husband beat wife t☺̣̣̥̇ Coma cos she on da Generator t☺̣̣̥̇ wash Africa Magic

This is a case of MacroEconomics benefits putting straitjacket on Microeconomics.
From purely a macroeconomic mindset, it make sense to deregulate the oil sector to reduce waste, create job and encourage investment. From Microeconomic perspective, it has a huge implication - Inflation, poverty and of course social unrest and disasatisfaction. Now how do you balance the two? The truth is there is a trust deficit in Nigerian government by the people of the country. Even if the intention to do this is best. The same reason had been given over the years for the subsidy removal and the populace had been worse off. So what has changed?
Subsidy is unsustainable on a long term so also the cost of running the government. Could the cost of running the government be cut while government finds a way of to create a social net to deal with the effect of the subsidy?
I used agriculture as an example of subsidy in the United states. Corn is not the only crop that s subsidized. It is the most heavily subsidized. Other crops like rice, products such as diary etc are subsidized by the government. Even home owners mortgages in United States are "subsidized". If it was left to market forces as seen in commercial mortgages or mortgages over 650K most people in america will be able to afford their homes because of the interest rate.
I think it is irresponsible for the government to remove the subsidy and not create a social net and all they can say is the money will be used to build infrastructures. What happens in between the time the subsidy is removed and the time the infrastructure is complete? This is basically removing the subsidy on the back of the poor and the most vulnerable.
I dont agree that the subsidy doesnt benefit the masses. To an extent, it keeps the cost of living lower than it would have been without the subsidy. Maybe the Nigerian government should structure things better to reduce the impact of the cabals.

all4naija:

You are right in most of the cases you highlighted. The infrastructural development is just kicking off and many states are witnesses to that. Leaving that aside to address the problem at hand,the subsidy removal, we can see that this infrastructure is not forth getting any progress if this subsidy is not removed because most of the economic activities as well as social ones depend on it. We have relied on this oil for to long, now this is the palpable effect from all these years of over dependent on it for sustainability.

Yes, I agree US set their priority right. Agriculture represent about1.1% of the economy so there is a difference in that view when Agricultural subsidy is remove it will only have little effect. Notably, the corn/feed are the Agricultural products which are highly subsidized. In the case of Nigeria it is the oil which is 95% foreign revenue. It is like those money will go back to those who we sold the oil to. What should we do as the economy is expanding? Then I think that's when this idea of removing the subsidy that doesn't benefit the masses as such but only the few rich comes into place.

Why do you think they will not use the money realized from subsidy for development ? It is because of the corrupt nature of the leaders. What difference doesn't it make to leave the subsidy to the exponentially benefit of the few than remove it for the economy to strive better?For foreign investors to come and build refineries. Even at the cost of the govt. embezzling the money we still have refineries constructed. We need to fight for what will move this country forward and not let sentiments be the order of the day.

I bought at Total filling station, Toyin Street Ikeja this evening at N140.5/litre. It cost me N5,660 to fill my tank with just below half tank inside previously.

md_dude:

This is a case of MacroEconomics benefits putting  straitjacket on Microeconomics.
From purely a macroeconomic mindset, it make sense to deregulate the oil sector to reduce waste, create job and encourage investment. From Microeconomic perspective, it has a huge implication - Inflation, poverty and of course social unrest and disasatisfaction. Now how do you balance the two? The truth is there is a trust deficit in Nigerian government by the people of the country. Even if the intention to do this is best. The same reason had been given over the years for the subsidy removal and the populace had been worse off. So what has changed?
Subsidy is unsustainable on a long term so also the cost of running the government. Could the cost of running the government be cut while government finds a way of to create a social net to deal with the effect of the subsidy?
I used agriculture as an example of subsidy in the United states. Corn is not the only crop that s subsidized. It is the most heavily subsidized. Other crops like rice, products such as diary etc are subsidized by the government. Even home owners mortgages in United States are "subsidized". If it was left to market forces as seen in commercial mortgages or mortgages over 650K most people in america will be able to afford their homes because of the interest rate.
I think it is irresponsible for the government to remove the subsidy and not create a social net and all they can say is the money will be used to build infrastructures. What happens in between the time the subsidy is removed and the time the infrastructure is complete? This is basically removing the subsidy on the back of the poor and the most vulnerable.
I dont agree that the subsidy doesnt benefit the masses. To an extent, it keeps the cost of living lower than it would have been without the subsidy. Maybe the Nigerian government should structure things better to reduce the impact of the cabals.

What would be the effects of letting this subsidy remain? There the consequences would be conditions worse off. The inflation is what the people have to bear at the moment. It is same condition many developed countries citizens are going through in the world just to savage their economy. I agree the burden is on the masses but it is a sacrifice they have to embrace for a while before things return to stability.

It might seem like benefit because the common man on the street can afford fuel at cheap price to the detriment of the economy and to the high benefit of the few importers. There is nothing beneficial in that to the masses when their money is being put in the pocket of the few rich.Come on! I am a young Nigerian and I don't want the country to continue in this vicious circle of poverty. I do agree the govt. need to structure things better to reduce poverty. Don't you think this is one of them? The govt. cannot sustain it any longer so, it has to go. I also agree that there is a loophole if not properly done yet that loophole doesn't have much effect so much different from what the populace have been experiencing for years. So let turn the page to save the economy first. The micro-economy in Nigeria might be large but it is not advanced enough to bear the full weight of the consequences you stated above. The larger population are still living in the rural areas and they depend on subsistence farming for survival. Those in the urban areas who have to face the tougher brunts of the 2% inflation, they would have to understand that it is for the good of the economy. In a nutshell, there hasn't be a major benefit for the masses(silent inflation has ever been in Nigeria) other than that few are stealing the money. Should we called that benefit? No! Not because you buy something at low rate and few corrupt others are largely gaining due to your low rate benefit is a benefit at all - it more like cheat!

I hope we do this right and we can achieve something about the economy through foreign investors investing in building refineries, reducing dependent on oil, creation of jobs,etc. Perhaps we can move this country forward a bit. That is the dynamism of this idea - at least to my general understanding of this plan.

To conclude it all, we have corruption to fight yet it is an endless fight. Not only it is expedient but necessary for things to fall in place for the good of our dear country.

Someone wrote this in another forum I contribute to and I do agree:

I read the govt said it would save $7 billion a year by removing the subsidies. Why couldn't they just borrow like $21 billion from China, implement the infrastructural improvements like power, over a 3 year period, then remove the subsidies and repay China with the savings accumulated?

The problem is not that I dont agree that the subsidy has to be removed - at least from a fundamental point of view, the problem is that you dont expect the subsidy to be removed and the sector deregulated abruptly the way it has been done. It is a textbook scenario without taking into consideration what is on the ground.
From a Microeconomic standpoint, what do you want the small businesses to do now that his business overhead just went up? A barber that now has to put into consideration the new cost of PMS to fuel his generator or an Hair dresser that has to do the same? How are you so sure that the savings will be spent on anything substantial? What happened to the all the money from PTF? What happened to the extra money in crude oil account? This money will go into normal budgetting and shared among the states and will be used for overhead again. There is no constitutional provision for such "savings" to be used for infrastructure in any way. Sorry to digress.
What I am pointing out to you is that, other than the jobs that will be created in that area, few investment, there is no short term or medium term benefits to the masses. For example, subsidy savings is not even given a special consideration in this year's budget, it just got factored into the normal budget. So where is the direct benefit to the masses?

all4naija:

What would be the effects of letting this subsidy remain? There the consequences would be conditions worse off. The inflation is what the people have to bear at the moment. It is same condition many developed countries citizens are going through in the world just to savage their economy. I agree the burden is on the masses but it is a sacrifice they have to embrace for a while before things return to stability.

It might seem like benefit because the common man on the street can afford fuel at cheap price to the detriment of the economy and to the high benefit of the few importers. There is nothing beneficial in that to the masses when their money is being put in the pocket of the few rich.Come on! I am a young Nigerian and I don't want the country to continue in this vicious circle of poverty. I do agree the govt. need to structure things better to reduce poverty. Don't you think this is one of them? The govt. cannot sustain it any longer so, it has to go. I also agree that there is a loophole if not properly done yet that loophole doesn't have much effect so much different from what the populace have been experiencing for years. So let turn the page to save the economy first. The micro-economy in Nigeria might be large but it is not advanced enough to bear the full weight of the consequences you stated above. The larger population are still living in the rural areas and they depend on subsistence farming for survival. Those in the urban areas who have to face the tougher brunts of the 2% inflation, they would have to understand that it is for the good of the economy. In a nutshell, there hasn't be a major benefit for the masses(silent inflation has ever been in Nigeria) other than that few are stealing the money. Should we called that benefit? No! Not because you buy something at low rate and few corrupt others are largely gaining due to your low rate benefit is a benefit at all - it more like cheat!

I hope we do this right and we can achieve something about the economy through foreign investors investing in building refineries, reducing dependent on oil, creation of jobs,etc. Perhaps we can move this country forward a bit. That is the dynamism of this idea - at least to my general understanding of this plan.

To conclude it all, we have corruption to fight yet it is an endless fight. Not only it is expedient but necessary for things to fall in place for the good of our dear country.

md_dude:

Someone wrote this in another forum I contribute to and I do agree:


The problem is not that I dont agree that the subsidy has to be removed - at least from a fundamental point of view, the problem is that you dont expect the subsidy to be removed and the sector deregulated abruptly the way it has been done. It is a textbook scenario without taking into consideration what is on the ground.
From a Microeconomic standpoint, what do you want the small businesses to do now that his business overhead just went up? A barber that now has to put into consideration the new cost of PMS to fuel his generator or an Hair dresser that has to do the same? How are you so sure that the savings will be spent on anything substantial? What happened to the all the money from PTF? What happened to the extra money in crude oil account? This money will go into normal budgetting and shared among the states and will be used for overhead again. There is no constitutional provision for such "savings" to be used for infrastructure in any way. Sorry to digress.
What I am pointing out to you is that, other than the jobs that will be created in that area, few investment, there is no short term or medium term benefits to the masses.  For example, subsidy savings is not even given a special consideration in this year's budget, it just got factored into the normal budget. So where is the direct benefit to the masses?

I disagree with the statement in bold prior to your response to somebody's comment in another thread. The person tends to forget about the reoccurring interest that will go along with the servicing of that 21 billion dollars that would be borrowed. What we need is foreign investments, Nigeria cannot afford the infrastructure development alone.

Okay, let's disagree to agree this subsidy has to go!

As I am reading peoples comments my head dey shake.
Shey na like this we go dey dey?
A big question fa

na nigerian greed dey worry why cant they just build refineries?? we have the resources am sick of these country ,

The cost of fuel just dropped massively

Una go see shege.

Shebi GEJ na goatluck.

If una no die for tinubu regime, e go remain small.

Now wuna dey buy am for 650 plus plenty abeg😃😃😃😃

purplekayc:
na nigerian greed dey worry why cant they just build refineries?? we have the resources am sick of these country ,

12 years later still no refinery