nairalanda1:


Yep....the thing is, politicans have to think of the next election. Removing fuel subsidy totally...would have meant N150 and above for fuel prices in 2012, which means that PDP gets voted out in 2015 in a mega landslide.

(One governor in the Southwest once sacked excess workers in the civil service. It was a bold decision, a brave decision, but he got voted out, his successor hired all the sacked workers again, and paid them salaries...result..by the time Aregbe took over, it was becoming difficult to pay the full salaries...so...partial payment. Chickens came home to roost).

Not just GEJ...all our leaders from Gowon to Buhari part 2 were not bold enough. Even Abacha did not remove subsidy.

That Nigerians are tolerating Tinubu removal of subsidy is just silence of the grave. Kenya that had subsidy removal in the first 24 hours of the new president some months ago is now seeing protests against the government.

nairalanda1:


Most Nigerians are still opposed to subsidy removal..that was the truth in 2012, in 2005, and even as far back as 1993.

Tinubu and Buhari, who should have known better, joined the protests because they were feathering their political nests....

The problem was in 2012, we had high revenues from oil...which had been above 100 dollars per barrel for most of the last 2-3 years. So the opinion of most Nigerians was that 'we had the money' and there fore , we had to use it for subsidy since 'it was the only benefit we got from government'

Meanwhile, GEJ and his economic planners saw that in 2010, it cost them 25% of oil revenue to keep oil prices at N65, and in 2011 it was costing 60% of oil renvenue to keep prices at N65. And to replace the money spent, Nigeria had to borrow (that's why GEJ was borrwing , sports fans). Hence their 'crazy' idea to remove subsidy...because if they had kept fuel at N65, by 2014 we would have spent all our oil revenue on subsidy.

At best GEJ did partial removal, which saved our economy (if GEJ had not, we would have had twice if not more than our current debt).

By 2015, when Buhari took over, and saw that subsidy was real....he first tried partial removal, then he made NNPC sole importer and subsidiser of fuel...(which means that as at now NNPC is owed N2.8 trillion if not more by government in subsidy claims), and kept on partial removal..w.hile waiting for Dangote.

But let's be honest, if GEJ had been bold and strong, if Nigerians had been more sensible in 2012, or even in 1993, by now, subsidy would have gone, and we would have been better for it.

Cheap fuel addiction brought us here.

atobs4real:

It will definitely.
It is a matter of time.
I am hopeful

seunlayi:
This is what supposed to be since 2012 if they haven't opposed GEJ attempt to remove subsidy. Imagine how far we would have gone by now

megih:
Can some body explain how the subsidy removal made this happen, biko make we know, we wen no understand

grandstar:


It was a pity that OBJ or GEJ could not end the fuel subsidies.

However, GEJ might have done better had he sensitized the need to end it to the public, rather than wake up on the first day of January 2012 and finding it gone.

At that time, it wasn't as discernibly clear as it is now that the subsidy was costing humongous amounts of money to provide. Perhaps, it was Buhari's disastrous "lost decade" that made many especially all the 4 leading presidential candidates declare their intention to end it and deregulate the price.

Some claim Tinubu and Buhari were hypocrites.

For Buhari, his poor understanding of economics probably got the better of him when he believed there was no subsidy. That was why when it was so obvious without denial that there was and government was subsidizing the price, his government preferred to use the term "under recovery" than "subsidy."

For Tinubu, his understanding of economics isn't that good as well. His proposal to employ 50m persons into the army during his campaign speaks volumes. He might have been sincere about there being no subsidy and he no have been.

lexy2014:


You were emphatic that fuel subsidy removal has been disaster to neighbouring countries.

Has fuel Subsidy Removal been a blessing to Nigeria? Yes or no

IconicR:
My amiable president is trying, he'll surely take us there. Nigerians calm down, we will laugh last. Nairalanders Hold me responsible if Asiwaju fails.

oluwaseyi0:


Fuel is selling in Nigeria for around 180 per liter and same liter is selling for almost 700naira in Cameroon, Niger, Benin and almost all our neighbouring countries

note: the fuel being sold in Nigeria is actaully brought into Nigeria at a price of over 450naira per liter (the government pays the extra of 450-180 = 270) on every liter of fuel consumed, so if we consume 10million liter a day, the government pays (10m * 270) in subsidy a day

instead of neigbouring countries to import their fuel from europe and other places Nigeria is importing from at 450 they will simply buy subsidized fuel in Nigeria at N180 then smuggle to Cameroon, Niger, Benin where they can sell at 500 or 600, even some marketer will buy ship of petrol bring into Nigera to claim subsidy, they ship it out to neigbouring country, while some briefcase marketers/politicians will claim subsidy on fuel they never import

this is shooting up our fuel consumption and by entension our subsidy payment, it's like we are subsidizing all of west African while the smugglers/looters are making mad profit

the first reasonable thing you will think the givernment should do is police our border and fight subsidy fraud but that will always lead to dead end as we have way too many little borders and the profit this people will get is driving them to go beyong all measure

grandstar:


It has been a blessing to the government purse and in extension Nigerians. It simply means less borrowing by the government. That means less public debt in years to come.

seunlayi:
This is what supposed to be since 2012 if they haven't opposed GEJ attempt to remove subsidy. Imagine how far we would have gone by now

oluwaseyi0:


Fuel is selling in Nigeria for around 180 per liter and same liter is selling for almost 700naira in Cameroon, Niger, Benin and almost all our neighbouring countries

note: the fuel being sold in Nigeria is actaully brought into Nigeria at a price of over 450naira per liter (the government pays the extra of 450-180 = 270) on every liter of fuel consumed, so if we consume 10million liter a day, the government pays (10m * 270) in subsidy a day

instead of neigbouring countries to import their fuel from europe and other places Nigeria is importing from at 450 they will simply buy subsidized fuel in Nigeria at N180 then smuggle to Cameroon, Niger, Benin where they can sell at 500 or 600, even some marketer will buy ship of petrol bring into Nigera to claim subsidy, they ship it out to neigbouring country, while some briefcase marketers/politicians will claim subsidy on fuel they never import

this is shooting up our fuel consumption and by entension our subsidy payment, it's like we are subsidizing all of west African while the smugglers/looters are making mad profit

the first reasonable thing you will think the givernment should do is police our border and fight subsidy fraud but that will always lead to dead end as we have way too many little borders and the profit this people will get is driving them to go beyong all measure

Abemy:


Buhari, not Tinibu removed subsidy.

lexy2014:


You claimed that neighbouring countries "buy subsidised fuel in Nigeria at N180".

Can you pls explain how neighbouring countries were able to come to Nigeria to buy this "subsidized fuel"? Who were they buying it from?

You also claimed after buying this subsidised fuel, the neighbouring countries then smuggle the fuel they bought in Nigeria to their various countries.

Pls how did they do this without anyone noticing?

You also claimed that "some marketer will buy ship of petrol bring into Nigera to claim subsidy, they ship it out to neigbouring country, while some briefcase marketers/politicians will claim subsidy on fuel they never import".

Based on that, is it that marketers just imported whatever quantity of fuel they felt like importing or they imported the quantity of fuel they imported based on orders they received from NNPCL?

What are those "too many little borders" that you say are being used to get fuel out of Nigeria?

Have you seen any of those borders yourself to corroborate your claims? How is fuel transported across those "little borders" that is now enough to sustain Cameroon, Benin republic and Niger republic?

Anguldi:

Now I know why Emir Sanusi said all subsidy claims should be cross-checked with ships that berth in Nigeria. Our corruption choke

SmartPolician:
Instead of fighting PMS subsidy fraud and getting the customs to do their work, the political class has succeeded in demonizing fuel subsidy by making ordinary Nigerians believe that PMS subsidy only benefits the rich and that they have to remove it for the betterment of the country.

Guess what, the pain of PMS subsidy removal is felt by everyone, including those who didn't know they benefit from it.

lexy2014:


You claimed that neighbouring countries "buy subsidised fuel in Nigeria at N180".

Can you pls explain how neighbouring countries were able to come to Nigeria to buy this "subsidized fuel"? Who were they buying it from?

You also claimed after buying this subsidised fuel, the neighbouring countries then smuggle the fuel they bought in Nigeria to their various countries.

Pls how did they do this without anyone noticing?

You also claimed that "some marketer will buy ship of petrol bring into Nigera to claim subsidy, they ship it out to neigbouring country, while some briefcase marketers/politicians will claim subsidy on fuel they never import".

Based on that, is it that marketers just imported whatever quantity of fuel they felt like importing or they imported the quantity of fuel they imported based on orders they received from NNPCL?

What are those "too many little borders" that you say are being used to get fuel out of Nigeria?

Have you seen any of those borders yourself to corroborate your claims? How is fuel transported across those "little borders" that is now enough to sustain Cameroon, Benin republic and Niger republic?

Anguldi:

Read this
https://www.thisdaylive.com/index.php/2022/10/16/sanusi-expresses-deep-sympathy-for-next-president-says-petrol-subsidy-depleting-economy

lexy2014:


How was it not "discernibly clear as it is now that the subsidy was costing humongous amounts of money to provide"?

In 2020, Mele Kyari said that fuel Subsidy was totally and completely removed. Which Fuel Subsidy are we still talking about again?

lexy2014:


How does your link answer the questions I asked? If it does, kindly use the information in d link to answer my questions.

You claimed that neighbouring countries "buy subsidised fuel in Nigeria at N180".

Can you pls explain how neighbouring countries were able to come to Nigeria to buy this "subsidized fuel"? Who were they buying it from?

You also claimed after buying this subsidised fuel, the neighbouring countries then smuggle the fuel they bought in Nigeria to their various countries.

Pls how did they do this without anyone noticing?

You also claimed that "some marketer will buy ship of petrol bring into Nigera to claim subsidy, they ship it out to neigbouring country, while some briefcase marketers/politicians will claim subsidy on fuel they never import".

Based on that, is it that marketers just imported whatever quantity of fuel they felt like importing or they imported the quantity of fuel they imported based on orders they received from NNPCL?

What are those "too many little borders" that you say are being used to get fuel out of Nigeria?

Have you seen any of those borders yourself to corroborate your claims? How is fuel transported across those "little borders" that is now enough to sustain Cameroon, Benin republic and Niger republic?

Who are those "smugglers/looters that are making mad profit"? Can you name them?

Anguldi:

It answers some of your questions, make I spoon feed you?

grandstar:


What was the price of crude oil then is what is key.

Let me use this illustration. Imagine you sell a bag of cement for 6,000. At that time, the price elsewhere was 5,000. Since there was huge demand for it at that price, you still kept your price.

You now decide that for the next 5 years, you will rigidly maintain the price, no matter what comes.

Now by the 4th year, the market price is 8,500/bag. To sell at N6000, you would making a loss of N2,500. In order to sell at 6,000, you'd have to subsidize it by 2,500.

So, initially at 6,000, there was a surplus of N1,000. Now at 8,500, there's a subsidy of 2,500.

April 2020 was during the time of the lockdowns, economic activity collapsed worldwide. The price of crude oil fell below $10/barrel.
At that price, there won't be a subsidy.

Opportuneke:
This is impressive 👌

Subsidy is dead and gone 🦅

Never will it return, I implore my fellow Nigerians to please endure. Let’s fight it till the end. We will surely conquer.

Enough of the parasitism 💪

lexy2014:


Are you sure you understand these questions?

How was it not "discernibly clear as it is now that the subsidy was costing humongous amounts of money to provide"?

In 2020, Mele Kyari said that fuel Subsidy was totally and completely removed. Which Fuel Subsidy are we still talking about again?

grandstar:


Have you ever asked yourself if he made a mistake? Have you ever asked yourself if what is said is based on the fundamentals existing at the time? There are so many variables to think about.

lexy2014:


That hasn't answered my questions.

How was it not "discernibly clear as it is now that the subsidy was costing humongous amounts of money to provide"?

In 2020, Mele Kyari said that fuel Subsidy was totally and completely removed. Which Fuel Subsidy are we still talking about again?

lexy2014:


That hasn't answered my questions.

How was it not "discernibly clear as it is now that the subsidy was costing humongous amounts of money to provide"?

In 2020, Mele Kyari said that fuel Subsidy was totally and completely removed. Which Fuel Subsidy are we still talking about again?

pendragonbladgo:

The one our new President have done.
He is too old to lie, he is to rich to be eating 5b every quarter as subsidy share.....