Geraraheremehn:
Op what are you saying?? The junketeer in chief said he doesn't know what subsidy entails and your saying he should remove it are you a learner??



P.s : Buhari is a bloody terrorist...my fellow people of Maltina

See how you are still reasoning upon your old age? Now I know why your mother was telling me that she has to spit on the ground in disgust everytime she sees you entering her house! Brain dead bastard!!!

Even the airlines are feeling the heat

maupe:
Even the airlines are feeling the heat

Geraraheremehn:
Op what are you saying?? The junketeer in chief said he doesn't know what subsidy entails and your saying he should remove it are you a learner??



P.s : Buhari is a bloody terrorist...my fellow people of Maltina

ask God to give u sense,

Opinedecandid:
This has been my opinion, from time.
Especially since I learnt that the Nigerian Government spends #10.58 (The Punch Newspaper of November, 18yh, 2015, pg 21), almost eleven naira to subsidise each little of the premium motor spirit.

Now we are buying the gas for well over a #100, whereas, the official pump price is #87.

So what is the use of the subsidy.

Regardless of the fact that President Buhari, the APC, the NLC had castigated President GEJ for attempting to remove fuel subsidy which was for the good of the generality of Nigeria and Nigerians,

I think President Buhari should be bold enough to eat his vomit and throw away the subsidy.

yes u are right, but castigating gej was because of lack of transparency in subsidy claims, in a real sense nothing like subsidy, me and buhari don't know d meaning of subsidy, we wil end dis subsidy scan by next year, that is why PMB is still quiet about dis issue,

zik4ever:
The long term solution is for Nigeria to refine sufficient crude locally and if possible, strategise to become an exporter of refined petroleum products. That Nigeria exports crude and cant even find buyers for her crude at this time; and is importing refined product so heavily, is a scandal, sham, scam and shame that should have long entered the Guinness book of world records!. Apart from security and perhaps infrastructure, availability and affordability of PMS, DPK and AGO is the minimum key performance indicator (KPI) that we should use to assess any government in this country.

Didn't want to comment here but it will be a sin and a crime not to help highlight the bold.

If that your statement highlighted doesn't get all the PDP/APC rogues to think, nothing else should. How can we have unsold cargoes on the sea yet lack a refinery worthy of the name to refine for us? The African, nay the Nigerian truly was made from a material different from the rest of humanity.

God bless you for your wisdom bro

Subsidy right now is tooooooooooooooooooooooooo

Diiiiiiiiiiiiiiiiiiii cccccccceeeeyyyyyyyyyyyyyyy to reeeeeeeemmmmmmoooooooooveeereeeeeeeemmmmmmoooooooooveee!



Since you have lost p.h refineries and warri refineries!

On a more serious note, the President has no other choice than to give the yams to the goats. He made arrangements with the devils, and then after being granted his wish, he now wants to deny them their due homages. He should just honor his agreements with them and stop playing Russian roulette with our lives. Everywhere in the world middlemen and merchants thrive, and provide service to the masses. There is no country that survives without the actions of middlemen and economic buccaneers. Even in China and Russia, you still find such characters. This is why I was vehemently against his rise to power. Men like him will promise heaven and earth and will fight X, Y and Z and at the end of the day, they will leave office and Mr X,Y and Z will still be left to enjoy the cookie jar. Because this characters actually sponsor the ambitions of men like our President. Yesterday I was watching a documentary on Mozambique's first President, Samora,who shares the same traits as ours, he fought everyone from the Portuguese down to his own party members. Now, years after, he is dead, but Mozambique is still in ruins and education is poor with high levels of corruption ongoing in the public and private sectors.
We don't need a hero, all we need is a smart politician.

TonyeBarcanista:

Any social program that doesn't benefit the target, and even add more to their problem is not a social program.

Yes, Buhari came with lots of social promises that we all admit is impossible to implement considering the resources at our disposal. That has been established!

But how do we explain a subsidy scheme that should suppose to reduce financial burden on the massed but instead add more to the masses and the treasury?while fuel without subsidy is pegged at N100 per liter, fuel with subsidy is sold at N150 to N300 per litre plus wasted manhour. So you see, he has no choice but to implement the removal.

Abeg make I ask. Dem go still wire/pay subsidy for those weeks we been buy fuel for N100 through N200 and now to N130 ( like in PH)?

If yes, no be thief be that?

baralatie:
Subsidy right now is tooooooooooooooooooooooooo

Diiiiiiiiiiiiiiiiiiii cccccccceeeeyyyyyyyyyyyyyyy to reeeeeeeemmmmmmoooooooooveeereeeeeeeemmmmmmoooooooooveee!



Since you have lost p.h refineries and warri refineries!

Sure? But pmb through Kachukwu saved billions in TAM by using local Engineers.

[size=15pt]Tonye,

for Nigeria to be a socialist nation we need to be a market economy, right now we don't even know if we are a service economy or an Industrialist one..

buhari preaching socialism was dead on arrival..[/size]

jusRadical:

Abeg make I ask. Dem go still wire/pay subsidy for those weeks we been buy fuel for N100 through N200 and now to N130 ( like in PH)?
If yes, no be thief be that?

My brother, even when fuel is sold at N500 per litre, government still pay these marketers 'subsidy'

My dear Bro. .. Please could you help to enlighten us as to the reason for the disparities in the landing costs over time?
I think that's where the problem lies... what guarantee is there that it wouldn't increase astronomically after the subsidy is removed?
Cos I remember I read somewhere too that subsidy payments reflect on the landing cost payments too.
Nice research Bro as always

jusRadical:




Sure? But pmb through Kachukwu saved billions in TAM by using local Engineers.

According to okachi...... They saved $287m but after losing those refineries the corporation needs $500m to fix them again!
It puts us right back to influence of major marketers.
The other option is "hoping" Dantata refinery comes on line and allow modular refineries to be hot cake for investors!
But it is a gradual and calculated thing.

vladimiros:
[size=15pt]Tonye,

for Nigeria to be a socialist nation we need to be a market economy, right now we don't even know if we are a service economy or an Industrialist one..

buhari preaching socialism was dead on arrival..[/size]

Our economy is technically service driven

TonyeBarcanista:

Our economy is technically service driven

thats what messed up.. all Service economies had an Industrial boom, Nigeria never experienced that, now see us..

we don't need to be talking about subsidy again I believe every sane Nigerian knows it should be removed.....the problem with us is that we don't have leaders all we have is just politicians. a good leader that has a vision of tomorrow will know subsidy must go to help improve the state of things in Nigeria.. I think it will go next year but if they don't let it go, then I want to see the miracles they will perform. otherwise we should be up for hard times with no end in sight.

Gabbysky:
My dear Bro. .. Please could you help to enlighten us as to the reason for the disparities in the landing costs over time?
I think that's where the problem lies... what guarantee is there that it wouldn't increase astronomically after the subsidy is removed?
Cos I remember I read somewhere too that subsidy payments reflect on the landing cost payments too.
Nice research Bro as always

The disparity in landing cost may be due to the foreign exchange and other associated cost. Yes, they could be crafty sometimes.

On the second, they have the PPPRA to contend with should they want to shoot astronomically their price. Beside, they also have competitors and you know how market forces will come in. It also depends on our government attitude to existing refineries. Once that is fixed and the refineries are able to take care of 70% of local consumption, Nigeria will get the product on a cheaper price.

Subsidy is an evil that must go...>

I said it during the last serious scarcity a few months ago, this subsidy thing need to stop. Nigeria can't sustain it any longer. Now that the fuel is being sold at between N150 and N300, are Nigerians not buying it. Even Middle East countries that made so much savings during the oil boom are backing out of subsidies as it will deplete their funds overtime,let alone a country like ours that didn't save up much. Its only appropriate that the subsidy is removed at a time like this.

op is right, time to get rid of that colonial era scam that mostly benefits the multi-national oil companies headquartered you know where.

My thoughts exactly .. Subsidy stands at 10 naira now and this is a great time to end it and we buy @ 97 naira

I am with TonyeBarcanista on this one, bought petrol at Ughelli for 120 per litre, the pump price read 120 and the meter was accurate, there was no queue and for me it is very OK. Back in Port Harcourt they are saying price has come down yet its 140 with abeg.

Remove the subsidy, TonyeB create a twitter hashtag and lets go there. We are tired of suffering.

TonyeBarcanista:
For about two weeks or more Nigerians have been wailing and crying over the scarcity of Premium Motor Spirit(PMS) otherwise known as petrol or 'fuel'. Since the whole drama started, I've been silently observing reactions of people. Most commentaries on the issue were more centred on the effect of the problem and not the problem itself or the solution to the problem. Even prominent Sai Buhari fans were not left out. How do we address a problem when our interest is on the symptoms and not the problem? What is the problem of this fuel scarcity? What is the solution? This I shall address in this article.

The Problem? Petrol Subsidy Is...
Every year, a large chunk of our scarce resources is spent on subsidising 48 million liters per day just to 'relieve the masses burden'(in quote). According to the fmr minister of finance Ngozi Iwaela, Nigeria spent a whopping N2.3 TRILLON in 2011(yes, N2.3trillion) in the name of petrol subsidizing the product at N80 per liter(while the masses buy @N65 per liter). Between 2012 and 2014, Nigeria spent an average of N1trillion every year on this subsidy payment. As at today, Nigeria is made to cough out N619 million everyday to PMS marketers in the name of subsidy payment. Yet, how many Nigerians buy this product at the subsidised rate of N87 per litre despite the exorbitant amount paid to marketers?

The problem is not just the exorbitant amount paid on subsidy, there is also the problem the fraud and manipulation perpetrated by petrol marketers and their friends/allies in government that shortchange the public. These marketers will always file payment invoice to the government even when some of them don't supply the said product. In fact, it is an open secret that some of them divert the product to neighbouring countries and still file for claims of payment.

There is the third problem of sabotage by marketers and their accomplices. They deliberately hoard some of the product so as to sell them above the approved price(like what is being experienced) after creating artificial scarcity and panic buying in order to make more money. Instead of buying at the approved price of N87/ltr, the masses are forced to pay between N150 to N300 per litre for the same product. This loss is different from the billions of public fund that the marketers directly shortchanged the government. In addition to this, valuable manhour is wasted on filling station queues by citizens that want to buy the product.
This is the reason behind the present scarcity of the product that we are experiencing for over two weeks.

The fourth problem is that of blackmail. What led to the fuel scarcity in April/May this year? The marketers after being paid N350billion, N31 billion and N154billion, came up with another N200billion request for payment. Their claim was that N159billion (of the N200billion) was for "exchange rate differential". The government said they won't pay until they verify the claim, the next day booooooooom! Fuel scarcity. As usual, Nigerians curse the government instead of looking at the issue.

A painful part of it is that nobody get convicted for the aforementioned crimes. In fact, the goats are quite aware that irrespective of the yam they eat, nothing will happen to them.

The Past Administration Missed It...
Let us recall that before the 'subsidy removal' in January 2012, the open market price of petrol was N138.59 per liter. The government was paying N73 per litre on subsidy while the masses were made to pay N65 per liter. The government of Jonathan on January 1, 2012 would later remove the subsidy completely because "it cannot be sustained" as claimed by the government. Protest and agitation ensued. The masses argument was that a 100% rise in the price of the product without palliative to ease the attendant suffering will only increase their suffering. The government on the other hand maintained that the subsidy can't be sustained. Eventually, there was a compromise. The masses were to pay N97 per litre while the government pay N41 per litre for the subsidy.

As God will have it, the open market price of the product dropped to N89.84 per liter in January 2015. A price lower than the subsidised N97 per litre as at then. The government was presented with an opportunity to end the subsidy regime while Nigerians will be paying N89.84 per litre for the product, a price lower than even the 'subsidised' product of N97/ltr as then was. The government instead chose to keep the subsidy by reducing the price of the product to N87/ltr. Let me quote the PPPRA's Executive Secretary, Farouk Ahmed


Was there any wisdom in keeping the subsidy at N3 per liter at a point when Nigerians can pay N90 per litre, a price lower than the then subsidised rate of N97 per liter? It is my opinion that Jonathan's government missed it.

The Solution? Subsidy Should Rest In Peace
As at July 2015, the landing cost of petrol was estimated at N123 per litre, while the open market cost of the product was pegged at N138 per litre. This means the government paid N51.6 per litre at N87/ltr pump price, ie spending N2.8Billion daily to service the subsidy of 48million litre per day.

As at September 10, the landing price of the product dropped to N93.93 per litre while the open market price was put at N109.42 per litre. With the pump price at N87 per litre, Nigeria is coughing out N22.42 per litre to service the subsidy and costing us N1.07billion daily on 48 million litre. (See Sept 10 publication of GUARDIAN)

As at October 20, the expected open market price of petrol was pegged at N99.9 per litre. Meaning we pay N12 per litre on subsidy at N87 per litre pump price. That is N619.2 million on 48 million litre per day. (See Oct 20 publication of Daily Trust)

I believe that the N99.9/N100 per litre is not so much for Nigerians to pay in order to end the madness and fraud associated with the fuel subsidy. It is a better option than financing the fraud perpetrated by marketers in the name of subsidy. It is better for the market to be open and regulated than condoning the act of hoarding the product aimed at panic buying at ridiculous price. Did I say it will also save the government N619million daily and N18.58billion monthly? Yes, that's what will happen. The N18.58billion that will be saved monthly will go a long way in financing capital infrastructures(especially the refineries), as well as empower the security of pipelines and other facilities.

Today, Nigerians are being subjected to paying N150 to N300 per litre for 'subsidised' petrol plus wasting manhour in petrol station simply because of some marketers' greed. It is time to separate the goats from the yam(thanks to our GEJ's Goat and Yam theory). Let us see which marketer will deliberately hoard and sabotage his own business in an environment of stiff competition when there is no hope of 'free' government money.

To members of the two main political camps(APC and PDP) that are always quick at uttering words such as "e be like say them don pay dis barcanista" "shey barcanista don port to APC?", I want to remind you all that Nigeria is not not just about PDP and APC fanaticism. I may have my own financial challenge but I have never benefited a kobo from any politician. My position is necessitated on the need for a progressive opposition and better Nigeria that we all will be proud to live in and call our own. Abeg, nobody pay barcanista shi-shi, and I am not interested in patronising any group for selfish gain




May God Bless Us All and Bless Nigeria

What course did u study?

haaaaaaaaaaaa

idupaul:
My thoughts exactly .. Subsidy stands at 10 naira now and this is a great time to end it and we buy @ 97 naira

Price should not be too volatile, we can start from 110 fixed which will encourage more people to enter the business. We could put a kinda band 110 ~ 120.

benedictnsi:
Ajala needs to read this.......

lol who b ajala again bruv,ooo I don forget na awa president new name.ahahahahah.ajala d traveller abi na junkeeter sef,dis oyinbo 2 much abeg.hahahah

adeyemi2015:
Following

The nsa, ministers and Pmb are fuel and Generator cabals. Nigerians deceiving themselves,since 1999. Let us continue praying.

IsraeliAIRFORCE:
Not possible

A socialist government is meant to resign or seek fresh mandate if it can't implement the primary campaign promises.

Buhari can't just jettison the key promise that brought him to power.

The downfall of Jonathan started with the attempted complete removal of petroleum subsidy (deregulation of downstream sector) in January, 2012 and this created the platform for strong opposition to the said PDP inhumane government notwithstanding that it was a well thought out policy and the best for the country.


Removal of fuel subsidy should only be implemented if it is part of any political party campaign talking point for which Nigerians voted the party into power.

Time to take Nigerian electorates for granted is over.

does it mean that the government should allow this cabals to continue to frustrate Nigerians.
Agreed APC/PMB make d promise during the campaing, but we know in the actual sense that dis promise are campaing promises.
The fact remains that for once and for all 'FUEL SUBSIDY' should go finally.
Lets see how a marketer will keep hoarding his products when other marketers are ready to sell at even more cheaper price.

preach the word

Removing petroleum subsidy looks good in theory but as Nigeria is today it's a terrible idea.
1) We do not have a functional anti competitive agency to checkmate marketers so they would sell at exorbitant prices ( no competition would not work).
2) NNPC is not yet at the place were it can offer completion to the marketers.