ironheart:
very sound analysis

You need to be educated on the reality. You don't know what you are saying. Gibberish. Are we supposed to be importing refined products when we have crude? Wake up boy!!!

Jamestown123:
Do you know how much is 4 naira in Venezuela? Bro don't even think about the exchange rate, because many people still can't afford this things

it's a huge money, their economy is far declining nd deteriorating

jidxin:
it's a huge money, their economy is far declining nd deteriorating

Exactly, and people are migrating everyday from Venezuela because of the crumbling economy.

smokeyupu:

You need to be educated on the reality. You don't know what you are saying. Gibberish. Are we supposed to be importing refined products when we have crude? Wake up boy!!!

read your comments

theoldpretender:


I honestly give up. Some of you guys have no understanding of how economics works at all.

1.We import most of the fuel we use in Nigeria

2.The landing cost of imported fuel is above N170 per liter.

3.NNPC pays a ''subsidy'' to keep the fuel price at N145.

4.That is why most marketers cannot import fuel, why NNPC is the SOLE IMPORTER of fuel..and why NNPC partly cannot declare its assets.

5.And that is why we keep on having fuel scarcity...because most marketers cannot make a profit at N145 per liter.

6.We need oil to be at $140 per barrel to break even. Right now...we don't have enough to do so because oil has been below $75 since 2015!

7.GEJ tried to increase fuel to N140 from N65. You Nigerians protested...so we beat it down to N97...and then to N87 and that is partly why GEJ could not save forex...because we were wasting it on fuel. Meanwhile....scarcity was happening...and by 2013...fuel was being sold above the market price of N97 excpet in Lagos and Abuja...because most marketers could not survivie on profits as low as N2 per liter.

8. Please stop misinforming people. Venezuela is where it is because they import all they need and because they overspend all their money on subsides they cannot sustain, and because their govern,ment is imcompetent. Not because America...who buys most of their oil and pays for it.

9. And you APC and PDP guys better get our country off oil!

Modified...

From many of the responses below...it is pretty obvious most Nigerians want cheap things without thinking of the cost.

Many Nigerians for example want free education. Forgetting that in countries like Germany that have free education....the cost is half their salaries in taxes.

I hear people chanting that most Nigerians live under $1 a day. Well...if you can afford to fill your car tank, your generator tank and drive long distances...you are not living under $1 a day. Sorry...

The truth is, we cannot keep on sustaining cheap fuel, cheap electricity,cheap education. Our population is 200million and we produce oil at a rate less than that of the UAE which has 11million people. Either oil goes up to $140 per barrel...or we keep on taking loans to sustain us.

This is not a defence of bad government, or of Buhari or of GEJ or of any of your favourite talking points. It is reality. We are a poor nation. And we need to face that fact ...and stop excusing corruption and lying, and religoous crisis, and stealing. We need to spend what little money we have on strategic things like power, rail, and technical education. We need to get industrial fast...so that we can make things the world needs...and export things in bulk. And we need to accept that it is going to take some decades...so let us forget about enjoyment and work hard at it. Like South Korea, China and Japan...those countries got to where they are because of decades of hard work.

I don't like making this argument. To be honest I wish fuel cost N10 per liter or less. I wish we could pay fees of N10000 or less in our unviersites. I wish we had no corruption , and I wish APC and PDP were not so dissapointing. But we have to face the fact. If we do not remove subsidy....we are going to keep on wasting millions of naira on nothing.....whereas if we remove subsidy...for sure...fuel will cost N400. People will suffer. Most people would end up living hellish lives. But eventually investment willflow in,jobs will be created and the price will fall. And the economy would recover....

So,let us face the fact. Venezuela has subsidy. And as a result they have thrown billions down a bottomlesspit for nothing...and they are paying for it. And it is high time we Nigerians woke up to the fact that living on just oil is not good for us. We are a nation of oil addicts. Time we broke that addiction.

Intelligent points! But I feel sorry for you (no insults meant) because on nairaland, arguing intelligently most times is like pitting a gold ring on the nose of a pig. Don't waste your time here. Here it is all about PDP and APC, Buhari and Good luck, Igbo, Yoruba and Hausa. Objectivity here is zero. That is why I read posts like this most times without commenting. Did you not observe how many commenters here believe in their heart of hearts that Venezuelans are far better than Nigerians and over 300 people liked their posts? That is why many of our country men and women end up even in places like Cambodia to "hustle".

poseidon12:


I know many that earn zero naira per day.

SO they eat grass or everything they eat is free right?
Do not forget we are talking waht people live on not waht they earn.What people earn in Nigeria does not reflect the true pocket power of their day to day expenditure.

Well said.

theoldpretender:


I honestly give up. Some of you guys have no understanding of how economics works at all.

1.We import most of the fuel we use in Nigeria

2.The landing cost of imported fuel is above N170 per liter.

3.NNPC pays a ''subsidy'' to keep the fuel price at N145.

4.That is why most marketers cannot import fuel, why NNPC is the SOLE IMPORTER of fuel..and why NNPC partly cannot declare its assets.

5.And that is why we keep on having fuel scarcity...because most marketers cannot make a profit at N145 per liter.

6.We need oil to be at $140 per barrel to break even. Right now...we don't have enough to do so because oil has been below $75 since 2015!

7.GEJ tried to increase fuel to N140 from N65. You Nigerians protested...so we beat it down to N97...and then to N87 and that is partly why GEJ could not save forex...because we were wasting it on fuel. Meanwhile....scarcity was happening...and by 2013...fuel was being sold above the market price of N97 excpet in Lagos and Abuja...because most marketers could not survivie on profits as low as N2 per liter.

8. Please stop misinforming people. Venezuela is where it is because they import all they need and because they overspend all their money on subsides they cannot sustain, and because their govern,ment is imcompetent. Not because America...who buys most of their oil and pays for it.

9. And you APC and PDP guys better get our country off oil!

Modified...

From many of the responses below...it is pretty obvious most Nigerians want cheap things without thinking of the cost.

Many Nigerians for example want free education. Forgetting that in countries like Germany that have free education....the cost is half their salaries in taxes.

I hear people chanting that most Nigerians live under $1 a day. Well...if you can afford to fill your car tank, your generator tank and drive long distances...you are not living under $1 a day. Sorry...

The truth is, we cannot keep on sustaining cheap fuel, cheap electricity,cheap education. Our population is 200million and we produce oil at a rate less than that of the UAE which has 11million people. Either oil goes up to $140 per barrel...or we keep on taking loans to sustain us.

This is not a defence of bad government, or of Buhari or of GEJ or of any of your favourite talking points. It is reality. We are a poor nation. And we need to face that fact ...and stop excusing corruption and lying, and religoous crisis, and stealing. We need to spend what little money we have on strategic things like power, rail, and technical education. We need to get industrial fast...so that we can make things the world needs...and export things in bulk. And we need to accept that it is going to take some decades...so let us forget about enjoyment and work hard at it. Like South Korea, China and Japan...those countries got to where they are because of decades of hard work.

I don't like making this argument. To be honest I wish fuel cost N10 per liter or less. I wish we could pay fees of N10000 or less in our unviersites. I wish we had no corruption , and I wish APC and PDP were not so dissapointing. But we have to face the fact. If we do not remove subsidy....we are going to keep on wasting millions of naira on nothing.....whereas if we remove subsidy...for sure...fuel will cost N400. People will suffer. Most people would end up living hellish lives. But eventually investment willflow in,jobs will be created and the price will fall. And the economy would recover....

So,let us face the fact. Venezuela has subsidy. And as a result they have thrown billions down a bottomlesspit for nothing...and they are paying for it. And it is high time we Nigerians woke up to the fact that living on just oil is not good for us. We are a nation of oil addicts. Time we broke that addiction.

theoldpretender:


I honestly give up. Some of you guys have no understanding of how economics works at all.

1.We import most of the fuel we use in Nigeria

2.The landing cost of imported fuel is above N170 per liter.

3.NNPC pays a ''subsidy'' to keep the fuel price at N145.

4.That is why most marketers cannot import fuel, why NNPC is the SOLE IMPORTER of fuel..and why NNPC partly cannot declare its assets.

5.And that is why we keep on having fuel scarcity...because most marketers cannot make a profit at N145 per liter.

6.We need oil to be at $140 per barrel to break even. Right now...we don't have enough to do so because oil has been below $75 since 2015!

7.GEJ tried to increase fuel to N140 from N65. You Nigerians protested...so we beat it down to N97...and then to N87 and that is partly why GEJ could not save forex...because we were wasting it on fuel. Meanwhile....scarcity was happening...and by 2013...fuel was being sold above the market price of N97 excpet in Lagos and Abuja...because most marketers could not survivie on profits as low as N2 per liter.

8. Please stop misinforming people. Venezuela is where it is because they import all they need and because they overspend all their money on subsides they cannot sustain, and because their govern,ment is imcompetent. Not because America...who buys most of their oil and pays for it.

9. And you APC and PDP guys better get our country off oil!

Modified...

From many of the responses below...it is pretty obvious most Nigerians want cheap things without thinking of the cost.

Many Nigerians for example want free education. Forgetting that in countries like Germany that have free education....the cost is half their salaries in taxes.

I hear people chanting that most Nigerians live under $1 a day. Well...if you can afford to fill your car tank, your generator tank and drive long distances...you are not living under $1 a day. Sorry...

The truth is, we cannot keep on sustaining cheap fuel, cheap electricity,cheap education. Our population is 200million and we produce oil at a rate less than that of the UAE which has 11million people. Either oil goes up to $140 per barrel...or we keep on taking loans to sustain us.

This is not a defence of bad government, or of Buhari or of GEJ or of any of your favourite talking points. It is reality. We are a poor nation. And we need to face that fact ...and stop excusing corruption and lying, and religoous crisis, and stealing. We need to spend what little money we have on strategic things like power, rail, and technical education. We need to get industrial fast...so that we can make things the world needs...and export things in bulk. And we need to accept that it is going to take some decades...so let us forget about enjoyment and work hard at it. Like South Korea, China and Japan...those countries got to where they are because of decades of hard work.

I don't like making this argument. To be honest I wish fuel cost N10 per liter or less. I wish we could pay fees of N10000 or less in our unviersites. I wish we had no corruption , and I wish APC and PDP were not so dissapointing. But we have to face the fact. If we do not remove subsidy....we are going to keep on wasting millions of naira on nothing.....whereas if we remove subsidy...for sure...fuel will cost N400. People will suffer. Most people would end up living hellish lives. But eventually investment willflow in,jobs will be created and the price will fall. And the economy would recover....

So,let us face the fact. Venezuela has subsidy. And as a result they have thrown billions down a bottomlesspit for nothing...and they are paying for it. And it is high time we Nigerians woke up to the fact that living on just oil is not good for us. We are a nation of oil addicts. Time we broke that addiction.

I love your comment sir. Very apt.

olajide8:


It simply means - we have been going to the wrong country to import refined crude- the total landing cost to nigeria should not be more then N30- and government can still make a spread of 30% - N10 and I can bet my life our exchange rate differentials would crash