fxkay1:
Here is a simple question??
Why are we importing Petrol .

TheGoodJoe:
Spent years and billions of naira looking for Crude Oil in the North, instead of sponsoring multinationals to set up modular refineries and gas plants.

TheGoodJoe:
Spent years and billions of naira looking for Crude Oil in the North, instead of sponsoring multinationals to set up modular refineries and gas plants.

TheGoodJoe:
Spent years and billions of naira looking for Crude Oil in the North, instead of sponsoring multinationals to set up modular refineries and gas plants.

Havertz10:
You need oil money to pay salaries in Kaduna

A state that can't fend for itself isn't a state

backbencher:


No matter how much you sponsor multinationals to set up modular refineries and gas plants...it is all useless if you do not allow them to sell at the price they want, and thus at a profit, but sell at a loss, so that people can have cheap fuel

And then you pay them a subsidy which has two problems

1. It is always never enough because oil prices, from where the revenue that funds the subsides comes from , is always unstable

2. Cost of production is rising because of rising things like workers salaries, maintenance costs, etc....and the falling value of the naira...due to waste of forex on imports

Both of which means losses in money and income

Meaning that the same refineries won't earn enough money for upgrades, maintenance, and so forth, and eventually break down, and we are back to square one.

Kaladosmt:
. And what have you contributed.

TheGoodJoe:
Spent years and billions of naira looking for Crude Oil in the North, instead of sponsoring multinationals to set up modular refineries and gas plants.

TheGoodJoe:


There is no way we will pay the exhorbitant Subsidy fees if it is refined locally. It is impossible. Even if it is deregulated, we will spend far less. Better than throwing billions searching for invisible crude oil with no benefit.

Mokason288:

ODE

I know your parents are still feeding you

Have it in mind not everyone is been spoon feed like you

OgaHector:
Ezi .. Its better they remove it let everybody feel it well..

backbencher:


WHICH Is why the subsidy has to go, to encourage investment in local refining.

Because under the old subsidy regime, where NNPC was forced to sell fuel from its refineries at a loss, and government stopped giving them money for maintenance to save on subsidy costs, leading to refinery breakdowns...we eventually ended up with bad refineries.

Remove subsidy,and profits made by domestic refining plus savings in forex plus more investment , local and domestic, in refining fuel, would lead to naira appreciating, and lower prices.

At the end of the day, the harsh truth is that we have to let domestic refiners make a profit/be profitable while wasting no money on subsidies of any kind.

backbencher:


WHICH Is why the subsidy has to go, to encourage investment in local refining.

Because under the old subsidy regime, where NNPC was forced to sell fuel from its refineries at a loss, and government stopped giving them money for maintenance to save on subsidy costs, leading to refinery breakdowns...we eventually ended up with bad refineries.

Remove subsidy,and profits made by domestic refining plus savings in forex plus more investment , local and domestic, in refining fuel, would lead to naira appreciating, and lower prices.

At the end of the day, the harsh truth is that we have to let domestic refiners make a profit/be profitable while wasting no money on subsidies of any kind.

TheGoodJoe:


Who said domestic refiners won't make profit. I said it would cost far less than paying subsidies to import petroleum products.

Removing subsidies while importing is suicidal. It would have been better to channel funds into refining locally through the expertise of multinationals.

That is the simple point.

TheGoodJoe:


Why pump money into looking for invisible crude instead of preparing for removing subsidy by boosting local refining through modular refineries.

After 7 years of pure wastage, they are shouting subsidy must go.

Is subsidy the problem but repeated failure to boost local refining?

backbencher:


1.Oil companies are always look for fresh sources of oil. While I don't agree with the search for oil in the NORTH (NNPC Has been told several times since the 90's that it is a quixotic errand,oil discoveries in Chad notwithstanding ), there is a method to the madness.

2.Subsidy is a waste for many reasons (explained in my previous post to you) and government has been saying it should go since 1993...even earlier.(see this recent article for a full story of the subsidy issue)

The whole story precedes oil searching in the North by years...

FarahAideed:
Trust me Buhari is a thief!!!!!!

backbencher:


1.Oil companies are always look for fresh sources of oil. While I don't agree with the search for oil in the NORTH (NNPC Has been told several times since the 90's that it is a quixotic errand,oil discoveries in Chad notwithstanding ), there is a method to the madness.

2.Subsidy is a waste for many reasons (explained in my previous post to you) and government has been saying it should go since 1993...even earlier.(see this recent article for a full story of the subsidy issue)

The whole story precedes oil searching in the North by years...

Depsui:


When subsidy goes, how much do you think the price of fuel would be?

Everybody knows that subsidy is not good, but the people profiting from it are the same people against building of refineries.

Do you think Nigeria as a country cannot build adequate refineries. Is Dangote richer than nigeria.
Its all politics.