This is one the best news so far from Jonathan and Ngozi.  The Federal government of Nigeria cannot subsidize every liter of fuel consumed in Nigeria to the tone of 60 or 70 naira per liter.  It is either the damned subsidy ends or we go back to the dark days of fuel shortages.  
We are past the stage where as a country government could have learnt to build rigs, educate our engineers, refine our fuel, count our people correctly and administer subsidies efficiently.  We are a nation of 200 different peoples, forced to live together by the white man.  Everyone is trying to take care of themselves and not Nigeria.  
 Let the private sector import and sell fuel.  Very soon greed will bring several refineries to Nigeria, employing thousands and thousands of our graduates.  Just like the GSM experience. Most of the money saved will go into infrastructure.
 This oil belongs to the Niger Delta, so the sooner we wean ourselves off this injustice, the better off all Nigerians will be.  Don't complain about our corrupt politicians if you send them to steal other peoples oil to provide subsidy and sell it to you below market price.
IT DOES NOT WORK!!!!!!!!!!!!!!!!!!!!!!

soon we will see those stoopid videos on nta with nitwits dancing and selling us the benefits of deregulation

we saw it all before during obj's administration

otedola is about to get paid for all that gej attache he has been doing. everyone else prepare for a higher cost of living

oyb:

soon we will see those stoopid videos on nta with nitwits dancing and selling us the benefits of deregulation

we saw it all before during obj's administration

otedola is about to get paid for all that gej attache he has been doing. everyone else prepare for a higher cost of living

Sad, funny, true

Wake up people, the fuel subsidy has long out lived it's usefullness. I support the GON decision to face it out.
Ghana and other neibouring countries that have long done away with and they are enjoying a better standard of
living than Nigeria. They now have better infrastructure, education and even their healthcare system is better
than ours. This is because the money freed up from fuel subsidy in those countries is now channel to other sector of their economy
where it's badly needed.
Those who opposed the propose change are not patriotic and don't have the best interest of the country at heart. I believe their champion ,
the NLC are closeth communists, they are no friends of the common man as they claim.

These are very uncertain times, Nigerian should generate as much fund internally as possible, if not we'll end up borrowing again and
you know where that leads.

so because of a group of their cronies, which they have termed 'the cabal', that are, with the pdp government's acquiescence ripping Nigeria off, through some illegalities in the subsidy programme; millions of Nigerians should suffer the timidity of a spineless government. this case also can be seen in the security and other sectors of the economy, where lack of resolve is evident.

Hmmmmm. I forsaw this before now. This problem started right from the time he signed the wage increament. Where do you think the money will come from?If Budget is simply planned expenditure financed by expected income, how do you expect the increase in minimum wage to be financed.Even before the wage increase, the recurrent expenditure covers more than 75% of the budget leaving very little for capital expenditure. With this, please tell me how a meaningful development can take place in the country. Aside that,
look at the people who constitute the committee.Can you please name just one of them that represent the masses. Zanith Bank is only known for high networth clients while Access only opens branches in areas where they can cover coperate clients and not retail clients.

There is serious problem in this country.

gaakgaba:

Hmmmmm. I forsaw this before now. This problem started right from the time he signed the wage increament. Where do you think the money will come from?If Budget is simply planned expenditure financed by expected income, how do you expect the increase in minimum wage to be financed.Even before the wage increase, the recurrent expenditure covers more than 75% of the budget leaving very little for capital expenditure. With this, please tell me how a meaningful development can take place in the country. Aside that,
look at the people who constitute the committee.Can you please name just one of them that represent the masses. Zanith Bank is only known for high networth clients while Access only opens branches in areas where they can cover coperate clients and not retail clients.

There is serious problem in this country.

GEJ 'invested heavily' in winning the 2011 Presidential elections. Now, he wants Nigerians to pay for it. It serves those who voted for him right- A people get the leaders they deserve.

pls, pls, pls. Can someone tell me the meaning of safety nets, the government is planning to introduce ( is it a kind of hand out(busary))? I'm so confused.

Beef voted for Jonathan not PDP but PDP is ruling.
Why putting the cart before the horse?
I expected your clueless GEJ to first end the importation of fuel before removing the subsidy. Remember Obasanjo deceived us so many times increasing fuel price claiming that the money would be used for road improvement but today our roads are still as bad as those of the war zones. Instead it made Tony Anenih and co more richer.
So, OBJ and IBB called themselves fools, then those people they ruled are also big fools. That is why you see some people supporting them blindly on this forum.

I weep for Nigeria !

A presidential economic comittee is composed of the FO , Jim  Ovia and other OBJ billionaires. Okonjo leaves World Bank to come and implement one of the policies of world bank in Nigeria.

No one claims there is no issue wit the current subsidy , it is very obvious the subsidy system is rotten but one thing is for sure which is the masses of Nigeria buy petrol at a subsidized rate. Removing the subsidy and freeing the money for capital projects and social security is a good idea but almost every idea and policies from Nigeria has always been great. The devil lies in the implmentation , i can bet that the 1 trillion savings will be devoured by the corrupt lions in the presidency and state governors.

That money will not reach the masses in anyway. The good subsidy removal will only positively affect the masses if it is implemented by a much LESS corrupt government rather than this GEJ govt as it is currently constituted. If the money is voted for capital projects, corrupt lions will win the contracts and abandon the project half way. If they complete the projects it will be sub standard with over inflated value, we have been here before and so has been the story of Nigeria from the 70s till date.

Surgical Revolution I call for ! please dont ask me to explain.

[color=#006600][/color]I dey laugh oooo!

DrugDoc:

This is one the best news so far from Jonathan and Ngozi.  The Federal government of Nigeria cannot subsidize every liter of fuel consumed in Nigeria to the tone of 60 or 70 naira per liter.  It is either the damned subsidy ends or we go back to the dark days of fuel shortages.  
We are past the stage where as a country government could have learnt to build rigs, educate our engineers, refine our fuel, count our people correctly and administer subsidies efficiently.  We are a nation of 200 different peoples, forced to live together by the white man.  Everyone is trying to take care of themselves and not Nigeria.  
 Let the private sector import and sell fuel.  Very soon greed will bring several refineries to Nigeria, employing thousands and thousands of our graduates.  Just like the GSM experience. Most of the money saved will go into infrastructure.
 This oil belongs to the Niger Delta, so the sooner we wean ourselves off this injustice, the better off all Nigerians will be.  Don't complain about our corrupt politicians if you send them to steal other peoples oil to provide subsidy and sell it to you below market price.
IT DOES NOT WORK!!!!!!!!!!!!!!!!!!!!!!

A brilliant beyond brilliant analysis. People just shout for shouting sake and because they feel they should join others in shouting (band wagon effect). For once the government seems to be serious about implementing this.

Pay back time! The General is anxiously waiting to console Nigerians.

[size=18pt]This is PDP's gift. [/size]

Just imagine that a litre of fuel is sold for (lets say) 120 naira.
1. A lot of Nigerians would abandon their private vehicles because they can no longer afford fuel
2. High cost of transportation
3. Most nigerians use generators for personal and business purposes. Due to the high cost of petrol, those using the generators for household purposes (who can no longer afford petrol) will abandon their generators and live in discomfort. And those whose businesses run on generators will either increase the price of their services or close down.
4. Increased unemployment
5. Inflation
6. General discomfort , , , etc

Nigerians will curse Goodluck if this happens. He should think

What's wrong with the Government paying subsidy for a major product just to make the life of the masses a little less painful. This is a decision to be made by the entire populace through a referendum and not just by GEJ and members of his economic team. If GEJ can not lead this country by following the general wish of the people, him and his entire team should resign. Enough is enough

I am not surprised by this move from GEJ. The truth is he takes instructions from his western masters for everything he does. They asked to run for president and he did. They asked him to appoint Ngozi and he did. Now they are demanding the implementation of the usual IMF policies that will draw us back to the beginning of the SAP days.

But instead of ranting on Nairaland, why not have a coordinated effort of flooding GEJ's page on facebook with protests for a start. Also find a way of publicising the protests. If they persist maybe we can start taking PDP bigwigs hostages until our demands are met.

For God's sake, even countries that do not have oil subsidies petroleum products. Some countries even subsidies food to make sure there are no social unrests. But GEJ in his wisdom is removing subsidy.

It doesn't matter if some people are illegally benefiting from the subsidy, almost everything the government successfully carried out does have people benefiting illegally from it. We've learned to live with it.

And, Congratulations to those of that voted GEJ and not PDP

revolution is at hand in 9ja. the govt tot we ar all asleep in Nigeria. nw dey will knw & see d tru wrath of Nigerians.

DrugDoc:

This is one the best news so far from Jonathan and Ngozi.  The Federal government of Nigeria cannot subsidize every liter of fuel consumed in Nigeria to the tone of 60 or 70 naira per liter.  It is either the damned subsidy ends or we go back to the dark days of fuel shortages.  
We are past the stage where as a country government could have learnt to build rigs, educate our engineers, refine our fuel, count our people correctly and administer subsidies efficiently.  We are a nation of 200 different peoples, forced to live together by the white man.  Everyone is trying to take care of themselves and not Nigeria.  
 Let the private sector import and sell fuel.  Very soon greed will bring several refineries to Nigeria, employing thousands and thousands of our graduates.  Just like the GSM experience. Most of the money saved will go into infrastructure.
 This oil belongs to the Niger Delta, so the sooner we wean ourselves off this injustice, the better off all Nigerians will be.  Don't complain about our corrupt politicians if you send them to steal other peoples oil to provide subsidy and sell it to you below market price.
IT DOES NOT WORK!!!!!!!!!!!!!!!!!!!!!!

Most of the fuel(petrol, kerosene and diesel)  we consume are imported, because we can't met refining capacity.

Guess what!!! the PPMC/NNPC(Government) import the fuel.

Marketers  should be allowed to import the fuel while Private sectors invest in Refineries.

Until then it is wrong to Removes Fuel Subsidy.

IG:

I am not surprised by this move from GEJ. The truth is he takes instructions from his western masters for everything he does. They asked to run for president and he did. They asked him to appoint Ngozi and he did. Now they are demanding the implementation of the usual IMF policies that will draw us back to the beginning of the SAP days.

At what point in your life do you finally accept responsibility for the mistakes we make as Nigerians? What western masters? Are you not ashamed that after 12 years of democracy you still get mouth to blame WESTERN MASTERS? Bow your head in shame abeg!!! There comes a time when using the same old excuses only show you an everlasting imb-ecile in the game of life.

IG:

But instead of ranting on Nairaland, why not have a coordinated effort of flooding GEJ's page on facebook with protests for a start. Also find a way of publicising the protests. If they persist maybe we can start taking PDP bigwigs hostages until our demands are met.

hmmm . . . I am going to guess you have never actually been on that site to rant before today. Where were you when those of us who flooded the facebook site from back last year, through this year, were banned week after week, and had our comments deleted simply for expressing a view different from what the moderator of the page was willing to condone? Where were you during the last elections when people posted that they were being banned for questioning the man's competence as a leader? let me guess, you do not know that does not work anymore?

90% of the responses on this thread pander 100% to emotion and sentiment only.
Why would anyone attempt to discuss technical matters from a sentimental viewpoint?

The sad truth is that most people have no clue about how the so-called fuel subsidy operates, they are just reacting by instinct and trooping after the bandwagon.

First, it's an indiscriminate way to spend valuable resources. The rich, who could pay more for fuel, benefit as much as the poor, who often can't.

Many of them are still waiting for the subsidised bus service which ministers have introduced instead.

Second, so much cheap fuel has been smuggled out of Nigeria, for sale at a handsome profit in neighbouring countries, that the government is forced to import more at a higher rate - another drain on the government finances.

The situation creates a lucrative business for importers, who are often said to have a hand in the poor state of Nigeria's oil refineries.

Instead of processing Nigerian crude, many of those refineries stand idle. Simple repairs are apparently never quite finished and in places where fuel is scarce, traders can charge way above the official rate.

http://news.bbc.co.uk/1/hi/business/3077049.stm

Simply put, some of the very same folk who import our fuel at below market price, simply ship it out to neighbouring countries to sell at above market price and leave the country to have to import yet more fuel to fill the shortfall in an ever expanding vicious cycle. The average Nigerian is put to sweat like a jackass for the fuel importing / smuggling industry. These people have also formed themselves into a powerful mafia that ensures that our refineries are always sabotaged.

We all complain about the staggering amounts it costs simply to run govt in Nigeria and how little is left for capital expenditure; yet the 1.2trillion spent annually on fuel imports is a quarter of the entire proposed 2012 budget. That money could be put to much better use.
1.2trillion is a great deal of money, I would expect that our arguments here would be on the best ways to police that money to ensure that it doesn't disappear into private pockets as in the past; to that end, we must all endeavour to have more than a cursory understanding of the Sovereign Wealth Fund as an investment engine, value adder and wealth producer, we must also ask diligent questions to probe the exact meaning of the proposed safety nets for the less privileged.

Removal of the subsidy, if done right, will actually lead Nigeria to gallop ahead developmentally:

A non-inflationary expansionary policy that increases transfers to households would have the least negative effect on poverty. To achieve this goal, government spending of associated savings needs to increase purchasing power and raise production so as not to stimulate inflation. Wasteful projects which do not add much to the country's productive capacity should be avoided.

Two areas that would benefit from more expenditure are transportation and electricity. Investments in transportation infrastructure would dampen prices in the economy as transportation costs are reduced. An improvement in electricity generation will also have a large impact on production levels and costs in the country. Presently, many firms are seriously constrained by the lack of electric power for production. It should kept in mind, however, that such investments will take years to materialize.

http://www.globalsubsidies.org/en/subsidy-watch/commentary/does-subsidy-removal-hurt-the-poor-the-case-fuel-subsidies-nigeria

This is just a time for each of us to look within, banish sentiment and become vigilant of the tiniest detail. Sentiments do not develop a country.

Nigerians consume over 30 million litres of petrol daily. A Relatively steady power supply before removal of subsidy would have been more appropriate, this would lead to at least 30% reduction in daily demand of petrol.(many generators will be useless)

Nigerians will not find this report,cheering.

[size=14pt]Social safety net[/size]

Although government touts the introduction and implementation of social safety nets as mitigation for removal of subsidy, Nigeria’s intriguing history is replete with such failed enterprises. In an exclusive interview with Sweetcrude, Diezani Alison-Madueke, the Minister of Petroleum Resources disclosed that government was working on palliative measures to replace petroleum subsidy which she emphasised does not serve the purpose for which it was intended.

She said the government designed an effective social safety net system to ensure that the massive volume of resources expended on subsidy payments annually is ploughed back to the provision of essential social/health amenities and services to the common man.

“The package would help guarantee improved maternal and child health services while also providing conditional cash transfer scheme to pregnant women in the country, a package which as you know is unprecedented our history. There is also provision for primary school feeding programme, youth employment package which also entails what we call active labour market and public works programmes for youth.

“The novel scheme also allows for electricity rebate, fuel voucher, equipment voucher among other items. Though details of the overall cost implications are being finalised by the Ministry of Finance, suffice it to say that experience from abroad suggests that to establish an effective national safety net system in a country as large as Nigeria would require capital outlay of $100-$200 million annually for 3-4 years window depending on the envisaged design.

As a first step, focus would be placed on designing the outlines and establishing a national registry to allow beneficiary identification. And later the focus would shift to the Attention of other relevant building blocks which would spell out the conditions for eligibility, enrolment etc,” She enthused.

http://www.vanguardngr.com/2011/10/fuel-subsidy-finally-government-shows-ourage/

My mind is a bit shaky on this, even though I think the plans are beautiful. I hope we get more detailed info soon.
For now, it looks visionary and promising. Other countries have achieved similar, so why can't we?

The above plans imply that a central database of citizens would need to be developed. Not a bad thought.

It is a sad scheme to get more money to fund their excesses at the center. It will not work. The Nigerian people will know when somebody is genuinely working on their behalf.

You put in place a minimum wage so you could win an election, causing all state governments to go broke. The fight on that is not finished around the Federation and GEJ wants to start another one.

Vague promises of a safety net is all that, vague and con-manism. Does anybody not wonder about the January timing and the fact that it is also the begining of another budget year? Oil prices are on the way down, and the vampires want to transfer more of the money from "one drain" into their "own drains". At least in the current drain most of it end up benefiting the Nigerian people. The new drain will go into funding a government that detests trying to bring prices down in Abuja, so it will not lose its status as a "top-ranked" city in the world

A nation that cannot administer a public policy requiring monitoring at only a few points along the system is promising to put in place a system of safety nets where the information requirement is sky-high. Even the United States, with all its sophistication, welfare checks end up in the pockets of 1000's of Mercedez Benz owners each year. Talkless of a country where workers' salary are first deposited in personal accounts to earn interest while they go unpaid for months on end.

The worst thing GEJ can do is to start the next year with bad news for Nigerians. That will set the tone for a spiral downwards of the economy the whole year long.

.

[size=28pt]fresh pain 2012 [/size]

gej went to school without shoes - i guess he expects nigerians to walk everywhere

@Beaf.

It appears you have conveniently avoided this comment just immediately after your first post.


They want 1.2 Trillion in savings?? Why not first get rid of the multiple craft in the Presidential fleet? Remove all the myriad of SSAs, SAs? Get rid of the hundreds of bulletproof limousines? Save the nation a few hundred Billion by simply cutting down the number of federal ministrys to max 18 and compelling states to "fight" for the substantive senior posts on merit basis? Cut down legislators emouluments and even get them to serve on part-time basis? Tighten the borders to reduce smuggling etc? I can imagine dozens of ways that would amount to same figure being saved to the benefit of many and loss of few.

But self-sacrifice is NOT our way, is it? It seems better to push the pain on the down-trodden masses and yet, people expect such as boko haram to keep quiet while watching their little kids starve amidst plenty! And of course, MEND thugs get paid more than consistently serving civil servants of 20 years standing.

What is to come is definitely going to be worse than what has passed! I foresee GEJ being the first serving president who will be stoned in public & I wager the culprits won't be apprehended because they'll have the moral support of his own guard


My own comment is that this kite will not fly.

Let them cut cost as Nuclear outlined above but add cutting the no of civil servants.

Build modern refineries.

It is a pity that about 15 years down the road of PDP, they cannot give us a refinery.

We have been here before. Pigeon dance, one step forward, two steps backward.

Plenty English, No result.

^
Bruv, why are you calling my name na?
Do you think cutting the Presidential fleet will save 1.2trillion? Do you really have an idea of the jaw-breaking amount 1.2trillion is? Even if all the planes are grounded and the President starts sharing okada's with you, that would hardly make a dent in the sum we are discussing.

How do you propose to cut down legislators salaries? You tink say na beans? Those people make the law and have the clout to either set their own salaries or influence the amount. They prefer to milk the country instead, and short of rioting there is nothing anybody can do. So, if you are not prepared to riot and make sacrifices for your rights, its best not ask questions or make suggestions that are ridiculous. If you are prepared to die for your cause, then call me, until then please don't waste my time.

^^ Thanks for responding to that nonsensical suggestion. How many of us actually understand how this subsidy works?The thing has become one of the most corrupt areas in this economy. For those suggesting that refining capacity should before removing subsidy-its upside down logic. NO private business man will invest in refining while prices are regulated. Deregulation is a prerequisite for attracting investment in the downstream sector.

Lets face the reality.

emiye:

Nigerians consume over 30 million litres of petrol daily. A Relatively steady power supply before removal of subsidy would have been more appropriate, this would lead to at least 30% reduction in daily demand of petrol.(many generators will be useless)

Exactly. This is not the right time for the government to remove subsidies.

Removal of subsidies implies that the consumer, the majority poor will pay whatever amount that market forces determine the products are.
The argument put forward by Government is that subsidy removal on petrol will free as much as 700b per annum which is hitherto been paid to a few people. The realised amount will be used in developing"safety nets for the poor" by providing infrastructures and social services. That means more money for capital projects.
By allowing private hands to provide the products, competition will be enhanced and prices will gradually come down. The common example given is the difference noticed in the telecomms sector. Theoretically sounds wonderfull.

But lets look at it practically. Kerosine, Diesel and Aviation fuel have been fully deregulated, meaning no more subsidies with respect to these products are paid by government.
Kerosine is not readily available (remember the recent shortages in Lagos) and where one gets it, the person must have wasted valuable time in que and has to cough out large amount of money to get some. Ditto deisel,its at an all time high, causing the prices of goods and services to skyrocket. Its the reason why call rates in Nigeria are highest in the world. Service providers must keep their system running by power which is done by expensive diesel. The burden is subsequently passed to the consumer. Air fares, you need not ask.

What guarantee do we have that Government will transparently utuilize every kobo realised from subsidies removal considering the high level of corruption in the system? A good example is the Money that grew in the nations coffers after the Debt releif. There had been an agreement that money realised will go into providing of essential social services to the populace, Safety nets for the poor, Whats the situation a few years after that, Nil infrastructure, more borrowing, operating an all time high deficit budget and most importantly more corruption. The body language of this administration does not show that it will mean ahat its say and say what it means. As usaual, MOTION WITHOUT MOVEMENT. The excess crude proceeds that was shared amongst the teirs of government that depleted 34 billion dollars to under a billion within the span of 2 years, where is the result. The argument then was that it will be channeled into developmental projects. where are the results. Lets not be fooled as the cosequences of removal of subsidies will create a serious social problem in the country.

There is simply no political will to do the right thing by this crop of present day politicians. Am not sentimental but been factual. Just look at the hand writting on the wall.