May the income of all those supporting this fuel subsidy removal go below 18k per month in 2012.

@Akainzo

There is absolutely no difference. If the Lagos State govt cannot afford to provide a road to Lekki residents, which is a basic duty of govt, in the same token you shouldn't expect the Fed govt to subsidize fuel which is not even a fundamental obligation. Use your head, you are only making noise because fuel subsidy affects you and it's not being done by Fashola. In essence, what is good for BRF should also be for GEJ.

Note that I'm not in favor of or against fuel subsidy. I no longer care!!

The One:

@Akainzo

There is absolutely no difference. If the Lagos State govt cannot afford to provide a road to Lekki residents, which is a basic duty of govt, in the same token you shouldn't expect the Fed govt to subsidize fuel which is not even a fundamental obligation. Use your head, you are only making noise because fuel subsidy affects you and it's not being done by Fashola. In essence, what is good for BRF should also be for GEJ.

Note that I'm not in favor of or against fuel subsidy. I no longer care!!

Well, it's so very easy to want to look at things from only the perspective of BRF/GEJ and thus get things muddled up as you did not approach the issues with an open mind, rather, you read my posts with a certain mindset.

The two issues are different, one: Lagos State government has awarded the contract and the company has built/upgraded the road. GEJ has not built/upgraded any refineries.
Two: my arguments are clear - THERE IS NO SUBSIDY while you cannot argue that the Lekki road was not expanded or no works were done.
Three: 90% of Nigerians cannot avoid using PMS for their daily lives while 70% of Lekki residents do have a choice they can make - alternative routes or alternative accommodation. For Nigerians, what are the alternatives to using transportation? witchcraft? 
Four: I do not expect the FGN to subsidize fuel for me, I only ask that they show that they have been actually subsidizing it as they claim. But going by your own logic, maybe I shouldn’t ask the govt to subsidize education as well, or provide affordable housing or even subsidize farmers.
And by the way, you need not compare BRF to GEJ, the vote is out already on which one is incompetent to handle his job. I do not praise mediocres!.

I will use the same posers that you used to reply to yyour post

ONE. PMS importers and marketers have imported the fuel already. Don't you want them to sell at market prices and recoup their money?

TWO. My argument is also clear. That road expansion has been funded by taxpayers seed money (6 billion naira) and the road does not cost 50 billion to expand. In essence, LCC has spent very little if any of their own money on the road to justify 3 tolls charging 150 naira each on a 23km stretch. Can you see the fraud now?

THREE.  There are alternatives. Use bicycles or trek. Or better still move to Cameroun. It is analogous to you calling those privates backroads through Oniru an alternative to an expressway.

FOUR I only require that the LASG demonstrate to me that they cannot afford to provide me a good thoroughfare through an entire region in the state even when it is the only presence they have there and are making a killing off taxes and heavy land charges in the area.

This is not about BRF vs GEJ. It is about what is just and fair in ALL circumstances.

The One:

I will use the same posers that you used to reply to yyour post

ONE. PMS importers and marketers have imported the fuel already. Don't you want them to sell at market prices and recoup their money? Correction: NNPC imports fuel through the marketers and pay them the cost of te imported fuel. It is only now, after deregulation that importers can directly import

TWO. My argument is also clear. That road expansion has been funded by taxpayers seed money (6 billion naira) and the road does not cost 50 billion to expand. In essence, LCC has spent very little if any of their own money on the road to justify 3 tolls charging 150 naira each on a 23km stretch. Can you see the fraud now? Wrong again, LCC funded the the road repairs/expansion/rebuild and Lagos State govt funds were not used, Lagos govt only guaranteed the loans taken by LCC

THREE.  There are alternatives. Use bicycles or trek. Or better still move to Cameroun. It is analogous to you calling those privates backroads through Oniru an alternative to an expressway. (Ah hah ha, not to worry, I can afford the new prices, but do you propose that for the over 100 Million other Nigerians that they should move to Cameroun BTW, what should be an alternative to an expressway, another expressway?)

FOUR I only require that the LASG demonstrate to me that they cannot afford to provide me a good thoroughfare through an entire region in the state even when it is the only presence they have there and are making a killing off taxes and heavy land charges in the area. The LASG has already demonstrated it, the road was expanded/rebuilt using a PPP to ensure that you can get to your offices in VI/Ikoyi without stress, the issue is if YOU want to pay the required toll fees

This is not about BRF vs GEJ. It is about what is just and fair in ALL circumstances. What is just and fair in ALL circumstances in a utopia. In your just and fair parlance, you would sentence demand a sentence of 5 years for a man that brutaly murders a girl after raping her because the judge had initially sentenced another man convicted of manslaughter due to reckless driving just because in both cases someone died?

Quit trying to tie the two together, it reduces your ability to have unbiased undiluted analysis of the fuel subsidy imbroglio.

This is all basic mathematics. Anyone who went to school will work out that this fuel subsidy noise is a LIE or at best gross exaggeration.

FIRST OF ALL, ANYONE WHO TELLS YOU THAT NIGERIA SPENDS $500 million ON FUEL SUBSIDIES MONTHLY IS A THIEF.

This is basic mathematics and a fact.
They can claim that the give out $500 million in subsidy money monthly. That is between them and their thieving companies and friends.

Let's break it down:

Nigeria produces crude oil. Other countries produce crude oil.
Nigeria has 4 refineries with total installed capacity of 445,000 barrels per day (or whatever the NNPC claims nowadays).
Nigeria's refineries are not working at full capacity.
Crude oil is refined to PMS (Premium Motor Spirit) aka Petrol.
Nigerians use PMS to fuel vehicles, generators and other things.
PMS is traded internationally at a particular rate that varies.
Other countries that produce Crude oil refine it and sell to their citizens at whatever rate they please (irrespective of international rates).
Nigeria monthly PMS consumption = Locally refined + Imported refined (at International Rates)
Nigeria sells PMS to citizens for N65/litre
Subsidy = Amount paid to PMS importers for difference between International Rates for Imported Refined and N65/litre.

Example = Importers buy fuel internationally today from Venezuela at N120/ litre for example, they bring into Nigeria and sell for N65/litre. In order for said Importers not to lose N55/litre, the Nigerian Government pays N55/litre balance. This balance is the SUBSIDY.

Problem 1: Due to corruption, Nigerian officials collude with Government officials and claim to have imported more fuel than they actually bring in.

Example: Mr. Otedola's company may only bring in 1 million litres per day but claim to bring in 2 million litres per day. And like in previous example, The Government officials will pay N110 million per day (N 55/litre subisdy x 2 million litres) instead of N55 million (N55/litre subsidy x 1 million litres).

Problem 2: Due to corruption, Fuel importers collude with Nigerian National Petroleum Corporation (who by the way are in charge of the locally refined) and Government officials to buy the Locally refined and claim that the said quantities of petroleum where in fact imported into the country at international rates.

Example: Ms. Deziani's accomplices may buy 1 million litres per day of petroleum from the NNPC for N65 million and then claim that this quantity was bought at N120 million internationally (N120/litre international rate x 1 million) . They would then proceed to collect N55 million (N120 milion - N65 million) from the Nigerian Government as subsidy payment.

Problem 3:Due to corruption and inadequate monitoring, Fuel importers collude with Nigerian National Petroleum Corporation (who by the way are in charge of the locally refined) and Government officials to fraudulently under-report the quantities of locally refined PMS so they can purchase the more from the local refineries and claim to have imported said quantities (problem 2)

Example: The NNPC may claim to refine only 2 million litres per day when it in fact refines 4 million litres per day. The remaining 2 million litres would then be sold to their partners in crime at N65/ litre. These partners will proceed to sell these quantities to the Nigerian populace while demanding N55 subsidy per litre from the Nigerian Government after claiming that this 2 million litres/day were imported from Venezuela or other country. This example is highlighted by the inability of the NNPC to give account of the actual quantities it refines daily.


Therefore taking into consideration that

Subsidy = Amount paid to PMS importers for difference between International Rates for Imported Refined and N65/litre.

and the extent of problems 1, 2, and 3, it becomes easy to see why the true cost to Nigeria of the fuel subsidy may not exceed $100 -$150 million/ month.

Once again, I put forward that

ANYONE WHO CLAIMS THAT NIGERIA TRULY SPENDS $500 million ON FUEL SUBSIDIES MONTHLY IS A THIEF.


Why do Nigerians need a fuel subsidy??

Do average Nigerians really benefit from a fuel subsidy??

Interesting questions. Let me rephrase that.

Do average Nigerians benefit from buying PMS at N65/litre instead of N120, N130, or N140/litre
I think a monkey can answer that.

1. The average Nigerian buys PMS to fuel his/her car i.e N500 daily.
2. The average Nigerian takes public transport in vehicles that use PMS at certain amount i.e N50 per trip.
3. The average Nigerian buys PMS to fuel his generator i.e N1000 daily.
4. The average Nigerian buys food (bread, vegetables, fish) which is transported across the country in Vehicles that use fuel.

No subsidy equals

1. The average Nigerian needs PMS worth N1000 for his/her car daily.
2. The average Nigerian takes public transport at a new amount i.e N80 per trip.
3. The average Nigerian buys PMS to fuel his generator i.e N2000 daily
4. The average Nigerian buys food (bread, vegetables, fish) at a much higher price.

it doesn't take a genius to figure out that the average Nigerian benefits significantly from the lower cost of PMS.

It would be hard to find a Nigerian in Nigeria who wants the price of PMS to rise. It is a slap in the face of average Nigerians for ekt-bear and friends to claim that removing the subsidy will not have a tremendous negative impact on Nigerians. It is easy to sit in the U.S.A and claim that doubling the price of PMS in Nigeria will have no impact on the populace. Akin to saying an increase in gasoline prices in the U.S.A to $7/gallon today will have no significant effect on the populace.

Does corruption allow unscrupulous individuals to benefit from the subsidization of PMS?? Yes.
But why does the average Nigerian have to get shafted for this?? Why not tackle corruption instead??

Solutions.

A. Ascertain the true quantities of PMS locally produced daily.
B. Ascertain the true total quantities of PMS consumed daily nationwide.

Subract A from B and arrive at the true quantity of PMS imported at international rates (This value will then be subsidized)

By tackling corruption, the cost of subsidization can be brought down to no more than $100 million per month.


Solution Part 2 - By bringing refineries to optimum operating capacity and building new refineries.
Locally refined PMS can exceed Locally consumed PMS.

Mythical Solution= Remove the subsidy and hope that the supposed $500 million/ month that is currently being used to compensate corrupt entities will translate into development and improvement for the average Nigerian.

The question now remains, does increasing the burden on the average Nigerian guarantee the resolution of the problem??


PS: Problem 4: Overestimating the total nationwide PMS consumption allows fuel importers and the NNPC to further perpetrate fraud.


Also, please note that selling locally refined PMS at N65/litre is still a profitable venture for the NNPC.

If they succeeded, what should Nigerian expect at the end of the year!