valentineuwakwe:
I don't know why the world bank have so much interest in removing our fuel subsidy without providing any solutions to alleviates the poor....the west will never rest until they destroy this country economically and the APC will allow them soon

Not only remove fuel subsidy, the world Bank and IMF at the same time want us to float the naira and open our ports to all imported goods. They are not even thinking of making us self sufficient or even exporters of finished goods.

If the government implement World Bank economic policies, Nigeria will be worse off than Zimbabwe and Venezuela.

How will removal of fuel subsidy help the poor, it'll only make the price of fuel more expensive.

Nigeria Govt should never believe World Bank and IMF especially, those organizations have been looking for ways to devalue our currency for some time now

orisa37:
Buhari should please listen to Wisdom.

You call this Wisdom, I'm 100% sure you're just a headline reader

WORLD BANK is the "West's" machine for impoverishing already poor and struggling countries. They give little and get too much in return.

Since the inception of world bank, how many countries have really really benefitted as in, their economies really picking up and booming?

Let's do honest research on this.

As far as am concerned the world bank should SHARAPP !

skallion7:
You call this Wisdom, I'm 100% sure you're just a headline reader

.


And your headline(herdsline) must be relevant.

ddeola:
WORLD BANK is the "West's" machine for impoverishing already poor and struggling countries. They give little and get too much in return.

Since the inception of world bank, how many countries have really really benefitted as in, their economies really picking up and booming?

Let's do honest research on this.

As far as am concerned the world bank should SHARAPP !

Imf saved South Korea

And saved Taiwan too..


Africa is a peculiar mess, hence no sensible policy that worked elsewhere works here

That's just the problem

greatiyk4u:
Where was Nigeria mentioned in the article?

The same poor that complain of buying at 147, how will buying at 250 help them?

Help me ask dem, o! People like to recycle illogical statements.

If we had an efficient rail system, a well-mapped logistics network and a developed mass transit system as well as good power infrastructure, then it would be easy to say remove fuel subsidy.

But under these current conditions of poor mass transit systems and lack of constant power, they just want to multiply the sufferings of Nigerians to infinity, by removing the subsidy. Transport costs will triple and commodity prices will increase. And how will people get affordsble fuel for their small generators, when NEPA/ DISCOs cut off power?

wirinet:

Not only remove fuel subsidy, the world Bank and IMF at the same time want us to float the naira and open our ports to all imported goods. They are not even thinking of making us self sufficient or even exporters of finished goods.

If the government implement World Bank economic policies, Nigeria will be worse off than Zimbabwe and Venezuela.

They are useless people. All their stupid theories have never helped anybody.

wirinet:

I know you guys will wail at Jonathan's loss till eternity, but Jonathan's fuel removal strategy was ill conceived and deceptive. Besides, people generally did not trust Jonathan with the extra money that would have been be raised a result of subsidy removal.
Nigeria has been removing subsidy since the 70s, had subsidy on petrol ever been removed? No. Why? Because as long as we import petrol, subsidy can never be removed. The more we remove subsidy, the more we will spend in naira to import the same quantity of petrol and the more the naira will fall, leading to inflation and the need for subsidy again.

After Dangote refinery and some other private refineries comes on board, and it's able to either reduce or eliminate the dependence on imported petrol, the government can then think of removing subsidy on petrol.

Your hypocrisy no get part. Same never catch you finish. When bubu and his co looters increased to #145, were we not told subsidy has ended. With all their campaign lies, not a single refinery was refurbished, not to talk of building a new one. You still have mouth of blaming GEJ, after fours years of wasted efforts.
Una never see anything

laudate:

They are useless people. All their stupid theories have never helped anybody.

Lol, suffering never enter your body

Ugosample:


Imf saved South Korea

And saved Taiwan too..


Africa is a peculiar mess, hence no sensible policy that worked elsewhere works here

That's just the problem

Our leaders lavished the money on nothing, look at Badagry-Marina rail, with all the money spent, it is less than 35% completed

tactius:
How fuel subsidies cheat the poor

1. Subsidies prevent companies from making decent profits. As a result, fresh investment does not come in, job creation gets stifled.
Poor affected.

2.Millions is spent on feeding subsidy cabals rather than projects for the poor.

3 Lack of investment means that no new refineries can be built which means that prices stay high and importation continues, wasting more money that could have been used for projects that would benefit the poor.

4. Nigeria gets into debt sustaining subsidy, which worsens our bad economy.


When GSM came, there were no price controls. GSM companies charged high prices for SIM cards, meanwhile service was poor. They took their money, invested it in new facilities, prices came down.

Remove price controls. Starve the corruption in NNPC. Starve the subsidy cabals. Allow profits to be made. Then sit back and watch as investors flow in, build more refineries without government paying a dime, and prices fall, more jobs get created and money saved is used for better things.

Subsidy has to go. Since 1993.

You cannot use the GSM communication industry, as a comparison with the oil sector. You would be misleading people.

Telephone and communication services were never subsidised from inception. The problem was that provision of phone services, was concentrated in the hands of a govt body known as NITEL. Telecom network was restricted, and its services could not be as accessed by majority of the citizenry.

All that IBB did, was to liberalise the sector and allow private companies to compete with NITEL and set up their own infrastructure. There was already a lot of pent-up demand for the service. So it took off like a rocket.

Later competition came in, and companies like Glo started per second billing which crashed prices. So how can you compare telecoms with the fuel sector??

emmykk:


So after dangote is through with his refinery he will start to sell it to you for 10kobo?
He is a capitalist and he will be exporting it to west Africa countries and other countries for a good price.


He will even then contest as president to have a better say.

After Dangote sells his petrol to neighboring west african countries, if there is any spare stock, he might reluctantly sell it to NNPC at N200 per litre

ogododo:
Lol, suffering never enter your body

You are not making sense. Everyone knows that suffering is already your constant companion.

ogododo:


Your hypocrisy no get part. Same never catch you finish. When bubu and his co looters increased to #145, were we not told subsidy has ended. With all their campaign lies, not a single refinery was refurbished, not to talk of building a new one. You still have mouth of blaming GEJ, after fours years of wasted efforts.
Una never see anything

GEJ was voted out of office due to the fact that he could not be trusted anymore with our national treasury. If you are still hurting, do us a favour and commit suicide.

Not that Buhari is much better (hence his need to massively rig the last elections), but Buhari is better trusted with our treasury that your "stealing is not corruption" hero

Subsidy can be removed, but only temporarily. Once you remove subsidy, it takes a few months for the inflationary effects to be felts by all sectors of the economy. After a while the naira catches up with the inflation, due to excess pressure on the naira and hence the need for subsidy once again. That's has been our cycle since early 70s when petrol was a couple of kobos per litre.

wirinet:

GEJ was voted out of office due to the fact that he could not be trusted anymore with our national treasury. If you are still hurting, do us a favour and commit suicide.

Not that Buhari is much better (hence his need to massively rig the last elections), but Buhari is better trusted with our treasury that your "stealing is not corruption" hero

Subsidy can be removed, but only temporarily. Once you remove subsidy, it takes a few months for the inflationary effects to be felts by all sectors of the economy. After a while the naira catches up with the inflation, due to excess pressure on the naira and hence the need for subsidy once again. That's has been our cycle since early 70s when petrol was a couple of kobos per litre.

Thanks for educating the clueless, my brother. That joker you responded to, does not have an ounce of logic in his brain.

wirinet:

GEJ was voted out of office due to the fact that he could not be trusted anymore with our national treasury. If you are still hurting, do us a favour and commit suicide.

Not that Buhari is much better (hence his need to massively rig the last elections), but Buhari is better trusted with our treasury that your "stealing is not corruption" hero

Subsidy can be removed, but only temporarily. Once you remove subsidy, it takes a few months for the inflationary effects to be felts by all sectors of the economy. After a while the naira catches up with the inflation, due to excess pressure on the naira and hence the need for subsidy once again. That's has been our cycle since early 70s when petrol was a couple of kobos per litre.

Enjoy the one you trusted, men always like darkness than light.
Happy fulanisation, Warri de kampe!

wirinet:

I know you guys will wail at Jonathan's loss till eternity, but Jonathan's fuel removal strategy was ill conceived and deceptive. Besides, people generally did not trust Jonathan with the extra money that would have been be raised a result of subsidy removal.
Nigeria has been removing subsidy since the 70s, had subsidy on petrol ever been removed? No. Why? Because as long as we import petrol, subsidy can never be removed. The more we remove subsidy, the more we will spend in naira to import the same quantity of petrol and the more the naira will fall, leading to inflation and the need for subsidy again.

After Dangote refinery and some other private refineries comes on board, and it's able to either reduce or eliminate the dependence on imported petrol, the government can then think of removing subsidy on petrol.

Your head dey pain u!!! What has Jonathan losing get the do with the fact that pms pump price is where Jonathan wanted it without subsidy, buhari took it there with subsidy even paying more?? Where is the money buhari saved by increasing pump price above 50% Buhari had borrowed more that any government despite all the record breaking remittances by custom, Jamb, firs etc. Where are all the money you trusted buhari with May you be delivered from zombified personality syndrome

laudate:

Thanks for educating the clueless, my brother. That joker you responded to, does not have an ounce of logic in his brain.

Go and check the meaning of clueless, see how you are number one!

laudate:

You are not making sense. Everyone knows that suffering is already your constant companion.

Thank you man wey sabi, mr senseful!

ogododo:
Go and check the meaning of clueless, see how you are number one!

Sir, I have checked. The title of 'clueless' fits you perfectly. And that was why it was bestowed on you. Accept my congratulations on your new title.

ogododo:


Enjoy the one you trusted, men always like darkness than light.
Happy fulanisation, Warri de kampe!

You be waffi, na him you dey fight your fellow brother on stupid politics? Any way my take is that Jonathan, Buhari (and I was an ardent supporter of Buhari ) and even Atiku are a incompetent.
We must learn to take our destinies in our hands and quit waiting for all messiah.

wirinet:

GEJ was voted out of office due to the fact that he could not be trusted anymore with our national treasury. If you are still hurting, do us a favour and commit suicide.

Not that Buhari is much better (hence his need to massively rig the last elections), but Buhari is better trusted with our treasury that your "stealing is not corruption" hero

Subsidy can be removed, but only temporarily. Once you remove subsidy, it takes a few months for the inflationary effects to be felts by all sectors of the economy. After a while the naira catches up with the inflation, due to excess pressure on the naira and hence the need for subsidy once again. That's has been our cycle since early 70s when petrol was a couple of kobos per litre.

Slaves always see nothing wrong with their taskmasters

laudate:

Sir, I have checked. The title of 'clueless' fits you perfectly. And that was why it was bestowed on you. Accept my congratulations on your new title.

No comment, gi and act your new title!

ogododo:
No comment, go and act your new title, Ogododo!

Let's be honest. the poor benefit from cheap petrol. Transport cost is cheaper due to cheap petrol.

However, cheap fuel is one step forward, ten steps back.

Money that is spent to make fuel cheap could be better spent elsewhere.

It also leaves a gaping hole in the treasury which is inflationary and can lead to recurring depreciation of the Naira. Also, the subsidy also encourages corruption.

The most damaging effect of the subsidy is that it discourages investment in the downstream sector of oil industry. By now, Nigeria should be the refining giant of Africa exporting refined products throughout Africa and the world.

Instead, the country is a massive importer of refined oils. Who will set up a refinery and be forced to sell below the market price? Even Dangote has said he'll sell his products at market prices. Those who demand that the subsidy should remain should stay silent about fuel importation.

wirinet:

You be waffi, na him you dey fight your fellow brother on stupid politics? Any way my take is that Jonathan, Buhari (and I was an ardent supporter of Buhari ) and even Atiku are a incompetent.
We must learn to take our destinies in our hands and quit waiting for all messiah.

We go jam for Airport road!

laudate:

Thanks for educating the clueless, my brother. That joker you responded to, does not have an ounce of logic in his brain.

that's harsh naa

grandstar:
Let's be honest. the poor benefit from cheap petrol. Transport cost is cheaper due to cheap petrol.

Cheap transport is critical to the survival of the poor. As it is the poor spend close to 30% of income on only transportation.

However, cheap fuel is one step forward, ten steps back.

Money that is spent to make fuel cheap could be better spent elsewhere.

Economies are built on cheap fuel (energy). Without cheap energy, you can never compete on the international stage. Countries go to war to secure sources of cheap energy.

It also leaves a gaping hole in the treasury which is inflationary and can lead to recurring depreciation of the Naira. Also, the subsidy also encourages corruption.

It is not subsidy that encourages corruption, the society encourages corruption, ie churches, mosques, traditional institutions, the people themselves. There is corruption in all facets of our society. Even if subsidy is removed, corruption will still remain in the upstream sector.

The most damaging effect of the subsidy is that it discourages investment in the downstream sector of oil industry. By now, Nigeria should be the refining giant of Africa exporting refined products throughout Africa and the world.

Refineries are a massive investment and only a few people apart from the FG can engage in it. It is general corruption pervasive in the society that is discouraging investment by main powers in the oil industry and not necessarily subsidy. Many multinational oil companies are even divesting in Nigeria due to problems of insecurity and corruption.

Instead, the country is a massive importer of refined oils. Who will set up a refinery and be forced to sell below the market price? Even Dangote has said he'll sell his products at market prices. Those who demand that the subsidy should remain should stay silent about fuel importation.

It depends on the sincerely and commitment of government to provide it's citizens with affordable and reliable fuel. Nigeria has 400,000 barrels assigned by OPEC for local consumption. It could enter a refining agreement with dangote, to refine on contract. It could sell crude to dangote at reduced prices for local consumption. The government can explore various partnership options with dangote refinery to all Nigerians enjoys affordable fuel.

Demand is elastic enough that a tax and not a subsidy is socially beneficial.

laudate:


You cannot use the GSM communication industry, as a comparison with the oil sector. You would be misleading people.

Telephone and communication services were never subsidised from inception. The problem was that provision of phone services, was concentrated in the hands of a govt body known as NITEL. Telecom network was restricted, and its services could not be as accessed by majority of the citizenry.

All that IBB did, was to liberalise the sector and allow private companies to compete with NITEL and set up their own infrastructure. There was already a lot of pent-up demand for the service. So it took off like a rocket.

Later competition came in, and companies like Glo started per second billing which crashed prices. So how can you compare telecoms with the fuel sector??

Good morning.

If we remove subsidies and price controls in the downstream sector this would happen

1.Foreign investment would flow in now that profits can be made.

2.This stimulates investments in things like refineries and so on

3.Which would eventually bring down fuel prices

4.Money spent on subsidy can be ideal spent on other sectors which need it, such as education, health, even public transportation

5.Need I say that jobs would be created, benefiting rich and poor.

6.Fuel smuggling, claiming subsidy for fuel not imported and importation of fuel would end.

Good morning