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Nairaland Forum / Nairaland / General / Politics / President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi (19815 Views)
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Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by Poll23: 11:42am On Jun 03, 2023 |
All candidates promised to remove subsidy and you supported them but now against the removal of same subsidy cos your preferred candidate did not win....Nigerians and hypocracy 1 Like |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by Gaabasky: 11:43am On Jun 03, 2023 |
Thank God I am not alone in this regard. Saudi, Angola, Russia, Libya during Ghadafhi, subsidizing their fuel products even with their functional refineries. We are treating the symptoms instead of the cause n if at all the pallatives measurements should have b.n putting in places not the one of Covid period |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by grandstar(m): 11:44am On Jun 03, 2023 |
I only read fragments of this article and was highly disappointed. When someone as highly respected as Kperogi spouts economic illiterate ideals, his word becomes a shining light to those who are either ignorant or determined to remain in their ignorance. How is a tax holiday to companies a subsidy on petroleum products? If I ask Cadbury for instance to paying stop paying company tax, how is that a subsidy on the beverages it makes? It only means that Cadbury will be able to keep more of the profit it makes. "50 states spend $10bn to subsidize petroleum consumption in the United states." This is absolute nonsense. First and foremost , $10bn is a drop in the bucket for an economy as large as the US, 1. California – $3.5 trillion 2. Texas – $2.1 trillion 3. New York – $1.9 trillion 4. Florida – $1.3 trillion 5. Illinois – $973 billion 6. Pennsylvania – $874 billion 7. Ohio – $765 billion 8. Georgia – $713 billion 9. New Jersey – $700 billion 10. Washington – $696 billion America's 10th largest state has GDP of $696, that is higher than that of Nigeria's which is $440b. How far will $10bn go? A lot of the statistics he gives are inaccurate. He said 99% of US students drive to school. In US colleges, many college students are dependent on Ramen noodles (their own Indomie) to save on cost. He said that petrol is cheaper in Georgia than in America. I did my calculations and found out that Nigeria was still cheaper. When converted to Naira, the Georgia state price is N565/litre. 6 Likes 2 Shares |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by emerged01(m): 11:44am On Jun 03, 2023 |
richidinho: Bro,this matter is just like two families with different income. I believe you wont expect the two families to spend the same way. You cant be comparing US revenue with ours. The only product FG is subsidising is been taken advantage of by the smugglers. For me,I know the next few months would be tough but we all need to make that sacrifice for once. In 2012,many people came to protest against subsidy removal but now they are regretting their action because they realised they were used. This shouldn't happen again. Fuel product without subsidy =500 Fuel with subsidy =185 Calculated subsidy to be paid on a lt = 315 And we were told we consumed 60m litres daily which I believe is false. 315 * 60m=18b daily on Subsidy. Calculate what 18b will turn to in 6months or a year. What is our yearly revenue? No wonder we always borrow and when we borrow we will still need to service our debt.With Subsidy and servicing of debt how do you expect the govt to fund projects? I'm not saying our govt is not corrupt. Corruption is another reason most people are against subsidy removal. It needs to be dealt with for removal of subsidy to yield go result in no time. If my calculation is right,if subsidy continues,Nigeria will fall in the same situation with Venezuela. 1 Like |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by Shikini: 11:45am On Jun 03, 2023 |
Great |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by HopeSpencer: 11:47am On Jun 03, 2023 |
pandoragirigory: Which modality will you put in place that will alleviate movement surffering? You have government bikes that will transport people in and out of un-motorable roads abi? |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by Donkenny511(m): 11:48am On Jun 03, 2023 |
The government also subsidized education, agriculture, health and other things. If not we will not be able to afford a federal university richidinho: 2 Likes |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by blueAgent(m): 11:51am On Jun 03, 2023 |
casualobserver: Are you an APC supporters? This article is well analysed and logical. Most APC supporters do not have brain to carryout analytical thinking or less you copied and pasted. Kudos. 1 Like |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by Vision101(m): 11:55am On Jun 03, 2023 |
@nairalanda1 It is like Kperoggi does not get why subsidy is evil. The problem with subsides is that here in Nigeria, we don't do what the US does and subsidise production. Instead we spend time subsidising things at the sale point. So, we sell fuel below what it costs to refine it, and what it costs to transport it. The result...distortions that lead to things like smugging, stealing, looting and corruption. But here is why subsidy is insidious.....the difference between the production cost and the subsidised cost keeps rising. That adds to the subsidy cost. Then the increase in number of consumers, that also adds on. Then how are we paying for the subsidy.? We pay for it from oil income...which in Nigeria has never been enough because the price is never high enough (that is why GEJ took loans even when oil prices were high...for those of you who love to crap on that). And oil prices have been low since 2014. Very low. So, we have to borrow to make up the difference...and a large chunk of the money goes to subsidy. And the more the cost of the subsidy rises...the greater the amount we spend from the budget...till we reach a point where we spend all our revenue on subsidy, borrow to add to money spent on subsidy, and then cover the deficit with more borrowing. And the more we do that, the worse it gets. Look, I am aware the poor will suffer when subsidy goes. God knows I know this and hate it, so for anyone quoting me to abuse and call me names, or ask silly questions, or call me government supporter....I know, and it uspets me a lot. But if we keep subsidy, as you will soon see, the poor would suffer even more. But if we keep the subsidy, we would have reached a point where there would have been no money for things like salaries, projects, etc. And if we were making fuel at home, we would start saving cost by skimping on refinery repair and maintenance....and that's how we lost our 4 refineries...and became net importers, and ended up being at the mercy of cabals....because we wanted cheap fuel. Anyone advoxcating for subsidy wants us to be as broke as Sri Lanka and Lebanon. So broke that the IMF is literally running things there. If you want the poor to be helped...remove subsidy. And yes, people would suffer, but when we get better refineries, improved production and more revenue, we would wake up. And yes, APC has failed. But the fact that we have a devious APC government in charge should not be an excuse to keep subsidy. @me I love your submission 2 Likes |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by chidiokay: 11:56am On Jun 03, 2023 |
richidinho: Do i need to remind you subsidy as being existence in Nigeria for over two decades ... e never reach one week wey govt comot subsidy and you are sounding like subsidy never happened. How many times do we have sensitize the public borrowing to finance our budget becos 96% of revenue goes into serving and paying loan us about plunging Nigeria economy into coma, WE DON'T HAVE THAT MONEY. Even as subsidy stops there is no free money anywhere, the only relieve will be we are not borrowing. Borrowing to invest or build is viable But Borrowing to live a Lifestyle is one of the most foolish thing anyone can do. Kpeogre said Us is subsidizing essential products for americans but is america borrowing to pay those subsidies, that is the what we must discuss. Must we keep borrowing for the interest of the people when its at the detrimental of the economy, what happen when we lose our credit score and we can't borrow again ... we should wait till that happens abi 1 Like |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by JoshTim: 11:57am On Jun 03, 2023 |
richidinho: Why must Nigeria subsidize oil when we are a major producer?...we do have refineries but have you bothered to ask, why those refineries are not fully operational?...have you bothered to ask why we export crude oil to be refined abroad? Understand context where subsidy can be applied 1 Like |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by TollinsN: 12:03pm On Jun 03, 2023 |
This is a very good article. I believe this article does not take some African factors into consideration. (1) Corruption in America is far less than what is obtained in Nigeria. (2) Neighbor countries don't feed on American economy like it's happening in Nigeria. It has gone to the extent that these countries had put those who will fight against removal of subsidy on payroll by ensuring they have protected account in their countries. Including the so called labour leaders. (3) America had always been against business cartels (including Oil cartels). They are so rich such that they have all it takes to fight the government even from within. For example OKONJO IWEALA'S mother was kidnapped and during negotiations, she was told to back out of her support to remove subsidy and also announce her resignation from government on National medias. It was former president Johnson that saved her situation by telling her not to resign after which security agents were able to rescue her mother. (4) Security agents that government could have been used to forestall all these goes home weakly with several millions just for them to look away. 1 Like 1 Share |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by RealAlubarika(m): 12:07pm On Jun 03, 2023 |
richidinho: God bless you for this, currently I'm in Nigeria. Have been living in Italy for 6years counting. Government subsidizes Agricultural product, including energy consumption (light and gas) for foreigners and indigenes whose annual income is below certain level. Why do we Nigerians demonized subsidy as if it's bad. Why can't they reduce or eliminate the corruption laden in it, than to make the poor citizenry suffer for their(Government) inefficiency. We rise by lifting others |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by Ralph117: 12:08pm On Jun 03, 2023 |
You have made a good point I’m not Bat fan I don’t like his kind of politic but when you talk about Sri Lanka my heart pants, when you look Venezuela i get scared of Nigeria every day this country is great one but some unscrupulous element have bastardized it I really wish for a progressive nation, removing the subsidy is good one if only there is transparency in the oil and gas sector Tinubu should be straight with Nigerians with his plan for every money the govt made from remover of subsidy and how he plan to implement what every project he intend to do for Nigeria people, during president Goodluck Administration he had a committee called Sure-p head by Ngozi olejeme, no Account was given how money was spent. Tinubu should be make the Nigeria people know if it’s total remover of subsidy or he want to increase PMS price and lie under subsidy because you don’t expect me to be loyal for a particular period of time and again you come up with subsidy again In all I think they should a be strict law enacted by the legislature in the oil and gas sector because some few people can’t be bigger than 200 millions Nigerians should brace up because it’s not going to be easy with the way APC govt had bring over 133 million Nigeria to his knees God is our strength nairalanda1: 1 Like |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by Kukutenla: 12:26pm On Jun 03, 2023 |
chokekachy:Spot on! Farooq summarised it perfectly. APC have deployed propaganda over the years to demonise subsidy whose removal they also railed against. Subsidy is not the problem, corruption is the problem Is subsidy must go, the money saved must go into salary increment, public transportation nationwide and keeping cost of basic agricultural products low. Anything outside that is pure scam |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by grandstar(m): 12:27pm On Jun 03, 2023 |
Dougad: Why are fools and idiots supporting subsidy removal: How much is a litre of crude oil? It is 48 cents as of today. If multiplied by the official rate of 461 = N220/litre. As of last week, petrol was selling at 185/litre. Let us add N100 refining cost and it rises to N320. End product = N320 Selling price = N185 Difference 185-320= -135 Again, Nigeria consumes 100m of petrol daily. It is suspected only 60 million litres is used locally. So, 60 X 135 = 8.1bn daily subsidizing petrol. If we choose to use 630 rate, rather than the very unrealistic 460 to do our calculation, the total if we add refining of 100 and total with be 402/litre You can see the fools and idiots who support the fuel subsidy removal are really stupid and daft. The subsidy increases to N235 per litre. Multiply by 60m and you get 14bn daily. Government claims it will spend $10bn this year on subsidy if nothing is done to stop it. Already smuggling across the border has stopped. This worked better that anything in stopping refined crude smuggling. Kperogi isn't an economist and many of the statistics he has given are wrong. Economist work on accurate stats to push their points across. It is the use of such inaccuracies that people start slamming Peter Obi. 2 Likes |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by Yadid(m): 12:27pm On Jun 03, 2023 |
I see some folks up there saying Nigeria is broke. Let's be mindful of our words please. Nigeria is not broke, Nigeria has only been looted to emptiness by some few people. Don't say Nigeria is broke as if Nigeria ran out of resources as a result of catering to her citizens. Nigeria has been looted dry. Thank you! |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by Kukutenla: 12:29pm On Jun 03, 2023 |
Donkenny511:Wait, let me get you. What is govt supposed to do with the money gained from tax and other incomes if it does not spend it on education, health, agriculture etc. Are you aware education in the US and Canada is heavily subsidized up to equivalent of secondary school? |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by XAUBulls: 12:30pm On Jun 03, 2023 |
chokekachy:A whopping $10 billion per year will be saved annually from the fuel subsidy removal that can then be channeled to more productive use. |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by grandstar(m): 12:31pm On Jun 03, 2023 |
nairalanda1: Petrol alone was being sold below what it cost to drill it out. A litre of crude oil was 48 cents as of today. Just using the official rate of 461 and you get N220 per litre. We haven't factored in refining cost. What if an exchange rate of 630 was used? 3 Likes 1 Share |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by Tin07(m): 12:34pm On Jun 03, 2023 |
Each candidate in the last election promised to remove subsidy. This however didn't mean its removal is good. The poor will be hard hit. Tackle the corruption in it and not otherwise. |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by mrkenny05: 12:40pm On Jun 03, 2023 |
nairalanda1: Very grateful for this analysis.... The system is very corrupt.... and somewhat out there to get rid of Nigerian state that if not boldly approached like PBAT is doing ....we may some day to come meet an undeniable Waterloo as a country.... |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by sonature1: 1:08pm On Jun 03, 2023 |
richidinho: I will assume you don't know it. Nigerian government subsidizes education, health care, electricity and other affordable services government provides. Keep that in mind next time you want to criticize the government. |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by nitt: 1:41pm On Jun 03, 2023 |
A well written piece. The Author summed it up. "Let's see". |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by emani03(m): 1:48pm On Jun 03, 2023 |
You just said my mind bro. Dougad: |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by COMPAQ(m): 1:51pm On Jun 03, 2023 |
datola: Are you minding him? The budget of the state of Texas alone is higher than Nigeria's FG, State and local government combined!! What America or a western country can afford is very different from what we can afford. 2 Likes |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by COMPAQ(m): 1:58pm On Jun 03, 2023 |
richidinho: Please explain how USA subsidizes housing, autos and healthcare. Cos I know for a fact that healthcare in the US is among the most expensive in the world. If you call ambulance to your house alone, expect bill of like $2k. 1 Like |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by Tonytonex(m): 2:02pm On Jun 03, 2023 |
chokekachy:ignorance is truly epic disease in this part of the world. that is what the politicians are using to accrued suffering to the masses. |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by Idoko619(m): 2:21pm On Jun 03, 2023 |
Sunshine34: I expect a counter proof but nah, your brain cannot carry it. |
Re: President Tinubu And The Dangers Of Fuel Subsidy Removal - Kperogi by Skyehigher1: 2:30pm On Jun 03, 2023 |
Write up isonu |
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