valentineuwakwe:


Source: https://punchng.com/borrowing-to-subsidise-electricity-grossly-irresponsible-fg/

All these huge jokes about long ques returning to filling stations are becoming stale as more than 55% of vechile owners have parked their cars due to loss of jobs and hardship.

Well, this is not appropriate. However, it is so easy for you to borrow to embezzle.

Timekeeper:
But borrowing to buy cars for senators

Borrowing to loot

Frustrating citizen nko

All these are responsible abi..


Can't we just terminate all these people like Ghana did..

So u are among those that believe that Ghana story? So someone will take over govt then kill all the country's elites and the international community will just fold it hands and be looking without sanctions

What about the trillions fg is making from crude oil,duty stamp,customs duty,and port?If you politicians cut down on your wasteful spending and looting you won't be borrowing.

kikero:


Yes, they were paying subsides for the power sector because that was the structure they met in place which was enshrined in law by the previous government

The previous government, while privatizing power, put in place a system whereby discos were forced to charge below the cost of production of electricity

This put discos in a difficult situation. As a result, they had to keep on rejecting power because they have been making losses due to the fact that it costs 53 naira to produce one kWh of power, yet discos had to sell it between 21 to 30 naira.

So the current government ended up paying discos subsides of a trillion naira each, partly with loans to prevent them from losing money and collapsing. Even then it isn't enough because that just covers the difference between the cost of production and selling power

Of course, the current government could not reverse the system without falling into legal issues

You see ur life..? You just swallowed a bait and it hook and sink....yes there was a form of subsidy.....but every govt of the world have a way to ease at least one sector burden and place some measure of it on the govt. That is y the last administration was pursuing fuel and fertilizer subsidy removals but paid more attention on private metering penetration ...

Now ur senseless govt as usual without care abt any human is trying to remove 3 subsidies all at once....increasing taxation by force, introducing all manner of fiscal policy that there is...there by impoverished her people....

No matter how u explain this things,I tell u...this administration is daft

Racoon:

https://www.google.com/amp/s/punchng.com/why-nigeria-cant-stop-borrowing-ahmed-finance-minister/%3famp=1

When did you start subsidising electricity? [/b]Thought your government said "Nigeria have not borrowed enough" and [b]"Nigeria can not stop borrowing"? So you know understand that it's economically irresponsible to continue borrowing yet have long dragged this nation into chronic indebtedness? Debt servicing is not debt payment.

So after saying subsidy is a fraud, yet you continued to pay same for years.After promising one year one refinery but failed to fulfil same, the NNPC is just churning out debts as none of the existing refineries are functioning optimally despite the huge TAM & other overhead costs.No diversification from oil economy as billions are wasted prospecting for an illusive oil up north.Just cluelessness & incompetency on display.

Subsidizing electricity was part of the electricity privatization deal that Jonathan signed before leaving office. Government has been paying subsidy on electricity since the sector was privatized. Most of you that critize don't even know anything about how various sectors of the economy operates. Smh!

Blackmann001:


You see ur life..? You just swallowed a bait and it hook and sink....yes there was a form of subsidy.....but every govt of the world haveva way to at least one sector burden rest on the govt. That is y the last administration was pursueing fuel and fertilizer subsidy removals but paid more attention on private metering penetration ...

Now ur senseless govt as usual without care abt any human is trying to remove 3 subsidies all at once....increasing taxation by force, introducing all manner of fiscal policy that there is...there by impoverished her people....

No matter how u explain this things,I tell u...this administration is daft

All right, good afternoon

Kubernetes:


No

K

kikero:


All right, good afternoon

How is ur day so far

seunmsg:


Subsidizing electricity was part of the electricity privatization deal that Jonathan signed before leaving office. Government has been paying subsidy on electricity since the sector was privatized. Most of you that critize don't even know anything about how various sectors of the economy operates. Smh!

In fairness to GEJ, he did it because Nigerians don't want to pay market price for power.

There are people on this site who believe that they shouldn't pay for power unless it is sold to them at a cost that causes losses to the sellers.

That's the real elephant in the room, not whether PDP or APC is responsible.

Blackmann001:


How is ur day so far

Somewhat, as they say...the same as usual.

anonimi:


Iwa eda Barawo Bubu ni a ri yen o.
A chronic liar and looter pretending successfully to have integrity.


www.nairaland.com/attachments/4024299_bubu6_jpeg86aaf8fa6cd32a5104ab6bf996dd1ee3


www.nairaland.com/attachments/2026536_image_jpeg9f360c5ab7736510df54c882e9dbf188


www.nairaland.com/attachments/3441929_img20160227001458_jpeg3fecf627d6b5447631b348f011e59b5a

The man is nothing but failure, how he lured sensible people still amaze me

kikero:


Somewhat, as they say...the same as usual.

Hahaha..don't worry ..it is well,we will eventually survive!

amakadlite:
what exactly is Nigeria using it money for? where are recovered abacha loots? where the recovered money and assets by the efcc? where is the trillions the government is saving through the single treasury account? what are they using the proceeds from crude oil for? Nigeria borrowed billions of dollars from IMF, world Bank and China, where are these money? they even borrowed grains, PPE, ventilators and covid19 drugs during the pic of this pandemic
the only thing they have to show for all these shameless borrowings is hardships. .

Some online supporters will tell you about second Niger bridge that has been completed on paper.

SoftBillionaire:
For a blessed country like Nigeria, with proper resource management, there is no reason to borrow at all.

Please Nigeria is not a rich country

Let's stop fooling ourselves

No rich country with a population as massive as Nigeria depends on one revenue earner

It's just like a father having a side hustle

Nigeria, as a father, has no side hustle

christinme224:
only customers who get electricity for 12 hours and above per day would have their tariff increased............lol for this Nigeria?

Funny enough such places exist

How do you identify those using 12 hours light because we all get same number of units for what we pay

IN A COUNTRY LIKE IVORY-COAST (JUST NEXT DOOR), THIS JUBRIL PARADING HIMSELF AS BUHARI WOULD HAVE LONG AGO BEEN PULLED OUT OF ASO-ROCK AND STONED TO DEATH BY THE SUFFERING MASSES FOR ALL HIS ADMINISTRATION'S ANTI PEOPLES' POLICIES.

Racoon:

Not with a man of this president's nature.He knows nothing neither will he allow the national economic think- tank he inaugurated last year including VP Osinbajo to advise him accordingly
.How do you expect a president that got F9 in Maths & didnt do Economics to be economically sound?

Chai!

iwaeda:
The man is nothing but failure, how he lured sensible people still amaze me

Through these scam strategies perhaps


www.nairaland.com/attachments/2091052_2084712obama4jpeg0846bececdee51cd258847b713b916e6_jpegd27f893bccf38657d36ce7d37daaa943


www.nairaland.com/attachments/2094760_b60dd09cqaan3fk_jpeg95853abb113413e275972c0eedfc3dad

You made a valid points but my problem is why now? Why now because the economy is already is recession and increasing the prices of necessities will make the economy slide into depression. This government should have started fading out subsidy in power sector over 4 years ago but why wait now when average Nigerians are without jobs and can't even feed their families.
Government world over are stimulating their economy by boosting purchasing power but Nigerian government is doing the reverse and how do they expect to pull the economy out of recession... To me, removing subsidy on anything now is nothing but voodoo economics and will make everybody worse off with the government inclusive.

kikero:


Yes.

Here is how it worked (I've been reading a bit )

1. When discos and gencos were set up, the government of your hero GEJ in order to keep prices low made discos sell power at a low rate...with the idea that government would pay them a subsidy of sorts.

2. Government has been struggling to pay that subsidy since then , especially after APC took over. In 2016,the discos took out a paid advert begging government to pay up.

3. Today, as one report put it, government has been spending 1 trillion naira annually subsidising the power sector.

4. This is because it costs 53 naira to produce one kWh of power,while we pay 30 naira or less till recently ( and the recent increase affects some customers not all). That means a loss of 23 naira at least per power unit sold

5. This makes it difficult for discos to pay gencos and this is why discos reject electricity. When you are operating at a loss, you can't buy stuff.

6. Gencos, especially the gas reliant ones, have to pay for gas . In dollars. From the open market. CBN hates releasing dollars to them.

7 . Banks won't give loans to the power industry because no one loves loaning cash to a subsidised industry

8. Hence the recent price increase. In my opinion, government should even hands off setting prices and let the discos look for money. Power would be more expensive, but at least, we save money from not paying subsidies

9. That's a brief history of the issue

Racoon:

Not with a man of this president's nature.He knows nothing neither will he allow the national economic think- tank he inaugurated last year including VP Osinbajo to advise him accordingly.How do you expect a president that got F9 in Maths & didnt do Economics to be economically sound?

Why did Obasanjo, being aware of all these, promote his incompetence in 2015

xandy84:
You made a valid points but my problem is why now? Why now because the economy is already is recession and increasing the prices of necessities will make the economy slide into depression. This government should have started fading out subsidy in power sector over 4 years ago but why wait now when average Nigerians are without jobs and can't even feed their families.
Government world over are stimulating their economy by boosting purchasing power but Nigerian government is doing the reverse and how do they expect to pull the economy out of recession... To me, removing subsidy on anything now is nothing but voodoo economics and will make everybody worse off with the government inclusive

Because we have no choice

Nigeria isn't earning enough from oil at all. Oil prices have been low for ages. Then there is the covid19 economic slowdown.

We should have removed this thing since

( Back in 2012 when we should have removed it, many people asked the same question you are asking now.)

Unless you want us to keep on taking loans.

Mr. President make sure all Documentations and records of all the contracts are kept ooo.. In fact, another Government will soon be on the way, and investigations shall be made because all the borrowings, contracts of projects, and what so ever we are hearing in Government, we Nigeria masses are not having any inpact or benefits, or visibility of any of those things your Government are claiming to be doing. It's unfortunate you gather so many wrong personality in your Government. Your Government borrowed so much but only little work can be seen. Big money small work.

Irrespective of what must have happen during the Jonathan administration under the privatisation of power, I believe the first thing that should have been done is to revise the privatisation process. The buhari administration saw this but refuse to act ... You built on a system that has no foundation and you believe anything good to come out of it. How can you privatise and still subsides them....the word subsidy has been used severally to defraud this country..... what we hear is subsidy, intervention fund ....this administration and the group of thief’s who bought the power sector are fraudsters. A system that is not sustainable is bound to die a natural death ... we are almost there and it will surely happen in a not distance future.....

njola34:
Irrespective of what must have happen during the Jonathan administration under the privatisation of power, I believe the first thing that should have been done is to revise the privatisation process. The buhari administration saw this but refuse to act ... You built on a system that has no foundation and you believe anything good to come out of it. How can you privatise and still subsides them....the word subsidy has been used severally to defraud this country..... what we hear is subsidy, intervention fund ....this administration and the group of thief’s who bought the power sector are fraudsters. A system that is not sustainable is bound to die a natural death ... we are almost there and it will surely happen in a not distance future.....

Reversing the privatisation process for power wold have led to legal challenges for breach of contract

Which the government would have lost, and they would have had to pay billions

What did you do with the ones you borrowed?

The problem with this Government of Mr. President Mohammadu is that they thought they are fully Nigerians not knowing that they are fully themselves.

It is even more irresponsible to borrow to pay jumbo salaries and buy luxuries for political office holders. The govt should immediately prune down the size of the political appointees and reducce the national assembly members.


quote author=valentineuwakwe post=93670427]

Source: https://punchng.com/borrowing-to-subsidise-electricity-grossly-irresponsible-fg/

[/quote]

This government is as irresponsible as all these Nigerians.


Note: I am from somewhere in antartica