Rexwalters1:
Ignoramus, keep displaying your ignorance pretending smart, but not been clever is Federal Government budget for States & Local Governments, don’t States & Local Governments have their own budgets? Lagos State has proposed a budget of 1.3 trillion Naira for next year, is that part of the Federal Government’s budget for 2022?

I'm sure in your small mind, you probably think the federation account belongs only to the federal govt.
It's also obvious you think Lagos has 1.3trn lying in an account somewhere that's why they have a budget of that size.
They just pay you guys to defend things you clearly have little understanding of.
Pity.

Fact is, you can't control people when they're comfortable.

Agbegbaorogboye:


The 250bn is not being saved to be spent in those areas you highlighted.
Rather, it is to be spent on recurrent expenditure aka running the govt. Look at our budgets and you will see that if you put 250bn inside, it still makes no difference. The government structure is so big the revenues can't even meet the recurrent.

Ok, let's say you're right.. Is it something good or bad?

Perfectbeing:
Ok, let's say you're right.. Is it something good or bad?

It's bad.
In my humble opinion, a lot of you who defend subsidy must go are not aware it's an idea that comes from Western institutions like IMF. Meanwhile, the US has agric subsidy and even subsidises its oil and gas sector. After the 2008 financial crisis, same US gave various bailouts to its real estate and finance sector big firms.
In the case of Nigeria, successive govts watched our refineries fail while paying fraudulent monies to their cronies and friends as fuel subsidy. They did this while it was still convenient for them to run govt as well and never cried out. But immediately the payment began to affect the cost of governance, they broke into a cry and hired propagandists to help them amplify the cry about the evil of subsidy.
May I ask if anyone has been punished for the corrupt practices embedded in subsidy till today? No one. But the citizens are expected to bear the cost of govt inefficiency.
So the real reason govts have wanted to remove subsidy is to ease the burden of governance not to build capital projects or fund critical sectors of the economy as you their supporters easily trumpet. If a government needs 3trn to do something capital, there are various means of financing it (including taxes) that does not involve removing any subsidy.
So it's not a good thing for govt to think it can eat its cake and have it by pushing the cost of its inefficiency on the citizenry. Subsidy is not a bad thing if well managed. Most importantly, getting our refinery working should be a primary responsibility of govt because that's the source of the bloated subsidy. You don't cure an illness by treating the symptoms. You treat the cause.

Rexwalters1:
Mumu private sector builds refineries not the state, stop living in the past.

Why is your government holding on to 4 refineries . Ode

Agbegbaorogboye:

It's bad.
In my humble opinion, a lot of you who defend subsidy must go are not aware it's an idea that comes from Western institutions like IMF. Meanwhile, the US has agric subsidy and even subsidises its oil and gas sector. After the 2008 financial crisis, same US gave various bailouts to its real estate and finance sector big firms.
In the case of Nigeria, successive govts watched our refineries fail while paying fraudulent monies to their cronies and friends as fuel subsidy. They did this while it was still convenient for them to run govt as well and never cried out. But immediately the payment began to affect the cost of governance, they broke into a cry and hired propagandists to help them amplify the cry about the evil of subsidy.
May I ask if anyone has been punished for the corrupt practices embedded in subsidy till today? No one. But the citizens are expected to bear the cost of govt inefficiency.
So the real reason govts have wanted to remove subsidy is to ease the burden of governance not to build capital projects or fund critical sectors of the economy as you their supporters easily trumpet. If a government needs 3trn to do something capital, there are various means of financing it (including taxes) that does not involve removing any subsidy.
So it's not a good thing for govt to think it can eat its cake and have it by pushing the cost of its inefficiency on the citizenry. Subsidy is not a bad thing if well managed. Most importantly, getting our refinery working should be a primary responsibility of govt because that's the source of the bloated subsidy. You don't cure an illness by treating the symptoms. You treat the cause.

So since the government doesn't have the money to keep on paying subsidies how do they sustain it? I'm sure you yourself will go haywire if you hear the government wants to borrow to pay subsidies.

You're comparing the the US to Nigeria. What is the national budget of the US, and how much is she paying for those subsidies?
Nigeria has a budget of a little above N13 trillion and she is using a big chuck of N3 trillion (about 23%) on just fuel subsidies alone. Let's not even talk about the electricity subsidies.. The US can afford paying those subsidies you're talking about.

You talk about getting the refinery working. Weren't you here when FG proposed $1.5 billion to get PH refinery working. And it would take almost 5 years for the repairs..? So should FG keep paying subsidies for another 5 years until the repair is completed?

You said there are other means government can source for N3 trillion which includes taxes.. But but what if the N3 trillion is to be paid every year, will those means still be there?


So my dear, subsidy is a very bad thing when the money is not there to begin with..

Agbegbaorogboye:

It's bad.
In my humble opinion, a lot of you who defend subsidy must go are not aware it's an idea that comes from Western institutions like IMF. Meanwhile, the US has agric subsidy and even subsidises its oil and gas sector. After the 2008 financial crisis, same US gave various bailouts to its real estate and finance sector big firms.
In the case of Nigeria, successive govts watched our refineries fail while paying fraudulent monies to their cronies and friends as fuel subsidy. They did this while it was still convenient for them to run govt as well and never cried out. But immediately the payment began to affect the cost of governance, they broke into a cry and hired propagandists to help them amplify the cry about the evil of subsidy.
May I ask if anyone has been punished for the corrupt practices embedded in subsidy till today? No one. But the citizens are expected to bear the cost of govt inefficiency.
So the real reason govts have wanted to remove subsidy is to ease the burden of governance not to build capital projects or fund critical sectors of the economy as you their supporters easily trumpet. If a government needs 3trn to do something capital, there are various means of financing it (including taxes) that does not involve removing any subsidy.
So it's not a good thing for govt to think it can eat its cake and have it by pushing the cost of its inefficiency on the citizenry. Subsidy is not a bad thing if well managed. Most importantly, getting our refinery working should be a primary responsibility of govt because that's the source of the bloated subsidy. You don't cure an illness by treating the symptoms. You treat the cause.

Just wanna add this..

America also
1..Pays for subsides from income tax, not from revenue from crude oil exports as does Nigeria

2..American tax to gdp ratio is 33.0%. Nigeria is 6.1%. IGR in Nigeria is very poor.

3. America does not subsidize fuel for everyone.. fuel subsidy there is for the poor.

4. American fuel prices rise and fall with the market.

5.Even with subsides, US fuel costs 408 naira per liter,and yes it is costly to most Americans.