thesolutions:

Subsidy is fraud against the poor and you are yet to see it. How many poor people have vehicles. The only thing that affects the poor from subsidy removal is relative increase in transport fare and foodstuffs that are not local migrated poor.

I really consider your scare monger about subsidy removal as a threat to Nigerians against supporting the removal of subsidy which a see as political motivated.

Our major concern is to establish a working government that is working for every cadre of individual in the society.

A government working on actually subsidizing transportation for the poor and not creating more amenities for the rich while the poor are driven away from the city because of high cost of living brought by their development agenda that is focused on beautiful cities rather than beautiful people.

A government that is focused on doing investing hugely in refineries and actually running it effectively as an enterprise and not a civil service oriented business. A workforce that is more concerned about their beauties and official outlook can hardy give all it takes to establish a working enterprise.

A government that is out for business. It annoys me to hear that governments do not run businesses. Nigeria government needs to be starved of taxes and duties so they know what leadership is all about. How can an unproductive government lead a productive nation. We should have government owned industries in fabrications, constructions and processing working efficiently to solve both national and economic problems.

We need much more from an effective government. But every government that has come are only working borrowed template from countries whose challenges are different from ours.

Subsidy is not a fraud. The frauds are the people who could block the border against food smugglers but allow petrol smuggles to go through. Before you reply with an epistle, read about welfare schemes in more advanced nations.

tunwumi:
This comment is very interesting. The main issue is why palliative when it will disappear to ghost. Instead the fund should go to infrastructure like road, bridges, hospital, and industrial infrastructure for development.

U see how they have been thinking sometimes ago I wrote here of how unsustainable the npower stuff is and how it is not the best though maybe some sort of immediate measures but not a way of growth some people who maybe beneficiaries were angry. The truth is we have the most lazy set of leaders. Leaders who sees the world in a loopsided way, people who consider employment as them giving jobs rather than creating the enabling environment.
Fund research, create infrastructure etc and watch the wonders that will spring.
Like you I am also hopeful for to refuse to be is to be suicidal. The Tinubu administration must do something differently else they will remove the subsidy we will suffer and little or no gain will be seen from the suffering.

happney65:


That is it. Reasons why I never supported Jonathan in his second term bid was because of this so called issue. Why is it difficult for the Nigerian government to fix our refinery and pushing their ineptitude to the people. Why?

Subsidy removal on Diesel has made Diesel worst and made production very very high leading to inflation. Kerosene too has been removed and nobody even buys kerosene again sef due to the price. Yet you can't fix refinery to work na to push it to the people.

The money they were wasting on the trains and stuffs shey they can't use it to fix power and our refinery.

Just brace up, una go see shege. Buhari kuku knows what is at stake that is why he pushed it to the next administration.

Sodiki ologbon.

Not sure that local refining will reduce prices more than 10%.

fr3do:


The bread and tomatoes you buy is sold by people who use petrol.
Bicycle or not,.e.go reach everybody.

Tell the abeg, tell those here saying it only affects the rich as they said during the naira gate.
The poor will be worst it

tctrills:

Why would there be less demand for the dollar? As long as we are still importing fuel, the demand would always be there subsidy or not.

Government will not be sending subsidy money in Dollar to buy fuel

tunwumi:

How many Nigerian from the low valued Nigeria education are doing well and even competing with the so called package education


Why am I educating you self? Abeg pack well

Now I can park well, having helped you to note that the education isn't same. Shebi na you start the comparison.
Thanks for the education. I park well

Acidosis:


What type of haulage do you do with diesel? How many Nigerians use God is Goods Motors compared to Uber/Bolt, Okada, and Keke on a daily basis?

The only reason some Nigerians still go to work today is because, after deducting their t-fare from their salaries, they manage to save 10-20% for personal use. Just wait for subsidy removal... You will come back to edit this post.

What you described is transportation not haulage. Haulage relates to goods. All the lorries that bring yam, cement, tomatoes etc are they not diesel ?

Petrol is more than Kerosene o. Since kerosene prices skyrocked and mostly not available since the subsidy was removed. What will you bring up as a cheap alternative to petrol.
I pray they removed it and gets the other parts right else we go just suffer as a nation in vain

LordAdam16:


Yes, and everyone uses gas now because the kerosene subsidy was removed.

If kerosene subsidy had been maintained, the penetration rate for gas will be much lower than it is today. The economic impact from the expansion of gas use will be muted. Look around you and notice how many jobs and the level of economic activity gas infrastructure has generated. Some commercial companies can now move off the national grid because of the buildout.

The erstwhile cabals doing nothing but sending invoices to the FG and smuggling kerosene over the border to get double returns have turned their attention to more productive pursuits. And Nigeria saves at least $1b from not paying that subsidy.

Gasoline will be similar. Transportation prices will surge initially, but that'll level off in time. And if we were a serious country, $5b of the $8b saved should be earmarked to secure a $90b low-cost facility (at an avg. of 2%) from a mix of international development banks to build out our grid on a build for transfer model. Where the government builds with these low interest facilities that only governments can access, then sell them at significant premiums to a mix of international and local investors. Rinse and repeat. The jobs and economic activity from such a scheme should supercharge our anemic GDP growth rate.

Everyone benefits from this. The politicians, civil servants, regulators, banks, investors, operators can skim from the project and there'll still be a visible, impactful build out that changes the economic landscape.

But this is Nigeria. We go out of our way to make things hellish. It's like our favorite national pastime.

-Lord

koladebrainiac:
Government will not be sending subsidy money in Dollar to buy fuel

No it's the very same thing. If subsidy is removed, then the citizens would be the ones paying for fuel.
It doesn't matter if the money is coming for gov or the citizens, it would still be exchanged to dollars as long as we import petrol.

Divoc19:
Let them bring it on. We are ready for anything . Am optimistic about this new government though

Na only Nigerians go wan fly airplane, then come dey go motor park to wait for him flight: and when him flight no show, him go begin pray to God to bring him plane come motor park.

Keep being optimistic about Tinibu, it’s good.

You only expect a different result when you do things differently.

ben1daEbiri:


When will we realise that palliative don't take people out of poverty?

read my comment again and again with an open mind and get what I'm saying

Difrent:
We will adjust with time. One thing you can never take away from Nigerians is resilience.
All those advanced countries our people rush to have dumped petrol subsidy decades ago...

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IMF and World bank are just deceiving Africans. Do you know that in those advance countries you mentioned nearly everything is been subside for their citizens.

tctrills:

No it's the very same thing. If subsidy is removed, then the citizens would be the ones paying for fuel.

It doesn't matter if the money is coming from gov or the citizens, it would still be exchanged to dollars as long as we import petrol.

Double tragedy for the citizens. Meanwhile, we still have another subsidy to contend with - FX Subsidy.

In 2022, the federal government spent around N3 trillion on Forex Subsidy. That is how they keep the official Naira-Dollar rate at 450+ so that those around them and affluent elites like Dangote can continue to buy cheap dollars while the typical impoverished commoner monitors Aboki FX and roadside aboki rates (720-750).

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Difrent:


Yes they could have those things because they dont waste billions on petrol subsidy....they instead have effective transport system thats affordable.
The moment we stop petrol subsidy, some of these things will become achievable

Are you this evil or are you stupid? Countries like Ghana, Chad, Niger Republic are celebrating one and two years uninterrupted power supply, these countries took their source of power supply from Nigeria and you are supporting our Leaders on this their evil agenda to impoverish the masses. They are removing subsidy and at the same borrowing €800,0000 for the same subsidy removal in the name of helping the poor. When and where did they write the names of poor? We go to polling unit to register for voters card and cast vote why can't we do the same in terms of money sharing? 50,00000 Nigerians to inherit €800,0000 for 6 months, why haven't they publish the register? It will be evil to defend wrong doing. Subsidy removal in the past have seen any headway from it? No

Aguogba:

And people's votes count as well.

My brother your correct I don't know why Nigeria can't be equal

highchief1:
I support apc too but I haven’t lost my senses.

Every one in APC is not bad we have bad people in all political parties

BeLookingIDIOT:

They wouldn't have gotten there with such policies like using a large fraction of it's revenue to pay for people's petrol.

Yes

Draslo:

I was going to say this. If we have steady power supply, there's no reason subsidy removal will have such a great impact on the economy.

Yes we need to get it right

Removing petrol subsidy will be good for both the Nigerian people and their government. That's the most important thing to know.

Effects on the naira, who knows. If private importation is allowed, I suspect naira will depreciate to around $800 on the black market because that's where importers will get their dollars.

Assuming of course government doesn't decree that importers must get buy dollars from CBN at official rate.

The government should also completely decentralize, deregulate and privatize the electricity industry. All ENERGY markets are essentially the same. It makes no sense to deregulate fuel alone.

Free markets almost always make any situation better and that will be the case for the petrol market in Nigeria.

Bfly:
Looking at how subsidy removal may cause hyper-inflation what is the possibility of those lesser Nigerian currency surviving because fuel at almost 750/litres may aswell wipe out #20 downward. This subsidy of a thing is getting real.
Imagine life after subsidy removal.

Purchasing power will reduce for the citizens, while the tax net will increase without and cushion from the Government.

Dafresh:

Every one in APC is not bad we have bad people in all political parties

of course we are first Nigerians before joining parties.

CodeTemplar:

Subsidy is not a fraud. The frauds are the people who could block the border against food smugglers but allow petrol smuggles to go through. Before you reply with an epistle, read about welfare schemes in more advanced nations.

I understand welfare are for the less privileged. But Welfare by Nigerian Government is still avenue for fraud because like d'banj, it is redirected to benefit the rich and not get to the poor.

I understand your plight about subsidized product being smuggled out. The solution is not to continuing in the same process that breeds corruption because Nigerians will find a way. So, removal is the only solution but it can only be effective when an actual government that is people oriented is given the mantle to lead. When this is done, instead of smuggling the product, we can actually sell to them in an open border system where we use common currency to buy what we have need of from our neighbouring countries. When we become a working and producing nation, we can go ahead and subsidize not just for us but for our neighbours so they won't be spending their forex outside africa. That should be the dream.

Naira could rise against foreign currencies, within months.
I am only afraid of our state governors and legislators and civil servants. Budget padding would be on the rise.
Once allocations are increased, you and I know what would happen to such funds.

If there’s a way FG can pass a legislation and banning sharing of savings from subsidy removal and investing it solely on infrastructure across Nigeria, it would be better.

Acidosis:



Double tragedy for the citizens. Meanwhile, we still have another subsidy to contend with - FX Subsidy.

In 2022, the federal government spent around N3 trillion on Forex Subsidy. That is how they keep the official Naira-Dollar rate at 450+ so that those around them and affluent elites like Dangote can continue to buy cheap dollars while the typical impoverished commoner monitors Aboki FX and roadside aboki rates (720-750).

Its just evil

thesolutions:

I understand your plight about subsidized product being smuggled out. The solution is not to continuing in the same process that breeds corruption because Nigerians will find a way.

Corruption is in all sectors and taking subsidy removal saving into already corrupt sectors of the system will be worse than what is on ground.

Imperialist economic prescription. Imagine the twin effect of subsidy removal and increased taxation in an economy that hosts one of the highest concentrations of the poor.

Any suggestion that the money saved would be used to help the economy is balderdash... The same argument right from the days of IBB.

I agree that the subsidy should be removed but only after our refineries are functioning again. Otherwise, inflated figures for imported petroleum products would necessitate a new subsidy regime.

As for increased taxation, it is the height of wickedness on an already pauperized masses with record level unemployment and poverty.

A better approach would be to improve the productive capacities of Nigerian economy through agrarian revolution, regular power supply, SME financing, etc.

The cost of governance should be drastically reduced starting with a unicameral legislature, slash in salaries and other benefits, a removal of the outrageous and evil pension for governors and their ilks, etc.

CodeTemplar:

Corruption is in all sectors and taking subsidy removal saving into already corrupt sectors of the system will be worse than what is on ground.

You are right. But that is why we hoped for a government that has understanding of that thing on ground and be stubborn enough to pick it up, kill it if it is alive; urinate on it and render it useless while working hard to make sure that anyone coming in to handle corruption prone positions understands the vision and actually run with it. But stubborn people that has good intentions are hard to find. Only on books.

Dangote will be producing diesel and PMS, Dangote I know, in collaboration with FG will prioritize selling to Nigerian market, plus our current local refineries, they should be able to provide to at least 70% of Nigerian market. Of course with states getting license to produce electricity, I believe demand for fuel to power home generators for Nigerians will reduce, this can stabilize the market and curb the price pull inflation, the removal will bring. Government should try to improve on power production, this will reduce the rush for fuel and diesel AGO.

blackpanda:


Even in south africa it's about $3 per liter (N2250)

Is South Africa an oil producing country ? How can your dad own a brewery and beer is too expensive to buy in his house ?

THEY ARE ON THEIR WAY TO HELL.

Difrent:
We will adjust with time. One thing you can never take away from Nigerians is resilience.
All those advanced countries our people rush to have dumped petrol subsidy decades ago...

Don't forget even elastic has its elastic limit. In other words there is always a threshold, limit or breaking point. Its only natural.

1Alex:
My own na to buy bicycle now and keep., because fuel will be regarded as gold after subsidy removal.

After the removal, prices of bicycle will triple.

Good thinking. Nigerians are something else. But you're thinking right.