The governor of the Central Bank of Nigeria (CBN), Lamido Sanusi in an interview with Reuters on Friday in New York said [size=20pt]that the current system of subsidizing fuel prices is unsustainable.[/size]


The governor of the Central Bank of Nigeria, Lamido Sanusi [size=20pt]said that a sharp fall in oil prices could spell big trouble for the country[/size].

[size=20pt]Mr Sanusi, a former banker who specialized in risk management and who is allied with Finance Minister Ngozi Okonjo-Iweala in the push for reforms, is pushing for the complete removal of the system of subsidizing fuel.
The government tried to scrap the subsidies but backtracked after widespread protests earlier this year and partially reinstated them.[/size]

The CBN governor said the government should spend no more than the N880 billion for subsidies in 2012 earmarked in the budget signed by Nigerian President, Goodluck Jonathan on Friday.

“I would simply like to see that the government does not pay a penny more than that, no matter what happens,” he said.

Mr Sanusi also said that a sharp fall in oil prices could spell big trouble for Nigeria.

“There will be a very bad day and a lot of gnashing of teeth if the oil price crashes and we haven’t saved a thing,” he said.

According to the CBN governor, though Nigeria is one of the world’s fastest-growing economies – gross domestic producer expanded by more than 7 per cent last year – and foreign investors have poured money into its financial markets to take advantage of high interest rates, it remains dependent on oil production which accounts for about 80 per cent of government revenues.

He is a leading advocate for an overhaul of Nigeria’s economy to make it less exposed to fluctuations in oil prices, a campaign which has drawn opposition from the country’s powerful state governors.
They fear reforms such as creating a sovereign wealth fund could prevent them from dipping into Nigeria’s windfall oil revenues.

Mr Sanusi noted recent discussions between the United States and other industrialized nations about the possible release of strategic petroleum reserves, and signs that producer countries such as Saudi Arabia might increase output to help bring down oil prices.

[size=15pt]“Our major concern is a major decline in the price of oil or (domestic) output would lead to a massive depreciation of the currency, a collapse in reserves and a huge growth in deficits and some of the states outside of the oil-producing region might find actually themselves in a situation where are not able to pay salaries,” he said.

“I am trained to think in terms of ‘what if’ and that’s the mindset I bring to my job. What happens if oil prices go to $50 a barrel? It’s happened before.”

Asked how low oil prices would need to fall before they pose a risk to Nigeria, Mr Sanusi said a decline to around $85 or $90 a barrel – from around $120 now – could lead to a shortfall in projected revenues and higher budget deficits, if Nigeria’s oil output does not increase.
[/size]
COMFORTABLE WITH MONETARY STANCE

Mr Sanusi said the CBN was comfortable with its monetary policy stance, having hiked interest rates sharply last year, but that could change if the government breaks its new 2012 budget.

The budget includes an assumed average oil price of $72 a barrel, any earnings over which are saved into the country’s excess crude account. That is $2 more than the level recommended by the CBN, but the difference did not translate into a major increase in the planned level of spending, Mr Sanusi said.

“So I don’t think the headline numbers alone would justify a change in monetary stance from where we are today,” he said.

The CBN implemented a string of rate hikes in 2011 that pushed the benchmark borrowing rate to 12 per cent.

“We front-loaded most of the tightening. We met seven times last year and tightened six times out of seven.”

A surprise dip in inflation seen in February from January’s level might continue until about April before an up-tick starting in April or May and price growth could peak at around 14.5 per cent in the third quarter before slowing to single digits in late 2013, Mr Sanusi said.

“We’ve done most of the work ahead of the fuel subsidy removal. Now it’s about waiting to see that tightening moving through the system which is what we’re seeing.”

The CBN governor also said he expected the recent stability of the naira currency to continue.


http://www.channelstv.com/home/2012/04/15/sanusi-pushes-for-complete-removal-of-fuel-subsidy/

Sanusi is correct. No nation can survive on an import dependent mono-economy.

However what I would like to see is a well planed strategy involving the LG's, states and FG to diversify the economy and move firmly toward true federalism. It is understood that GEJ has some proposals for true federalism with the constitution amendment committee, but these things need to be rushed through.

Na today

That bloody Jew Sunusi should shut his silly Zionist mouth . . . .

Its like these bankers have no shame.

What If?? What If??

Well what if the US/Israeal attack Iran causing oil prices to rocket - will you put back the subsidy already removed?

Idiot. . .

Mr. SLS, let me agree with you on here but any other time, I will always call you out.

That part about the country being in trouble should oil prices drops got me cracking up.

Has SLS forgotten that if oil prices crashes to $50, then there would be no need to pay subsidy. Or is he telling us that the government would pay subsidy irrespective of the actual price of crude

I have never disagreed with the economics of subsidy removal-No country can afford to subsidise imports for son long. The problem is, subsidy removal in Nigeria is first and foremost a political issue. As far as the average Nigerian is concerned, subsidy removal means increase in prices, increase in prices means further punishment. And it doesn't help that our "leaders" are so extravagant and wasteful in their spending. Its gonna be tough convincing Nigerians that the country is in dire straits financially.

My stance remains exactly what it was back in January: Government must be seen to lead the way in making sacrifices and pushing through austerity measures. Unnecessary legislative bonuses must stop. Legislators pay should be limited to a fixed amount per sitting. Estacodes must stop. Recurrent expenditure must be cut to below 50% of our budget. The practice of buying jeeps for senators every 4 years must cease. The bloated and unproductive civil service must be restructured. The corruption in the oil sector must be tacked head-on, with culprits found guilty and sent to prison.

There are a lot of symbolic gestures that must be taken by government to convince Nigerians to make such sacrifices. Until these things are done, the man on the street will not appreciate the need to remove subsidy.

Lead by example. It works everytime.

What is wrong with people demanding that their states and LG's actually function and generate wealth as occurs the World over?
There is nothing stopping the states and LG's from doing so.

The question has to be asked if most Nigerians have been so traumatised by oppression that they have lost the use of their brains. Failing this as a reason, then the question becomes if most Nigerians are mentally and physically lazy.

I am sick and tired of hearing id!otic arguments for our continued dependence on oil.

Beaf: What is wrong with people demanding that their states and LG's actually function and generate wealth as occurs the World over?
There is nothing stopping the states and LG's from doing so.

The question has to be asked if most Nigerians have been so traumatized by oppression that they have lost the use of their brains. Failing this as a reason, then the question becomes if most Nigerians are mentally and physically lazy.

I am sick and tired of hearing id!otic arguments for our continued dependence on oil.

Beaf i think as long as people continue to receive free oil allocations, the mental laziness will continue, for now it is you chop I chop syndrome all the way.... the elite are sharing theirs so the populace must get theirs in the form of subsidy...what really pains me is that the opposition dont see anything wrong with this. Instead they keep hammering on how to improve sharing formulas....

I pray something happens to the oil flow...make our sense re-appear from where e dey hide..

HNosegbe: I have never disagreed with the economics of subsidy removal-No country can afford to subsidise imports for son long. The problem is, subsidy removal in Nigeria is first and foremost a political issue. As far as the average Nigerian is concerned, subsidy removal means increase in prices, increase in prices means further punishment. And it doesn't help that our "leaders" are so extravagant and wasteful in their spending. Its gonna be tough convincing Nigerians that the country is in dire straits financially.

My stance remains exactly what it was back in January: Government must be seen to lead the way in making sacrifices and pushing through austerity measures. Unnecessary legislative bonuses must stop. Legislators pay should be limited to a fixed amount per sitting. Estacodes must stop. Recurrent expenditure must be cut to below 50% of our budget. The practice of buying jeeps for senators every 4 years must cease. The bloated and unproductive civil service must be restructured. The corruption in the oil sector must be tacked head-on, with culprits found guilty and sent to prison.

There are a lot of symbolic gestures that must be taken by government to convince Nigerians to make such sacrifices. Until these things are done, the man on the street will not appreciate the need to remove subsidy.

Guy if you can agree with me that the reason for the large corruption in the first place is the extensive government in everything then you may see the need to remove the oil subsidy...this goes far beyond prosecuting a few people and trowing them into jail...it a lifestyle brought about by a system that encourages laziness and creates unrealistic economic conditions that foster corruption....this needs to be changed, otherwise fighting corruption in the present system is like trying to fetch water with a basket.

DaLover:

Beaf i think as long as people continue to receive free oil allocations, the mental laziness will continue, for now it is you chop I chop syndrome all the way.... the elite are sharing theirs so the populace must get theirs in the form of subsidy...what really pains me is that the opposition dont see anything wrong with this. Instead they keep hammering on how to improve sharing formulas....

I pray something happens to the oil flow...make our sense re-appear from where e dey hide..

Exactly! For me, its an opposition party like ACN actually defining true federalism as meaning greater dependence on the FG through increased awuf money that really gets my goat. Why go through all the motions and hypocritical soundbytes to make a na'ked bid for awuf?
Everybody across the board is casting beady eyes on a piece of awuf oil loot.

Nigeria really lacks leadership at state and LG levels. Aside from Akpabio who is spending 83% of his budget on capital projects, there doesn't seem to be anyone remotely interested in in developing the cadres of govt that are directly responsible to the people.
We might mention the likes of Lamido, Chime, Amaechi, Fashola and Oshiomole, but none comes remotely close to the bar Akpabio has set.

I feel a lot of pain from realising that most people do not even have a clue about what their LG and state govt reponsibilities to them are, talkless of them having the slightest understanding of the cogs that make the wheel of development spin.

I pity the way this country is shaping to turn out in the next decade or so when oil is projected to lose market importance.

Mr Da Lover, we meet again.

I don't disagree with you. My point, however, is that government must build trust with the Nigerian people FIRST. The best way to do that is to make VISIBLE cuts in the cost of governance and fast-track the arrest and prosecution of some of these corrupt individuals.

When the government can generate such level of trust, removing the subsidy will no longer be an issue.

Some people lack sense or any form of brain. How can one say "What is wrong with people demanding that their states and LG's actually function and generate wealth as occurs the World over ?" and other mo.rons are agreeing with him.

1. What part of the world is that ?

2. tell us the government system in that part of the world

3. Tell us what their government have previously done for those states or sections so they can develop their own revenue

3. How can each 889 LGs in Nigeria generate their own revenue enough to fund their functions.

4. How can each 36 states in the country generate enough revenue to fund them selves ?

5. Would every single state be like Lagos ? Even Lagos herself is not generating enough not to talk if you even spread out the HQs etc and their by making every single state broke.

6. Subsidy should be removed but should only be removed after we are able to generate our own revenue as a country. Right now for each ship that leaves Nigeria, Nigeria is at a lost because we pay more to refine our oil than we sell for the same amount to fuel (da.ft country). We need to fix that aspect first before we even think of removing fuel subsidy at all !!!.

7. How does Nigeria herself hope to survive when the senators, president, HOR etc are collecting more than 80 % of the money we generate each year.

8. How do we expect to make the oil producing community better when we don't generate enough money to help the people their ?

Beaf you are defiantly working for GEJ

Dalover another Bigot, birds of a feather flock together

alj harem: Some people lack sense or any form of brain. How can one say "What is wrong with people demanding that their states and LG's actually function and generate wealth as occurs the World over ?" and other mo.rons are agreeing with him.

1. What part of the world is that ?

2. tell us the government system in that part of the world

3. Tell us what their government have previously done for those states or sections so they can develop their own revenue

3. How can each 889 LGs in Nigeria generate their own revenue enough to fund their functions.

4. How can each 36 states in the country generate enough revenue to fund them selves ?

5. Would every single state be like Lagos ? Even Lagos herself is not generating enough not to talk if you even spread out the HQs etc and their by making every single state broke.

6. Subsidy should be removed but should only be removed after we are able to generate our own revenue as a country. Right now for each ship that leaves Nigeria, Nigeria is at a lost because we pay more to refine our oil than we sell for the same amount to fuel (da.ft country). We need to fix that aspect first before we even think of removing fuel subsidy at all !!!.

7. How does Nigeria herself hope to survive when the senators, president, HOR etc are collecting more than 80 % of the money we generate each year.

8. How do we expect to make the oil producing community better when we don't generate enough money to help the people their ?

Beaf you are defiantly working for GEJ

Dalover another Bigot, birds of a feather flock together

I have always viewed you as little more than a talking chimp.

Below you will find a post I made some time ago about mere cities that generate more money than the entire Nigeria.
You might not understand that it is possible, because you are afflicted with the awuf induced mental and physical laziness we have mentioned on this thread. Also, your exposure extends only to the borders of the meat market and the butchers shop, yet you are eager to expose your fungal brain.

Educate yourself below, please and then come back:

Beaf: [size=14pt]We have work to do - Cities with higher GDP than Nigeria[/size]

Nigeria: GDP (PPP) 2009 estimate $341.572 billion
http://www.imf.org/external/pubs/ft/weo/2010/01/weodata/weorept.aspx?sy=2007&ey=2010&scsm=1&ssd=1&sort=country&ds=.&br=1&c=694&s=NGDPD%2CNGDPDPC%2CPPPGDP%2CPPPPC%2CLP&grp=0&a=&pr.x=38&pr.y=14

Tokyo Japan $ 1479
New York City United States $ 1406
Los Angeles United States $ 792
Chicago United States $ 574
London United Kingdom $ 565
Paris France $ 564
Osaka Japan $ 417
Mexico City Mexico $ 390
Philadelphia United States $ 388
São Paulo Brazil $ 388
Washington D.C. United States $ 375
Boston United States $ 363
Buenos Aires Argentina $ 362

http://en.wikipedia.org/wiki/List_of_cities_by_GDP (quoting PricewaterhouseCoopers)

Clearly oil is not everything, we have a lot of work to do in all facets of our economy, to raise our GDP to an acceptable level.
While Nigeria is ranked number 32 in the World by size of GDP(PPP), the true figure is revealed when our population is factored in; we hover around number 140 out of about 180. http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita

There are various sectors of the Nigerian economy that are begging to be tapped and the country would literarily explode financially. But certain aspects of our foundation first need to be addressed; nothing can be built on shaky ground.
In order to unleash our wealth creating potential, it would be necessary to educate the populace in several ways. There would be the normal school education, except that like happens in all progressive ecomies, it must be heavily skewed towards practical’s and field experience.
The other half of citizen education (and by far the most important), would be a solid grounding in the country’s ideology (more on that later). Citizens need to have a common focus to be able to act in unison to achieve the common goals needed to haul the country up the developmental ladder.

Nigerian's are bound together by unnatural strings that have failed to keep our society from fracturing along ethnic, regional and religious lines; talk less of the population acting in unity.

No country can succeed or even function without a national ideology, currently we flounder in every direction and at every task, and that is because we lack the unity of purpose a shared ideology can forge. We do not even have a simple motto or phrase around which Nigerians can feel empowered and energised.
Ideology gives root to productive defined structures and feeds them to produce society that is always optimally productive. It creates the harmony that can drive a diverse people to act as one and achieve mighty things. Therefore, it goes without saying that Nigeria must discard her current chaotic structure, which is at the root of all of our problems, from corruption to tribalism.
We must instead, strive for a structure that is ideologically driven, one that is egalitarian and inspires confidence in the young and old. The new structure, optimised for our multi-ethnicity, would guarantee a sense of belonging and duty in every citizen. The new structure would need to be a deeply thought out form of true federalism.

With true federalism, a massively populated country like Nigeria would always put the right foot first and develop at a pace that would be the envy of other nations. True federalism is the job we need to complete. Can we do it?

A don talk finish, over to una.

https://www.nairaland.com/500596/we-work-do-cities-higher

HNosegbe: I have never disagreed with the economics of subsidy removal-No country can afford to subsidise imports for son long. The problem is, subsidy removal in Nigeria is first and foremost a political issue. As far as the average Nigerian is concerned, subsidy removal means increase in prices, increase in prices means further punishment. And it doesn't help that our "leaders" are so extravagant and wasteful in their spending. Its gonna be tough convincing Nigerians that the country is in dire straits financially.

My stance remains exactly what it was back in January: Government must be seen to lead the way in making sacrifices and pushing through austerity measures. Unnecessary legislative bonuses must stop. Legislators pay should be limited to a fixed amount per sitting. Estacodes must stop. Recurrent expenditure must be cut to below 50% of our budget. The practice of buying jeeps for senators every 4 years must cease. The bloated and unproductive civil service must be restructured. The corruption in the oil sector must be tacked head-on, with culprits found guilty and sent to prison.

There are a lot of symbolic gestures that must be taken by government to convince Nigerians to make such sacrifices. Until these things are done, the man on the street will not appreciate the need to remove subsidy.

God bless you. You've just summarised what the whole discontent is all about. Why cant this sacrifice be mutual on both the govt and masses side? How do you justify so much flagrant spending by both executive and legislative arms and yet ask the common mass to make sacrifice. No one is a dummy,we all know subsidy removal is for our long term benefits but govt spending needs to reduce and drastically too

He should push for reduction of House of Assembly take home pay and not fuel subsidy .

Beaf: Sanusi is correct. No nation can survive on an import dependent mono-economy.

However what I would like to see is a well planed strategy involving the LG's, states and FG to diversify the economy and move firmly toward true federalism. It is understood that GEJ has some proposals for true federalism with the constitution amendment committee, but these things need to be rushed through.

With all due respect Beaf, I dont think you understand Sanusi's point. That said, you are right, we need to diversify, but Sanusi's point is that we are spending too much and we cant continue to live like this for too long if the govt continues to spend the way they do. The problem here is that Sanusi is attacking the wrong people.

There are other ways to raise fund, increase taxes on multinationals ( MTN alone sends 4 billion dollars to SA every year from Nigeria; whatz up with that?) Churches and other organized house of worship, we can also increase payroll taxes, reduce recurrent expenditures like someone said above, make the civil service more efficient by eliminating ghost workers,etc. Removing subsidy is inhumane and it will get us no where as far as spending is concerned. Why is Sanusi and his goons so fixated on the mere N880 billion that can be saved from fuel subsidy removal when they can save much more elsewhere? Wrong priorities!

alj harem: Some people lack sense or any form of brain. How can one say "What is wrong with people demanding that their states and LG's actually function and generate wealth as occurs the World over ?" and other mo.rons are agreeing with him.

1. What part of the world is that ?

2. tell us the government system in that part of the world

3. Tell us what their government have previously done for those states or sections so they can develop their own revenue

3. How can each 889 LGs in Nigeria generate their own revenue enough to fund their functions.

4. How can each 36 states in the country generate enough revenue to fund them selves ?

5. Would every single state be like Lagos ? Even Lagos herself is not generating enough not to talk if you even spread out the HQs etc and their by making every single state broke.

6. Subsidy should be removed but should only be removed after we are able to generate our own revenue as a country. Right now for each ship that leaves Nigeria, Nigeria is at a lost because we pay more to refine our oil than we sell for the same amount to fuel (da.ft country). We need to fix that aspect first before we even think of removing fuel subsidy at all !!!.

7. How does Nigeria herself hope to survive when the senators, president, HOR etc are collecting more than 80 % of the money we generate each year.

8. How do we expect to make the oil producing community better when we don't generate enough money to help the people their ?

Beaf you are defiantly working for GEJ

Dalover another Bigot, birds of a feather flock together

I do not intend to answer for beaf, however, I do think I have answers to some of your questions

1. In emerging/advanced/democratic nations, including the U.S. states and their respective counties generate their own revenue. For instance, when I go to CVS to purchase a pack of gum, look on your receipt, there are two forms of taxes, Walmart has three. The first is the state tax (5%), second is the City (2.5%), and maybe the third, County (2%). In most cases they are usually 2 tiers of taxes (States and County) or (State and City in the absence of counties). I just gave a brief example, this sample applies to just about everything from mortgage taxes, to Auto taxes, sales/exercise tax and the list goes on. These municipalities uses different forms of taxes to generate wealth.

For instance, Washington DC passed a law that retail outlets should charge 5cent on each nylon bags used to bag a customers items. This was to encourage releasable bags. Imagine where an average of 50,000 bags are used daily x $0.05, that's a $2,500 revenue to DC city DAILY. Assuming that 50k bags are used daily for 365days, then u have a revenue of $912,500 annually... you get the idea. My point is taxes, when utilized properly is ONE OF THE FISCAL TOOLS used to generate revenue, unfortunately, it does not apply to Nigeria. Clearly there are so many ways for states to generate revenue, i.e. when given the opportunity. So many states do not tax heavily their citizens but they tax their companies and corporations doing business in the state. FL for instance, like I heard, don't charge income taxes, but it's a tourist state, tourism is the heart of FL, the government takes advantage of that tax large businesses including 4/5 star Hotels, Top tier Restaurants, Parks and recreation, in fact, a survey found that Walt Disney World, is one of the largest revenue contributor to the FL state government and the largest employer in FL ... GO FIGURE.


2. Your answer is in no 1

3. What the U.S. govt and states have done was given these cities jurisdictional control over their resources. For instance, I live in VA, VA Assemble and Govt give autonomous authority to City of Alexandria to set up it own laws. This laws include but not limited to criminal, business, home ownership, rental laws, etc, while their certain laws that reside within state jurisdiction such as Labor/Wage laws, healthcare, education, etc. That is why you see there are certain ordinances that work in the City of Alexandria but don't work in the City of Arlington nor does it work in Fairfax City. In other words, having these cities establish their own guideline, rules, ordinances, statutes, laws or whatever name you like to call it, it gives these cities and counties more power to decide how to generate revenue.

In addition, the states "officially" support these cities financially who in turn support their respective counties. For instance, VA supports/subsidizes WMATA (rail) for the cities of Alexandria, Arlington, as well as other cities that the train travels to, however, the City of Reston/Herndon is ponying up a huge part of the $1.4billion Dulles Rail Expansion, if I'm correct, the state isn't involved in the project. As you can see, the cities are independent, but nonetheless, they do receive significant funding from their states i.e. if it's for the "people's purpose".

4.The simple way to generate revenues simply is to shrink their sizes to 1/3rd the size and perhaps, they can make more impact. If there are less than 300 LGs, they stand a better chance at functioning better than if they are almost 900. The bigger and complex they become (after success), they can split afterwards.

5. IMO, I think that's too much states, apply simple rules in no(4), then reapply (1),(3) and you have it. Nigeria has potentials, all we need is strong anti-corruption laws and keen people who are ready to follow it truthfully. Take for instance, in the SE region, I was reading about the Onitsha Monorail, so based on the numbers from the website, I decided to do a basic finance math, to my surprise, can you imagine the economic/financial potential, that monorail had on Onitsha (single) let alone, given the distance in km if dual states came together to build same size of rail, everything being equal?

6. skipped

7. Good question, to be honest, I think Nigerians need to start holding their people more accountable. The moment the center is weakened, the lesser desire for people to be wanting to be there.

8. I do not agree with this question, Nigeria makes more than enough to help the people there, the problem is that people are utilizing for good use. For one second, let's forget about oil or natural resources, any states, city or county CAN SURVIVE, if they put to good use their resources (not natural resources but like human, capital etc).

Beaf:

Exactly! For me, its an opposition party like ACN actually defining true federalism as meaning greater dependence on the FG through increased awuf money that really gets my goat. Why go through all the motions and hypocritical soundbytes to make a na'ked bid for awuf?
Everybody across the board is casting beady eyes on a piece of awuf oil loot.

Nigeria really lacks leadership at state and LG levels. Aside from Akpabio who is spending 83% of his budget on capital projects, there doesn't seem to be anyone remotely interested in in developing the cadres of govt that are directly responsible to the people.
We might mention the likes of Lamido, Chime, Amaechi, Fashola and Oshiomole, but none comes remotely close to the bar Akpabio has set.

I feel a lot of pain from realising that most people do not even have a clue about what their LG and state govt reponsibilities to them are, talkless of them having the slightest understanding of the cogs that make the wheel of development spin.

I pity the way this country is shaping to turn out in the next decade or so when oil is projected to lose market importance.

mr beaf, true u talk, but in the next decade, will u still remain in nairaland complaining? Me i wont o, if our leaders dnt think with their heads before that time, then they should be ready 4 a big challage for their sits. I wont sit here and complain all my life, i will aim 4 a political position,starting from my LGA.i expect u 2 do d same. I tink u are even more intelligent than ur governor.

strangerf:

With all due respect Beaf, I dont think you understand Sanusi's point. That said, you are right, we need to diversify, but Sanusi's point is that we are spending too much and we cant continue to live like this for too long if the govt continues to spend the way they do. The problem here is that Sanusi is attacking the wrong people.

There are other ways to raise fund, increase taxes on multinationals ( MTN alone sends 4 billion dollars to SA every year from Nigeria; whatz up with that?) Churches and other organized house of worship, we can also increase payroll taxes, reduce recurrent expenditures like someone said above, make the civil service more efficient by eliminating ghost workers,etc. Removing subsidy is inhumane and it will get us no where as far as spending is concerned. Why is Sanusi and his goons so fixated on the mere N880 billion that can be saved from fuel subsidy removal when they can save much more elsewhere? Wrong priorities!

Am amazed! Believe me I check your moniker more than 4 times.

When did fstanger/strangerf start writing like a gentleman? Or did someone hack into your computer?

Keep it up bro!

Nwa_Nimo: That bloody Jew Sunusi should shut his silly Zionist mouth . . . .

Its like these bankers have no shame.

What If?? What If??

Well what if the US/Israeal attack Iran causing oil prices to rocket - will you put back the subsidy already removed?

Idiot. . .

These fake Economists (NOI AND SLS) feel they can keep deceiving us. Now in the name of Tightening and upward tick(Laughing in Efik), we should create a Sovereign wealth fund for them to chop.

With the rise in Oil prices from the Iraq War to the uprising in the Middle East, our Federal Reserves was being wasted. Now the same crew wants us to believe they will create a Wealth Fund to save for us. Imagine LOOTERS becoming MISERS.

How come IBB is attacked everyday from the windfall accrued during gulf war from oil selling at only 40 USD or Abacha accused of being the biggest looter with oil merely selling 10 USD per barrel? Something is wrong somewhere or has our population increased ten folds since the death of Abacha.

Akainzo: That part about the country being in trouble should oil prices drops got me cracking up.

Has SLS forgotten that if oil prices crashes to $50, then there would be no need to pay subsidy. Or is he telling us that the government would pay subsidy irrespective of the actual price of crude

That is what we mean by SLS Voodoo Economics.

DaLover:

Guy if you can agree with me that the reason for the large corruption in the first place is the extensive government in everything then you may see the need to remove the oil subsidy...this goes far beyond prosecuting a few people and trowing them into jail...it a lifestyle brought about by a system that encourages laziness and creates unrealistic economic conditions that foster corruption....this needs to be changed, otherwise fighting corruption in the present system is like trying to fetch water with a basket.

Unemployment is very high, People are starving, Education is now very expensive even in Federal and State Universities. Pipe borne Water is now fantasy. How can the solution for growth start by making things harder. I don't get the Logic. Check out most developed Economies and growing countries. You will see that social amenities are there. In a case like ours, nothing. What is happening to the money meant for all these. The only benefit, I repeat only benefit is the subsidy. The rest are in the tummies, accounts and Houses of these politicians. How can we believe that Subsidy removal will cause a turn around. What turn around did the Subsidy removal of AGO bring or Since Goodluck and his cohorts remove their part Subsidy what have we gained. Abeg let them go with their Voodoo Economics or will I say Mirage Economics.

Beaf:

I have always viewed you as little more than a talking chimp.

Below you will find a post I made some time ago about mere cities that generate more money than the entire Nigeria.
You might not understand that it is possible, because you are afflicted with the awuf induced mental and physical laziness we have mentioned on this thread. Also, your exposure extends only to the borders of the meat market and the butchers shop, yet you are eager to expose your fungal brain.

Educate yourself below, please and then come back:



https://www.nairaland.com/500596/we-work-do-cities-higher

The only way we can grow is by making things less hard for the people. As long as parents have to send their Children to Hawk and the parents do menial Jobs, to put meals on the table. How can there be growth. If parents can't send their Children to Universities, how can we grow like the nations you listed. Things are very hard and if our Government can make things easier and not harder, then growth can begin. Look at the decline in the curve of learning in Nigeria, that is no sign of development. Yes Governors are looting and the President, VP, Senators and so on are doing the same. The only way for now things can get easier is by keeping prices of goods and services down, while corruption is tackled. Prices of Goods and services are directly affected by fuel price. How can raising it make things better. It only makes things harder, puts more money in the hands of Greedy politicians and drags down the growth of the nation.

I have never disagreed with the economics of subsidy removal-No country can afford to subsidise imports for son long. The problem is, subsidy removal in Nigeria is first and foremost a political issue. As far as the average Nigerian is concerned, subsidy removal means increase in prices, increase in prices means further punishment. And it doesn't help that our "leaders" are so extravagant and wasteful in their spending. Its gonna be tough convincing Nigerians that the country is in dire straits financially.

My stance remains exactly what it was back in January: Government must be seen to lead the way in making sacrifices and pushing through austerity measures. Unnecessary legislative bonuses must stop. Legislators pay should be limited to a fixed amount per sitting. Estacodes must stop. Recurrent expenditure must be cut to below 50% of our budget. The practice of buying jeeps for senators every 4 years must cease. The bloated and unproductive civil service must be restructured. The corruption in the oil sector must be tacked head-on, with culprits found guilty and sent to prison.

There are a lot of symbolic gestures that must be taken by government to convince Nigerians to make such sacrifices. Until these things are done, the man on the street will not appreciate the need to remove subsidy.


THIS SOUNDS FUNNY..YOU MIGHT BE SAYING THE RIGHT THING...BUT YOU DON'T EXPECT A PDP MAN WHO SEES AN ACN GUY RIDING A JEEP AND HE IS RIDING A SMALL MOTOR CAR, AND HE JUST SITS AND LOOK AT THE ACN MAN, it has not become a competition to steal cash, last year, it was billions, this year, it will be trillions..so why should our so-called government make such sacrifice to cut austerity measures, when the sacrifice is to make sure that such is distributed to them and them only...Like my friend will say...there is no betterment for this country...take it or leave it....if this country can't provide us the basic amenities(primary) (food, water and electricity) for a start...is it the secondary thing they want to get for us? Funny people talk about rail construction, road construction, and all i do is laugh....this country is ruined with people in power, and the only hope is for God to come and take us all, cos every child of today wants nothing but to make money, by all means, because our fathers are not helping matters...no job, no food, an average man is not an average man anymore, and you talk of the government cutting their stuffs, you talk about corruption, you and i know it will never end, this country can only be saved if we live as a capitalist country, and if we eventually live in such way, trust me, there will be jobs, but salaries will be very low, but on the other hand, if one has to live in a capitalist state, there should be room for corruption, and since our governments are in such way of lives, they go to different countries, have bank accounts, creating job opportunities for those in Switzerland, a country where everyone seems rich, where no tax is being paid, they open such large amount of accounts and create better lives for them, build factories in different countries and fix names so they wont be traced, they are never on the forbes list, but they seem richer than those who earn per second, they live in this so-called nation, but yet, in a snap, they can change this country, but also in a snap, can also ruin it, i guess they are doing the latter, so my dear friend, live and let live, see and lets see, as the yoruba man i listened to yesterday...lets call a 'space a space', the country no go better...make una leave matter.

alj harem:

5. Would every single state be like Lagos ? Even Lagos herself is not generating enough not to talk if you even spread out the HQs etc and their by making every single state broke.

I am not so sure you know what is going on in Lagos, your talk is cheap and lame, go and find out what tinubu/fashola gets from tax every month, for their own pockets...dey there dey talk nonsense...ode.

Beaf:

I have always viewed you as little more than a talking chimp.

Below you will find a post I made some time ago about mere cities that generate more money than the entire Nigeria.
You might not understand that it is possible, because you are afflicted with the awuf induced mental and physical laziness we have mentioned on this thread. Also, your exposure extends only to the borders of the meat market and the butchers shop, yet you are eager to expose your fungal brain.

Educate yourself below, please and then come back:



https://www.nairaland.com/500596/we-work-do-cities-higher

I am not even going to go into this discussion with you because you know what is right but chose to ignore it. You know the point I have been on since I joined this forum.

1. Yes we have to diversify our economy but how ? By forcing more hardship on the common man is your approved tactic of diversification ?

2. You talk of the LG and SG parasitizing on the the FG. Let me ask you one question here. How would a small local government in one corner of Benue generate her revenue to be able to pay her workers ? Please answer. Do you think all Nigerian states are Oil producing ?

3. How would the LG and SG generate revenue if Nigeria is more or less a close system (close system meaning Nigeria economy does not depend of foreigners investing in her like the USA).

4. You brought out a link of cities with GDP larger then Nigerians. Have you asked how they did it ?

a.) USA cities generate revenue BECAUSE of tourist attraction and even that they still collect from the FG (of course other sources are minerals, oil etc).

b.) Mexico city is the capital of mexico and you do not see Mexico government trying to call Mexico city a parasite.

c.) The other 2 are oil producing. Just like the Oil producing states in Nigeria but their cases as different because they are not silly enough not to have their own refinery whether by their FG or by the Oil company unlike Nigeria FG.

5. To diversify our economy

a.) Make sure Nigeria is not losing when she sells her product (crude oil) by building her own refinery. We keep and regulate what we produce.

b.) Reduce the money spent of governance. Nigeria senators are the highest paid in the world even more then OBAMA salary. Reduce this so Nigeria can save her money.

c.) Using the extra money to start fixing the power grid of the Nigeria. Nigeria cannot grow without electricity being constant.

d.) Develop our indigenous companies like Innoson, HiTv, Onado, Globacom etc. Help them grow

I can keep going on and on.

BTW as strangerf has already said, Sanusi is right but attack the wrong people. The masses do not have to suffer so they can pay some pot-belle man. Cut his expanses so he knows where it pinches and can also do the right thing because he has not stolen money savings.

manny4life:

@Manny4life. My brother, Nigeria is not that complex as we all make it seem. All we need to do is do the right thing at the right time that's all.

Don't listen to Beaf and his pack of goons trying to sow a seed of discord among ordinary Nigerians. They are paid to do such and they could careless about likes of you and I.

Also He still has not explained why we cannot build our own refinery and so we generate only little revenue from the Oil which we produce.

Akainzo: That part about the country being in trouble should oil prices drops got me cracking up.

Has SLS forgotten that if oil prices crashes to $50, then there would be no need to pay subsidy. Or is he telling us that the government would pay subsidy irrespective of the actual price of crude

Very logical

The need for diversifying the Nigerian Economy is so important as we have been a mono economy from time immemorial thus, there is no need for us to keep saying it but to take action. However, the question I still have baffling me is the fact that N880billion was allocated for subsidy despite reducing the subsidy government pays on petroleum products. Does this mean petroleum is now a giffen good i.e. are we saying that with increased cost of purchasing petroleum we are expecting the nation to consume more than it did last year (cos if we claim we spent about N1.3trillion on subsidy and we chose to slash the previous subsidy into 2, must we budget more than half of the previous budget for subsidy? Whilst I agreee that the cost of crude went up thus, petroleum products would increase in price, I still do not believe we would be spending so much on subsidy)?
While we work towards true federalism, can this be truly sustaining remembering that some states do not have any resources to fall on and their soil may not favor so much agriculture then how do they generate theinr income? In essence, I believe some states would still need to rely on the Federal Government and what I would have loved to see is a situation whereby the dependence is reduced.