We all know that fuel subsidy in Nigeria has always been riddled with allegations of corruption.
Sadly many Nigerians feel entitled to the subsidy claiming that they "gain" nothing else from Nigeria even though it is not clear what Nigeria gains from them

My view is that petrol in Nigeria should be the most expensive in ECOWAS . That way no one is smuggling petrol out of the country and we do not waste time on pointless border closures.

We cannot close the border forever. If we do a black market will emerge . We know ourselves in Nigeria and do not need to pretend.

Petrol trading is a business and should be profitable for those who know what they are doing.
Now government is just putting money in the pockets of a few already rich individuals

First they told us they are not subsidizing then they said it is "under-recovery"

Imagine buying rice for 100 Naira and selling it consistently for 90 and thereby "under-recovering" 10 naira each time. Which business can survive that.
I know the moment it is proposed there will be all manner of protests and strikes but government must be firm

I would advocate not just full recovery of the cost but selling at a profit.

The people of Benin Niger Cameroon and many other African Nations pay more for their fuel and the sky has not fallen
The government needs to strategize on how to transition ordinary Nigerians from firewood and kerosene users to gas users.
We have been told about our immense gas reserves which are being exported for others to enjoy .Why can't we think about how we can sell gas IN NIGERIA.
Dangote refinery will operate maybe in 3 years .
I do not think we want to see a business run on subsidy.
No one gets subsidy to use their mobile phones and the Telecomm industry is alive.

A price of 250 Naira per litre is reasonable . which should allow full recovery of cost,profit and TAX

There is no reason why petrol should not be taxed.
I would argue for a kerosene subsidy to be phased out more slowly i.e. over 2-3 years but petrol subsidy is quite simply unaffordable especially if all the evidence is that we are BORROWING to fund it

I think it would be better for us to remove it now while we still have a choice than to wait till the borrowing gets out of hand and external bodies like IMF impose it on us.

If the FG is using 25% of earnings to service debt then the handwriting is on the wall.
We can see already the desperate drive for tax by the government but that is not enough.
We must not only increase revenue we must also look at spending that is unproductive and this must include the cost of government

I share your sentiments to some extent. Subsidy has to go at some point. No doubt about that.
But our leaders at all levels must show leadership and lead by example. The already impoverished common man would bear the brunt of subsidy removal .

PMB and PYO according to reports would be spending more on food and travels in the next fiscal year compared to previous years.
What about the jumbo salary received by our political office holders for doing nothing?

Any backlash following any attempt at subsidy removal would be well justified .
The masses would not allow themselves to be made to clear the Augean stables created by our thoughtless leaders while they feed fat on our common wealth.

not until we about 3 to 5 refineries in Nigeria

Nickisindigo:
not until we about 3 to 5 refineries in Nigeria

Why should we scrap if it that happens . What has one got to do with the other? What is the connection between subsidy and number of refineries?
Please explain your thinking

This write up is bullshit
It stands logic on its head and an insult to Nigerians but it is in line with the insults the government has always melted out to Nigerians because we are a docile people who are always afraid to fight for our rights
Btw I know the price of petroleum products will go up once dangote is ready to go to market,it is his way,his products is usually more expensive he gets a monopoly using instrumentality of government and then punished Nigerians with high prices
I can see you are subtly canvassing for that in your write up
The more the country gives to dangote the more he takes from the people,in other climes the reverse is the case

0monnak0da:

Why should we scrap if it that happens . What has one got to do with the other? What is the connection between subsidy and number of refineries?
Please explain your thinking

let them scrap it and see if you would not buy a litre of petrol at 500-700

Hit me up for your various graphic design

surgical:
This write up is bullshit
It stands logic on its head and an insult to Nigerians but it is in line with the insults the government has always melted out to Nigerians because we are a docile people who are always afraid to fight for our rights
Btw I know the price of petroleum products will go up once dangote is ready to go to market,it is his way,his products is usually more expensive he gets a monopoly using instrumentality of government and then punished Nigerians with high prices
I can see you are subtly canvassing for that in your write up
The more the country gives to dangote the more he takes from the people,in other climes the reverse is the case

Thanks for your opinion.

I am interested in discussing with those who are willing to discuss and debate politely.
Let us assume we met in a bar and I made the suggestion about subsidy and you said my suggestion is "bullshit" then I think that would be

End of Discussion.

Which fuel subsidy?

I feel quite strongly that Nigerian petrol should not be cheaper than in Niger,Benin, Cameroon,Togo or Ghana.

If the market price is the same then petrol should be taxed. There is no reason why petrol should be exempt from VAT.

Absence of subsidy does not mean absence of regulation . We must improve the regulation environment so that government can effectively monitor how many litres of petrol each station sells daily.
This should be done very strictly with serious penalties for defaulters.
At the moment the UK exports $30 billion worth of refined products . Why can't we compete in that market?
To my mind Nigeria could potentially stop exporting all unrefined crude and export only refined products. The market is at our doorstep

Nickisindigo:
let them scrap it and see if you would not buy a litre of petrol at 500-700

You really have not communicated.
Why should it be that price how do you come about that?

0monnak0da:
You really have not communicated.
Why should it be that price how do you come about that?

what am trying to say is that the subsidy you are talking about is paid to petrol marketers and importers in order to suppress the actual market I mean consumption price of petrol

Nickisindigo:
what am trying to say is that the subsidy you are talking about is paid to petrol marketers and importers in order to suppress the actual market I mean consumption price of petrol

I think most Nigerians with basic education have some kind of understanding of what subsidy is supposed to achieve.


Do you know what the current official subsidy is PER LITRE??
Petrol is currently imported
Do you know the landing cost per litre?

What is the annual budget for subsidy

Why would removal of translate to petrol of 500-700 Naira

Where did you get those figures from