How many time do you want remove subsidy you and fraud government.

Esseite:
Nigeria is in between a double edged sword and with the way the exchange rate is spiraling out of control, it calls for immediate action to curb it.

It has gotten to a stage that we are already suffering inflation much more than one should suffer with the removal of fuel subsidy.

Yes the exchange rate might only affect foreign and imported goods, but the domino effect cuts across the local sales whom inflate prices because they would want to stay afloat on purchase of imported goods aswell..

I think it's time to remove subsidy to free up the US dollar being pumped to subsidize that while pushing it into the market to stop the cartels and cabals championing the BDC whom inflate rates as they wish.

E.G - if a toyota truck used to cost 1million, but now cost 3m due to exchange rate, with fuel at N165/litre, I won't mind purchasing at 1m while I buy fuel at N300/litre which would curb smuggling alongside and dollar racketeering.

For the low income earners whom may feel they dont need the car but need the fuel at low price, the low rate of truck would bring in more competition, the availability of the dollar would crash the cost of repair parts which in turn reduces cost of pricing on other expenses that can be substituted for fuel purchase.

People will still smuggle fuel.
I heard Benin republic dont import much fuel, they solely depend on Nigeria for fuel. So even if they remove subsidy and fuel sells for 300+, Beniniose will still depend on nigeria for fuel.
The only issue is let the govt deal with security officials involved in smuggling.

seborrhic:

Sometimes I just feel ashamed reading some posts on this site.
The level of poor reasoning exhibited by some people will make you wonder if they actually passed through a proper school.
How on earth will removal of fuel subsidy bring down the dollar rate?
So if it's removed will those importing fuel now pay in Naira?
The same pathetic dullards & reasoning was what made people acclaimed multiple certificates believe & assert that when Dangote refinery comes on stream,the dollar would come down and fuel price will also come down.
I can bet anyone that when that fraudulent refinery comes on stream it would be found that's it's even cheaper buying imported fuel than @ d price Dangote would sell.

They don't know this.
Dangote will even sell to foreign countries so he can get more fx than sell to Nigeria.
I heard nnpc wil be selling crude to him in naira, imagine the best brains North presented as GMD NNPC..

SarkinYarki:
Surprisingly it won't free up the dollar crunch ...the govt should concentrate instead on refining fuel at home instead of exporting

That's where Dangote comes to play

Esseite:


The subsidy on fueling is paid in dollars, freeing that affords us more FX for the CBN and the banks to give to the needed populace which in turn reduces demand with excess supply that results in crash of FX rates... I might be wrong on the process, please enlighten.

Oga NNpc imports 100percent of the fuel we usr in Nigeria, they called it underrecovery. The last time i checked, there is no subsidy budgeted by buhari for 2020 and 2021 fiscal year.
The issue is nnpc and ppmc or dpr not knowing how many litres Nigerians consume daily.
What theNASS should have done is to authorise nNpc not to import more than 30million litres daily, by this action we will know the true state of our daily consumption.
Our borders should be properly secured too so smugglers won't have field day smuggling our fuel to neighbouring countries.
Nnpc is extremely corrupt, and buhari is the minister..
They just published profits of 287billion naira first time in 44yrs, how much is 287billion in dollars?

F

Modrovdeux:


1.Welcome to the club of subsidy haters

2.This argument of yours makes a lot of sense

3.The problem is, Nigerians love everything cheap. Most of the people abusing you here, if Buhari tomorrow announced fuel was N40 per liter, and paid the subsidy, they will call him a good leader irrespective of the amount of economic hurt such a decision would cause for us.

4.Subsidy has to go. Maybe government can pay a palliative of N20000 per car owner...till the economic hardship ends. But that's just me thinking out loud.

Ur thinking has corona virus in it.
U need to give ur thinking moderna vaccine asap.
Modrov...

VeeVeeMyLuv:
it will not change anything as long as the huge chunk of fuel consumed continue to be imported!

No b naija again?

Since they are poor economic managers, this will give rise to more inflation with a severe blow to the purchasing power of masses (as a result of income remaining static as usual).

Then people (civil servants, public servants, govt persons) will start to pannick due to economic uncertainty and begin to look for ways to manipulate and loot public funds to japa (migrate to advance country, steal dollars and launder outside the country, to fund their kid's education overseas....the list is endless.

Yes there would be a period of harsh inflation

But the benefits ie more refinreis, more investment and more revenue and more jobs should kick in in five years time if not less.


The problem with subsidy is that it is coming from oil revenues that are not sufficient for all of us and thus pushing us into more and more debt.

Gsm is not subsidised. As a result we have GSM companies that are willing to invest more into the sector here.


Truth is either Nigeria removes subsidy or we tax everyone, including herdsmen, farmers and beggars to pay for it. (Cutting senator salaries is good too, but not enough). Or we beg for loans from China

Modrovdeux:


Yes there would be a period of harsh inflation

But the benefits ie more refinreis, more investment and more revenue and more jobs should kick in in five years time if not less.


The problem with subsidy is that it is coming from oil revenues that are not sufficient for all of us and thus pushing us into more and more debt.

Gsm is not subsidised. As a result we have GSM companies that are willing to invest more into the sector here.


Truth is either Nigeria removes subsidy or we tax everyone, including herdsmen, farmers and beggars to pay for it. (Cutting senator salaries is good too, but not enough). Or we beg for loans from China

BOSS

Those always thinking of and always calling for devaluation/free float of the local currency naira, I wonder what the colour of thier soul is? Black, dark?

Kidnapping, banditry & terrorism has increased a thousand (1000%) since the currency was recklessly devalued and the attempted/partial removal of subsidy. The unemployment situation has been worse off, terrible!

Need I remind u that the employment rate is now officially 33%! The figure is unofficially 50%.

Do u know what this means? This is beyond horrible!

VeeVeeMyLuv:
BOSS

Those always thinking of and always calling for devaluation/free float of the local currency naira, I wonder what the colour of thier soul is? Black, dark?

Kidnapping, banditry & terrorism has increased a thousand (1000%) since the currency was recklessly devalued and the attempted/partial removal of subsidy. The unemployment situation has been worse off, terrible!

Need I remind u that the employment rate is now officially 33%! The figure is unofficially 50%.

Do u know what this means? This is beyond horrible!

So we should keep on pouring money into oil subsides at the expense of our economy

The problem with subsidy is that the cost of production of petrol always goes up, as does the cost of importing it...thus the cost of subsiding fuel too will keep going up. Refining fuel in Nigeria only removes import costs.

The more we subsidise, the more money we waste.

Esseite:
Nigeria is in between a double edged sword and with the way the exchange rate is spiraling out of control, it calls for immediate action to curb it.

It has gotten to a stage that we are already suffering inflation much more than one should suffer with the removal of fuel subsidy.

Yes the exchange rate might only affect foreign and imported goods, but the domino effect cuts across the local sales whom inflate prices because they would want to stay afloat on purchase of imported goods aswell..

I think it's time to remove subsidy to free up the US dollar being pumped to subsidize that while pushing it into the market to stop the cartels and cabals championing the BDC whom inflate rates as they wish.

E.G - if a toyota truck used to cost 1million, but now cost 3m due to exchange rate, with fuel at N165/litre, I won't mind purchasing at 1m while I buy fuel at N300/litre which would curb smuggling alongside and dollar racketeering.

For the low income earners whom may feel they dont need the car but need the fuel at low price, the low rate of truck would bring in more competition, the availability of the dollar would crash the cost of repair parts which in turn reduces cost of pricing on other expenses that can be substituted for fuel purchase.

How many times will you guys remove this fuel subsidy?

Modrovdeux:


So we should keep on pouring money into oil subsides at the expense of our economy

The problem with subsidy is that the cost of production of petrol always goes up, as does the cost of importing it...thus the cost of subsiding fuel too will keep going up. Refining fuel in Nigeria only removes import costs.

The more we subsidise, the more money we waste.

BOSS what I am trying to make you understand is that the retention or removal will not make any difference as far as the Nigerian case is concerned (which the leaders have made exceptionally unique seemingly).

Both policy/decision will ultimately result in the same outcome largely due to the perculiar nature of our economy.

VeeVeeMyLuv:
BOSS what I am trying to make you understand is that the retention or removal will not make any difference as far as the Nigerian case is concerned (which the leaders have made exceptionally unique seemingly).

Both policy/decision will ultimately result in the same outcome largely due to the perculiar nature of our economy.

Well, it would

1.end up with us saving millions or billions of naira

2.More critically, since refining fuel at home means you would make a profit...more and more people would set up refineries which would mean more jobs, and more tax revenue...and no monopoly by Dangote.

3.Prices will fall


Now, before you respond...consider this....when GSM came into this country, it was very expensive. People wanted government then to subsidise GSM. Government said no.

In twenty years we went from limited telephony and almost zero internet to now universal telephony and lots of internet...at least 40% of the country has internet access...and it is growing.

Let's not forget the jobs the thing created, directly and indirectly...and the fact that more money flows in.


Take subsidy. We have been subsiding fuel since 1973, and we ramped it up in 1988. As a result, our refineries have gotten messed up, and we have pumped in money we don't have to maintain the subsidy, plus NNPC until recently has been losing money..all because subsidy means you cannot make a profit to run the refinereis adequately, it encourages stealing and corruption, smuggling of fuel, and so on.

And we are getting into more and more debt.

I am not saying subsidy removal=economic improvement...because we need to do more and more about improving our economy...than just remove subsidy. But it would make the bad situation much better and help a lot.

And you guys should stop wailing about your government. I for one believe that many people in this government and the past ones should be in jail. But the minute I say this on this site....I am called and cursed all sorts of names.

Also, I know you Nigerians. You guys will cry about your bad APC and PDP...and when it is election time, you ignore the numerous alterantives and vote for PDP and APC. AGAIN and AGAIN...and you cry you are weak.

So stop crying. You don't really want change.