adonainana:


The right thing to do is to make dangote refinery the 5th working refinery

Honestly education is really important for good leadership and exposure

No reason why even if it is North Korea you approach and you hold your hands up high and say pls we help with our refineries we don’t have money to fix it but we have Crude oil

It doesn’t matter if North Korea says its flag must be on the naira note in return

Honestly whenever you need help you ask for it

All the countries that became independent in the 1960,s are the most useless countries on planet earth today

In life you must always do the right thing

Power generation is a 18th century Benjamin Franklin problem if you want 200,000 mega watts of electricity some countries can build the powe plant for you within 2 months

That’s if you are ready oo

This country is being run with fear in an unglobilised manner

All Nigeria just wants to do is sell its crude oil use the money to fund Nigerian needs if it’s not enough cry that it is not enough and devalue the naira to make it sufficient

It’s really sad

Words on marble

Oh, you are "wasting" 250 billion Naira on subsidy but want to start spending 200 billion to subsidize transport.

hustla:



I wonder how a country as large as nigeria cant fix its refineries

I think the FG is betting on Dangote's refineries for next year

Fixing refineries will not make any big impact on price of fuel but will
boost the economy and create jobs.

backbencher:



I think you are missing the point

The only way to have working refineries is to allow them run profitably which means higher prices.

[/b]You cannot run refineries at a loss and expect them to keep running well[b]

Eventually prices will fall becaise of competition .

Subsidy has to go because it does not allow refineries to run profitably.

No one has said anything about running a refinery at a loss or keeping subsidy

When the refineries are given new owners subsidy would abruptly come to an end

What’s the government problem again with refining petrol after privatization which is exactly what the explanation above has been on

adonainana:

This is the easiest of the solution to the bigger picture problem now

So trust Nigerian doesn’t have the type of IQ sufficient leaders to implement such

A country has the raw materials to make petrol because it doesn’t have the factory to process the crude to petrol

It therefore exports the crude materials to other countries that can process the crude for it, it now imports it back twice the price it exports it out

So as not to make it expensive to the final consumers ( it pays the companies that imports the final material back into Nigeria a commission ) it’s calls is fuel subsidy

Now it wants to remove the fuel subsidy as it’s too costly

But what about the main problem in the first pragraph, you still don’t have functioning refineries to process the petrol you are removing the subsidy for

If the refineries are too expensive to fix

Why don’t you go to Russia or North Korea or even the UK and invite the government of these countries to take over the refineries and run it like it’s there’s

No need being scared about anything

In life if you neee help you ask for it

I trust a country like China they will run those refineries within 5 days and Nigeria will never suffer or lack from refining crude oil into petrol again

No be same crude oil naija delta people dey refine manually after mining illegally

Nigerian problem isn't not being able to refine oil, the problem is trusted people are not available to do the work, we all see government money as national cake.

No Nigerian government owned industries or companies are making profit. They're just there working with no passion or interest for their work, no pressure just work. Make profit or not at the end you'll protest for your salary.

adonainana:


No one has said anything about running a refinery at a loss or keeping subsidy

When the refineries are given new owners subsidy would abruptly come to an end

What’s the government problem again with refining petrol after privatization which is exactly what the explanation above has been on

Well, okay

I just wanted to know you got my point ...that refineries have to be run profitably for them to work well.

I also hope you would get it why prices have to initially rise, and why subsidy payments have to end now....because no investor is going to come in, refine fuel at a certain price and then be told to sell it below the price , and then get paid a subsidy that does not begin to cover their losses.

adonainana:


The right thing to do is to make dangote refinery the 5th working refinery

Honestly education is really important for good leadership and exposure

No reason why even if it is North Korea you approach and you hold your hands up high and say pls we help with our refineries we don’t have money to fix it but we have Crude oil

It doesn’t matter if North Korea says its flag must be on the naira note in return

Honestly whenever you need help you ask for it

All the countries that became independent in the 1960,s are the most useless countries on planet earth today

In life you must always do the right thing

Power generation is a 18th century Benjamin Franklin problem if you want 200,000 mega watts of electricity some countries can build the powe plant for you within 2 months

That’s if you are ready oo

This country is being run with fear in an unglobilised manner

All Nigeria just wants to do is sell its crude oil use the money to fund Nigerian needs if it’s not enough cry that it is not enough and devalue the naira to make it sufficient

It’s really sad

You make salient points but you demonstrate a crude understanding of economics and infrastructure.

1. You cannot build a 2GW power plant in 2 months. That's an absolutely ridiculous thing to say. Solving Nigeria's power issue will cost 100's of millions of dollars and will take at least a decade. Again, money Nigeria does not have.

2. Nigeria's refinery not working is more of a political problem. Because a few people are happy with the status quo.
Even at that, a lot of the money that should be used to fix refineries have been pilfered. Nigeria currently borrows to pay its own workers and run a very bloated government.


Subsidy has to go because it simply cannot be sustained. Whether you like APC or not it's the truth. GEJ should have went through with it in 2012. The biggest winners from subsidy aren't the masses or the cheap fuel they 'enjoy,' It's those with fuel import licenses fleecing the country dry.

backbencher:


Goverment did not destroy the refineries

The refineries were destroyed because when you sell fuel below the price of producing it you don't earn enough profit to keep the refineries in good running.

Also previous subsidy removals work this way.

1. Goverment pays a subsidy to cover the loss between the cost price and the goverment price


2. However cost prices always keep on rising because of crude oil prices rising and inflation and other things like worker salaries

3. Thus goverment reduces the amount of money spent on subsides , which it calls subsidy removal ..( IE a lie)

4.This manifests as price increases.

5. However the cost price is still higher than the goverment price aka price at the pump.

This means that for over 40 years we have been running our refineries at a loss. Eventually they began depreciating

6 .Throw in the corruption that happens because of sabotage...which happens because the refineries are not the source of an NNPC workers salary which comes from crude revenues, and we have bad refineries

I think this answers your questions.

If you have any other questions or feel this does not answer your questions, I will post a link to a decent article which does a better job of answering your questions than my attempt here

Good am

I have educated you before and I will continue to. Subsidy and your excuse is not the reason our refineries failed.
Our refineries failed when IBB made it mandatory for NNPC to seek presidential approval to carry out routine maintenance at the refineries. That singular move is what sank the refineries not subsidies.
Quit the lies.

Also, you made an analogy of Niger Republic whose only refinery is run by the Chinese and sell fuel for N370 equivalent. Since you agree the refinery runs at a profit and it's been operating since 2011 thereabouts, can you explain why more refineries have not sprang up in Niger and why their fuel is still expensive than ours. Also note there was a while the refinery stopped working even as it's running profitably. Your theory is a farce.

backbencher:


Well, okay

I just wanted to know you got my point ...that refineries have to be run profitably for them to work well.

I also hope you would get it why prices have to initially rise, and why subsidy payments have to end now....because no investor is going to come in, refine fuel at a certain price and then be told to sell it below the price , and then get paid a subsidy that does not begin to cover their losses.

I get your point subsidy would have been removed way way before, the privatization is simply to solve the problems once and for all

FG: Who wants to buy refinery ? Random investor: Me sir okay

FG sells to investor and the investor finds his bearing

On price the forces of demand and supply fix the price accordingly

The point is the real problem must be fixed

Hmmm,

This administration frustrated GEJ administration saying that subsidy is a full scam.

They got into power and operated the same scam called subsidy for 7 years and are removing it at their last year in office.

What stopped them from removing the subsidy at the beginning of their second term in office at least?

What assurances do we have that next administration will not revert to the subsidy scam on assumption of office?

For the 5k, of what impact will it make to the man on the street and for how long?

Another mini cash out scheme.

BeeBeeOoh:


https://www.thecable.ng/we-cant-continue-zainab-ahmed-says-nigeria-losing-n250bn-monthly-on-fuel-subsidy/amp

adonainana:


I get your point subsidy would have been removed way way before, the privatization is simply to solve the problems once and for all

FG: Who wants to buy refinery ? Random investor: Me sir okay

FG sells to investor and the investor finds his bearing

On price the forces of demand and supply fix the price accordingly

The point is the real problem must be fixed

At the end of the day, things have to be run profitably...which is why subsidy has to go.

I have been supporting subsidy removal for over ten years now. It is a damaging thing to Nigeria and Nigerians.

backbencher:


Goverment did not destroy the refineries

The refineries were destroyed because when you sell fuel below the price of producing it you don't earn enough profit to keep the refineries in good running.

Also previous subsidy removals work this way.

1. Goverment pays a subsidy to cover the loss between the cost price and the goverment price


2. However cost prices always keep on rising because of crude oil prices rising and inflation and other things like worker salaries

3. Thus goverment reduces the amount of money spent on subsides , which it calls subsidy removal ..( IE a lie)

4.This manifests as price increases.

5. However the cost price is still higher than the goverment price aka price at the pump.

This means that for over 40 years we have been running our refineries at a loss. Eventually they began depreciating

6 .Throw in the corruption that happens because of sabotage...which happens because the refineries are not the source of an NNPC workers salary which comes from crude revenues, and we have bad refineries

I think this answers your questions.

If you have any other questions or feel this does not answer your questions, I will post a link to a decent article which does a better job of answering your questions than my attempt here

Good am

government destroyed the refineries. the reason the refineries arent working isnt because there was no money for TAM. it was simply because the money allocated for TAM was never used for TAM.

i thought u said there was never subsidy removal. now u are talking of how "previous subsidy removal worked". like government, you are now contradicting yourself.

which workers salaries keeps rising? how often does price of crude keep rising? as the price increases, is the government not making profit from the increase?

which cost price? kindly give itemise all the items that go into the production of a litre of petrol and give me the price of each item

you are now mentioning corruption which you should have mentioned in the first place. who is causing the corruption and what form does it take?

backbencher:


Well, okay

I just wanted to know you got my point ...that refineries have to be run profitably for them to work well.

I also hope you would get it why prices have to initially rise, and why subsidy payments have to end now....because no investor is going to come in, refine fuel at a certain price and then be told to sell it below the price , and then get paid a subsidy that does not begin to cover their losses.

Another lie. Is there any marketer selling petrol at a loss in Nigeria presently even with subsidy?
To answer your question, be aware that Nigeria has more filling station per square kilometre than the US. One wonders why such an unprofitable business has so many operators.

"I DON'T KNOW DEBIT AND CREDIT".

lexy2014:


government destroyed the refineries. the reason the refineries arent working isnt because there was no money for TAM. it was simply because the money allocated for TAM was never used for TAM.

i thought u said there was never subsidy removal. now u are talking of how "previous subsidy removal worked". like government, you are now contradicting yourself.

which workers salaries keeps rising? how often does price of crude keep rising? as the price increases, is the government not making profit from the increase?

which cost price? kindly give itemise all the items that go into the production of a litre of petrol and give me the price of each item

you are now mentioning corruption which you should have mentioned in the first place. who is causing the corruption and what form does it take?

Good morning

I am sorry that I won't be able to answer your questions in the manner you would want them to be answered.

However, as promised, I am going to post a link below that may go some way in answering the questions you have

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

Good morning, and do have a good day. Apologies for not being of help.

joey150:


You make salient points but you demonstrate a crude understanding of economics and infrastructure.

1. You cannot build a 2GW power plant in 2 months. That's an absolutely ridiculous thing to say. Solving Nigeria's power issue will cost 100's of millions of dollars and will take at least a decade. Again, money Nigeria does not have.

2. Nigeria's refinery not working is more of a political problem. Because a few people are happy with the status quo.
Even at that, a lot of the money that should be used to fix refineries have been pilfered. Nigeria currently borrows to pay its own workers and run a very bloated government.


Subsidy has to go because it simply cannot be sustained. Whether you like APC or not it's the truth. GEJ should have went through with it in 2012. The biggest winners from subsidy aren't the masses or the cheap fuel they 'enjoy,' It's those with fuel import licenses fleecing the country dry.

I stopped reading when I got to the GEJ, APC, PDP this that
Politicians milking the country dry
Nigeria borrowing to pay workers salary

Did you even comprehend my initial write up in the first place

Young man Nigerian currently generates 12,000 megawatts of electricity right

I repeat if you want times 10 of that built in this Nigeria you will get it

If you are ready

If solving Nigerian power problem for instance will cost 100 million of dollars then this is why I said Nigeria can seek help if she is ready about

Elon musk and Jeff bezos wrapped themselves in one funny shaped tube and went to space for like 3 minutes and 1 billion dollars don finish

All American fighter jets costs millions of dollars and The US only uses them to kill people

So pls don’t even annoy me with GEJ OR ANY POLITICS gist , i repeat if Nigeria wants unlimited power supply built within the next 2 months she will get it ASAP

BUILD A REFINERY AND STOP THE IMPORTATION OF REFINED PRODUCTS.

ALL THIS TALK ABOUT SUBSIDY WILL NOT BE THERE IF YOU'VE BEING DOING THE RIGHT.

SELFISH AND GREEDY POLITICIANS ONLY CARE ABOUT REVENUE ACCRUING MONTHLY TO THEM..

NIGERIANS HAVE SUFFERED ENOUGH OF THE WRONG POLICIES. REMOVING THIS "SUBSIDY" IMPOSED MIGHT BE THE STRAW THAT'LL BREAK THE CAMELS BACK.

PEOPLE ARE SUFFERING!!!!!!!

This woman dey well so!

adonainana:


I stopped reading when I got to the GEJ, APC, PDP this that
Politicians milking the country dry
Nigeria borrowing to pay workers salary

Did you even comprehend my initial write up in the first place

Young man Nigerian currently generates 12,000 megawatts of electricity right

I repeat if you want times 10 of that built in this Nigeria you will get it

If you are ready

If solving Nigerian power problem for instance will cost 100 million of dollars then this is why I said Nigeria can seek help if she is ready about

Elon musk and Jeff bezos wrapped themselves in one funny shaped tube and went to space for like 3 minutes and 1 billion dollars don finish

All American fighter jets costs millions of dollars and The US only uses them to kill people

So pls don’t even annoy me with GEJ OR ANY POLITICS gist , i repeat if Nigeria wants unlimited power supply built within the next 2 months she will get it ASAP

You clearly have no idea what 2GW is. And you clearly don't understand Engineering and power plants. Please read up and stop insulting your education.

Nigeria isn't America. It's a poor third world country. Stop screaming America and Elon Musk, they have no interest in developing your corrupt country. Nigeria is a sovereign state. Nobody is going to come and rescue you.

It's laughable that you think you can force developemt that takes decades of planning to happen to exist in two months as long as "you're ready."

It's people like you that believed a naira could be equal to a dollar when we are "ready."

backbencher:


At the end of the day, things have to be run profitably...which is why subsidy has to go.

I have been supporting subsidy removal for over ten years now. It is a damaging thing to Nigeria and Nigerians.

But subsidy removal although long overdue won’t change much

It must be removed for sure but what about the problems that brought about the idea to subsidize the petrol in the first place

Cos as things stand by next year June the 250 billion naira a month subsidy is removed, fine everyone goes home, fuel is 250 per liter fine

Just like the importation of tokunbo cars, petrol is simply imported and sold at a profitable price, no problem

Then 8 months years later crude oil falls FG revenue falls, dollars goes Astronimically high , just like how expensive it has become to import tokunbo cars, fuel too has become expensive to import ,

Fuel is now being sold as a result at 450 per liter

What are you going to tell the common man on the street that 8 months after subsidy was removed fuel increased again from 250 to 450 per liter

adonainana:


1) North Korea is a mess run by fear and oppression Nigeria nko, barely can anyone go and exercise thier right to peaceful protest without being shot mercilessly and being gaslighted about no one dying after being shot


This is not entirely how capitalism and the free market works

If you want to buy rice in the market today therr is local rice and there is foreign rice and like with any commodity it’s proce is determined by the market forces amongst all other parameters

Anyone can run a factory or a refinery and you choose to take your profit anywhere else

Even some Nigerian business men born and bred in Nigeria they take thier profits over seas more less foreigners

So the point about foreigners running and taking their profit away with is inconsequential

It’s free market economics in play many players now buying Crude oil raw materials and refining it through the refineries locally and selling it . The price would never get to 350 per liter

The supply of the raw material crude is endless infact fuel might still be ended up being smuggled to neigbouring countries which is a lesser of the evil for the FG because it’s totally not involved as a game player anymore

The 4-5 refineries all working at once will produce almost times 3 of the local consumption rate in petrol ago and kerosene terms the nation consumes .

Don't let him remove from the nice points you made. You mentioned three countries, North Korea, Russia and UK. He picked on North Korea because they don't have a refinery while the point you were making is there are countries who can get our refineries working if we really want them to. He's a propagandist and that's what they do. They cover the truth with their "own truths" and push it forward to reach a predetermined end.
The problem of our refineries not working is govt ineptitude and lack of will nothing else. That's the point you made and it's very valid

smokeyupu:
BUILD A REFINERY AND STOP THE IMPORTATION OF REFINED PRODUCTS.

ALL THIS TALK ABOUT SUBSIDY WILL NOT BE THERE IF YOU'VE BEING DOING THE RIGHT.

SELFISH AND GREEDY POLITICIANS ONLY CARE ABOUT REVENUE ACCRUING MONTHLY TO THEM..

NIGERIANS HAVE SUFFERED ENOUGH OF THE WRONG POLICIES. REMOVING THIS "SUBSIDY" IMPOSED MIGHT BE THE STRAW THAT'LL BREAK THE CAMELS BACK.

PEOPLE ARE SUFFERING!!!!!!!

The problem with 'build a refinery' things

1.The source of money for the refinery is in question

2.Dangote is building a refinery. He took a loan to build the refinery...which when I last checked, accounted for 2/3 rds of the cost of the refinery

3.Besides government is renovating the Port Harcourt and Warri refienries by the way.

4.The revenue from oil is not sufficent to pay for our entire budget and has been for over ten years. Thus the only way we can get money for a new refinery is EITHER by taking a loan, or by rasing money from taxing eveyrone in this country.

5.Somewhere, someone said we are wasting $26 billion on exisiting refinereis annually....That money could build three new refinereis...but then again that leaves us with the question of the old refineries...do we leave them to waste ...meaning loss of money...or sell them...meaning loss of money

aralc:
Am moving to Togo

Before you get to Togo, ask how much is a little of fuel over there.

adonainana:


But subsidy removal although long overdue won’t change much

It must be removed for sure but what about the problems that brought about the idea to subsidize the petrol in the first place

Cos as things stand by next year June the 250 billion naira a month subsidy is removed, fine everyone goes home, fuel is 250 per liter fine

Just like the importation of tokunbo cars, petrol is simply imported and sold at a profitable price, no problem

Then 8 months years later crude oil falls FG revenue falls, dollars goes Astronimically high , just like how expensive it has become to import tokunbo cars, fuel too has become expensive to import ,

Fuel is now being sold as a result at 450 per liter

What are you going to tell the common man on the street that 8 months after subsidy was removed fuel increased again from 250 to 450 per liter

That's why we should vote in governments who would actually diversify our economy

I have not been a fan of both APC and PDP myself since democracy came back because none of them have had actual plans to diversify the economy away from oil.(infact I have always voted for third parties since 2003...when it became possible).

The truth is, we need to diversify away from oil, and become an industrial economy like China...because that's what strong nations do. But we all want to sell raw materials, oil included and import what we need with the money earned. That puts a strain on our dollar revenue, and gets us into more debt.

At the end of the day, APC hasn't diversifed the economy, and PDP isn't ready to do so. I wish we could have someone like Moghalu or even SLS or the Kowa party woman that ran in 2015, but at the end of the day, most Nigerians don't love book candiates, or candidates that would end free stuff.


P.S

To mittigate the removal of fuel subsidy suffering...government needs to spend more on public transport. GEJ had that idea with an aspect of SURE-P...if it wasn';t badly misnmanaged in the end sadly.

joey150:


You clearly have no idea what 2GW is. And you clearly don't understand Engineering and power plants. Please read up and stop insulting your education.

Nigeria isn't America. It's a poor third world country. Stop screaming America and Elon Musk, they have no interest in developing your corrupt country. Nigeria is a sovereign state. Nobody is going to come and rescue you.

It's laughable that you think you can force developemt that takes decades of planning to happen to exist in two months as long as "you're ready."

It's people like you that believed a naira could be equal to a dollar when we are "ready."

On a second note Even the 2 GW is even absurd for a population of just 200 million people , when we don’t want to fry them to death inside thier house

The quote being ready means with the right visiionable leaders the right steps can be made

Even rouge nations like North Korea and China will easily help you

Asking for help and not gettin help is different from keeping your mouth shut and suffering in silence

Power genenration is a 18th century problem

If there is a 18th century problem some countries overcame in the 18th century and you are still battling with it in 2021, then simply go to the countries that solved their problems 300 years ago and ask for help

Power generation is simply engineering

Rocket science isn’t

By 2024, some people are planning to go and live in mars and stay there indefinitely , is it grass they will be eating throughout and is magic they will be using to power thier applicances throughtout

That’s the problem with you village people, you don’t know how advanced the world is now

Any suggestion that tries solve Nigerian problems once and for all you keep arguing blindlessly like you know what you are talking about

It’s even more unfortunate People like you also hold the realm of power and their reasoning is very limited like yours, who told you 1 dollar must be equal to 1 naira before things start working right

Where did you get that one from

backbencher:


That's why we should vote in governments who would actually diversify our economy

I have not been a fan of both APC and PDP myself since democracy came back because none of them have had actual plans to diversify the economy away from oil.(infact I have always voted for third parties since 2003...when it became possible).

The truth is, we need to diversify away from oil, and become an industrial economy like China...because that's what strong nations do. But we all want to sell raw materials, oil included and import what we need with the money earned. That puts a strain on our dollar revenue, and gets us into more debt.

At the end of the day, APC hasn't diversifed the economy, and PDP isn't ready to do so. I wish we could have someone like Moghalu or even SLS or the Kowa party woman that ran in 2015, but at the end of the day, most Nigerians don't love book candiates, or candidates that would end free stuff.


P.S

To mittigate the removal of fuel subsidy suffering...government needs to spend more on public transport. GEJ had that idea with an aspect of SURE-P...if it wasn';t badly misnmanaged in the end sadly.

Omo I don’t think this has answered the question ooooo cos all this are political suggestions APC this PDP that NPC this

aralc:
Am moving to Togo

One liter of fuel in Togo= N357

Minimum wage in Togo : N24,600

Purchasing power Togo: 236.8 lcu

One liter of fuel in Nigeria: N162

Minimum wage in Nigeria: 30000 naira

Purchasing power parity : 144 icu ( that means Nigeria is better than Togo. Egypt's PPP is 4.3, South Africa is 6.9.)

n.b Does not mean Nigeria is great...there is room for improvement . But better than Togo by far).

(

Grass is greener.

adonainana:


Omo I don’t think this has answered the question ooooo cos all this are political suggestions APC this PDP that NPC this

Yes, because developing the economy is a function of who we chose as leaders. They set the policies, they make the decisions, we choose them. Or allow them to be chosen.

Welcome to reality.

Pension Fund gone
Abacha Loots gone
Borrowed funds(International Loans) gone
Recovered Osborn Towers Loots gone
Palliatives/USaid/ and other free moneys gone
Subsidy warming up at the corner.

What Buhari cannot loot does not exist!

N5000 times 40,000,000 will give us 200,000,000,000 (two hundred billion naira), just 50 billion short of what they spend monthly on subsidy.
Well, since they said they'll pay this stipend for a maximum of 1 years, then its not that bad..

Only enemies of the state would see something wrong with this subsidy removal. We can't sacrifice economic growth for cheap fuel.. Next is electricity subsidy..