The easiest way out of these seasonal fuel crises that we face would have been if we were refining our own fuel locally. Instead, we depend largely on fuel refined and imported from overseas. Our new President, Gen. Buhari will certainly face a difficult task in this area if he assumes office. Here are five obstacles that will hinder him in the attempt to stop fuel importation. If the government can sumount them then fine. At least we will make a headway. Here we go:

1. Our refineries are not yet ready. With a refining capacity of over 450,000bpd that cannot even meet our domestic needs and operating at less than 30% mostly due to machine failure, our refineries are just not ready for the task ahead.

2. Government generates revenue from the process. Am talking about the VAT and other charges levied on imported petroleum products. If we stop importing fuel today, there will be a significant drop in government revenue, and if other sources of government revenue remains constant, our budget deficit will rise, debt profile will rise and the future sufferings of Nigerians will rise. Can you accept that?

3. Significant investments have been made into providing facilities for fuel importation. Am talking about the facilities for transporting fuel to Nigeria, those for moving the products from the vessels into storage facilities, those for administration, etc. People invested money into them. Do you think they will be smiling when an attempt is make to cut off their source of income?

4. Fraudulent oil marketers are benefiting from the process. Those who falsify/doctor their documents just to overcharge the government for subsidy, those who cause unnecessary delays in offloading petroleum products just so it can incure demurage, etc. All of them will come together to frustrate any attempt to stop fuel importation just as generator sellers are doing to our electricity generation companies. If you still don't understand, go and read the PwC report.

5. Risk of unemployment. All those people directly or indirectly employed as a result of the fuel importation business will face the risk of losing their jobs. They are among those praying that we should continue to import fuel.

Additions, subtractions and meaningful observations are welcome.


Source: Martin301

I remain loyal to Buhari, to APC and to Nigeria

U jus seat down and watch, na for ur face everythng go change for good

no matter how big the obstacle.. i know Buhari will make Nigeria better again.. by God's grace.

Dangote is building a refinery in Lagos which had a capacity of 400,000 and I hear it is being expanded to 600,000

Oando is building one in Lagos too with a capacity of 400,000. These two when finished will make Nigeria an exporter of refined products whether or not our refineries work but they won't be ready until mid and late 2016 so according to Buhari this is what Nigeria intends to do.

Nigeria will give the amount of crude we need to a country that refines and we get that worth back in refined products and we pay for your refining services and we bring it back to Nigeria to sell.

As for those who built facilities bla bla bla, they knew this day will come. They should deal with it

Mynd44:
Dangote is building a refinery in Lagos which had a capacity of 400,000 and I hear it is being expanded to 600,000

Oando is building one in Lagos too with a capacity of 400,000. These two when finished will make Nigeria an exporter of refined products whether or not our refineries work but they won't be ready until mid and late 2016 so according to Buhari this is what Nigeria intends to do.

Nigeria will give the amount of crude we need to a country that refines and we get that worth back in refined products and we pay for your refining services and we bring it back to Nigeria to sell.

As for those who built facilities bla bla bla, they knew this day will come. They should deal with it

Any link one can reference as to building of both refineries?
It will be a nice idea to become an exporter of refined products.

This present situation of a farmer staving while having crops on his farmland is illogical

Martins301:



2. Government generates revenue from the process. Am talking about the VAT and other charges levied on imported petroleum products. If we stop importing fuel today, there will be a significant drop in government revenue, and if other sources of government revenue remains constant, our budget deficit will rise, debt profile will rise and the future sufferings of Nigerians will rise. Can you accept that?


Source: Martin301

This is like saying it pays a farmer to keep selling his Oil Palms and buy Porcessed red oil in return just because he wants to maintain the status of making income from the sale of the palm kernels.

Invariably the buyers of the palm kernels will count the buys as cost and sell back to him the finished product and make a profit while the farmer makes a loss on the process.

Mynd44:
Dangote is building a refinery in Lagos which had a capacity of 400,000 and I hear it is being expanded to 600,000

Oando is building one in Lagos too with a capacity of 400,000. These two when finished will make Nigeria an exporter of refined products whether or not our refineries work but they won't be ready until mid and late 2016 so according to Buhari this is what Nigeria intends to do.

Nigeria will give the amount of crude we need to a country that refines and we get that worth back in refined products and we pay for your refining services and we bring it back to Nigeria to sell.

As for those who built facilities bla bla bla, they knew this day will come. They should deal with it

Bro am not getting your gist yet. I will appreciate if you can provide credible links to support your postulation. Nigeria's four refineries combined and in different states, have a total installed capacity of about 450,000 bpd. Now you are saying that only two that are yet to be built have a combined capacity of 1 million bpd!

we are waiting na

1. Our refineries are not yet ready.
The new government will have a multi-term strategy. In the short term, NNPC will take over completely the importation of fuel. They will sign an MOU with an international refinery for a SWAP deal. In the medium term, TAM will be carried out on all existing refineries. In the long term, proper deregulation will lead to more refineries & petro-chemical plants.

2. Government generates revenue from the process.
The money saved by NNPC dealing directly with an international refinery will be many times more than the meagre revenue government generates in the current system. Most of the importers are govt cronies, as such do not even pay the right taxes. Also, the money govt looses through fraudulent subsidy payments to these importers is 10x more than the revenue generated. This is penny wise, Pound Foolish.

3. Significant investments have been made into providing facilities for fuel importation.
Most of the existing infrastructure will still be useful. NNPC will still need the private tank farms to store the imported products. They will still need all the private tankers to distribute the products.

4. Fraudulent oil marketers are benefiting from the process.
Do not undermine the power of a President with the political will to get something done. Even the marketers know it's game over.

5. Risk of unemployment.
As I said earlier, most of the existing privately owned infrastructure will still be useful, so most jobs will still be kept. In any case, the huge money saved will be deployed in other sectors that will create far more jobs than will be lost.

In summary, Nigeria does not need the oil thieves!

BUT AT THE END OF HIS FIRST TERM, WE WILL LOOK BACK AND SAY...'BABA CARRY GO ONCE MORE'

Oh God almighty , your servant MUHAMMADU BUHARI shall be taking the oath of office as NIGERIAN PRESIDENT come May, 29th 2015. Give him the wisdom, the zeal, the honor, the care, the mind, the ability, the strength to lead NIGERIA to the promise land. To those waiting to see him fail, occupy them, shame them. Oh God, continue to bless Nigeria as power change hand. May we live long to see the change we all yearned for. Amin

you try sha but i dont think those points can stop an administration that is determined to stop it...

Meanwhile
The group of cyclists riding for Buhari have finally arrived Abuja see photos >>http://www.missfavour.com/2015/05/photos-group-of-cyclists-riding-for.html

#babaOneChance..

I'm wondering how he will remove subsidy and reduce pump price.

Ok

Remove subsidy and half of the fuel issues would be resolved

kennygee:
I'm wondering how he will remove subsidy and reduce pump price.

Simple!!!
Make the refineries work

@Op; Your cra.ppy reasons are no issues to incoming government. New refineries will emerge, fraudulent oil marketers will learn their lessons as time goes not (no need mentioning the inevitable ), youths will be gainfully employed. So much so, there are better ways govt can make money other than exploiting her citizenry

usbcable:



This is like saying it pays a farmer to keep selling his Oil Palms and buy Porcessed red oil in return just because he wants to maintain the status of making income from the sale of the palm kernels.

Invariably the buyers of the palm kernels will count the buys as cost and sell back to him the finished product and make a profit while the farmer makes a loss on the process.

Nigeria's yearly budget is funded principally from oil revenue and a bunch of it comes from those taxes/charges on imported fuel. Can we deal with the revenue shortfal occasioned by cut in imported petroleum product?

If these are truly the reasons, why una de condemn jonathan?

Mynd44:
Dangote is building a refinery in Lagos which had a capacity of 400,000 and I hear it is being expanded to 600,000

Oando is building one in Lagos too with a capacity of 400,000. These two when finished will make Nigeria an exporter of refined products whether or not our refineries work but they won't be ready until mid and late 2016 so according to Buhari this is what Nigeria intends to do.

Nigeria will give the amount of crude we need to a country that refines and we get that worth back in refined products and we pay for your refining services and we bring it back to Nigeria to sell.

As for those who built facilities bla bla bla, they knew this day will come. They should deal with it

one love bro

Only an irresponsible government will not see a need to stop the importation of refined petroleum products in Nigeria. It is enough problem not to have drinkable water as at when due and to grapple in the dark due to erratic electricity.

It can be stopped, it begins with a process.

Bloody rubbish.......
OP you be enemy of Nigeria...
You did not vote for him now you're try to criticise him even before he gets into office...
Bloody hatter!!...

WASMOG:

Oh God almighty , your servant MUHAMMADU
BUHARI shall be taking the oath of office as
NIGERIAN PRESIDENT come May, 29th 2015. Give
him the wisdom, the zeal, the honor, the care,
the mind, the ability, the strength to lead
NIGERIA to the promise land. To those waiting to
see him fail, occupy them, shame them. Oh God,
continue to bless Nigeria as power change hand.
May we live long to see the change we all
yearned for. Amin

Amen and God will bless you and your family too

.

Which way my country people, person never enter power, them don dey make ham fear. Make who na let Oga enter power first na . NIGERIA don even tire me self na to enter LAGOS

okay na

5. Risk of unemployment. All those people directly or indirectly employed as a result of the fuel importation business will face the risk of losing their jobs. They are among those praying that we should continue to import fuel.

Rather they should pray they work where they export what they produce just like the Kenya's flower industry which is employing over a 100,000 people from those who are planting the flowers, to those who are processing the harvest for shipment to Europe on a daily basis which is earning them almost $1bn in foreign exchange annually. ls that not impacting on the economy positively than the fuel importation?