deflover:


Hehehehe now let's go to school
What's subsidy
Because petrol is subsidies doesn't mean the company runs at a loss sir.
What it means is they are told to sell to the consumer at a govt price while the govt pays the subtraction
So it means if I buy bread from Lagos and after transportation and all the bread is now 500naira
Govt tells u to sell at 300naira
And pays u the balance of 200naira
Its just what it is
No looses
Now can we clear this.
Sorry for the name calling

1.Apology accepted.

2.Here is how subsidy works

a) I'm a yam seller. I buy yam from farmer at N500 a piece, and plan to sell it at N700 a piece.

b) The government moves in and tells me to sell it at N300, while they pay me a subsidy of N200 a piece.

c) I make no profit...and I cannot invest in buying more yam, or paying workers, or transporting yam to market...

3.Even using your example

a)I buy bread at N500, want to sell it at N700, making a profit of N200

B) Government steps in, and forces me to sell at N300...and just pays me the balance...

c) As a result, I don't have money to replace stock, pay workers, transport the bread...and this affects the makers of the bread too...no money for me to pay them N500 for bread and have something left over in profits...

d) At the end of the day, there are job losses, as people try to cut costs.

Or to cut a long story short...if I buy bread at N500 and government forces me to sell it at N300 and pays me subsidy of N200 per loaf...I won't have anything left over in profit. I would be bankrupt in months.

Thing about business....it's all about the profit. I have many businessmen and women in my extended family. If they foollowed what you were suggesting they do...they would be out of business...unless they go to the black market and sell it at even higher prices.

What will the future of cooking GAS retailers, seems I have to be thinking on starting another business!!!

deflover:
Oga i no know wetin u dey rap
London wey I go
Na pipe carry gas come house for me
So Na u know all dis one
No be Nigeria lay pipe from Niger delta dey go Europe
If DAT one easy why to lay pipe to homes go hard

Oh, so you only went to London and you are misyarning like this? Did you go to the countryside and places outside London, which are far from the city? Did you go to different parts of the UK, in rural Scotland and Wales? Abeg, go and sit down. Even in the UK, not every part of Britain has gas piped into homes.

tactius:


1.Apology accepted.

2.Here is how subsidy works

a) I'm a yam seller. I buy yam from farmer at N500 a piece, and plan to sell it at N700 a piece.

b) The government moves in and tells me to sell it at N300, while they pay me a subsidy of N200 a piece.

c) I make no profit...and I cannot invest in buying more yam, or paying workers, or transporting yam to market...

3.Even using your example

a)I buy bread at N500, want to sell it at N700, making a profit of N200

B) Government steps in, and forces me to sell at N300...and just pays me the balance...

c) As a result, I don't have money to replace stock, pay workers, transport the bread...and this affects the makers of the bread too...no money for me to pay them N500 for bread and have something left over in profits...

d) At the end of the day, there are job losses, as people try to cut costs.

Or to cut a long story short...if I buy bread at N500 and government forces me to sell it at N300 and pays me subsidy of N200 per loaf...I won't have anything left over in profit. I would be bankrupt in months.

Thing about business....it's all about the profit. I have many businessmen and women in my extended family. If they foollowed what you were suggesting they do...they would be out of business...unless they go to the black market and sell it at even higher prices.

If no profit as u claim cos it doesn't make sense
How come people still import

laudate:

Oh, so you only went to London and you are misyarning like this? Did you go to the countryside and places outside London, which are far from the city? Did you go to different parts of the UK, in rural Scotland and Wales? Abeg, go and sit down. Evin in the UK, not every part of Britain has gas piped into homes.

I didn't go
But pipe is being run from Niger delta to Europe na
Na gas pipe oh
Why to the homes come hard

tactius:
And because petrol is subsidised, the oil industry is losing billions in naira...which means it cannot make investments in facilities, including increasing gas production.

Because, let's be honest...we flare lots of gas into the air because it is cheaper to do so.

When people like you do not understand the dynamics of the oil industry, yet you want to argue about it, you end up looking dumb.

First you talked about gas, and said it was because of subsidy, that there were no investments in that area. I corrected you that gas is NOT subsidised in any way, only petrol enjoys subsidy.

Now you are saying the oil industry is losing money because petrol is subsidised, which is why they cannot make investments into the gas sector.

You have got it all twisted. Investment in gas gathering facilities or gas production, has nothing to do with petrol subsidy.

Did a company like NLNG that has been producing gas for years, or Chevron or Shell Gas tell you anything like that? Chevron has been producing LPG propane gas for export, for years in Nigeria. Did they tell you that petrol subsidy affected them?

The subsidy only affects the refining of oil, or production, marketing and distribution of white products i.e PMS or petrol.

The reasons for inadequate investment in gas, are far too diverse and too complex to be attributed to petrol subsidy.

deflover:


If no profit as u claim cos it doesn't make sense
How come people still import

(In answering your question, I'm assuming you are talking about the petrol sector).

1.People import fuel using their own money because they hope that government would pay them some subsidy.

2.However by 2013...that was becoming unsustainable....and by 2016....price of petrol had to go up to enable government have some money(we were not earning enough from sales of crude oil)

3.What government is doing now...is forcing NNPC to be the sole importer of fuel for Nigeria....NNPC buys fuel at N200 and sells it at N145...and government pays them some money and NNPC makes up some of the money from their revenues.

4.But with oil prices being lower than we need it....this is becoming unsustainable.

5.Because NNPC is losing money (at best , government just pays them the balance between the N145 retail cost and N200 landing cost)...we are coming to a point where we either stop paying subsides...or take money from other sectors to keep up

6.I suspect that's also part of the reason why we cannot afford many good things like better schools and hospitals...and why we are also taking loans too....because we cannot sustain the arrangement in no 5 for a long time.

7.So subsidy goes, NNPC imports fuel, and sells it above N200 to marketers, who sell at a higher price...which means NNPC makes a profit...which would enable it to invest more in refineireis, and other facilites like pipelines....and which would reduce importation.

8.If we did not import...we would have fuel scarcity...so we import fuel at a great cost to our treasury...and we subsidise it at an even greater cost.

deflover:
I didn't go
But pipe is being run from Niger delta to Europe na
Na gas pipe oh
Why to the homes come hard

Ah .. you just exposed your ignorance. I thought you were an intelligent fellow, but you just proved you are not. No point in discussing with someone like you who is unable to understand basic truth. Have a good day.

Former Man of God is at it again!
School feeding,
5000 stipend and now 13millions...

Scammer is here again....a.k.a former man of God