Let the show begin. Maybe I will recover all my squandered money during this lockdown.

hmohammed:
Illiteracy is high in Nigeria. People on this thread don't understand anything in that news. That News shows that Nigerian government is protecting our interest, but people don't understand.

The govt is not protecting your interest, rather, your future and that of your unborn children are being mortgaged by insincerity, ineptitude and popular, but harmful policies of the govt. The huge trillions of Naira being wasted on subsidies should be diverted to developing our infrastructure, sustain the health/education sector, create jobs for the teeming youths and stem the tide of corruption in the downstream oil sector of the economy. No sane society in the world subsidizes consumption - only Nigeria does so!

Instead of creating a level playing ground for the players within the petroleum sector, the govt would rather dictate the price and thereby causing upheavals whenever oil price changes in the international market. What you think you gain in term of subsidy is taken away from you by lack of access to basic infrastructure, epileptic power supply, long queues at the filling stations, reduced life expectancy rate, embezzlement and mismanagement. Subsidy in Nigeria has always been a Greek's gift. They give you so little only to take away so much. Think!

BandAid:


The govt is not protecting your interest, rather, your future and that of your unborn children are being mortgaged by insincerity, ineptitude and popular, but harmful policies of the govt. The huge trillions of Naira being wasted on subsidies should be diverted to developing our infrastructure, sustain the health/education sector, create jobs for the teeming youths and stem the tide of corruption in the downstream oil sector of the economy. No sane society in the world subsidizes consumption - only Nigeria does so!

Instead of creating a level playing ground for the players within the petroleum sector, the govt would rather dictate the price and thereby causing upheavals whenever oil price changes in the international market. What you think you gain in term of subsidy is taken away from you by lack of access to basic infrastructure, epileptic power supply, long queues at the filling stations, reduced life expectancy rate, embezzlement and mismanagement. Subsidy in Nigeria has always been a Greek's gift. They give you so little only to take away so much. Think!

Oga, the government have removed subsidy at the moment. The issue here is that the oil marketers want complete deregulation such that they only control price. They are a cabal and will milk Nigerians dry. Do you know that Diesel has been deregulated and during this era of low crude oil price, diesel price remained unchanged. Be wise and don't buy into their deregulation story.

BandAid:


The govt is not protecting your interest, rather, your future and that of your unborn children are being mortgaged by insincerity, ineptitude and popular, but harmful policies of the govt. The huge trillions of Naira being wasted on subsidies should be diverted to developing our infrastructure, sustain the health/education sector, create jobs for the teeming youths and stem the tide of corruption in the downstream oil sector of the economy. No sane society in the world subsidizes consumption - only Nigeria does so!

Instead of creating a level playing ground for the players within the petroleum sector, the govt would rather dictate the price and thereby causing upheavals whenever oil price changes in the international market. What you think you gain in term of subsidy is taken away from you by lack of access to basic infrastructure, epileptic power supply, long queues at the filling stations, reduced life expectancy rate, embezzlement and mismanagement. Subsidy in Nigeria has always been a Greek's gift. They give you so little only to take away so much. Think!

Good point. However, subsides on fuel have been in place because if they are removed prices of foodstuff go up. And one of the easiest ways to bring down a government is to raise the price of food.

All in all, subsides have to go, so that long term things get better.

[quote author=hmohammed post=88531539]

Oga, the government have removed subsidy at the moment. The issue here is that the oil marketers want complete deregulation such that they only control price. They are a cabal and will milk Nigerians dry. Do you know that Diesel has been deregulated and during this era of low crude oil price, diesel price remained unchanged. Be wise and don't buy into their deregulation story.

1.Yes, the marketers will milk Nigerians dry with high prices

Having said that, one mistake most Nigerians make about business is that they think that a businessman makes profit for the sole purpose of storing the money somewhere

That's not how a business works. My maternal grandmother was a trader. She made a lot of money, and a large chunk of that money went into buying goods and sevices, and paying the few people who worked for her. Then there's shop taxes and the lot.

If we had deregulated, the marketers would have enough profits, a part of which would be ploughed into jobs, and into improving local refining capacity. This leads to increased PMS production, more refinereis, and more jobs....and low oil prices eventually. Masses benefit from increased jobs and increased provision of services, and eventual low oil prices.

There is a reason why GSM companies were able to beat NITEL into submission. GSM companies ran free of price controls. They were allowed to charge hefty prices, and as a result , back in the day, a SIM could cost as high as N10000, and the service was not that much (in 2004, your mobile phone could only make calls and send SMS, and get very poor quality internet...if you lived in certain areas).

GSM companies milked Nigeria dry, and then took the money and invested it in new technology, upgrading exisitng tech, and adding more facilites. The result, our telecoms industry, which had provided lots of jobs , and investment.

NITEL was run on government subsides, and was a virutal monopoly, which meant that it, and its GSM subsidiary MTEL could not compete against MTN, and company. Not enough funds, no investment, no way. When MTN was pioneering home internet by 2008, MTEL was nowhere. When by 2006, you could get internet on a GPRS phone with MTN and Airtel (then econet, later celtel)...MTEL was nowhere.

(Diesel is expensive, because a) relatively few people buy diesel , even for generating power b) the fact that petrol is still subsidized is keeping profits from there low. Marketers have to make money from somewhere...especially in the days before NNPC became the sole importer of fuel)

2.Still on subsidies....NNPC is being hurt by subsides. Since 2017, NNPC has been using its money to keep fuel prices low. That means it does not have enough funds to build new refineries, and it barely has enough to keep existing stock running well.

3.If we finally deregulate, many of these marketeers would be incentivized to improve domestic production. Especially NNPC....because now they have enough profit to do so. Importing fuel has never been popular among marketers and the NNPC...it wastes money...which is partly why markterts used to make false claims...it was the only way to make profit.

If we don't deregulate, we are going to keep on throwing money down a hole. And people are going to smuggle fuel to other west African countries because when you buy fuel at N140 and sell at N145 in Nigeria, that's N3 per liter. Whereas, selling it at N350 in Niger, or N300 in Benin nets one a profit of N155 and above. (And Niger and Benin are poorer than we are, yet don't have subsides).

And anyway, we rely on oil,, and the oil money is not enough to keep funding subsides.

kikero:


Good point. However, subsides on fuel have been in place because if they are removed prices of foodstuff go up. And one of the easiest ways to bring down a government is to raise the price of food.

All in all, subsides have to go, so that long term things get better.

I am in support of deregulation. The only issue here is that we are not ripe for that at the moment. We need Dangote to begin production after which we can embark on full deregulation. That should be the strategy.

Jeffyblaq:

Buddy.
U lie a lot..

U know what am sayin.
Better check yo self b4 u wreck yo self

Can you please point out how I have been lying?

FINESHIRT:


Can you please point out how I have been lying?

My apologies plz

I mixed up the whole thing with another moniker.


Sorry bout that�

Jeffyblaq:

My apologies plz

I mixed up the whole thing with another moniker.


Sorry bout that�

I was wondering. It's okay sha.