9ja4eva:

Hmm i just hope the Government uses the money from subsidy to build refineries and develop other sectors.

Hell yeah!
Just like the refineries &roads OBJ built after paying off the World Bank&increasing PMS prices about 8times.

This damn removal thing shoulda been done in phases (just as Ghana is doing), the consequences will be too much to bear, this fresh air will soon choke all of us. IMF is finally happy now.

Quote from dmainboss

@Akinzo,

you are a funny chap. So of the 160 million Nigerians including labor, you are the only one that saw that "revelation " eh? Funny chap. So if it is that simple, why didn't labor see it like you just did and stand by that? Even labor and all the opposition governors didn't disagree that there is subsidy. They are only making arguments in the areas of corruption and assurances for cushioning the effects of subsidy removal. Nigerians self and their self deceit and i too know attitude!

Your lack if reasoning is what makes you assume for the 160 millon Nigerians, even going to the extent of including Prof Tam David-West who has been saying it since that there aint no subsidy!

You just demonstrated the typical ignorant people's trait, trying to belittle others opinion as ITK, to mask their lack of intellect.

Pee Dee Pee!!
Progress!!

Quote from Obiagu1

@ Akainzo,

There are some wrongful assumptions you made.

(1) You assumed that the cost of exploration and production is zero

No I did not assume that, that has been taking cared of by the cost of running NNPC. In the 2012 budget with a crude benchmark of $100, are you accusing the GOVT of making the same assumptions?

(2) You assumed that the companies that explored, drilled, serviced, produced the petroleum run a charity, hence do not declare profit.

Again, this cost is borne and accounted for in the running of the Ministry of Petroleum Resources. Note that NNPC owns 51% stake in these companies and thus earn/share in this profit but nowhere in our budget do you see this earnings stated as it is also termed as part of cost of running NNPC.

(3) Nigeria has an unlimited quota hence could increase the volume of her petroleum export to offset the subsidy

Haba! Nowhere in my post did I allude to this, Nigeria has a fixed 400,000 barrels of crude allocated for local consumption and I simply showed what that amount can give us in imported fuel.

Eh Conversely, are you assuming that Nigeria imports unlimited quantities of PMS?

PPPRA announces #fuelsubsidy removal and still wants to set benchmark price for marketers on their website. . . What happened to #marketforces? Eating your cake and wanna have it.

Akainzo:

Quote from dmainboss
Your lack if reasoning is what makes you assume for the 160 millon Nigerians, even going to the extent of including Prof Tam David-West who has been saying it since that there aint no subsidy!

You just demonstrated the typical ignorant people's trait, trying to belittle others opinion as ITK, to mask their lack of intellect.

Unfortunately, Prof Tom David-West do not know WTF he's talking about.
Government has no oil company that drills and produces oil, do they?
The crude oil we export is the property/product of the oil company that explored, drilled, service, and produced them and their product is sold at an international price level. They only pay government royalty; that's how government make their money.

Any country that sells PMS at a price way below $1/litre subsidises it. Name one country.

Pump price is affected directly by international crude oil price any where in the world.

Obiagu1:

Unfortunately, Prof Tom David-West do not know WTF he's talking about.

A former petroleum Minister for about 3 years doesn't know what he is talking about as regards petroleum subsidy! Na wa o!

Obiagu1:

Government has no oil company that drills and produces oil, do they?
The crude oil we export is the property/product of the oil company that explored, drilled, service, and produced them and their product is sold at an international price level. They only pay government royalty; that's how government make their money.

You are wrong on above assertion. In Nigeria, we have mostly Joint Venture agreements, which makes FGN through NNPC part owners of the drilling/exploration companies. They therefore share profits and are part owners of the crude. This is why Govt doesn't also show the cost of oil exploration in its own budgeting.

N9800 to fill a 70Lt tank car, How much was govt haggling for minimmum wage again?  N18000,  (Well, them say e go beta, I'm off to the street with anyone who cares to demonstrate. This just Isn't working for me

Akainzo:

A former petroleum Minister for about 3 years doesn't know what he is talking about as regards petroleum subsidy! Na wa o!

That's not a guarantee he knows what he's talking about because if he did say that, then he should cover his face in shame.

Akainzo:

You are wrong on above assertion. In Nigeria, we have mostly Joint Venture agreements, which makes FGN through NNPC part owners of the drilling/exploration companies. They therefore share profits and are part owners of the crude. This is why Govt doesn't also show the cost of oil exploration in its own budgeting.

Government being a part owner of an oil company does not mean that the product of the company should be sold at a different price from market prices. It's not done anywhere in the world and it's very illogical. Being a part owner means that when the company finally declares its profit, like a shareholder, the government takes his share of the profit and fck off.

Y did you think removal of fuel subsidy we solve d problem of Nigeria?
While cant we remove the salary's of politician first dis can cause any good thing than RIOT in d country

Shebi na Jona una vote for, no be PDP?

It is not about removal of fuel subsidy, The fundamental question is what will happened to the billions of dollers that is going to accrue from that? Some naive persons will say it will translate to developement. i laugh I assure you just like me and you know the money will soon be appearing in swiss banks et all. What Labour and every unbiase observer is saying is- tackle the corruption around it ,increase our refining capacity. not if these had been done all these fuel subsidy removal will come forth to nothing. because the senators,governors,ministers will now have more revenue to steal from and more hardship for the masses. this is the reality. we are all Nigerians we know what will happen.
Someone says there will be a dedicated account for it? i laugh againg C`mon who will execute this projects? the same PDP Goons?
I will still give my President the benefit of doubt and support his policy,just my observation.

Obiagu1:

That's not a guarantee he knows what he's talking about because if he did say that, then he should cover his face in shame.

What are the guarantees that YOY, know what you are talking about?

Obiagu1:
Government being a part owner of an oil company does not mean that the product of the company should be sold at a different price from market prices. It's not done anywhere in the world and it's very illogical. Being a part owner means that when the company finally declares its profit, like a shareholder, the government takes his share of the profit and fck off.

Again, you make assumptions about what you know nothing about. The US or UK situation is different from Nigeria. Nigeria operates a Joint Venture agreement system. Do read it up.

Have you perused any of Nigeria's budget before, if so, please kindly show me anywhere in that budget that States the payments to offset cost of exploring/producing crude oil.
If the FGN budget does not show it, why do you only want to introduce it only for discussion on fuel subsidy

Akainzo:

What are the guarantees that YOY, know what you are talking about?

Again, you make assumptions about what you know nothing about. The US or UK situation is different from Nigeria. Nigeria operates a Joint Venture agreement system. Do read it up.

Have you perused any of Nigeria's budget before, if so, please kindly show me anywhere in that budget that States the payments to offset cost of exploring/producing crude oil.
If the FGN budget does not show it, why do you only want to introduce it only for discussion on fuel subsidy

Exploration/drilling, etc is the work of the oil companies and they normally use drilling and servicing companies to do those work. It's part of their operation.

I know about Nigerians 40/40/20 with the oil companies. I don't know if it has changed now though.

This shouldn't even be an argument at all.
There's a company, there's a shareholder, and there's a product.
A company markets it product according to market prices. If prices go up, they make more profit but if the prices crash, then they may record loses.

So in oil industry, the company is the oil companies like Shell, the shareholder is the government, and the product is the crude. The oil companies sell their products according to market prices. When they declare profit, they give the shareholders including the government part of their profit. If government wants to help out her citizens, then they, the government, pay part of the market price to make it affordable. This is where subsidy comes in.

This is as far I can go on this.

Obiagu1:

Exploration/drilling, etc is the work of the oil companies and they normally use drilling and servicing companies to do those work. It's part of their operation.

I know about Nigerians 40/40/20 with the oil companies. I don't know if it has changed now though.

This shouldn't even be an argument at all.
There's a company, there's a shareholder, and there's a product.
A company markets it product according to market prices. If prices go up, they make more profit but if the prices crash, then they may record loses.

So in oil industry, the company is the oil companies like Shell, the shareholder is the government, and the product is the crude. The oil companies sell their products according to market prices. When they declare profit, they give the shareholders including the government part of their profit. If government wants to help out her citizens, then they, the government, pay part of the market price to make it affordable. This is where subsidy comes in.

This is as far I can go on this

My guy, due to some kinda NDA, I can't go into much details to let you know I know much than you on this. If you're still stuck on a 40/40/20 stuff, you're way off base.

Now you should know that cost of crude for a producing country is definitely different than for a non-producing country. Or do you assume that we produce at the same cost sold at international market prices?

Our local consumption cost is at an opportunity cost and not at market rates. Or are you one of those armchair economists that profess that a farmer calculate the cost of food to his household at market rates?

BTW, your analysis with Shell is very much way off point. Your analysis holds in US & UK due to the nature of their operations, but not in Nigeria, due to our JV model.

@Akainzo
Go and sit down somewhere. Subsidy removal is part of "development". At least govt has provided alternatives in bicycles and roads you can trek on. Lazy people, instead of identifying where to buy bicycle and safe trekking routes, you are here complaining. I'm sure you are all ACN- people politicizing this "development" initiative. If you cannot afford Nigeria, move to Cameroun!

Akainzo, you have no shame . . So you boldly came here after your lame attempt at lying to defend the LASG oppressing Lekki triple toll gate .

The One:

@Akainzo
Go and sit down somewhere. Subsidy removal is part of "development". At least govt has provided alternatives in bicycles and roads you can trek on. Lazy people, instead of identifying where to buy bicycle and safe trekking routes, you are here complaining. I'm sure you are all ACN- people politicizing this "development" initiative. If you cannot afford Nigeria, move to Cameroun!

Imagine how shameless he is coming here to argue against subsidy removal . . after his previous vain attempt to paint the Lekki toll gates as the best developmental events that could ever happen for the lekki inhabitants

Imagine the double pain the Lekki folks are feeling

If fuel was ever subsidized (in the real sense of it) it should be N22/litre.

1. How can you remove what wasn't there in the first place?

2. A non-oil producing country like Singapore, roughly half the size of Lagos has over 8 working refineries, why ain't our refineries working?

3. Can anyone give us one good reason to trust this goverment or any past goverment i.e gurantee this fraud-subsidy money ain't going to where we all know it's going?

I wonder if we really imagine what negative effect the increase in the fuel pump price would bring to a common man, Production in Nigeria has solely depended on usage of fuel, invariably there would be an increament of 120% or more on every commodity, I foresee so many dislocation of ankles cuz people will rather walk than to pay triple price for transportation, N20 downwards will be invaluable, Una go jus die of hunga

Jonathan's promise of "FRESH AIR"!
Please read,
F= Fuel subsidy removal
R= Religious and ethnic crises
E= Expands in bombings frm one part
of the country 2 anoda S= State of emergency in Borno, others
H= High rate of poverty and
unemployment
A= ASUU strikes
I= Insecurity in the 2012 budget
R= Restlesness and frustration in our youth.

Nigerians just like freebies. They want to use fuel and not pay for it. The govt does not owe you anything. Even though you provide light, water, security, road etc for yourself, you still shouldn't expect anything from govt.

GEJ, go on soun with your "development" initiatives jare. Nigeria oni baje o!

@ joey "This damn removal thing shoulda been done in phases (just as Ghana is doing), the consequences will be too much to bear, this fresh air will soon choke all of us. IMF is finally happy now."

I agree with you. This govt promised to cushion the effect of the removal only to wake us up with this rude shock. A man has to generate his own electricity, maintain his own transportation system, organise his own security and this inept govt will not give us a breathing space. We need to let govt know we can not be taken for granted.

(Govt. should make sure it get rid of the illegal refineries which litter the Niger-Delta so that the hoarding and irregular pricing system don't automatically enter into the plan. Those who own the illegal refineries might sell their gasoline at a price lower than the pump price by the govt. if not abolished, thereby leading to hoarding of fuel to neighboring countries and also prevent dealers from purchasing from the national  producers.)

THESE ARE NOT THE PROBLEM, BUT OUR LEADERS(RULERS) LACKING THE POLICAL WILL AND SIMPLE MANAGERIAL SENSE TO LEAD THIS COUNTRY.
I DONT SEE HOW ILLEGAL REFINERIES AND SELLING BELOW APPROVE PUMP PRICE WILL LEAD TO HORDING,RATHER SUCH WILL LEAD TO PRICE CRASH'
THESE  REFINERIES YOU CALLED ILLEGAL SIMPLY BECAUSE THEY DONT HAVE GOVERNMENT APPROVALS,ARE THEY NOT BETTER THAN THE LEGAL ONES THAT HAVE REFUSE TO START OPERATION MANY MONTHS AFTER GETING THE REQUIRED LICENSES.

I saw this:

I think about GEJ's vision for Nigeria in 2012 and I tell maself ", aal izz well!"

http://www.businessdayonline.com/NG/index.php/analysis/commentary/24821-missed-milestones-of-the-power-sector-roadmap

Missed milestones of the power sector roadmap

Anybody can make promises

some interesting comments on FB!

"Una wey dey broadcast wetin Patience Jonathan talk, shebi u don happy now? Let me see how easily una go fit put fuel inside generator to charge the fakking blackberry wey una dey use broadcast all those rubbish.

IDIATS. If u talk again, na NEPA bill go increase. "

How many Nigerian citizens are actually paying their taxes? No offense to anybody,though, the system is not working properly or altogether not functioning.

Goodluck Nigeria!!!!

cap28:

i dont know why you are suprised why "people like me come here to post " am i not a nigerian? do i not have the right to post my opinions on here?

You claim nigerians enjoy low cost of living -how come food prices are so high? how come the average nigerian can not afford to live in a decent accommodation and is forced to live in places with untarred roads, overflowing open gutters stinking of raw sewage?

how come the average nigerian can barely make ends meet on the meagre salaries that they earn, if cost of living was as low as you claim how come the majority of nigerians livign abroad are supporting their relatives back home?

Tax may be as high as 40% in some european countries but at least the money is used to provide universal healthcare, free education, clean and tarred roads, underground sewage systems, responsive emergency services like the police, fire services and ambulance services.  In nigeria we all know where your taxes go - straight into the pockets of those thieves you call leaders thats why your roads are death traps, your healthcare is non existent your educational services are substandard and your police services are glorified armed robbers.  Wouldnt you rather pay a lot of tax and live in a clean and secure environment?  Wouldnt you prefer to be able to send your children to schools where they actually graduate with the ability to read and write?

the govt doesnt bother with you because they are too busy looting the national treasury, this is why you are all left to your own devices - the thing you fail to understand is that your govt should be serving you- you should be holding them to account not allowing them to get away with grand theft.
Governments have a responsibility to provide for their citizenry - nigerians are the only people who demand nothing from their govts thats why they continue to abuse and exploit you. As you can see they are about to shaft you once again by hiking up petrol prices under the pretext that they intend touse the money generated to provide infrastructures - if you beleive that this govt of criminals have any intention of doing anything constructive for the nigerian populace then you must really be naive.  
Understand this - THEY DONT GIVE A DAMN ABOUT YOU- THEY DONT CARE WHETHER THE ENTIRE POPULATION OF NIGERIA DROPS DEAD - ALL THEY ARE CONCERNED ABOUT IS FREEING UP THIS EXCESS MONEY TO FINANCE THEIR ALREADY LAVISH LIFESTYLES.

Here in the UK the average person can afford to take care of their family without having to engage in criminal activities, their salaries are sufficient to put food on the table and pay for their electricity and gas bills.  Those who can not afford to do so ie the unemployed, pensioners, disabled etc are given assistance by the govt and are not abandoned and left to rot as is the case in nigeria, the fact that you come to the UK and take your friends out does not mean you are better off than them - unless you are going to tell me taht you also pay their mortgage/house rent and bills?

I find it funny that you can say your friends in the UK live from hand to mouth when over 70% of the nigerian population live on less than the equivalent of $1 a day.

THANK U MY GUY FOR HAVING THE ENERGY TO RESPOND TO THIS @dmainboss PERSON IN ALL HIS IGNORANCE OOO!! I READ HIS POSTS AND I JUST SHAKE MY HEAD! WE HAVE FRIENDS IN NIGERIA WHO WORK IN GOVERNMENT WHO COME TO THE STATES EVERY FEW MONTHS AND BUYS ONE NEW CAR OR THE OTHER WITH CASH AND MAY GO HOME AND BOASTS HOW WE LIVE HANDS TO MOUTH HERE COMPARED TO HIM AND WHILE THAT IS DEBATABLE, WHAT FACT THAT HIDES IS WHAT YOU BROUGHT OUT - SUCH A PERSON LIKE THIS BIG MOUTH ABOVE IS NOT AN AVERAGE NIGERIAN!

PLS WHEN WE R TALKING ABOUT THE AVERAGE NIGERIAN, DO NOT COME HERE AND TRY TO HIJACK THE STORY IF YOUR LIFESTYLE CLEARLY SHOWS YOU R NOT ONE OF THEM, K, IT MAKES U SOUND DUMB NOT KNOWING WHO THE AVERAGE ORDINARY NIGERIAN IS!

THANKS GUY FOR RESPONDING TO MAINBOSS

^^^
What have you done to arrest this kind of situation from happening? What have you done to stop that man buying house every now and then?

Rad1cal:

Akainzo, you have no shame . . So you boldly came here after your lame attempt at lying to defend the LASG oppressing Lekki triple toll gate .

Imagine how shameless he is coming here to argue against subsidy removal . . after his previous vain attempt to paint the Lekki toll gates as the best developmental events that could ever happen for the lekki inhabitants

Imagine the double pain the Lekki folks are feeling

You are indeed a goat with no reasoning abilities, and only has a one track mind like a village goat.
So because I believe in the Lekki Toll plazas, I should not be against the fuel subsidy removal? Does the presence or otherwise of the toll plaza based on the price of fuel? Truly money spent on educating you was wrongly spent as you only went there to see buildings and have fun.

The Lekki road was expanded prior to the toll plaza being built, how many refineries did GEJ build or how many did he resuscitate prior to this move? You need to utilize your brain a little when you have discussions.