Below are two images, and if you look at the images, they show something

1.Cost of subsidy as a percentage of oil revenue rises year in and year out till it chops a big part of the oil revenue

(This has a negative effect on our budget, as we have to borrow to fill the resulting deficit. That's why GEJ borrowed when we had plenty, ojota marchers buharists, and agabdo people, and why Buhari too borrowed, Obidents and atikulators).

2.When it falls it is because of a) partial removal of subsidy by raising the price of fuel...as seen in 2011-12, 2015-16, and even 2019-21. 2) very low oil prices (2020).

Am posting this because when I say I support subsidy removal, a lot of people think it is because I support tinubu(I do not, and even think that APC is not a good party, and was hoping they'd get voted out, that I was ready to even get rid of my revulsion of PDP)..or because I am some rich insincere ajebuter who does not care about poor people, or who knows nothing about how the other half lives.


I post this because at the end, if we kept fuel at say N65, from 2011, the cost of keeping it would have eaten our revenue. Keeping fuel at N195 has cost us N3.6 TRILLON naira this year plus we still owe NNPCL 2.8 trillion in arreas.

If subsidy costs are allowed to rise, they would reach a point where they eat our earnings, eat our salaries, eat everything, even the loans we take....and then we would be at zero income...and then the big IMF would be looking at us one kind.

This is true even if we fight corruption or fix the refineries, or stop smuggling. We cannot at the end of the day control the actual cost of refining petrol from crude and transporting it.

God help me, I wish it was otherwise.

Ad fixing power? If you have followed all I have said, we would be so busy paying for subsidies that there would be no cash for power.

Source of image 2

image 1