Pex Petroleum Corporation, a United States-based firm managed by a Nigerian, has offered a leeway to the recurring energy crisis in Nigeria with a view to saving up to $500 million for the Federal Government in the process. The corporation said in a letter to President Musa Yar'Adua and read to the press on Monday that it was also very possible for Nigeria "to eliminate over 50 per cent of fuel importation within four years without the refineries that had been privatised." The letter by the corporation's president, Anthony Onianwah which was also copied the Senate President, David Mark read in part: " Your excellency, I urge you to suspend the price hike for three months to enable you review the situation with my study group. On June 8th, ours was conferred with an award by the minority congress as energy company of the year. I am a Nigerian. Convinced that it is the Nigerian poor that are indeed subsidising fuel price for the upper class, we are confident in proposing that the right policy and regulatory framework followed by diligent and competent implementation and infrastructure could significantly impact on the domestic petroleum market within six months while rolling back the recent price hike."

When people don't know the reason for the price hike, they begin to suggest all sorts of solutions.
The recent increase in the price of petroleum products was not facilitated in order to create revenue for the government, it was done in order to inch closer to a free market and zero subsidy.

UNless Denex is an expert in this field, I think that organisation should be invited to give a brief indication of how they intend to save the country money.

My own opinion is that whilst the US nigerian owned organisation may have good intentions, those that lead us and not known to like to be 'taken out of control' because they get their cut from petrol monies.

Nothing ventured, nothing gained. I out instinct believe this company can do what they said whether they are given the opportunity is another matter.

Even when given the opportunity whether the govt implement the recommendation is another matter.

One day my wonderful Lord Jesus Christ will deliver us from our political slavemasters who are only interested in themselves alone.

May God shower his merciful blessing upon ordinary Nigerians.

@vigasimple

I am an expert on the Nigerian Economy though. The Nigerian government took up an IMF policy early in the Obasanjo first administration to remove all subsidy from refined petroleum to allow for a free market to exist in all areas of the economy. All subsidy has been removed from telephony, almost all subsidy has been removed from electricity. It's not just the WTO wants all members to stop subsidizing anything, but if government is subsidizing products private companies cannot venture into that business and be successful.

My people, we cannot continue living in a Fantasy. Price of crude oil cannot rise from $12/barrel to $60/barrel and we want to continue saying N20 per litre. It doesn't work in the real world.

We both understand agriculture, so lets use that as an example.
See Garri for instance. What has happened to Garri? The UK and China are now exporting cassava from Nigeria. Demand has increased per Kg of cassava by more than 200% and it reflects instantly on the price of Garri in the market. Why should fuel be different? Is it because we're a major producer of petroleum? But we are also THE major producer of Cassava worldwide.
Is it because fuel is a very essential commodity? Well, isn't Garri?
If government goes on to buy cassava at the market rate, build processing plants and start selling Garri at a subsidized rate, they will run the local farmers out of business, then scarcity will come in, then black market with explosive prices.
If the government decides to subsidize the products the farmers produce too, the farmers will then begin to compromise quality because either way, they are getting bought out. But that is not the main problem. If cassava in the international market goes for $2/kg and government in Nigeria is selling already processed Garri in Nigeria at $1/kg, what stops me as a smart business man from buying garri in Nigeria and selling it in Togo at $3/kg? Do you know what that will cause? Loss in terms of the subsidy going to Togo and also less product in the market again leading to scarcity, black market and even adulteration of the product: you will see people mixing garri with the grinded chaff of maize just to cash in on the situation.

My fellow Nigerian, abeg make we consider things before we begin proffer solutions. Look at all the countries leaving communism and socialism to capitalism. They are not mad.

Please. There has been massive progress in Nigeria in the last 8 years, whether we admit it or not and there is going to be more progress if only we are willing to handle things with maturity. How much is $500 million that Nigeria wants to save that it will now sacrifice its development for short term benefits. For God sake Nigeria makes about $200 billion yearly so we don't need this company to come and help us save $500 million

Well, who sold Nigeria into the hands of IMF? Is it not the NLC acting as a representative of the people that forced the Obasanjo government into signing the IMF agreement through strikes and protests? Just because they saw a part of the document which IMF leaked that contained a clause for salary increment by about 1000%. Was Oshiomole not wise enough to know what was going to happen? Why didn't the masses select the NLC's selfish bargain.

If OBJ had ignored those protests, we would say he is wicked. IMF wants to better the lot of Nigerians but OBJ doesn't want it. In fact that's what people said in those days. When South Korea and Russia were kicking IMF out, our NLC were begging the government to open the door for them.

denex:

Well, who sold Nigeria into the hands of IMF? Is it not the NLC acting as a representative of the people that forced the Obasanjo government into signing the IMF agreement through strikes and protests? Just because they saw a part of the document which IMF leaked that contained a clause for salary increment by about 1000%. Was Oshiomole not wise enough to know what was going to happen? Why didn't the masses select the NLC's selfish bargain.

If OBJ had ignored those protests, we would say he is wicked. IMF wants to better the lot of Nigerians but OBJ doesn't want it. In fact that's what people said in those days. When South Korea and Russia were kicking IMF out, our NLC were begging the government to open the door for them.

Tell them make dem hear.

When we say that Nigeria should send the IMF and the World Bank packing they say we do not like the US, empty heads.

Unfortnately when these issues are brought to the fore those that find it difficult to organise their thoughts will disappear from the thread and focus on threads where they make one line statements like Yar'adua is this", OBJ is that, how many of these people know what is happening even when some of these infromation can be found on the public domain?

My brother, people must know the truth! After Oshiomole has caused a national problem and now he wants to go a solve a state problem in Edo. I'm confused the way these things work.

My brother, people must know the truth! After Oshiomole has caused a national problem and now he wants to go a solve a state problem in Edo. I'm confused the way these things work.

nigeria makes 200 billion dolls a year.Mr denex who tld you that

Thank you for your question Mr Sartorius. If you were any kinda ignorant, you would have started arguing but for the fact that you asked your question decently, I will tell you.

https://www.cia.gov/library/publications/the-world-factbook/print/ni.html

That's one of them who told me that Nigeria makes about 200 billion dolls a year