagos:
Does the president listen to advice ?

He doesn't listen to anybody

Thank God he didn't listen to IMF....

Egypt and Argentina that listened to IMF advise are in deep shit now with worse economy and difficult IMF loans... same IMF now accepted they didn't give the best guidance to both

backbencher:
If subsidy goes, investment flows in...meaning more and more jobs

Also, more and more taxable income.

But Nigerians want cheap fuel and cheap power...

Be careful what you ask for.... Argentina took those recommendations and it didn't pan out

promisedire:
IMF conditions might have actually worked out in some of these western countries (No Doubt) but you see Africa economy is kinda unique! Especially Nigeria own; there are other important issues we should consider other than focusing on subsidies removal … subsidy removal in the long run will bring a positive effect � but ignoring the current realities will create impediment and further chaos economically which will certainly affect the goal of subsidy removal;

Plus saying it will create more jobs now is a lie; it should ooo but it won’t, with the way Naija dey go so na lie …, we will pay more whereas we are earning little … we should just stop falling for some beautiful economic jargons which we have been blindly implementing on our economy and has failed to produce needed result

Beautifully written. We must factor in our uniqueness.

mapet:


Thank God he didn't listen to IMF....

Egypt and Argentina that listened to IMF advise are in deep shit now with worse economy and difficult IMF loans... same IMF now accepted they didn't give the best guidance to both

1.Egypt is to some extent prosperous.

2.Argentina's issue has more to do with lack of productivity (both the left and the right are to blame for it) as welll as the poor way their economy and supporting infrastructure is placed (to get from one point to the other in Argentina, you have to pass through the capital by rail).

3.Both countries could do better if they used industries and innovation. China did that, and IMF can tell them nada.(And it took china time...at one time, China products were of poor quality. NOW...).

IMF is all about making back thier loans with interest, they have no intention of working for Nigerians interest.

mapet:


Be careful what you ask for.... Argentina took those recommendations and it didn't pan out

On the other hand, doing it our way means that

1.We don't have functioning refineries because selling petrol at a cost below what it costs to produce means that there isn't enough money to keep refineries functional.

Profits are the reason why people can produce. (That's why we don't subsidize food in this country...we would have ended up with food scarcity because no profit to pay farmers and transporters)>

2,We have a bad power sector, and DISCOS that cannot meet up with demand.

On the other hand, the refusal to subsidize GSM is why I can type this from home at a reasonable internet speed (in 2002, my options would have been an internet cafe, with a very slow dial up system that sometimes did not work self).

3.Production costs rise...and keeping the cost price of such things like petrol and power means that you have to spend more and more on subsidies. And that eventually means loans and more loans.

It's a harsh choice, but removing subsidies is the lesser evil...and may guarantee long term benefits.

P.S here is a graphic showing how not following IMF advice on power did wonders for our power sector...

backbencher:


1. Actually we save money. That we don't save more isn't just due to corruption...we also subsidize everything. (In case you don't know, education and health in government institutions is subsidsied...which is why when you gain admission into a Nigerian government uni you don't pay N3 million per session or higher)

2.Nigerians also don't hold their government to account because of laziness and also because many Nigerians are hoping their side will win so that they can get into power and enjoy the corruption there. Fighting corrupt rule is against many Nigerian's self interest....which is why many Nigerians are so cynical about government

3.Remove subsidy, and since in principle, there is no price control, meaning one can earn enough profits..there would be more investment and more investors...meaning more jobs long term and price falls due to competiton. (We could even be an exporter of refined petrol and stuff!)

You still don't get it. A country is not a business venture with the sole aim to make profit. So it's not black or white. Even develop countries still pays subsidies. How much is our savings in the last two years? The money the Obasanjo regime saved during the oil boom what was it used for? The funds repatriated where are they? Looting, multiple leaks and misappropriation of funds is a major problem here. Now oil prices are going up,what has changed?
Nigeria cannot do without subsidized health and education because we are poor. How many Nigerians earn enough to afford standard health care. How much is education and health budget that the government will be claiming they pay much in subsidy? International bodies and NGOs spend a lot of money in our health sector. In the countries where these things are not subsidized they have functional health insurance, school loans, scholarships and good welfare etc. Our unemployment statistics is off the roof. Minimum wage is 30,000.
Buhari during climate change talked about our unique situation. It's not limited to zero carbon.

backbencher:


Which is what I hope they would do...cross border competition among DISCOS. (You cannot pay Eko bill...get a Kaduna disco meter and pay cheaper!)

But someone once told me it means using some tech which we don't have yet...

That is what they will say but I dont it. If u remember they said same for GSM when they said per second billing not possible. But when glo came out with per second billing it become possible for mtn and the then econet.

Guyman02:


I have worked on Govt projects and sat down as FG representative on meetings with these foreign experts that I can tell you all that you are conjuring doesn't work that way in Nigeria.
Nothing much will change but more hardship for Nigerians, all those we will be creating millions of jobs from implementing IMF recommendations is nothing but arrant nonsense and balderdash

Thank you. When people talk I ask no be this same Nigeria abi it remain somewhere. Remove all the subsidies
Petrol,power, education, health etc you won't see any changes. You will end up creating more problems.

Amhappy:

You still don't get it. A country is not a business venture with the sole aim to make profit. So it's not black or white. Even develop countries still pays subsidies

.

The money that developed countries use to pay subsidies comes from very high tax rates. If we charged the kind of tax rates they did here, Nigerians would be angry.

Plus subsides there go to people who qualify for them...poor people. Not for everyone like in Nigeria. Finally Nigeria funds subsides from oil money..and oil prices have not been stable for decades. , and in some instances have been rock bottom low (like last year)...meaning we have to take loans to keep our heads above water...and those loans also go into subsidy payments.(especially in power where subsidies are paid for in part by loans).

It is costing us a lot of money really.

How much is our savings in the last two years? The money the Obasanjo regime saved during the oil boom what was it used for? The funds repatriated where are they? Looting, multiple leaks and misappropriation of funds is a major problem here. Now oil prices are going up,what has changed?

1.That is why in a democracy, you hold your government to account. Nigerians don;t want to do that because of many reasons...I have listed them upthread.

2.Some of the savings went to salaries, subsides, paying off debt, subsidies, and buffering the Naira..(if we didn;t do the last we would be at N2000 to one dollar by now).

Nigeria cannot do without subsidized health and education because we are poor. How many Nigerians earn enough to afford standard health care. How much is education and health budget that the government will be claiming they pay much in subsidy? International bodies and NGOs spend a lot of money in our health sector. In the countries where these things are not subsidized they have functional health insurance, school loans, scholarships and good welfare etc. Our unemployment statistics is off the roof. Minimum wage is 30,000.
Buhari during climate change talked about our unique situation. It's not limited to zero carbon.

And the IMF is not asking us to remove subsidies on health and education, just power and petroleum...plus removing subsides on power and petrol means
1, More money for subsidies on education and health (right now what we spend on subsides could have enrolled 1 million Nigerians on NHIS for example).

2More taxable income...which can be funnelled to...education and health.

backbencher:
If subsidy goes, investment flows in...meaning more and more jobs

Also, more and more taxable income.

But Nigerians want cheap fuel and cheap power...

Can u pls explain this in details, would love to know how

ambale:


Can u pls explain this in details, would love to know how

Done enough of that on this thread. Just read my comments.

But to give you some more...before I go (I need my Premier league fix this evening)

Why are oil subsidies bad economics?
Every year, the Nigerian government runs huge budget deficits that could have been avoided if money budgeted for oil subsidies was allocated to other critical projects.

Subsidies should be used to spur investment in activities that raise the productive capacities of an economy (such as education, health, entrepreneurship, and infrastructure). They should be targeted at strategic sectors of the economy. They should not be used to finance non-durable consumption items like petrol.

Oil subsidies are inequitable, as they transfer the national wealth to those who own several cars and add little or no value to the national economy.

In lieu of subsidies, the government should invest massively in public transportation and boost the transport allowances of public-sector workers.

Removing fuel subsidies would also be good for the environment and safety on Nigerian roads. When motorists pay the full economic price for petrol, they will drive less, emit less pollution and reduce the incidence of road accidents.

There should be a clear communication to Nigerians that the removal of fuel subsidies favours the poor, and eliminates one of the several perks that the Nigerian elites undeservedly enjoy.

SAUCE

funshint:
I shiver anytime I hear IMF giving a country advise. Those people are demons!

this is the truth. if you know you know!

funshint:
I shiver anytime I hear IMF giving a country advise. Those people are demons!

they don't know

funshint:
I shiver anytime I hear IMF giving a country advise. Those people are demons!

They only have advice and loan for africa but not for europe and america. This is economic enslavement.

backbencher:
If subsidy goes, investment flows in...meaning more and more jobs

Also, more and more taxable income.

But Nigerians want cheap fuel and cheap power...

Are you saying fuel and power are cheap in Nigeria? Considering our purchasing power, standard of living and other factors.

backbencher:
.

The money that developed countries use to pay subsidies comes from very high tax rates. If we charged the kind of tax rates they did here, Nigerians would be angry.

Plus subsides there go to people who qualify for them...poor people. Not for everyone like in Nigeria. Finally Nigeria funds subsides from oil money..and oil prices have not been stable for decades. , and in some instances have been rock bottom low (like last year)...meaning we have to take loans to keep our heads above water...and those loans also go into subsidy payments.(especially in power where subsidies are paid for in part by loans).

It is costing us a lot of money really.



1.That is why in a democracy, you hold your government to account. Nigerians don;t want to do that because of many reasons...I have listed them upthread.

2.Some of the savings went to salaries, subsides, paying off debt, subsidies, and buffering the Naira..(if we didn;t do the last we would be at N2000 to one dollar by now).




And the IMF is not asking us to remove subsidies on health and education, just power and petroleum...plus removing subsides on power and petrol means
1, More money for subsidies on education and health (right now what we spend on subsides could have enrolled 1 million Nigerians on NHIS for example).

2More taxable income...which can be funnelled to...education and health.

Nigerians pay taxes in developed countries. Japa is popular because we love the good life and won't mind paying for it. The tax culture will improve if we earn and there's accountability. If I had power and i don't have to buy fuel for generator,I wouldn't mind paying more for power.
Many Nigerians are poor and if subsidies are saved for the benefit of the poor,then what about hoarding and looting? Covid19 palliative, even trader money,school feeding comes to mind. We are a greedy people.
Government is not held accountable mostly because we don't know that we can and how. Also ours is a complex society where tribal and religious politics is rated above well being. Many of us don't benefit from the cabal and are not next in line either.
How do we know IMF won't ask for more if this fails afterall their aim is to ensure we service our loans. I want the best for my country and if this will work,Thanks be to God.

Newton2024:
Are you saying fuel and power are cheap in Nigeria? Considering our purchasing power, standard of living and other factors.

Yes, compared to other African countries with similar purchasing power, and standard of living, we pay a very low price for fuel.

We even pay lower than Chad, Niger, and Central African Republic which are poorer than we are...also lower than Liberia and Sierra Leone...and Chad and Niger are 'oil producers'.

We are the fifth cheapest in the world self. See this chart.

backbencher:
On a more serious note, removing subsides on fuel and power means two things

1.Government stops spending money on subsides...which means that more money gets saved...plus due to investment flowing in, there is more taxable income from jobs and company earnings..more money for government

2.Second, since there is no subsidy, the electric and power companies now work at a profit, which means they would earn enough money to build more refineries, power stations, etc. They would also be able to afford to buy cables, wires, transformers , so that power customers can stop buying those things. And there would be foreign investment because now people can make profits in the sector...and finally more and more jobs.

Finally, a note on subsides.

Government controls the price of power and petroleum...which they set below the cost of productionmeaning that power and petrol companies run at a loss...meaning that subsides have to be paid to keep the companies from going bust.

But because the cost of production rises, and is never static, the government sometimes has to reduce the amount spent on subsidies to save money...and that manifests as a price increase.

The ideal would be for subsides to go and price to be in the hands of companies in the petrol and power sector...so that they earn profits to fix and upgrade services....and also competition would bring down prices.

The high price aspect of removing subsides...and the knock on effects (food price increase for example) is why most Nigerians oppose subsides. That shock can be mitigated by government doing as was done in some other countries..paying some money to car owners to mitigate subsidy related rises.

It is laughable for you to expect an electricity distribution coy that has refused to meter their customers but sit down in their office to allocate bills indiscriminately would start buying electric poles and transformers suddenly.

Not AEDC abeg.