Racoon:
Wicked souls! Same subsidy was to be removed in 2012, but they opposed it.They mobilized all the now shameless Occupy Nigeria/Save Nigeria Group, Labour
Celebrities, Students, agberos to protest against the removal even calling it a scam.

After perpetuating the same scam for more than 6 years with its attendant complications on the economic alongside the massive looting of available resources and their chronic borrowings, they now back tracked.Just like privatisation of the cesspool of corruption called NNPC, fuel subsidy needs to go.

HonestFriend:
The same subsidy they protested against during GEJ regime... Buhari's government is truly the worst on earth.

backbencher:


It's also going to reduce our borrowing, free up more money for spending by the government on things like health and education, attract more and more investment in our petroleum sector, and crucially, make more and more people interested in building refinereis, so that Dangote won't hold a monopoly....since it would now be profitable to refine at home...and eventually in the long term, would bring about price reductions.

It would also end the culture of lying and stealing and smuggling of subsidized fuel to neighboring countries at our expense, inflation of subsidy claims , and so forth. Importation of fuel would eventually reduce.

That is, if government stops setting the price of fuel.

It would also save at least N2trillion a year, if not more.

If we had done this removal of subsidy in 1993, or in 2012, by now we would have been over the hard suffering. But we did not remove subsidy for the arguments that you are making right now, meanwhile because it has become unprofitable to refine fuel at home, we have ended up with no refinereis, and NNPC rejoicing over a profit made ...after 2 decades of losses

The ironic thing is that many in this government were at the forefront of marches against subsidy in 2012.Now they have seen the reality, and know why their PDP predecessors wanted subsidy gone then..

kay10:
Nigeria government is a big scam,what exactly is the problem of nnpc refinery, why can't this useless government is lease out the refinery for foreign investors?



https://guardian.ng/news/nigerias-26-5-billion-maintenance-cost-enough-to-build-three-new-refineries/


Nigeria’s $26.5 billion maintenance cost enough to build three new refineries
By Kingsley Jeremiah, Abuja
21 March 2021 | 4:32 am

Port Harcourt refinery.

• Proposed Refinery In Katsina Costs $2b, TAM For Old Facility $1.5b
• $1.5b Fresh Approval Higher Than 10-year Capital Allocation To Health
• TAM Three Times Higher Than 10-year Education Budget

The whopping sum of $26.5b, which the Federal Government has so far spent on the maintenance of its loss-making 445, 000 barrels/day capacity refineries, is capable of building three new refineries of the same size going by the cost analysis of refinery projects across the world.

Besides, the latest approval granted by President Muhammadu Buhari, who is also the Minister of Petroleum Resources for the rehabilitation of the 210, 000 barrels per day Port Harcourt Refinery is higher than the total capital allocation to the health sector by successive governments from 2009 to 2018.

Costing close to the $2b proposed refinery expected to be built in Katsina, Nigeria’s spending on refinery maintenance is, in fact, three times higher than the entire budgetary allocation to education between 2009 and 2018.

The Federal Executive Council (FEC), presided over by Buhari, last week approved the sum of $1.5b (about N575b), for immediate commencement of rehabilitation works on the largest refining company in the country, the 32-year-old Port Harcourt Refinery.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, explained thereafter that contract for the rehabilitation was awarded to Italian firm, Tecnimont SPA, and would be executed in three phases. The first phase is expected to be completed within 28 months, Sylva said, adding that the second and third phases would be completed in 24 and 44 months respectively.

Nigeria has three refineries located in Kaduna, Port Harcourt and Warri. These assets’ installed capacity of 445, 000 bpd plummeted over the years until the facility got obsolete and currently processes zero crude, while recording massive losses.

The $1.5b approved last week for the TAM thus pushed the hitherto $25b for the same purpose to $26.5 billion. The previous figure was never refuted by the government.

Buried in corruption with series of probes at the National Assembly indicting public officials for misappropriating funds meant for TAM, documents on the financial details of previous maintenance exercises, especially since the military regime have been scanty.

A close look at some refinery projects across the world show that the country would have built about three efficient refineries if funds spent on TAM were used for the construction of new refineries, instead of continuously maintaining existing refineries, which were performing poorly despite several attempts to revive them.

The Pacifico Eloy Alfaro Refinery and Petrochemical Complex (Pacific Refinery) being constructed at El Aromo, Manta, in the province of Manabi, Ecuador is a 500, 000 barrels per day (bpd) facility, and was built for $12b. Dangote Refinery, a 650, 000 (bpd) integrated refinery and petrochemical facility is being constructed for about $15b. Kuwait is also building Al Zour Oil Refinery for $16b. The capacity of the refinery is 615,000 bpd.

With the nation’s three refineries having a combined capacity of 445, 000 bpd, the implication is that it would cost less than $8b to build a new 210, 000 bpd refinery in Port Harcourt (the same size with the existing one). It should also cost less than $8b to build a new refinery in Warri, where the existing one, which was built in 1987, has total capacity 125, 000 barrels per stream day.

The Kaduna Refinery has a nameplate refining capacity of 110, 000 barrels per day. If a similar facility were to be built in the area, it would cost less than $8b. The three refineries would therefore cost only about $24b.

DOTian:


Have we not head this before? Is there even a real subsidy? Is this not a hoax? The same people that argued that the socalled subsidy was non existent few years back, are the people fighting for the removal of the subsidy today! Where did the epiphany happen? And why is the government and her agencies more interested in pilling up the enermous burden of economic trauma on the people? Why is nobody talking of reducing the cost of governance? Recurrent expenditure is at all times high but the government is not bothered! Remove the subsidy to have enough money to pay some ineffective civil servants whose yearly emoluments are now basically consuming the whole budget? Who are the owners of the oil blocs being auctioned off by the presidency like a bazaar? Can't that process be managed to earn more for the state? Is it not obvious the government doesn't care about the level of poverty in the land?

SALIMAN:
To buy @ the said 320 or 340 will be a big issie foe the poor masses, it's going to be a nightmare of this is done for Nigerians

backbencher:

I posted a link on this thread to an article that can give some insight.

Check all my comments on this thread. Especially those on the first page of this thread

Modified: Here is the link

Fuel subsidies in Nigeria: they’re bad for the economy, but the lifeblood of politicians

ivandragon:




So if the government wants to remove subsidy, it should do so wholly & allow market forces determine the prices while it plays a regulatory role only.

backbencher:


In 2012 when I was backing the removal of subsidy after waking up to the reality of how it was damaging us, you would have joined buhari to call me a PDP stooge.

I have never voted for APC or buhari in my life for the same reason I never voted for Obasanjo. They have been there before. Why should they come back?

Ngozi okonjo iweala and sanusi lamido sanusi are the reason why I don't support subsidy.

Good morning.

djkirkoo2:
same Sanusi that said subsidy was fraud under GEJ?

backbencher:


Actually SLS was campaigning for subsidy removal even as far back as 2011

His beef with the GEJ government was that he got suspicious ( unnecessarily as it may have turned out) that the goverment was still paying 20 billion dollars as kerosene subsidy which had been removed some time previously. He said that subsidy was fraud, that GEJ n co wasn't subsidizing anything that fuel should even be cheaper than #86. Even Buhari said same thing.

Otherwise on petrol subsidy, the guy thinks it should go. That is one drum he has been beating for ages