legba1:

i stay in ijebu ode,was stunned this morning on ma way out,maybe because i didn't leave my house altru yesterday.[/b]was surprised when the attendant at fuel station called my attenstion to the re-adjusted meter.had to buy [b]when other motorist confirmed the development,it was sold to me at 141naira/ltr.
to start with,i know the GEJ govt was lying about the date of implementation.imagine i had to text back home that the gen be shut down once ma mrs is done blending.this is not too good a new year gift for naija.

otokx:

Tell mrs to use grinding stone or mortar and pistle

KenGali:

I would like to take this opportunity to remind Nigerians that all the unsustainable and crooked government interventions in our economic life will have to go away one day for us to make progress.
On such a day as this, it shall be painful, but must take its , Subsidy is one of such policies, denying the citizen free supply of products, encouraging predators to eat down existing refineries, creating market barriers that prevent new entrants as well as competition in petroleum marketing. The average consumer will not see these as he feels he is gaining in the short term with subsidy.  In the long term he is loosing in so many things. Can you imagine if Nigera has been running a deregulated petroleum product market since the 1970, we would have been a net exporter of these products. The price would have long been stabilized and the turbulence over, Many people would have been able to afford what ever price as the functioning private and public owned  refineries would provide jobs not just in refining, but in spin off petro chemical firms, as well as in cottage firms like candle making.

It really annoys me when I read comments like yours believing you are more informed than the rest of us as regards this issues. Why on earth should pump price be what it is in the US or even more in some cases? What is the criterion used to arrived at this price? The diesel deregulation that has started before now can you tell me any semblance of competition that is going on there? You also fail to realise that this fuel is also used to generate electricity in most homes in Nigeria n your stupid Sanusi n Okonjo failed to put that in2 consideration. At the current price an average family in the country would be spending N100 000/month on fuel alone to move around and provide electricity at home, can you tell me how sustainable that is? On what salary and you still have to provide for other home and personal needs. This is pure stupidity and government insensivity.
let's not just think off our selves, but our future, our children. What kind of Nigeria do we want for them. Do we want a country where excessive govt. control is killing of all the sectors from which we should live as kings, only to make us proud survivors. The more we make noise about this, the more the sellers see possibility of making profit by hoarding. I sincerely believe the 145 Nara price in to create room for negotiations with labour. The earlier we get over this, the earlier the price will come down to the projected N110 to N120 per liter. Within the next six months as competition intensifies in the sector, with new entrants, better utilization of eastern ports,  elimination of demurrage cost, and possible use of the more cost effective rail and pipelines in transport, the cost should come down to about N100 per liter.

dayokanu:

All4Naija,

What were the benefits of SAP we endured in 1987?

What was the benefit of the several pump price increase between 1999-2007? The same story they told us then was what we are hearing now.

What was the benefit of the Excess crude money we got from 2004-2011?

Shebi OBJ and Okonjo cleared Debt in 2005, we made loads of money from selling crude this time also. How come we have mounting debt at this point?

Those saying we should fight against corruption, What form of fight can we fight against govt that GEJ keeps increasing everyday, What fight do you suggest per taking 170 delegates to CHOGM when Britain itself took 15people

all4naija:

You should ask yourself on what administration? And, how the country was developing? Stop dwelling in the past, dude. Why not find out by yourself?

dayokanu:

Under whose administration was the Excess crude account depleted?

Under whose admin did the cleared external debt mount?

Under whose regime did we take 180 ppl to CHOGM?

Under whose regime did the size of govt keeps increasing?

Under whose regime did they budget 1b to feed the presidency

all4naija:

@jp philips
Why did you have to insult my parents? Why not ignore my comments if they are annoying to you? Your ignorance and uncivilized behavior is appalling.If you cannot argue here rather than resorting to insult only shows how foolish you are. So, steer clear of my comments and I am entitled to them.

Well, they can leave the subsidy if you guys thought it is the right way to go and allow the economy to default. People are talking about Cameroon, Chad, Togo,etc because they don't have oil make them different, we also forget the impact of Nigerian large population in this case. 16 billion dollars was expended for importation and subsidy for the 11 months of last year alone - 8 billion dollars spent on importation of refine products and 8 billion dollars spent on subsidy, that is according to the CBN.



@ all who disagree with the subsidy removal. I think you are not looking at the future of the economy. Anything that would be of no immediate benefit is seen as bad for the masses. But, this I think will help the country in the future( which would have looked worse off if this subsidy is unchecked). If the masses wanted to remain in such situation of things into the future why other countries progressed then it's Okay to leave the subsidy and let the few rich criminals benefit.


Let's leave sentiment aside. There is going to be about 2% increase in inflation during this period while this problem of subsidy last yet the benefit at the end would be enormous. It is on the interest of the masses to monitor this. We are not living in the past. I might not be a good economist but this subsidy is not benefiting the masses. If kept as it used to be the few rich will get richer as the middle class increases, while companies increase use of generators,etc. While it is necessary for the private sectors to get involve with the construction of refineries, this removal is the only incentive that would get them doing that at the moment. It is like an affirmative action taken to signal the private sector for individuals who are willing to participate in the building of refineries to be convinced to do so. Trust me, as long as we are still alive this idea will benefit the masses in a few years to come.

The consequences of the removal is adjustment and inflation of about 2% or more. Should we allow these or wait for a default were the worse measures would be put in place(worse than the Greek's)? Indeed, I am on the move to save the economy and removing fuel subsidy is just one of them.

The govt. has to engage the people in other areas of productions through diversify of the economy. The country depends on oil to much. Let's not squander what we have to the tone of plight of the masses and the corrupt few and leaders. I quite agree with all that corruption is a problem and this subsidy is nothing far from it. I see people saying the subsidy is a scam yet billions of dollars are spent every year to forestall that. If it is scam when the nation can not refine and the importers and marketers are benefiting to the means of selling the products to the masses at cheap price is a prove there is a subsidy - the price is the determinant here. We compare ours to Saudi and forget that Saudi population is equivalent to that of Lagos,Oyo and Kano combined together yet that country has one of the largest reverses in the world(among the first 3). Stop comparing Saudi with us - it has many avenue of making money, like tourism(pilgrimage alone can sustain that country),manufactured good,etc while our country only depends on oil for 95% foreign revenue and 80% national income and in country of 70% living below poverty line - means the masses will live in perpetual poverty if subsidy keep taking the large chunk of income or budget. Now, we can see the clear picture to understand that Nigeria cannot continue with the subsidy which is benefiting the few. Who in it rightful mind would want chaos and anarchy to be order of the day in his administration? Come on! Many talk here as if this removal is the end of the world. Yes, it will hurt but seems the best way out. Believe me for a minute there is no foreign investors that is in that sector without the removal or subsidy  properly checked that would like to invest in the building of refineries. The govt. cannot construct all the refineries this nation need to operate( you guys overrated this country in that area). We need the foreign investment to develop and grow this country. We are not seeing the bigger picture. We always think we can isolate our country from foreigners when we depend on them for almost everything. Let's start to think in the right direction to move this country forward. While some are busy causing harm to others,disguised in the name of religion, some are busy complaining to stop what would help the country in the future. I agree it is a societal thing but we can disagree to agree.

On the final note, bear in mind that this country is full of shiits and to do away with them there have to be implementation processes seemed encouraging for foreign investors - this is one of them. No matter the cry and the sentiments we my want to apply here the truth is not far-fetched that subsidy must go. What we should be doing is to ask for reports on how this money is being realized. The follow up is what is required most of us now.

That is my little contribution. Please, don't pass any insult on me and my family based on my opinions because I am entitled to them.

Thank you.

md_dude:

Your argument is a typical textbook case without taking into consideration a lot of factors. Every economic theory (well any theories whatever) has its limit to its validity. You are right in every way that the economy cannot sustain the subsidy. In long term, I do agree with you. What the subsidy has done is creating some form of deficit spending. Actually, deregulating the sector will help with some investment and create jobs.

Looking at our economy, unique condition (i.e the naija factor), lack of infrastructures, health care, poverty etc, the short term effect on the economy can actually put us in recession. Our economy directly runs on oil. There is no short way around it. We don't have alternatives to Oil. Knowing that, this should have been done in phases to help with the issue of poverty and the shock to the economy. Inflation will double overnight because everything is directly tied to the price of gas.

If this were planned well. Government can actually start the infrastructure development on deficit and put things in place to show they are serious about dealing with the effect of the removal. Short term deficit is not a problem as long as it is targetted and planned for. What will happen now is govt will not spend the money on infrastructures or any of the good stuff they talked about but spend it on some frivolous things or just embezzles it.  Economic activities will be curtailed because people now spend money on gas than on other things. I remember here in 2007/8 when gas went to about $4.5 per gallon and people took to taking trains and driving less. That started the US economic issue before Layman brothers pushed it into brink. People don't have that options in naija. It is either you take the bus or drive.

By the way, subsidy is not a bad thing. The US agricultural sector is heavily subsidized, just wait till Govt removes subsidy and Americans will scream and vote the government out.