yanshDoctor:
neither. we want the economy back


one question i have is since oil fall to as low as 30$ when buhari removed subsidy. now the price have gone up to 69$ per barrel.

now $69 - $30 = $39.

we export over 2.2 million barrel per day

2.200,000 × $39 = $85,800,000 per day.

since extra up to $85m per day join the previous amount how come the foreign exchange is still stagnant all this while. oh i forgot buhari don't know how to make money. but at least this is simple maths and in economies there is addition.

we have not forgot the rice ban and other items on the list, including zero corruption and the rest. why no change from the foreign exchange.

as at 04/01/2018 $1 was sold at N369.

this administration is a failure.

Because the money, plentiful as it is, is not enough.

We need oil to be at $139 per barrel to get a budget enough for our needs from oil.

That is our break-even.

Kingcesar:
Why not ...
Subsidy is the only dividends of democracy we enjoy...let them make it #50 per litre..
We will solve the problem of electricity our self by buying generators and cheaper transportation fare

Just look at your dumb suggestion.... Countries are going green, producing hydroelectricity, solar and nuclear power electricity and fueless cars and you're still thinking of how to buy generators ur country doesn't produce to watch movies cos u have no better use of ur time.... I pity u

That will be their Waterloo, because that's not what they promised Nigerians before coming into power.

Buhari, Tunder Bakare, Tinubu, Sofisticated Soyinca, and other parrots protested against GEJ removing subsidy. Death and thunder will,fire them and all others alive that will support it. Afterall Buhari said he doesnt know what subsidy is

not now

yanshDoctor:
neither. we want the economy back


one question i have is since oil fall to as low as 30$ when buhari removed subsidy. now the price have gone up to 69$ per barrel.

now $69 - $30 = $39.

we export over 2.2 million barrel per day

2.200,000 × $39 = $85,800,000 per day.

since extra up to $85m per day join the previous amount how come the foreign exchange is still stagnant all this while. oh i forgot buhari don't know how to make money. but at least this is simple maths and in economies there is addition.

we have not forgot the rice ban and other items on the list, including zero corruption and the rest. why no change from the foreign exchange.

as at 04/01/2018 $1 was sold at N369.

this administration is a failure.

All this Junior WAEC maths you're calculating please just stick to calling Buhari a dullard and 'Atikulating'

O.p which planet are you on? Buhari has been paying for it underground na today?

The subsidy is back already.
NNPC is paying $26 per litre without authorisation by the NASS and the 36 states, who are joint owners of the federation account which is deprived of such illegal payments.
That is lawlessness, which is a form of corruption by Buhari.

Proffdada:
It's not about subsidy
It's about who's running the show

so buhari go stand for port with scientific calculator dey calculate the number of vessels with vol content berthing at the ports ani?

still remember i made a post here when they made that bogus lies about removing subsidy back then. Told them what they did wass't subsidy removal but devaluation of naira that led to our currency having weak purchasing power against d dollar.

I also said those praying for increase in crudeoil price should also consider paying more for fuel.
Wished i studied economics, peeps like bismark riwane for dey consult me.
Thee only soln to this fuel crisis which will be temporary for now is to consider what ibe kachikwu professed, which is sell forex to importers of fuel at 204naira per dollar.
Though its still form of subsidy.......... But will atleast erase any form of roundtripping if the normal subsidy is to be considered.

BlackAfrican:


Just look at your dumb suggestion.... Countries are going green, producing hydroelectricity, solar and nuclear power electricity and fueless cars and you're still thinking of how to buy generators ur country doesn't produce to watch movies cos u have no better use of ur time.... I pity u

I thought you have sense !!! I see your village people are using your picture to pump air on a coal burner !
Countries going green don’t have the likes of nepa, apc ,pdp , buhari and lai Mohammed at the same time

Oh! Nigeria
Why are we not focusing on how to process the crude oil in our country and export it for our own good?
Why are we not thinking of a way to make things right? Rather we think of how to be comfortable in our present situation.
Will it be a bad idea if oil is refined in Nigeria?
Do you know that a month salaries of all the
senators put together can build a good refinery?
Is it too much for people in their level and class to sacrifice just a month salary? It may sound somehow awkward but it takes a little sacrifice to be a hero. We will still benefit from that little-big sacrifice. Am not thinking of how to make imported oil products affordable here, am thinking of how to produce it here to generate income for Nigeria.
#myview

I just imagine having the pump price of PMS subsidized back to 85 Naira/Litre

chuksboby12:
Oh! Nigeria
Why are we not focusing on how to process the crude oil in our country and export it for our own good?
Why are we not thinking of a way to make things right? Rather we think of how to be comfortable in our present situation.
Will it be a bad idea if oil is refined in Nigeria?
Do you know that a month salaries of all the
senators put together can build a good refinery?
Is it too much for people in their level and class to sacrifice just a month salary? It may sound somehow awkward but it takes a little sacrifice to be a hero. We will still benefit from that little-big sacrifice. Am not thinking of how to make imported oil products affordable here, am thinking of how to produce it here to generate income for Nigeria.
#myview

1.Dangote plus several modular refinery may come on stream in the next two years.

2. Budget for senate is 1.5 trillion naira, a new refinery would cost 3 trillion naira. Dangote refinery is partially funded by loans.

Opinionated:
By I.A Katagum

What’s all this hue and cry about the insinuated increase in the pump price of the petroleum motor spirit. Don’t tell me you have not seen it coming right from the day you advocated for the total removal of subsidy on the product!

By the way, seems like most us back then, were just shouting ‘remove subsidy’ ignorantly without actually having a grasp of what the removal entails. Only that can explain some folk’s resolve to come back here and start singing direct opposite of what they sang earlier. (we can not buy fuel above N145/ltr).

The last time I checked, removal of subsidy on a particular commodity will mean the same thing as allowing market forces, notably those of demand and supply to determine the price of that commodity. By that singular act of removing subsidy on petroleum products, the pump price of these products has become vulnerable to changes in the cost of production.

Just like the way increase in the cost of production of rice will cause a proportionate increase in the market price of rice, same phenomenon will also apply to unsubsidized PMS.

Lest I forget, a barrel of crude oil was selling below $30 when the subsidy was first removed, and that was why we were able to buy fuel at a reasonable pump price of N145/Ltr.

Now that the the price of crude oil in the international market has rocketed to about $60/barrel, common sense should be able to tell you that the pump price of N145/ltr is not longer feasible, else the marketers will be running at loss. Without subsidy, there is no way the pump price of petroleum will remain stable. It will always change to reflect prevailing realities.

As it stands now, the government has got only two options. One of the options, frequently adjusting the price to account for any increase or decrease in the cost of production seems not going to be popular with a good number of the populace. And to suddenly make a U-turn and reintroduce subsidy either directly or indirectly will not speak well of the policies of this government.

Personally, I’m not a fan of subsidy. Even when people took to the streets in 2011 to protest the culmination of the subsidy regime by the Jonathan government, my position was clear.

It’s high time the government takes the bull by the horn and make a decisive move to end this menace once and for all.

source: http://www.opinions.ng/really-want-subsidy-regime-back/

@ the bolded, it is called premium motor spirit.

okay.

9jakohai:


Fg can't foot the bill for subsidy.

They couldn't do so in 2012 under GEJ.,with oil at $100 and above, they can't do so now with oil at $70.

Plus, we need oil to be at $139 per barrel to earn enough revenue to get a budget without borrowing.

Shebi you people think bubu is borrowing too much? With subsidy in place again he would have to borrow more.

Deregulation is better than stagnation

but they are celebrating increase in foreign reserve

9jakohai:


Because the money, plentiful as it is, is not enough.

We need oil to be at $139 per barrel to get a budget enough for our needs from oil.

That is our break-even.

you always think you make sense with your phony assertions

But a lot of people can see through your hypocrisy

romme2u:


you always think you make sense with your phony assertions

But a lot of people can see through your hypocrisy

And in response...

Kuwait’s in the best position of major oil exporting nations in the Middle East, Africa and parts of Europe to have a balanced government budget this year with oil forecast to average $52.50 a barrel, according to Fitch Ratings Ltd.

Nigeria is worst off, needing an oil price of $139 a barrel to balance its budget, Fitch said in a April 5 report on 14 major oil exporting nations in the Middle East, Africa and emerging Europe. Even after cuts in government subsidies and currency devaluations, 11 of them won’t have balanced government budgets this year, including Saudi Arabia, it said.

“Fiscal reforms and exchange rate adjustments are generally supporting improved fiscal positions compared to 2015, but have not prevented erosion of sovereign creditworthiness,” Fitch said.

Only Kuwait, Qatar and the Republic of Congo have estimated break-evens that are below Fitch’s oil price forecast for this year. Kuwait at $45 a barrel traditionally has a low break-even because of its high per-capita hydrocarbon production and more recently its “large estimated investment income” from its sovereign wealth fund, Fitch said.

Brent crude, a global benchmark, has averaged about $55 a barrel this year.

The rating agency said it “substantially” raised the fiscal break-even prices for Nigeria, Angola and Gabon from 2015 levels because of rising government spending.

Fitch’s forecast 2017 break-even oil prices, per barrel:
Nigeria at $139
Bahrain at $84
Angola at $82
Oman at $75
Saudi Arabia at $74
Russia at $72
Kazakhstan at $71
Gabon at $66
Azerbaijan at $66
Iraq at $61
Abu Dhabi, United Arab Emirates, at $60
Republic of Congo at $52
Qatar at $51
Kuwait at $45

https://www.bloomberg.com/news/articles/2017-04-06/kuwait-is-best-off-nigeria-worst-in-fitch-s-2017-oil-break-even

Don't ever call me a liar again.

Thank you.

Nigerians & their analysis...

we often fail to LOOK at reality...


if fuel subsidy is totally removed & even when we have private refineries that can that can get us up to 90% of our fuel needs, we would still pay more for fuel...

why?

no long story, just do a quick research on the gasoline consumption of the following countries...

canada, Saudi Arabia, Russia, US, China, Brazil, UAE, Mexico & Norway


except Norway, all the above countries produce more crude oil than Nigeria...

& they ALL refine their oil... yet, they pay more for fuel than Nigeria...


building refineries won't make oil cheaper... or why the hell do we think investors refused to build refineries when GEJ was forced to suspend deregulation?
they won't build unless they are guaranteed that there will be minimal price controls...


APC played on the intelligence of the gullible ones who couldn't see that GEJ gave Nigerians the best deal when crude was above $80, exchange below N200 & an economy that could absorb a price increase shock...

deregulation should have happened in 2012...


APC will eat their foolery & lies sooner than later...


too bad they & their supporters are too arrogant to admit that by their false accusations against GEJ, they took Nigeria 2 steps backward...

Opinionated:
By I.A Katagum

What’s all this hue and cry about the insinuated increase in the pump price of the petroleum motor spirit. Don’t tell me you have not seen it coming right from the day you advocated for the total removal of subsidy on the product!

By the way, seems like most us back then, were just shouting ‘remove subsidy’ ignorantly without actually having a grasp of what the removal entails. Only that can explain some folk’s resolve to come back here and start singing direct opposite of what they sang earlier. (we can not buy fuel above N145/ltr).

The last time I checked, removal of subsidy on a particular commodity will mean the same thing as allowing market forces, notably those of demand and supply to determine the price of that commodity. By that singular act of removing subsidy on petroleum products, the pump price of these products has become vulnerable to changes in the cost of production.

Just like the way increase in the cost of production of rice will cause a proportionate increase in the market price of rice, same phenomenon will also apply to unsubsidized PMS.

Lest I forget, a barrel of crude oil was selling below $30 when the subsidy was first removed, and that was why we were able to buy fuel at a reasonable pump price of N145/Ltr.

Now that the the price of crude oil in the international market has rocketed to about $60/barrel, common sense should be able to tell you that the pump price of N145/ltr is not longer feasible, else the marketers will be running at loss. Without subsidy, there is no way the pump price of petroleum will remain stable. It will always change to reflect prevailing realities.

As it stands now, the government has got only two options. One of the options, frequently adjusting the price to account for any increase or decrease in the cost of production seems not going to be popular with a good number of the populace. And to suddenly make a U-turn and reintroduce subsidy either directly or indirectly will not speak well of the policies of this government.

Personally, I’m not a fan of subsidy. Even when people took to the streets in 2011 to protest the culmination of the subsidy regime by the Jonathan government, my position was clear.

It’s high time the government takes the bull by the horn and make a decisive move to end this menace once and for all.

source: http://www.opinions.ng/really-want-subsidy-regime-back/

All this big grammar does not address the question: WAS SUBSIDY EVER REMOVED? The answer is a resounding NO!

What govt simply did was to readjust the price of petrol according to the price of the US Dollar against the Naira. Since you now needed more Naira to buy one dollar, it simply made sense to readjust the price of petrol to suit the reality.

Now that crude oil prices have almost doubled since the last price increase of petrol, the government is now in a fix. They deceived Nigerians into thinking that subsidy had been removed, when in fact, no subsidy was removed. They cannot change prices now in a pre-election year, as that will be a one-way ticket to being voted out of power.

Removal of subsidy = total deregulation of the pricing regime, which means that prices cannot be the same from one station to another, and you cannot get the same price of PMS day in day out as costs change daily.

What we had was an exchange-rate mediated price increase and not a removal of subsidy.

9jakohai:


And in response...





https://www.bloomberg.com/news/articles/2017-04-06/kuwait-is-best-off-nigeria-worst-in-fitch-s-2017-oil-break-even

Don't ever call me a liar again.

Thank you.

why should i ever believe FITCH LIARS RATING UNLTD

romme2u:


why should i ever believe FITCH LIARS RATING UNLTD

Have a good day. Nice to meet you too.

9jakohai:


And in response...





https://www.bloomberg.com/news/articles/2017-04-06/kuwait-is-best-off-nigeria-worst-in-fitch-s-2017-oil-break-even

Don't ever call me a liar again.

Thank you.

if you base your premise of oil selling at $139 on the above report, then your conclusions are flawed...


the report is juxtaposing the government's expenditure & its actual budget...


if pmb were to cut down expenses as he promised, then he won't need crude to be sold that high in order to perform adequately & make a positive impact...

a government that moves expenditure from N4.8trn in times of high sales to N7.8trn in times of low sales is a deceptive & fraudulent one...

the president of Cote d' Voire is an example of a leader who was ready for the challenges of governance, settled down quickly & was able to turn the nation around, just after a brutal war, in less than 4 years... that's leadership...

ivandragon:




if you base your premise of oil selling at $139 on the above report, then your conclusions are flawed...


the report is juxtaposing the government's expenditure & its actual budget...


if pmb were to cut down expenses as he promised, then he won't need crude to be sold that high in order to perform adequately & make a positive impact...

a government that moves expenditure from N4.8trn in times of high sales to N7.8trn in times of low sales is a deceptive & fraudulent one...

the president of Cote d' Voire is an example of a leader who was ready for the challenges of governance, settled down quickly & was able to turn the nation around, just after a brutal war, in less than 4 years... that's leadership...

What the report implies is that we don't have enough money to begin with. Yes, we need to make cuts, but even then the cash isn't enough.

Infact, that is why even GEJ and Buhari borrowed.It wasnt because if bad economic policies per se....it was because the oil price was never high enough to sustain our economy.

My argument, eventually, is that we can no longer rely on a oil based economy....we need to make the transition to an industrial economy. Simple. I am not here to argue about GEJ vs Buhari. Or even to defend Bubu....am here to point out that until we become a major exporter of manufactured goods we will forever be broke.

China went from borrower to lender by going industrial. Why can't we?

9jakohai:


What the report implies is that we don't have enough money to begin with. Yes, we need to make cuts, but even then the cash isn't enough.

Infact, that is why even GEJ and Buhari borrowed.It wasnt because if bad economic policies per se....it was because the oil price was never high enough to sustain our economy.

My argument, eventually, is that we can no longer rely on a oil based economy....we need to make the transition to an industrial economy. Simple. I am not here to argue about GEJ vs Buhari. Or even to defend Bubu....am here to point out that until we become a major exporter of manufactured goods we will forever be broke.

China went from borrower to lender by going industrial. Why can't we?

OK. fair enough...

the argument of GEJ/pmb is pertinent so as to know where things went wrong, how to correct it now & avoid a future reoccurrence...


on the issue of industrialization, it is a problem of leadership...

& again, we must refer to idiosyncratic attributes...

how can Nigeria become industrialized when we have a president who is more interested in seeing 100m subsistence farmers that can barely feed themselves rather than 3m industrial farmers that can feed 500m people?

a nation cannot industrialise when its leadership is filled with praise singers & people with fossilized ideas of development...


we need the right leadership (not just one individual) to move forward as a nation.

Koolking:
Nigerians are not objective in approaching situations. Most of us let emotions and sentiments cloud our judgements.


Let drop our individual feelings about the leadership and consider issues objectively. Increase in the price of PMS has been long expected. We were all in favour of subsidy removal, which was (to me) one of the most stoic, brave and biggest achievement of the people and APC government.

Price increment in PMS is not about APC, it's about doing the right thing for the country. All good policies have backlashes which we have to endure for the time being. The future is glorious if you ask me.

No amount of whining and wailing will help. Let contribute our part to nation building.


Long live Nigera

When the govt tried implementing same in 2012, why was there noise and outcry from the same IDIOTS that now want to take it out?

The problem with the country is hypocrisy

yanshDoctor:
neither. we want the economy back


one question i have is since oil fall to as low as 30$ when buhari removed subsidy. now the price have gone up to 69$ per barrel.

now $69 - $30 = $39.

we export over 2.2 million barrel per day

2.200,000 × $39 = $85,800,000 per day.

since extra up to $85m per day join the previous amount how come the foreign exchange is still stagnant all this while. oh i forgot buhari don't know how to make money. but at least this is simple maths and in economies there is addition.

we have not forgot the rice ban and other items on the list, including zero corruption and the rest. why no change from the foreign exchange.

as at 04/01/2018 $1 was sold at N369.

this administration is a failure.

=====

we should not be talking about subsidy after one year plus. because the last time we talk about it, it was removed. so its buhari headache. they have failed in economics and shifting the blames away from themselves. as a mathematicians the error is not from the price of oil but from bad economics.
its clear because we made more revenue from the same oil which is forex. by now dollar should be around 200 to 250.

Did you put into account the fact that we import petrol, diesel and kerosene? Just asking.

9jakohai:
No

Subsidy is a waste of money, and it also makes it difficult for marketers to make a profit, and majors to invest.

I used to oppose subsidy till GEJ economic team made me , a PDP opponent, see sense in 2012.

Oil subsidy must go.

You see sense after joining them to demonstrate in LAGOS. NAIJA.

pryme:
I dont think the subsidy is a bad idea (or else it would have not lasted that long) the only problem we have is the Nigeria factor {corruption}. if implemented with transparency it will ease off the cost of leaving for the masses. I believe FG can foot the bill for now while working on a permanent solution.

Subsidise and watch demand skyrocket as the product finds its way to Benin, Niger, Chad and the Cameroun, smuggleed by the same 'masses'.Subsidy of anything is a nnatural magnet for corruption anywhere worldwude and the 'masses' end up footing the bill via long term poverty. The only way a poor nation can survive is to become productive. There are no short cuts. Someone has to pay.

Look at diesel. Deregulated for about half a decade now. Has the price reached 1000 naira.... no. On Christmas day I was full of envy when a SUV pulled into a station behind me and had its tank filled with diesel at 150 within two minutes. Here I was in a long petrol queue buying gasoline at 250. Does tnat make sense?

Opinionated:
By I.A Katagum

What’s all this hue and cry about the insinuated increase in the pump price of the petroleum motor spirit. Don’t tell me you have not seen it coming right from the day you advocated for the total removal of subsidy on the product!

By the way, seems like most us back then, were just shouting ‘remove subsidy’ ignorantly without actually having a grasp of what the removal entails. Only that can explain some folk’s resolve to come back here and start singing direct opposite of what they sang earlier. (we can not buy fuel above N145/ltr).

The last time I checked, removal of subsidy on a particular commodity will mean the same thing as allowing market forces, notably those of demand and supply to determine the price of that commodity. By that singular act of removing subsidy on petroleum products, the pump price of these products has become vulnerable to changes in the cost of production.

Just like the way increase in the cost of production of rice will cause a proportionate increase in the market price of rice, same phenomenon will also apply to unsubsidized PMS.

Lest I forget, a barrel of crude oil was selling below $30 when the subsidy was first removed, and that was why we were able to buy fuel at a reasonable pump price of N145/Ltr.

Now that the the price of crude oil in the international market has rocketed to about $60/barrel, common sense should be able to tell you that the pump price of N145/ltr is not longer feasible, else the marketers will be running at loss. Without subsidy, there is no way the pump price of petroleum will remain stable. It will always change to reflect prevailing realities.

As it stands now, the government has got only two options. One of the options, frequently adjusting the price to account for any increase or decrease in the cost of production seems not going to be popular with a good number of the populace. And to suddenly make a U-turn and reintroduce subsidy either directly or indirectly will not speak well of the policies of this government.

Personally, I’m not a fan of subsidy. Even when people took to the streets in 2011 to protest the culmination of the subsidy regime by the Jonathan government, my position was clear.

It’s high time the government takes the bull by the horn and make a decisive move to end this menace once and for all.

source: http://www.opinions.ng/really-want-subsidy-regime-back/

You are trying to make a rational argument with highly irrational and unreasonable people whose emotions about this issue is bewildering.

Nothing will make them see sense that even Buhari has failed in handling the fuel issue.

They will give you incomprehensible reasons such as if they go after the marketers sabotaging things, that the problem will disappear.

Or that the reason why there is subsidy is that Nigeria is importing petrol and that if refined here, things will be different. That once refining starts here, you can remove the subsidy or else importers of petrol will take ruthless advantage of Nigerians.

All utter nonsense. They see a conspiracy theory in this issue. Basically arm chair economist who have zero idea about rudimentary economics.

It reminds me of Oshiomole. When he was the NLC leader, he was at the forefront, leading mass strikes against any price increase. This he did without let up.

Once he became governor, he realised that a subsidy really did exist (that cheap petrol didn't actually fall from the sky) and to make matters worse, was eating into the monthly allocation his state was getting from the Federal Government.

These people are just as naive and ignorant as Oshiomole was.

If you ask them why Oshiomole changed his stance, they would say that now that he is governor and chopping money, he has forgotten the common man