RiceProducers:


Nigeria should not be divided. Cannot be divided

actually should be balkanized! There's no need to be together if you dont have one value system

backbencher:


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)



SAUCE

Now I get your points

The funds can be channeled to other aspect of the economy instead of subsidies which will create more wealth in the larger society.

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.

No one explained it better

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...

Shut the fuçk up! Where did you learn your economics from? They gave Babangida the same advice in the mid 80s, and he followed it, implementing the infamous SAP; that was how he wrecked Nigeria. Western nation's give social packages to their citizens, including free houses, unemployment benefits and even stipends to irresponsible girls that get pregnant out if wedlock, but tell you to cut subsidies, and here you are calling your country men cheap. You think oyinbo people work harder than you?

ADAMUdaCOWBOY:

..?

Thank you for your time, and do have a good morning.

backbencher:


Well, companies have to make profit because if they don't, they won't be able to make enough money to fix and upggrade and expand things (which is why in the power sector...people still have to buy cable , for the discos because the discos are not making enough due to subsidy)

Plus, if companies don't upgrade their services, they would go out of business.



1.We have a bad currency because we spend a lot of our revenue on paying for subsides to cover the losses made from keeping prices low...meaning no forex to buffer the currency

2.Also we have a bad currency because the price of what we earn is never at a level that can sustain our large populaiton, and the same goes for agriculture and minerals.

3.We also import and import all things...even stuff we make...which makes us lose more and more forex...and thus gives us bad currency and inflation.

Whereas if we remove subsides...not only would we save more money...we would attract more money because it would now be attractive to invest in Nigeria...more money flows in, economy benefits.

See GSM. It isn't subsidised...so as a result...it is growing, jobs have been and are being created, and it is earning us a lot in taxes.

See when u compare everything pls dont bring in GSm it is a diffrent ball game. On the issues of companies uprgading baba in theory yes but in practical it will not happen in this naija who will regulate or monitor them is it the same CPC that is been bribed see just forget it

Cognitivereason:

Ur not reasoning on a long term...
Those policies recommended by IMF is what is needed for sake of tomorrow not even today...the more we keep ignoring it the more the cost of maintaining the old methods (subsidies) become high and the more we keep losing investment...

Subsidies can not be sustained anymore ...it has nothing to do with European or Africa...
Can't u see the glaring differences between power and petrol in ghana ,south Africa and in Nigeria

Have u taken out time to ask ur self if they pay subsidies over there..the answer is No

Bro leave story how can u say subsidies can not be sustained when America still subsidize some sectors in their economy, likewise the UK see u ppl always bring theoretical stuff here that don't usually work.

Same IMF lead Nigeria to it's doom in the 80s through IBB and here we are again ! so when subsidy is removed and prices of goods increases 200% what do u want the common man to do? so we should live in abject penury abi ? walahi that subsidy u are seeing still have where it helps the common man on the streets so called money u want to save will be stolen Fact

It u say so

atiku07:



Bro leave story how can u say subsidies can not be sustained when America still subsidize some sectors in their economy, likewise the UK see u ppl always bring theoretical stuff here that don't usually work.

Same IMF lead Nigeria to it's doom in the 80s through IBB and here we are again ! so when subsidy is removed and prices of goods increases 200% what do u want the common man to do? so we should live in abject penury abi ? walahi that subsidy u are seeing still have where it helps the common man on the streets so called money u want to save will be stolen Fact

atiku07:


See when u compare everything pls dont bring in GSm it is a diffrent ball game. On the issues of companies uprgading baba in theory yes but in practical it will not happen in this naija who will regulate or monitor them is it the same CPC that is been bribed see just forget it

So if you ran a business selling coca cola at 200 naira a bottle , which you bought from the company at 150 a bottle. , and then government steps in and tells you to sell that bottle of coke at N50 a bottle, how would you make a profit and pay the company making the coke?

You won't.

That's how we have treated our petroleum sector and why we don't have refineries and why NNPC is not as profitable as it should be.

Truth is bitter. Very bitter sir.

backbencher:


So if you ran a business selling coca cola at 200 naira a bottle , which you bought from the company at 150 a bottle. , and then government steps in and tells you to sell that bottle of coke at N50 a bottle, how would you make a profit and pay the company making the coke?

You won't.

That's how we have treated our petroleum sector and why we don't have refineries and why NNPC is not as profitable as it should be.

Truth is bitter. Very bitter sir.

Ur analogy in this case is wrong and not related.

The truth is Government is the sole importer of fuel into the country and he sells at reduced price to the retailers and as well as come in on behalf of the consumers in the pretext of subsidy, by calculating a normal profit and cost of transportation and pay same to marketers so tell me where they are loosing out? U see until Nigerian elites understand the fact that it is not everything that should be left in the hands of private sector then u will know we are making a big mistake. Look at normal cooking gas that government is not involved, a basic house hold need been sold for almost 1k per kilo now tell me how affordable that is? an average business man is a greedy fool and that is why government need to come in and maintain balance. All this una mago mago theory will impoverish average joe in the country QED

atiku07:


Ur analogy in this case is wrong and not related.

The truth is Government is the sole importer of fuel into the country and he sells at reduced price to the retailers and as well as come in on behalf of the consumers in the pretext of subsidy, by calculating a normal profit and cost of transportation and pay same to marketers so tell me where they are loosing out? U see until Nigerian elites understand the fact that it is not everything that should be left in the hands of private sector then u will know we are making a big mistake. Look at normal cooking gas that government is not involved, a basic house hold need been sold for almost 1k per kilo now tell me how affordable that is? an average business man is a greedy fool and that is why government need to come in and maintain balance. All this una mago mago theory will impoverish average joe in the country QED

Goverment cannot come and import fuel at N270.and sell it at N160.

How would it pay those it is importing from?

Simple . They use money that should have been used for fixing refineries and other things to pay the importer and then take a loan to meet up. NNPC too.ends up operating at a loss.

Plus we have bad refineries because we were refining fuel and selling it at a loss for decades.

See the problem. Just as you cannot buy coke at N150 and sell at 50 naira. How are you going to pay the manufacturer? And make profit.

Better go and read about why subsidy is a bad thing.

You cannot force NNPC to buy petrol at N265 or more and sell it at 165 naira , or to refine petrol at over 200 naira and sell it at N165 and expect it to have profit to keep its refineries working. At the end of the day you would be diverting money from other sectors of the economy and oil revenues from states and local government to keep NNPC from collapsing. And you will take loans to keep your head above water.

See the problem?