NIGER, CAMEROON AND OTHER REPUBLICS AROUND NIGERIA BEMOAN TOO. IT IS KARMA COMING.

AmazingELixir:


Fake News.

Tinubu social media miscreants are at over drive to justify the badly executed subsidy removal.

I wonder who they want to curry favour from...certainly not people like myself.

This no fake news, I live around Badagry and I used to see what this petrol smugglers do sometimes, women will tie petrol inside some nylons and sacks to smuggle them, and even tankers from Ghana too moving our fuel through that border.

.

Demurray:

Security equal to smugglers and vice versa. If you know you know

Nothing like that. The reason is because,those in power are more corrupt than the securities.
If a sincere person is in power,every unit of security will be hold accountable

justmondris:

You done tire? Dey ask me jamb questions idiot

When people with sense are talking you should keep quiet so that you don't expose your foolishness.

It's people with low brain capacity that resort to insults instead of stating their positions logically and responding to opposing views like adults with sense and proper upbringing.

nairalanda1:


Will you sell your goods and services at a subsidised rate to help the poor then?

Waiting for your reply.


P.S The problem with subsidy is the differential between the production price and subsidised prices. It always grows due to inflation, people wanting better salaries, cost of doing business, etc. And it keeps growing. Another thing that causes it to grow is the increased consumptrioon

You can stop smuggling, and corruption and stealing, but the above cannot be stopped.

And selling crude in Naira? Won't help at all. All you are doing is still paying the same value....in naira.

At the end, the subsidy grows, until it eats up incoming revenue, and you have to borrow and borrow to keep up. And when that happens, problem starts.

Like now.

I didn't reply because it's a faulty question to start with. You have not been able to give any meaningful response to the points I raised however.

If you had bothered to read what I wrote you would have seen that removal of the subsidy is not the issue but the timing of the removal and the fact that there are a whole lot of things government is supposed to resolve before removing subsidy like fighting corruption and smuggling, ensuring transparency and accountability as well as getting our refineries working and providing all the necessary governmental support to ensure cost of production is as efficient as possible as this ultimately will reflect in domestic pricing and profit margins. It would also reduce our FX demand which will help strengthen our naira as exports of oil and refined products will drive FX inflow and boost our reserves. Hope you now understand the need to supply crude oil to refineries in naira? PPS selling crude to refineries in naira will also free up more needed FX for other sectors of the economy.

Objective of government is to serve the people and provide an enabling environment for businesses to thrive.

No individual will open a business to run at a loss. However the individual can put together packages and programs to give back a certain percentage of his profits or wealth which is the corporate social responsibility I alluded to earlier.

]

obi58:


I didn't reply because it's a faulty question to start with. You have not been able to give any meaningful response to the points I raised however.

It isn't and you did not answer because you know your answer would be no. And if it is no, your support for subsides on petrol sounds problematic.

If you had bothered to read what I wrote you would have seen that removal of the subsidy is not the issue but the timing of the removal and the fact that there are a whole lot of things government is supposed to resolve before removing subsidy like fighting corruption and smuggling, ensuring transparency and accountability as well as getting our refineries working and providing all the necessary governmental support to ensure cost of production is as efficient as possible as this ultimately will reflect in domestic pricing and profit margins. It would also reduce our FX demand which will help strengthen our naira as exports of oil and refined products will drive FX inflow and boost our reserves. Hope you now understand the need to supply crude oil to refineries in naira?

Even if we do all those things, and we should....the problem of the difference between the subsidised price and the cost of production rising AND the rising number of consumers is STILL there.

And the more both rise, the more it eats into our limited revenue, and the more the subsidy grows, the more it reduces our revenue...and forces us to borrow more and more to cover the resulting deficit.

See, the problem with subsidy is that it costs money to refine petrol. Unless you want to force domestic refiners to refine fuel at a loss making cost, or force crude oil extractors to sell at half the price to refineries, or you want to make people who own refineries start skimping on refining costs, there is no way you can adequately subsidise fuel.

The prooblem is people need to make a profit, to cut a long story short, to run businesses, including refineries, effectively.

And if they refine at a profit they have money for jobs, which helps the poor greatly.

Objective of government is to serve the people and provide an enabling environment for businesses to thrive.

Welfare...is what it is called.

But the problem is, welfare is funded by taxes. And in Nigeria, less than 40% of eligible people pay tax. Our tax to gdp ratio is lower than even Niger Republic self.

Poor income from taxes makes us rely on oil...which is not enough to give us an sustainable income. And NO, i AM NOT EXCUSING CORRUTPION...the corruption makes things worse.

No individual will open a business to run at a loss. However the individual can put together packages and programs to give back a certain percentage of his profits or wealth which is the corporate social responsibility I alluded to earlier.

[/quote]

Which our petroleum sector does in things like scholarships, community development projects and roads and so forth.

nairalanda1:
]

It isn't and you did not answer because you know your answer would be no. And if it is no, your support for subsides on petrol sounds problematic.


Even if we do all those things, and we should....the problem of the difference between the subsidised price and the cost of production rising AND the rising number of consumers is STILL there.

And the more both rise, the more it eats into our limited revenue, and the more the subsidy grows, the more it reduces our revenue...and forces us to borrow more and more to cover the resulting deficit.

See, the problem with subsidy is that it costs money to refine petrol. Unless you want to force domestic refiners to refine fuel at a loss making cost, or force crude oil extractors to sell at half the price to refineries, or you want to make people who own refineries start skimping on refining costs, there is no way you can adequately subsidise fuel.

The prooblem is people need to make a profit, to cut a long story short, to run businesses, including refineries, effectively.

And if they refine at a profit they have money for jobs, which helps the poor greatly.





Welfare...is what it is called.

But the problem is, welfare is funded by taxes. And in Nigeria, less than 40% of eligible people pay tax. Our tax to gdp ratio is lower than even Niger Republic self.

Poor income from taxes makes us rely on oil...which is not enough to give us an sustainable income. And NO, i AM NOT EXCUSING CORRUTPION...the corruption makes things worse.




Which our petroleum sector does in things like scholarships, community development projects and roads and so forth.

Please read this and educate yourself.


https://www.nairaland.com/7713443/president-tinubu-dangers-fuel-subsidy


Any responsible governments duty is to ensure the welfare of the citizens and not vice versa.

obi58:



Please read this and educate yourself.


https://www.nairaland.com/7713443/president-tinubu-dangers-fuel-subsidy


Any responsible governments duty is to ensure the welfare of the citizens and not vice versa.

Oga, I have been doing this for eleven years. And I have read that article, and responded to it.

If you want subsidy, we have only these things to do

1.Pray that oil raises to $130 per barrel OR

2.We all pay higher taxes, and also make sure everyone pays taxes.


(Countries that have subsides pay for them via taxes. We don't).

nairalanda1:



Oga, I have been doing this for eleven years. And I have read that article, and responded to it.

If you want subsidy, we have only these things to do

1.Pray that oil raises to $130 per barrel OR

2.We all pay higher taxes, and also make sure everyone pays taxes.


(Countries that have subsides pay for them via taxes. We don't).

Well I have been on this for over 15 years so that's nothing special.

Price per barrel should not influence our domestic oil production. That's why we should sell in naira to refineries here. In fact if we start refining and boost our refining capacity we will benefit from oil price rises as we export the excess refined product to other countries at international prices.

Bros please read about progressive taxation and how adopting the right taxation system can grow the economy and vice versa. Also we need to first ensure that government agencies are actually remitting all they generate. Corruption again. So many corporate bodies and wealthy Nigerians are undertaxed or not even paying tax so the effectiveness of the tax system also needs to be examined and refined.

So much to do if this government is serious about getting it right and moving this country forward.

justmondris:


Please re ask the question

Who are these "oil cabals"? Can you pls name them?

How do they get to the border and thereafter across the border?

If you call subsidy a scam, then there are scammers. Are these scammers ghosts?

Kukutenla:

Silly comparison
Rice, textiles cars and some other commodities are also cheaper in Benin Republic than Nigeria
I've not heard of their govt thinking of jacking up prices of such stuffs so that they stop being smuggled.
Besides, it's obvious this is cheap propaganda from the stable of agbadorians

Rice, textile, cars Jacked up Do you realize we also have Sea Ports in Nigeria and if not for the useless Buhari border closure policy those items you mentioned would be cheaper in Nigeria than in Benin? Are you aware that Benin is the second highest importer of Rice in the world because of the Nigerian market??


My prayers is Tinubu should fling open all the border restrictions policy of those items and see how prices of those goods crash down instantly.

thatigboman:
u people should stop deceiving yourselves. We produce crude oil and can't be expected to pay the same price for fuel as our neighbours that don't produce crude oil. Because government has failed to secure our borders, so ordinary citizens should bear the brunt of our goat's inefficiency.
Mind you, subsidy has not been removed.
Trust me, 15 years from now, you will still hear of subsidy in Nigeria. What's done is just outsreanous increase in the price of fuel.

You ar not thinking clearly
We Do not produce petrol
Oil and petrol are very different things. The latter has added value

It would surprise you to learn that the United States is the largest producer of crude oil in the world.
They do not subsidise petrol

By your logic we should subsidise garri since we produce cassava
We should has very cheap chocolate because we produce cocoa

The earlier we get rid of entitlement mentality the better
We produce oil because companies invested billions in finding it with a view to making profit.
They pay taxes and royalties which fund our budget and that should be that

thatigboman:
u people should stop deceiving yourselves. We produce crude oil and can't be expected to pay the same price for fuel as our neighbours that don't produce crude oil. Because government has failed to secure our borders, so ordinary citizens should bear the brunt of our goat's inefficiency.
Mind you, subsidy has not been removed.
Trust me, 15 years from now, you will still hear of subsidy in Nigeria. What's done is just outsreanous increase in the price of fuel.

You are not thinking clearly
We Do not produce petrol
Oil and petrol are very different things. The latter has added value

It would surprise you to learn that the United States is the largest producer of crude oil in the world.
They do not subsidise petrol

By your logic we should subsidise garri since we produce cassava
We should has very cheap chocolate because we produce cocoa

The earlier we get rid of entitlement mentality the better
We produce oil because companies invested billions in finding it with a view to making profit.
They pay taxes and royalties which fund our budget and that should be that

nairalanda1:


Yeah, because the profit margin from smuggling fuel...I could earn enough if I was a smuggler, pay off the customs and excise people and still come home with a ton of money.

Plus, here is a cold truth,...customs men and women cannot be everywhere. Unless we built the equivalent of the Berlin Wall around our country and manned it with over 3 million soldiers, we won't stop this nonsense.

At least that loophole is closed for now.

The same thing happens in Venezuela. Fuel is less than N10, meanwhile in its neighbours it is above N500. Result...Venezuela loses 18 BILLION dollars annually to smuggling.

It's like osmosis...area of high concentration and all that.

Nonsense. I hope 3 million men manned the borders during closure and food import embargo from neighboring countries?

Keep exergerating alternative to sell the subsidy removal idea.

CodeTemplar:
Nonsense. I hope 3 million men manned the borders during closure and food import embargo from neighboring countries?

Keep exergerating alternative to sell the subsidy removal idea.

K.

nairalanda1:


K.

backbencher.

CodeTemplar:
backbencher.

L.

nairalanda1:


L.

Peka.

CodeTemplar:
Peka.

M.

lexy2014:


Who are these "oil cabals"? Can you pls name them?

How do they get to the border and thereafter across the border?

If you call subsidy a scam, then there are scammers. Are these scammers ghosts?

Oga keep asking me Jamb questions

Bobloco:
I knew that they will come out with this propaganda

We are waiting for Niger, Togo, Chad and Cameroon

All to justify this thoughtless decision by Tinubu

Instead of fixing refineries, blocking leakages, having an effective and efficient border patrol to arrest and prosecute these smugglers

You typed flawlessly but with zero sense.
Is it Tinubu that remove subsidy?
You want Tinubu to go bourdillion and subsidise fuel from his bullion van?
No budget for subsidy beyond June which Buhari has made clear ever since.
Tunibu have no option than to do the pronouncements as early as possible and as both Nigeria and international community are watching live.
Your Job is to educate people and let see where the removal is gonna lead us.
Everybody have one or two reservations about the subsidy removal but let watch as things unfold.

Bobloco:


Are you now saying that the masses should suffer because the government refused to their jobs

Automatically, masses would suffer whenever government refused to do their jobs, it is logical. Its left to the government to stop at nothing to do their jobs so that masses would enjoy .

Quintopia:


Mumu. There are no “proceeds” from the subsidy removal because the 10 billion dollars a year subsidy was paid for with borrowed money.

Lol I'm no mugu but you could be if you believe this subsidy scam. I just realized we have been lied to this whole time.

DOptical:
Imagine. Nigeria using huge funds to subsidise fuel for the whole Africa nation while Nigeria masses themselves bear the brunt of it all.

corruption everywhere. Why can't they be stopped at the border.

justmondris:

Oga keep asking me Jamb questions

It's not jamb questions. It's nursery school questions.

Who are these "oil cabals"? Can you pls name them?

How do they get to the border and thereafter across the border?

If you call subsidy a scam, then there are scammers. Are these scammers ghosts?

justified007:




They have been borrowing to pay the fuckingg subsidy and the figure keep increasing at alarming rates

.Jesus Christ. Monthly

Bobloco:


This is pure propaganda

How is these products finding their way to those countries. No one have been sacked for not doing his job in securing our borders or arrested by the security agencies for smuggling



Instead of tackling the issues, they keep running around

Hello this is not a propaganda I live in the border I know what I am saying
Leave politics aside there’s no way government can totally eradicate smuggling no way

Djbme:


Hello this is not a propaganda I live in the border I know what I am saying
Leave politics aside there’s no way government can totally eradicate smuggling no way

Why?

It can be curtailed, if it's not totally eradicated


The problem with us in this part of the world is that we accept abnormalities as normal

When government failed to do their job, they create a scenario of helplessness and then push push the resultant consequences on the masses

Bobloco:


Why?

It can be curtailed, if it's not totally eradicated


The problem with us in this part of the world is that we accept abnormalities as normal

When government failed to do their job, they create a scenario of helplessness and then push push the resultant consequences on the masses

That’s what I just said , smuggling can’t be totally eradicated especially here in Africa

Bobloco:
I knew that they will come out with this propaganda

We are waiting for Niger, Togo, Chad and Cameroon

All to justify this thoughtless decision by Tinubu

Instead of fixing refineries, blocking leakages, having an effective and efficient border patrol to arrest and prosecute these smugglers

Can someone make me understand how a tanker load of fuel can possibly leave shores of Nigeria to our neighboring countries if not with connivance of security agencies, could that be possible?

obi58:


Bros ... The crude oil is a free gift of nature. We can decide as a nation how much we want to sell the product domestically to refineries locally and internationally at OPEC prices. That's what we should do. We can decide to sell 30% of our daily output in naira and the rest to the international market in dollars. I can assure you government will still make a very healthy profit. But there is a cabal that will sing the song that it doesn't work that way in the downstream oil sector as everything is denominated in dollars but to this I say that government decides on the policies and operating conditions for oil exploration in Nigeria and players unwilling to adhere to government's conditions are free to exit. We all know that several other oil companies will jump at the opportunity to take their place! I always use this adage that if you are a cassava farmer, you will not charge your family for the portion of your produce you use to feed them whilst taking the rest to the market to sell. It would be stupid of you to go and buy garri at the market when you produce it yourself.

I'm sure you are aware of the oil swap deals done by the government with foreign countries to reduce the FX spent on fuel importation?

In essence, there is no hard and fast rule about these things. It is the choice of government to subject their oil to international prices or not and every government seeks to do what is best for its people and not for the international market.

Don't be emotional.. Cos oil is surplus here does that mean that Government mine it from the ground free of charge?

Have you considered the cost of bringing out crude oil from the ground?