Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / NewStats: 3,195,057 members, 7,956,949 topics. Date: Monday, 23 September 2024 at 11:36 PM |
Nairaland Forum / Nairaland / General / Politics / Obasanjo To Jonathan: Don’t Remove Subsidy (10943 Views)
Remove Subsidy, Stimulate Infrastructure, Tinubu Tells Buhari / Youth Leaders To Jonathan: Don’t Contest 2015 Election / Okogie On 2015: Don’t Run, Jonathan, Don’t... (2) (3) (4)
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by rexokemute: 12:12pm On Dec 20, 2011 |
. |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by member479760: 12:19pm On Dec 20, 2011 |
the talk too much, make he remove the tin make we see wetin go happen! |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by Nobody: 12:25pm On Dec 20, 2011 |
First of all, let us be clear : Fuel is not subsidised. Meaning that consumers are already paying per litre more than it cost Nigeria to produce fuel. Why the government is being so deceitful by calling fuel price increases, "subsidy removal" is beyond me. Perhaps they think by calling it "subsidy removal", there would be less protest as presumably people would believe that government is simply withdrawing a "gift" (the supposed subsidy) they had given us . Well during his era, Obasanjo continually hiked fuel prices (upto N75 /litre) under the same pretence of "subsidy removal" and said he would use the money on "other things". In the end, he could not show what he use all the revenue realised for. And the same old fool Obj is here lecturing GEJ not to "remove subsidy" even though current fuel prices at N65/litre is less than what he had imposed on us before he left office. This old fool Obasanjo has no shame! The truth is that IMF have instructed our government to impoverish Nigerians further and the fuel hike is going to go hand in hand with the devaluation of the Naira. That is the real reason for the price hike, so do not be expecting any revenue from it to be available to be spent on "other things". You would realise that what devaluation does is to cause price of almost eveything to increase (rise in inflation). Since the government does not compensate the masses with an equivalent adjustment or rise in wages, what it effectively means is that everybody effectively takes a massive pay cut (mass impoverishment). So since it seems that government is proposing N140 /litre , this would indicate that the devaluation would eventually be about 50% - which means price of most things is likely to double and the exchange rate could reach $1=N320 Fellow Nigerians prepare for the latest round of our impoverishment!! God bless us all and Nigeria ! |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by juman(m): 12:32pm On Dec 20, 2011 |
Reggie2: Reggie2: TRue talkssss |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by juman(m): 12:33pm On Dec 20, 2011 |
Subsidy should go. “Chief Obasanjo did not mince words in telling the President to drop his plan of removing fuel subsidy. He told the president that the nation already has enough problems to contend with, and removing fuel subsidy at this time could compound the problems,” the source said. The problems he OBJ massively contributed on and forced on the masses. He should go away joorr. |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by madjune(m): 12:35pm On Dec 20, 2011 |
They say, if our 4 refineries are working at full capacity, there wont be any need for subsidy whatever. Now, i ask- why aint the govt talking about repairing these four refineries? will it cost a trillion dollars to get them working? I remember the sound pro arguments for SAP before IBB launched it. Naira is where it is today becos of that decision. |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by Nobody: 2:38pm On Dec 20, 2011 |
Anytime a Yoruba leader gives advice, watch it him and some of his tribe men are gaining tremendously from there. Now his company are enjoying fuel subsidy, he is asking GEJ not to remove it so that the money will still be going into the pocket of a few , let it be removed let us know who is killing this country. The truth is that there is no subsidy OBJ made Refineries not to work so that him and his son will continue importing fuel, look at the highest beneficiaries of fuel subsidy you will see its oando, who is oando if not OBJ |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by Nobody: 2:46pm On Dec 20, 2011 |
rexokemute: Menh its the other way round, Nigeria is the 129th country where fuel is more expensive |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by 123jml: 3:23pm On Dec 20, 2011 |
kayci_d77: Your brain is perfectly working, how comes you grasp this measurement? |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by kokoA(m): 3:42pm On Dec 20, 2011 |
If OBJ agrees to join the masses in protest if the subsidy is eventually removed, then I will believe he's a changed man. |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by kinguwem: 3:54pm On Dec 20, 2011 |
OBJ had the opportunity to set the records straight, but because of selfish interest (third term agenda) he failed. The same Iweala that advised him is the one advising GEJ. Is there something she told OBJ that she did not tell GEJ. I appreciate OBJ for his concern but the truth is, time has changed. Incurring debt to run the budget is neo-colonialism. Removal of fuel subsidy is a better option. |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by sleekman(m): 6:46pm On Dec 20, 2011 |
GenBuhari: I just read through your write up. However, I'll like to correct some misconceptions you've made. Basic macroeconomics is the basis of my argument. Increase in the price of fuel = Increased Inflation which leads to the CBN putting in place monetary policy to curb high inflation as a result of deregulation. The monetary policy action by the CBN would require reducing money liquidity in the economy by increasing interest rates and making it expensive to borrow. Fall in liquidity for the common man will mean more hardship. God helps us revolution next. There are 2 major groups in any society, the nationalist and the reformists. Let me put it this way, the nationalists fight for the state to be more powerful and for the rule of law to apply to all. They want competition in all markets except for markets dominated by the market. Reformists prefer a laissez-faire economy where public companies are sold off and the ruling elite are above the law. Buhari heads the nationalists and Tinubu/OBJ the reformists though they're of different parties but they share the same ideology. The reformists are trying to make the labour market competitive so hiking prices would mean shrinking of the upper middle class, increasing the lower middle class as well as further increase of the poor class. What this effectively does in 2013 is to reduce the recurrrent expenditure budget and probably increase the capital budget but since the reformists in power since 1999 except for a brief nationalist reign(Yar' Adua) have always increased the allowances of their croonies, the recurrent exp. budget is always larger than capital expenditure. |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by infofta(m): 9:31pm On Dec 20, 2011 |
Some people don't understand the meaning of removing fuel subsidy. Removing subsidy does not mean stopping fuel importation. Importers will still import, increase the price, make more money at the expense of the masses. The 1.4 Trillion naira that is supposed to go for subsidy will be LOOTED as usual, why those in support of subsidy removal will be waiting endlessly in pains for the MAGIC infrastructural developement that will CHANGE the LIVIES of the people. Mr President, Govt can no longer pay for subsidy and you think the masses can pay the increase plus the Inflation that will follow. The thought of building and maintaining our local Refinaries is not in your agenda because you are into the OIL BUSINESS as well. We are waiting sir. |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by Nobody: 10:27pm On Dec 20, 2011 |
@sleekman I do not see the misconceptions you refer to. sleekman: |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by 3kay945(m): 7:23am On Dec 21, 2011 |
If eventually this boy called Jonathan removes the subsidy, are nigerians ready for resistance in any form? |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by sleekman(m): 10:23am On Dec 22, 2011 |
@GenBuhari Sorry I didn't finish that. Reduced liquidity essentially means a stronger currency and an increased FDI(Foreign Direct Investment) due to foreign investors having d impression that there is a better investment climate in Nigeria. Removing d so called subsidy makes Nigerian economy attractive to foreign investors. Dat is why OBJ increased d price of fuel so many times so as to grow the external reserves and made d economy much more attractive externally. Fuel price increase is a form of contractionary fiscal policy by govt. It's also meant to create an artificial economic environment to show big time investors the d economy is in redistribution and dat d multiplier effects of monetary policy of d CBN would make earnings on their investment worthwhile. |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by Nobody: 10:37am On Dec 22, 2011 |
@sleekman Obasanjo is a big theif any action he took was to help him loot more or to please his IMF masters. I do not agree with you, because fuel is not subsidised, fuel prices are increased because when Naira is devalued, prices of everything needs to increase including fuel. But government wants to be deceitful because they want us to continue paying the same amount on fuel (dollar value ) without necessarily adjusting wages to take account of the devaluation of the Naira. Hence they are calling subsidy removal. The problem stems from the unjustifiable devaluation of Naira. It is criminal! sleekman: |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by sleekman(m): 11:00am On Dec 22, 2011 |
I agree with u that there is an initial inflation but d inflation is shortlived because of CBNs actions 2 curb inflation. It's all about the multiplier effects of these actions. Once money is reduced from circulation and aggregate demand falls the govt profits big time. Once a new market equilibrium is reached the value of local currency becomes stronger. This is why d IMF is against the deregulation. I'm a fan of Buharinomics and I know Buhari would have made d refineries work to curb d exchange rate increase but then given that recurrent expenditure is 77% of D budget even Buhari would allow d inflation to bring down recurrent expenditure to about 40-50% of D budget. In order that GEJ be re-elected he shot himself by allowing 18k minimum wage. When u consider what d political class is earning and d civil servants then u see d need for allowing inflation to set in. |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by Nobody: 12:51pm On Dec 22, 2011 |
^ I am also a fan of Buharimonics. Buhari rejected devaluation of the Naira Buhari never increased fuel prices Buhari never took any loans from IMF Under Buhari inflation fell from 39% to 3% Our National debt was paid and we had decent quality of life and real spending power. All this ended when Babangida overthrew Buhari What a shame! |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by VenusEAGLE: 10:50am On Feb 01, 2020 |
Wow this is 2011 now we are in 2020... It's funny how life moves kokoA: |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by GamalNasser: 10:52am On Feb 01, 2020 |
GenBuhari: Are you still of the same opinion , how have u enjoyed 5 years of Buharinomics |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by GamalNasser: 10:53am On Feb 01, 2020 |
infofta: Your buheri has removed subsidy and still not fixed a single refinery |
Re: Obasanjo To Jonathan: Don’t Remove Subsidy by GamalNasser: 10:56am On Feb 01, 2020 |
GenBuhari: Just looK out how this oldman dreceived himself |
Economic Hardship: Tinubu To Meet 36 Govs Before Departing For Addis Ababa / N1.6 Million Is Spent Daily On Presidential Food? / PDP Convention: I’m Prepared To Work With Our New Officers – Jonathan
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 67 |