Buhari has come to steal, kill and destroy

But it didn't start today

Still he was voted for, maybe nig must be destroyed

DuBLINGreenb:
Stop mongering fear instead profer SOLUTIONS.

he did that earlier on the post. U didn't care to read the post with your eyes wide open.

olarid01:


This, I think, is the reason where we will never have an honest leader who will make things work. We tend to apply 'human factor' in every aspect of our lives. The reality is, we will never move forward without enduring some hardship, and I mean a lot of it. Things will be hard at first, but as the time goes on, it will get better.

True BUT that's not the full picture.

When you ask that someone embarks on a tough journey with you — promising a better future after which— there must/should be Guarantees.

Eliminating subsidies isn't the full package BUT a good start.
The other part requires Guaranteeing that saved resources from subsidy are ploughed back to the economy in ways that promote growth & development and NOT stolen/Missappropriated by Corrupt and/or inept leaderships.

If subsidy savings aren't reinvested properly, removing subsidies just piles more hardships for the average Nigerian.

Don't ask to trust the government yet though. Trust/reputation should be earned while the subsidies subsist. Then and only then would the citizenry be more convinced to go on the journey of austerity (subsidy removal) with the government.

If the government wants to turn the economy around and set it on a path of sustainable growth these 3 things it should immediately do:

1. It needs to engineer a culture of independence amongst it political cost centres. That is the Federating states. It needs to wean them off 'allocations' - geo-political subsidies. States should be given IGR targets and the Federal government involved only in couterpart funding of investments. It will encourage them to right size their bloated civil services.

2. It needs to engineer a culture of productivity by ensuring its biggest bills directly relate to getting the largest number of Nigerians working and making stuff. If they will spend 3 trillion on petroleum subsidies that amount should be able to create no less than 1 million direct and indirect jobs a year. So instead of spending all that on trading split it in half and partner with Nigerian investors who wish to build refineries with job guarantees to follow.

3. Make concerted efforts to end the building of infrastructure by contracting. Encourage the establishment and expansion of industrial concerns to produce the basic material elements required and execute the works by direct labour through Engineering Consultancies. This will drastically cut down the cost of these works while creating a lot of jobs and enabling greater intekkectual capacity.

HeyCorleone:



Or slash salaries of public servants?

We were told that the NASS is going to share N19b in 3 months. For what reason other than their self gratification. In a country that is almost bankrupt? You see that things don't add up.

How much do these people earn? How much does the president eat in a day? These things have to be reviewed.

Otherwise removing subsidy would throw Nigeria into perpetual chaos.

In most countries where government doesn't pay subsidy on things, they enjoy amenities like free quality education, very affordable healthcare, cheap public transportation, good power supply, among others. All these in a bid to make life better for citizens.

So if you say Nigerians should pay N200 on a ltr of petrol, what are you offering them? Do they still pay school fees? Do they still pay to fuel their generators? Do they still pay high fees for medical checkups? Do they still pay to repair their cars because of the bad roads? Just what are they being offered?

The matter has to be carefully reviewed all round.

Nice talk.

Bankruptcy for Nigeria?

No. So long as Abuja receives money from crude oil and sustains govt in Nigeria, politicians can't understand that a country can go bankrupt.

"Here the truth" and that writer will say he is a journalist

On the verge me?!
I thought that is where we are already

Sharp sharp! He's known noise maker. The workshop is on accountability and transparency, he's talking about subsidies. I think Gandollar has given him a serious uppercut. Always seeking useless relevancy. Sudanese economist

MobilityExpress:
This Emir again? Ganduje should do the needful

Bankrupt.....not on the edge of bankruptcy.

tactius:
EXACTLY



Finally, someone has the cojones to tell the truth.

I should point out that the Emir has been saying this for years (along with Okonjo Iweala, he backed GEJ in 2012 over subsidy removal).

The truth is, WE HAVE TO STOP PAYING SUBSIDES for power and electricity. Subsides have been going up because the number of Nigerians buying cars, generators, etc...is going up.

Subsides are also the reason why we cannot build new refienreis and attract investment in the downstream sector...as well as the power sector...because who is going to refine fuel at N165 (NNPC figures) and sell it below N150?? Who is going to come and invest in pwoer sector and be colecting bills at 30% the cost of power production??

Who is going to accept government that forces him or her to sell goods at a loss, and only pays you the difference between the government price and the price you bought the goods at?

And the cabals are being fuelled because quite simply...government polices force them to engage in sharp practices like smuggling fuel across the border to earn a profit...and make claims for products not improted.

Meanhwile, oil our major earner is at $80 and below. We need it at $140 per barrel to be able to run an economy WITHOUT BORROWING.

So, we have no choice. Subsidies must go. YES....we will be paying N300 and above for fuel (which by the way is what they pay in Niger, Cameroon, even Benin...and all these countries are as poor as we are...and Niger is even poorer...and they all produce oil). Yes, electricity bills will shoot up to N30000 and above per month for a one room apartment...but we haven't got any choice.

Our budget cannot sustain us.

So, let's face facts, YES....LET US FIGHT CORRUPTION AS WELL, LET APC STOP BEING PARTIAL....but the truth is SUBSIDY HAS TO GO...unless you got N20 TRILLION extra for Nigeria every year...somewhere.

In 2012....Nigerians foolishly rejected GEJ's good idea of removal of subsidy...partial yes...but better than not removing it. Thanks to that we missed out in investment...and in job creation, refinery building (yes...we could have had more refinereis built than just Dangote) and even sorting out the power problem.

Note...Any one quoting me to insult me, or curse me will be REPORTED TO THE MODS. You are free to disagree with me, but please be polite. Thank you

All these dogon turenchi u put did not even touch the real problem. What happen to our refinery? If our refineries are up and running, 70% of our problems are solve

akaahs:

All these dogon turenchi u put did not even touch the real problem. What happen to our refinery? If our refineries are up and running, 70% of our problems are solve

Subsidy prevents NNPC from making the profits needed to keep our refineries in good wrking conditon and from building more of them

Add corruption...and the problem gets worse.

(Even at full capacity.. we still need to import fuel)

tactius:
EXACTLY



Finally, someone has the cojones to tell the truth.

I should point out that the Emir has been saying this for years (along with Okonjo Iweala, he backed GEJ in 2012 over subsidy removal).

The truth is, WE HAVE TO STOP PAYING SUBSIDES for power and electricity. Subsides have been going up because the number of Nigerians buying cars, generators, etc...is going up.

Subsides are also the reason why we cannot build new refienreis and attract investment in the downstream sector...as well as the power sector...because who is going to refine fuel at N165 (NNPC figures) and sell it below N150?? Who is going to come and invest in pwoer sector and be colecting bills at 30% the cost of power production??

Who is going to accept government that forces him or her to sell goods at a loss, and only pays you the difference between the government price and the price you bought the goods at?

And the cabals are being fuelled because quite simply...government polices force them to engage in sharp practices like smuggling fuel across the border to earn a profit...and make claims for products not improted.

Meanhwile, oil our major earner is at $80 and below. We need it at $140 per barrel to be able to run an economy WITHOUT BORROWING.

So, we have no choice. Subsidies must go. YES....we will be paying N300 and above for fuel (which by the way is what they pay in Niger, Cameroon, even Benin...and all these countries are as poor as we are...and Niger is even poorer...and they all produce oil). Yes, electricity bills will shoot up to N30000 and above per month for a one room apartment...but we haven't got any choice.

Our budget cannot sustain us.

So, let's face facts, YES....LET US FIGHT CORRUPTION AS WELL, LET APC STOP BEING PARTIAL....but the truth is SUBSIDY HAS TO GO...unless you got N20 TRILLION extra for Nigeria every year...somewhere.

In 2012....Nigerians foolishly rejected GEJ's good idea of removal of subsidy...partial yes...but better than not removing it. Thanks to that we missed out in investment...and in job creation, refinery building (yes...we could have had more refinereis built than just Dangote) and even sorting out the power problem.

Note...Any one quoting me to insult me, or curse me will be REPORTED TO THE MODS. You are free to disagree with me, but please be polite. Thank you

You have said it all

Interesting dissertation you've had on this issue@tactius I must say, and I sincerely commend and appreciate your patience and candour even in the face of opposing views. But my simple question is this,
Remove subsidy and where do downstream sector players like Matrix, Rainoil and co. fall into?
Another question is, Uncle Dangote's refinery finally comes on board, what does it add or contribute to the equation/status quo?

tactius:


Government cannot build new refinereis...because of the matter of subsidy.

Subsidy works this way. I import fuel at N200 per liter, and sell at N145 per liter to marketers, while government pays the N65 balance. Meaning I cannot make a profit (this is what NNPC has been doing for the last 4 years. Before it was marketers).

Plus, as the price of imported fuel keeps on going up,,,,,so also the cost of the subsidy of fuel per liter.

Building a refinery would be basically like building a big loss making machine. NNPC would build a refinery, and then be refinig fuel at N165 and selling it at N145 to marketers. Meaning NNPC cannot make a profit...meaning it won;t be able to maintain refienreis or build new ones adequately...which leads to job and investment losses.

Or let me explain it to you more simpler..

I am selling shirts. I buy my shirts at N5000 and plan to sell at N6000. Government steps in and forces me to sell at N3000 , while they pay me N2000 as subsidy. The shirts are made in Nigeria, but because of rising labor costs in making the shirts....the cost then goes up to N7000, and government pays me N4000. Next year, shirts go up to N8000...and the subsidy costs increase...and I am not making a profit at all...and the shirt manufacturer is losing money and has to cut jobs because I cannot pay her, or pay workers.

The best incentive you can give to any investor is to allow him or her make a profit. If you cannot allow a profit to be made...things would get harder.

We spend 1.5 trillion on subsidy by the way. Yearly...money that could have been used for other things. And NNPC is not making a profit.

jlomz:
Interesting dissertation you've had on this issue@tactius I must say, and I sincerely commend and appreciate your patience and candour even in the face of opposing views. But my simple question is this,
Remove subsidy and where do downstream sector players like Matrix, Rainoil and co. fall into?

They eand up earning bigger profits, which can be reinvested in job creation , etc

Another question is, Uncle Dangote's refinery finally comes on board, what does it add or contribute to the equation/status quo?

I'm not sure...but Dangote won't be selling fuel below N145...it would be far below his production costs.

I hope we can see that the debt wipe off that OBJ got for us was very important. else our debt would have been something else.

Lush100:
I hope we can see that the debt wipe off that OBJ got for us was very important. else our debt would have been something else.

It was...and back then a lot of 'experts' were bashing him for it.

Nigeria ia finished

I wish sanusi will rule this nation one day

Bbbwings:
Stfu and enjoy next level
America is in a trillion dollar debt.
And boy do they navigate around it by printing more money
Emeifele get to work.

Ps
If you can't discern the sarcasm in here, you need your brain checked.

First of all, America's GDP is larger than Nigerian's meaning that they produce more goods in a year than Nigeria, so while they can sustain their debt, Nigeria will struggle and may become bankrupt.

Secondly, releasing more money into the system means that cash will be more than goods in the country. This is what causes INFLATION. And once inflation occurs, the price of commodities in the country increase - that means the whole thing has backfired.

These observations should be taken seriously to avert further decay of our economy.

tactius:


Subsidy prevents NNPC from making the profits needed to keep our refineries in good wrking conditon and from building more of them

Add corruption...and the problem gets worse.

(Even at full capacity.. we still need to import fuel)

That's not totally true, are you telling me NNPC never remits anything to the government? What happen to total deregulation of the said refineries? What happens to public private partnership?

The Emir is right. Bokoharam and Fulani Herdsmen have bankrupted Nigeria with their life-style.

Reference:


They had a significant chance to remove subsidies on the dollar, petroleum and electrcity when political capital was high in April 2015, when the citizens were caught up in the hype and propaganda to notice and resist and boy did we shout ourselves hoarse back then but they couldn't because the APC had its shoelaces in a twist by ealier on its life berating the propsals by the GEJ government to bell the cat.

If they were wise they could have let GEJ do it, take the flak and get booted out as desert, then tje APC could have taken the glory for the gains which would have been evident by now. But the ghost of their scaremongering will not allow them to take even the faintest of steps towards restructuring government finances.

Then you have Almighty President Buhari and the albatross of his tunnel vision held since 1985 that corruption is all the problem Nigeria has. This will be his greatest undoing, his inability to broaden his perspective to grasp far deeper and more detailed structural problems Nigeria faces. So the government is in denial.

Even the cerebral Veepee is swept away in denial telling folks in the US that security challenges are exerggerated courtesy of social media and Nigeria doesn't need structural reflection.... his idea.....hear his unbelievable statement, that Nigeria's poverty results from challenges of resource distribution. Can you imagine this....

Just when we thought the ghost of Gowon's infamous, '...our problem is how to spend it....' was dead and buried, 50 years later a head of government is still saying this.... and we expect Nigeria to get better with this mentality....

Well said. You also write well

kutashi:
Sharp sharp! He's known noise maker. The workshop is on accountability and transparency, he's talking about subsidies. I think Gandollar has given him a serious uppercut. Always seeking useless relevancy. Sudanese economist

liars