Nigeria really have to stop subsidising fuel and remove the peg it has placed on the Naira against the dollar


Else it will end up in bankruptcy.

bigfish3k:


i learnt its about $5b. but how much did we fine MTN again, remind me. we just lack the political will not the money. we can as well borrow
but we have been spending billions of dollars unnecessarily looking for oil in the north
and now this RUGA shit that will bring all the fulani foreigners to nigeria

[b]btw, how did MTN and co recover their monies bac[/b]k

By initially charging high prices for GSM servicies.

Add the fact that the subscriber base too was growing...and the fact there was no price controls via subsidy brought in a lot of investment....MTN was eventually able to make a profit.

bigfish3k:


i learnt its about $5b. but how much did we fine MTN again, remind me. we just lack the political will not the money. we can as well borrow
but we have been spending billions of dollars unnecessarily looking for oil in the north
and now this RUGA shit that will bring all the fulani foreigners to nigeria

btw, how did MTN and co recover their monies back

Thank u bros

Just30:
Nigeria really have to stop subsidising fuel and remove the peg it has placed on the Naira against the dollar


Else it will end up in bankruptcy.

Nigeria isn't subsidizing fuel. It is enriching those in govt. They have been removing subsidy for ages yet d money meant for subsidy is increasing instead of decreasing

Telkart19:
Good idea

Increase prices, and stop throwing N2 trillion down a drain every year.

In fact, it is better that NNPC stops controlling prices of petroloeum products. Instead, let the market set the price.

Yes..prices of stuff will go up. Yes, we will pay N200 and above for petrol

BUT....eventually, investors would flow in, investment will flow in, and more money will come, and eventually...more refienries, and LOWER PRICES FOR FUEL

Instead of us dashing subsidy cabals 2 trillion every year...let them work for their money. Government can use the savings for things like educaiton, health, etc.

P;S If you quote me to abuse me, I will report you to the mods. I have a right to my opinions.


[url=http://www.eria.org/Chapter%208-Impact%20of%20Fuel%20Subsidy%20Removal%20on%20Government%20Spending.pdf]
SAUCE[/url]

Naso you mumu reach foolishness will not kill go and study better state economy

And most these West Africans country enjoyed stable power supply. Unlike Nigeria, where everything you want to do in this country you must use petrol or diesel.

Telkart19:


By initially charging high prices for GSM servicies.

Add the fact that the subscriber base too was growing...and the fact there was no price controls via subsidy brought in a lot of investment....MTN was eventually able to make a profit.

During d Abacha era, Abacha removed fuel subsidy cos just like his successors, he felt fuel subsidy was a burden on d country. But it was during his time that d refineries were finally killed& fuel importation became d norm. D refineries were actually starved of TAM in order to provide justification for fuel importation.

Abacha came up with two words "deregulation" and "liberalisation" of d downstream sector. He also set up d Petroleum Products Pricing Regulatory Agency (PPPRA) headed by d late Rasheed Gbadamosi. As its name suggests, its core function was to regulate d prices of imported petroleum products in a sector d govt said it wanted to deregulate.

As far as its liberalisation drive was concerned, instead of allowing major players to come into d sector to refine products locally, d govt gave product importation contracts to family & friends of Abacha.

D oil majors have refineries in countries that don't have crude oil. D reason they can't replicate that in Nigeria isn't because of fuel subsidy, its because if they are allowed to, it will expose d corruption in govt& in nnpc. D telecoms model could have been used to liberalise d downstream sector, but Nigeria is still using d Abacha model with just some minor modifications.

bigfish3k

We compare ourselves with other countries that's why we can't make it.

lexy2014:


Nigeria isn't subsidizing fuel. It is enriching those in govt. They have been removing subsidy for ages yet d money meant for subsidy is increasing instead of decreasing

if Nigeria is not subsidising fuel, fuel wont be sold at 145 naira.

The mechanism being used is depriving the country of any money for development.

Just30:
if Nigeria is not subsidising fuel, fuel wont be sold at 145 naira.

The mechanism being used is depriving the country of any money for development.

All d money allocated in d budget yearly, what is it meant for? What has been done with all d budgetary allocation thus far? Is it fuel subsidy money that is preventing Nigeria from developing? Have u ever asked urself y d refineries have refused to work?

Telkart19:


Niger : N390 per liter for fuel

Cameroon : N370 per liter for fuel

Benin : N290 per liter for fuel

And they are all oil producers.

Plus...oil prices are below $70. We need it at $140 to earn enough cash to pay for subsidy.

Plus, subsidy cabals are growing fat on the money

Subsidy removal guarantees more investment, more jobs, and eventually...LOWER PRICES.

p.s I own a car, and use inverter. Yet to buy generator.

We have always known this... So, why did members of this administration, and the dim-witted fellows supporting them, kick against the attempt of last administration to toe this line... Had it been allowed to fly then, do you know how far we would have advanced by now?...

I still ask: What exactly has Buhari done differently from Jonathan, apart from the sham they call corruption war?

Angelfrost:


We have always known this... So, why did members of this administration, and the dim-witted fellows supporting them, kick against the attempt of last administration to toe this line... Had it been allowed to fly then, do you know how far we would have advanced by now?...

I still ask: What exactly has Buhari done differently from Jonathan, apart from the sham they call corruption war?

1. Because when it comes to good economic polices, Nigerians tend to play politics.

Me, I focus on long term benefits.

Telkart19:


Well, we are throwing away 2 trillion naira every year on subsidy cabals, some of whom head to Benin and Niger and Cameroon, sell at higher prices, and make a profit at our expense.

Let's remove subsidy, so that those people can stop eating our money....meanwhile, we need that money in our educaiton sector. (If government is serious).

Quoting your quote; "if government is serious "

My brother, this government and the previous ones aren't serious.
That's the bane of our development.

They all know those people but because they're the same rogues, they'll just be given excuses.

The cabals in oil, gas, energy and infrastructures are government paddies paddies...

bigfish3k:

if u build refineries and give us stable electricity plus security. WHO CARES ABOUT UR INCREASE.
just do : First Things First

in 2035 wen I become President, I'll fix that

Why wont the pump price be increased since you are the new GMD? do you pay for fuel? do you know the level of poverty in nigeria presently and the ripple effect of increasing pump price on prices of other goods? who will suffer most the increament? GOD will surely deal with your likes.

1x2x3:
I agree with NNPC. N150 is cheap and we are ready to buy at N350 without complains.

The good thing is that this price is the same for those who are chanting APC, the price is same for those who think some part of the country are not politically savvy for not voting Buhari.

We will all queue under the sun and pay N350 per litre and the fuel attendant won't ask if you voted Buhari or not .

We are fully ready to buy at the next level price.


If you voted him and you come here to argue about the price then thunder from Burkina Faso will fire you and your generation.

God Bless Buhari and God bless APC

More so at the ignoramuses who protested against subsidy removal seven years ago. Nigerians deserve whatever they get.

lexy2014:


During d Abacha era, Abacha removed fuel subsidy cos just like his successors, he felt fuel subsidy was a burden on d country. But it was during his time that d refineries were finally killed& fuel importation became d norm. D refineries were actually starved of TAM in order to provide justification for fuel importation.

Abacha came up with two words "deregulation" and "liberalisation" of d downstream sector. He also set up d Petroleum Products Pricing Regulatory Agency (PPPRA). As its name suggests, its core function was to regulate d prices of imported petroleum products in a sector d govt said it wanted to deregulate.

As far as its liberalisation drive was concerned, instead of allowing major players to come into d sector to refine products locally, d govt gave product importation contracts to family & friends of Abacha.

D oil majors have refineries in countries that don't have crude oil. D reason they can't replicate that in Nigeria isn't because of fuel subsidy, its because if they are allowed to, it will expose d corruption in govt& in nnpc. D telecoms model could have been used to liberalise d downstream sector, but Nigeria is still using d Abacha model with just some minor modifications.

bigfish3k

can u imagine all these evil people.
they were the ones campaigning against abacha and his policies then, painting him as evil, but later adopted his policies to punish us, but now we understand those campaigns were just jealousy and never for the love of the nation and its suffering citizens

Telkart19:
Good idea

Increase prices, and stop throwing N2 trillion down a drain every year.

In fact, it is better that NNPC stops controlling prices of petroloeum products. Instead, let the market set the price.

Yes..prices of stuff will go up. Yes, we will pay N200 and above for petrol

BUT....eventually, investors would flow in, investment will flow in, and more money will come, and eventually...more refienries, and LOWER PRICES FOR FUEL

Instead of us dashing subsidy cabals 2 trillion every year...let them work for their money. Government can use the savings for things like educaiton, health, etc.

P;S If you quote me to abuse me, I will report you to the mods. I have a right to my opinions.


[url=http://www.eria.org/Chapter%208-Impact%20of%20Fuel%20Subsidy%20Removal%20on%20Government%20Spending.pdf]
SAUCE[/url]

nonsense.... Can u explain y diesel hasn't gone down to at least #100 since subsidy had been removed from it... You are all liars and y know it

Good,afonjas go hear am...

Haqhaqha!..you lots think you are doing Igbos ba?..

Next-level will deal with you lots too...

1x2x3:
I agree with NNPC. N150 is cheap and we are ready to buy at N350 without complains.

The good thing is that this price is the same for those who are chanting APC, the price is same for those who think some part of the country are not politically savvy for not voting Buhari.

We will all queue under the sun and pay N350 per litre and the fuel attendant won't ask if you voted Buhari or not .

We are fully ready to buy at the next level price.


If you voted him and you come here to argue about the price then thunder from Burkina Faso will fire you and your generation.

God Bless Buhari and God bless APC

I love you for this!!!..oya take am

Fourwinds:
nonsense.... Can u explain y diesel hasn't gone down to at least #100 since subsidy had been removed from it... You are all liars and y know it

Be more decorous and polite in your language please.

I did not call you a liar. You did.

[What happened when they claimed they removed subsidy in 2016? Pls stop deceiving yourself. quote author=Telkart19 post=80156794]Good idea

Increase prices, and stop throwing N2 trillion down a drain every year.

In fact, it is better that NNPC stops controlling prices of petroloeum products. Instead, let the market set the price.

Yes..prices of stuff will go up. Yes, we will pay N200 and above for petrol

BUT....eventually, investors would flow in, investment will flow in, and more money will come, and eventually...more refienries, and LOWER PRICES FOR FUEL

Instead of us dashing subsidy cabals 2 trillion every year...let them work for their money. Government can use the savings for things like educaiton, health, etc.

P;S If you quote me to abuse me, I will report you to the mods. I have a right to my opinions.


[url=http://www.eria.org/Chapter%208-Impact%20of%20Fuel%20Subsidy%20Removal%20on%20Government%20Spending.pdf]
SAUCE[/url][/quote]

Telkart19:


1. The embezzeling is an issue....but then again, subsidy cabals chop our subsidy money.

Anyway, democaracy empowers one to ask questions, agitate, and fight for the right things to be done.

2.Libya has 5 -6 million people, and on a good day, produce more than three times what we produce here in Nigeria. So they have the cash for subsides, and a lot more. Algeria has 40 million people, and produce more oil than we do. Same thing.

Going through your comments so far, I think you are putting the cart before the horse.


1st, the FG has blamed smuggling of PMS to neighbouring countries. Now tell me, if the price of pms is increased to say N350 (by way of total deregulation) because of smuggling, do you think those neighbouring countries will automatically stop consuming pms? No. It will simply create scarcity for them which will in turn lead to higher prices for them. So will the Nigerian government now increase prices again?

What needs to happen is for the FG to protect its borders better & reduce smuggling. Alternatively, it can legalise the sale across borders & get revenue from the sale which it can then pour back into the repair of our refineries...

& That leads to the 2nd issue... The refineries... Despite the various lies over time, these refineries can be fixed & made 90% operational. This is what government needs to do before introducing a full deregulation.


3rd, there are so many peripheral/associated costs on pms. FG needs to drastically reduce those charges.


4th is the issue of political will. The fact remains that with full deregulation, the further inland the product travels, the higher the attendant cost for the end users. So, pms can actual be sold in Lagos for N65 since the product has less distance to travel. In say... Ekiti, it will probably be sold for N120... In Kaduna, 180, in Kebbi, 220... (You get my drift). So the FG needs to remove that equilibrium pricing if it truly wants to deregulate pms...


Last but not least is that this administration is haunted by its own lies... Lies told to discredit & distabilise past administrations & to cover up its own ineptitude...

So, deregulation is certainly the way forward, but the government must first address the foundational flaws or else, the deregulation would simply create more disasters...

ivandragon:


Going through your comments so far, I think you are putting the cart before the horse.


1st, the FG has blamed smuggling of PMS to neighbouring countries. Now tell me, if the price of pms is increased to say N350 (by way of total deregulation) because of smuggling, do you think those neighbouring countries will automatically stop consuming pms? No. It will simply create scarcity for them which will in turn lead to higher prices for them. So will the Nigerian government now increase prices again?

What needs to happen is for the FG to protect its borders better & reduce smuggling. Alternatively, it can legalise the sale across borders & get revenue from the sale which it can then pour back into the repair of our refineries...

& That leads to the 2nd issue... The refineries... Despite the various lies over time, these refineries can be fixed & made 90% operational. This is what government needs to do before introducing a full deregulation.


3rd, there are so many peripheral/associated costs on pms. FG needs to drastically reduce those charges.


4th is the issue of political will. The fact remains that with full deregulation, the further inland the product travels, the higher the attendant cost for the end users. So, pms can actual be sold in Lagos for N65 since the product has less distance to travel. In say... Ekiti, it will probably be sold for N120... In Kaduna, 180, in Kebbi, 220... (You get my drift). So the FG needs to remove that equilibrium pricing if it truly wants to deregulate pms...


Last but not least is that this administration is haunted by its own lies... Lies told to discredit & distabilise past administrations & to cover up its own ineptitude...

So, deregulation is certainly the way forward, but the government must first address the foundational flaws or else, the deregulation would simply create more disasters...

Thanks for being the only one of my opponents to respond with facts, not with abuse.

Still, we have to deregulate, despite all the hardships involved. Because we can't keep throwing billions for cabals and their pals.

Or we just keep taking loans

Telkart19:


Thanks for being the only one of my opponents to respond with facts, not with abuse.

Still, we have to deregulate, despite all the hardships involved. Because we can't keep throwing billions for cabals and their pals.

Or we just keep taking loans

I totally agree on the deregulation, believe me, I know it's the way forward.

But this administration is less than sincere about it which is what worries me about their own plans for deregulation.

I feel there are a number of things that need to be addressed before deregulation can be of benefit to Nigerians...

Buhari is a curse to this country.
Oh Allah forgive me for voting PMB in 2015.

@Telkart

1. In 2016...it cost N132 to import one liter of fuel. Fuel was costing N87 at the pump....thus the government removed subsidy by raising prices to N145.....which eliminated the N40-50 subsidy being paid per liter.


In 2016, the international price of crude oil ranged between 45 and 55 dollars per barrel. The last time crude oil was this cheap, the local price of petrol was less than 65 naira per litre.

Did the cost of producing petrol get more expensive? No. The value of the naira depreciated from about 130 naira to 360 naira to the dollar. 3 times the value vanished into thin air.


2.However....subsidy was still in place. Because...the government was still setting the price.


Will the Nigerian government ever stop setting the price?
In the last 20 years, only one president and GMD of NNPC tried to accomplish this goal, Umaru Ya'radua and Barkindo respectively. Their plan entailed partnering with filling stations, rebranding the stations to NNPC colors and setting a price of petrol in these stations. In this way, any person who imports petrol will have to sell at a similar price offered by the government, so a pricing mechanism can be created. If you import cheaper, or even refine at a cheaper price, you can sell at a lower price than the NNPC and undercut the government. This was the plan. It all ended once Ya'radua died.

3. Note...governments have been doing this in Nigeria since the 1970's....they remove subsidy, set a price, and keep fuel at that price till the cost of production or importation rises above the set price...then they pay a subsidy to maintiain it at that fixed price...till it becomes unsustainable...at which prices shoot up again...to a new set price...and the show continues.


The cost of production has not gone up and the cost of crude oil is currently low. The reason for the continuous rise in prices is that the naira keeps losing value.

Why does the naira lose value ?

A. An overbloated and incompetent civil service that produce little to no value but consumes over 70 percent of government revenue.
Our government runs a trickle down economy. They share the oil money to their family and friends they have employed who should then spend money on food so the farmers get money, on housing so the builders get money, etc.
The problem is that Nigeria is an open economy were anyone can imports or export goods and services. These government workers spend a lot of money on imported goods requiring currencies to be exchanged so the demand for dollars remains very high causing the CBN to lift prices of its dollars which invariably devalues the naira.

B. Nigeria has the lowest tax to GDP ratio in the west African region. Our VAT is the lowest in the region and among the lowest in the world. Nigerians think the government is doing them a favour but this is the biggest scam of all.
Average Nigerians spend the bulk of their income on food, shelter and education for their wards. None of these are affected by VAT. it is the rich in society that import cars on yearly basis that are affected by VAT.

C. Poor health and education sectors. Funds from oil revenues and taxation should be primarily focused on healthcare and basic education. These two are the main factors that influences productivity of a people and this is why the human development index is based on them.
The child of a carpenter with quality education may setup a Home Depot. Without education, that child may seek yahoo yahoo or try to become a comedian or musician to escape from poverty.

4 . Now...landing costs is N200. Government is selling fuel at N145...and paying underrecovery (subsidy) of N55-60 PER LITER.

5.However, as fuel prices are too low...and revenue is falling...the subsidy has to go again. So...goverment may have to raise prices.


It is just like a person having malaria and taking only panadol. The problem is the exchange rate and not factors of production affecting the price of petrol. The government does not want to increase taxes because they fear people will start demanding for quality, people will start insisting that candidates for all political positions take part in debates, so Nigerians can separate the wheat from the chaff. Nigeria as it is currently constituted is a scam to enrich a few while impoverishing the rest. We are the poverty capital, we have the most out of school children. Our present is bad and our future as a nation is worse.

6.iDEALLY....government should stop setting prices, and allow the petrol makreters to set what price they see fit. Problem is, prices may shoot as high as N300..BUT...since no one is controlling prices, that makes things like new refienreis possible...and crucially profitable.

7.Investors flow in, more refienries etc get built...and production icreases...meaning prices FALL

Will never happen because our crude oil is one of the best quality in the world. It has one of the lowest sulphur content. Sulphur is highly corrosive to refinery equipment. Makes more sense to our government officials buy low quality imported petrol for our people while we sell the high grade crude to richer nations. How else can they keep oil revenues stable. Do you expect them to tax the rich to provide revenues like other nations do? The scam that is Nigeria wouldn't make any sense.

PS.
We have the ninth highest proven reserves of natural gas which is one of the cheapest and cleanest fuel sources for the generation of electricity. Cheaper than Solar, wind and hydro, yet we are amongst darkest nations on earth. Why you may ask? The same reason you are clamouring for. Our people are too poor because our currency is too weak. Gas is priced in dollars so the weaker the naira gets the more expensive a unit electricity becomes. Without taxation, a more efficient civil service, and much improved quality of public healthcare and basic education, Nigeria will forever remain a scam.

Where are those GMB, Sai Baba pipu? Trust you are enjoying your dish of 'next level'?

This is depressing.. How dump and myopic can these guys be? No conscuence@all.

So, because Nigeria is the cheapest African country on petroleum sales then, there must be need for increase in pump price...We saw all these coming buh you guys were neck-bent on licking the stinking ass of your dirty/wicked master Tinubu... This is it! Enjoy it!

And he's not done yet... He's still whinning and dangling the juicy carrot to the pipu of Ondo state until they fall the 2nd time into his evil bait...
Person go still tell them again? No!

Na their bodi go tell them as it's telling the LASPOTECH staff on their moving bus to prison.

Nigeria, you are just full of episodes!

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NkayStory:



I love you for this!!!..oya take am

I was struck by the kiss.

1x2x3:


I was struck by the kiss.

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