Oil Subsidy: Nigerians Shouldn’t Pay For Govt’s Inefficiency -senators.

When some of us speak about how the clearing house of corruption (NNPC) is a glorified wallet for the PDP and the President of the day, some clowns come here to tout "reforms" being "carried" out by GEJ even as it is crystal clear to all that affairs are exactly as they have always been. Anyway, GEJ the "reformer", rather than vigorously pursue privatisation,  has directed that the disgraced NNPC "turn around" our refineries with 24 months . Abeg , Nigerians should enjoy "fresh air" . All that is written below is enough to make aware Nigerians weep.

http://www.sunnewsonline.com/webpages/news/national/2011/oct/07/national-07-10-2011-002.html

Oil subsidy: Nigerians shouldn’t pay for govt’s inefficiency -Senators
• Demand scrutiny of NNPC accounts, budget
From ADETUTU FOLASADE-KOYI, Abuja
Friday October 07, 2011
•

Senate Minority Whip, Ganiyu Solomon and Chairman of the Senate Services, Senator Suleiman Adokwe said yesterday that Nigerians must not be made to pay for government’s inefficiency in managing subsidy on petroleum products.

Speaking against the backdrop of the Presidency’s proposal to remove oil subsidy in 2012, the senators said the Presidency should tender a breakdown of the oil subsidy to Nigerians. The duo faulted the secrecy attached to the annual budget of the Nigeria National Petroleum Corporation (NNPC) as well as how it managed the oil subsidy.


Speaking in separate interviews, the lawmakers faulted the NNPC Act, which made the nation’s indigenous oil agency accountable only to the President and demanded that its accounts be made public through the National Assembly. Senator Adokwe noted that the Senate Petroleum Resources Committee was deliberately frustrated when it asked questions on NNPC and its accounts. “In the sixth Senate, I served on the Downstream Petroleum Committee and I had a position, which was that the major issues were how to manage the subsidy.

“There were speculations here and there that the subsidy was getting into the wrong hands that it wasn’t getting to the real people, who actually needed the subsidy. “We tried to ask so many questions, to find out why and what was happening. My biggest grouse then was that NNPC account was shrouded in so much secrecy and nobody knew what was going on there. It’s a fundamental error that a major organization like that, which is responsible for our wealth, its activities are shrouded in secrecy, its budget is not subjected to scrutiny by the National Assembly.

“The military made the NNPC Act in such a way that they are answerable only to Mr President. Its budget needs to be properly scrutinized so that we would know how they are managing the subsidy.“In spite of the fact that we are paying trillions of naira for oil subsidy, the pump price is still very high in the North; particularly in the North-east and the North- west. There’s still continued shortage of petroleum products in that part of the country and we wonder really who is being subsidized.“We really need to know how the subsidy is being managed. If we know how it’s being managed, probably there may be no need to take it off.

“So, it’s not a straightforward answer I can give. I cannot give a straightforward answer until I get the facts concerning the subsidy.”
On his part, Senator Solomon urged government to have a re-think on removal of the subsidy, as doing so would simply be punishing Nigerians.“Government should seriously have a rethink on this matter. That we are where we are now is quite sad.

I believe that the truth be told.If you're removing subsidy saying that the government's spending much,let us look in details into what the government is really spending so the government can be advised.GEJ should ALWAYS aim at removing hardship from the people not creating it.Does he not realise the harsh economic implication in what he's saying?Let GEJ focus on giving us power and good roads while allowing technocrats to investigate this subsidy matter.By the way,why should the account of NNPC be private?are we not democratic?why're we operating under certain devilish military structures?yet we say we're democratic.

Will these voices be heard? The FG and governors have already agreed to remove oil subsidy.

Ad+:

I believe that the truth be told.If you're removing subsidy saying that the government's spending much,let us look in details into what the government is really spending so the government can be advised.GEJ should ALWAYS aim at removing hardship from the people not creating it.Does he not realise the harsh economic implication in what he's saying?Let GEJ focus on giving us power and good roads while allowing technocrats to investigate this subsidy matter.By the way,[b]why should the account of NNPC be private?are we not democratic?[/b]why're we operating under certain devilish military structures?yet we say we're democratic.

my guy, their will be no transparency as long as successive PDP President have an unspoken policy of using the NNPC as a "war chest" to prosecute various self-serving 'missions' .

I have said it before and I will say it again. The NNPC is a cesspool of corruption and graft and it has been the personal piggybank of all our leaders since it was founded. There was a recent audit report which was completed on the NNPC in March this year but it has not seen the light of the day. If Jonathan Goodluck means what he has been saying about fighting corruption, he should be man enough to now release the report. Enough is Enough.

WHat subsidy are we even talking about?

Upstream is the exploration and allocation of oil blocks. You cannot just go and pick oil blocks. Government controls it and regulates it. They are talking of deregulating the downstream sector. That is what the public buys. The public doesn’t buy the blocks. The public buys petrol, diesel, kerosene and the gas. Instead of saying that they want to increase price, they are talking of deregulation. There is no relation between deregulation and price. China increases and decreases price and controls the economy. Cuba increases and decreases price and controls the economy. Russia was increasing and decreasing price and it controls the economy. Talking of price is not the same thing as deregulation.

Deregulation itself came into economic vocabulary through Britain and America. In those days, the economy of Britain was virtually nationalized. The public dominated the economy. Then came Margaret Thatcher in Britain and Ronald Reagan in America. They said they want the private sector to be dominant and they were talking of deregulation. Even in the circumstance, it was deregulation with strong police might, strong government control to ensure that the private sector does not misbehave and the government was able to police the private sector. It is unlike here where the government cannot even police itself. So, it is a misnomer for government to talk of deregulation. It is sacrilege against the country. It is highly contemptuous.

This is a country where we are the sixth largest producer of petroleum in the world. We should be producing, refining and exporting our excess produce. The price we are paying now for any oil product is higher than we should be paying. The cost of a litre of petrol, from exploration to the refinery, is about N12. [size=18pt]I mean if we refine it here; from mining till the pomp price. It should be about N12.That is the cost per litre. But when you import from Britain or America or other countries, 66 per cent of the price of that import is tax put by those countries. More than two third of what we are importing is tax being paid to those countries.[/size]

It is not the cost of production there.

In Britain or America, the cost of fuel is about one third of what they are charging. The remaining two third is tax they collect from the community to finance their own government. So, when you go and import there, you are paying tax to the British government. When you come and tax us here on what you are importing, we are paying double tax. We are not only paying tax to America, Britain and all those countries, from where we are importing, we are now paying tax to the government that really should not be collecting tax. [size=18pt]When they talk of subsidy, I have always said there is no subsidy given to petrol in this country. You have subsidy when the cost of production is higher than the selling price. The cost of production per litre, if we refine it in Nigeria, is about N12 per litre. So, if you are charging N67, it means that the consumer is paying about N55 per litre.[/size]

http://nigerianewsday.com/menu/news-a-commentary/interviews/85-interview-nobody-can-be-compared-to-awo-prof-sam-aluko

kulutempa:

I have said it before and I will say it again. The NNPC is a cesspool of corruption and graft and it has been the personal piggybank of all our leaders since it was founded. There was a recent audit report which was completed on the NNPC in March this year but it has not seen the light of the day. If Jonathan Goodluck means what he has been saying about fighting corruption, he should be man enough to now release the report. Enough is Enough.

Educate yourself before yarning 'opata'

Really, there should not be four refineries in Nigeria. There should be 14 or more refineries in Nigeria. We have four now that are not working. They are not going to work as long as we continue to import because the importers will not allow it to work. The government itself doesn’t want the refineries to work. Before Babangida came, the NNPC engineers and staff maintained the refineries adequately and perfectly. [b]When Babangida came and introduced SAP and said he wanted to deregulate the economy, he wanted private sector to take over the economy, he took the maintenance of the refineries from the NNPC and started awarding contract to fake people-politicians, army people who have no skill to maintain the refineries. Those people will take the contract, award the contract to some other people until the final man will not have enough money to repair the refinery. That was when the refineries went into liquidation. If only Babangida did not take the management of the repairs and the turn-around of maintenance of the refineries from the NNPC, they will not only have been maintaining the four refineries very well, they would have built four, five, 10 or more refineries by now.

At that time, Babangida introduced a system whereby he will compel the NNPC to give potential refinery builders to export the crude oil, make profit and invest their profit in building refineries. They would export two ships, make their money and disappear into thin air. That is what has been happening since Babangida time till today[/b].

[size=18pt]Deregulation is a fraudulent use of our resources. There is nothing like that. If we have a government, we should be having today more than 10 to 15 refineries. After 1999, I wrote to all the governors along the coast and told them they can’t build refineries alone. I advised that two or more governors could come together and build a refinery. Lagos alone consumes more than 30 per cent of the total consumption of refineries in the country. Lagos should be able to build a refinery either in Ikorodu or in Badagry or even on Lagos Island. None of them replied. That is because they too were involved and gaining from the importation.

Venezuela is about 38 million people and that is about one third or one quarter of Nigeria. They have eight refineries and they are building four more. The Venezuela ambassador to Nigeria recently was telling our minister of information that in their country less than N400 fill the tank of his car. He had to spend about N3, 000 to fill his tank in Nigeria.[/size]

http://nigerianewsday.com/menu/news-a-commentary/interviews/85-interview-nobody-can-be-compared-to-awo-prof-sam-aluko

We just have to build more refineries and stop importation as a whole someday.

Gbawe:

When some of us speak about how the clearing house of corruption (NNPC) is a glorified wallet for the PDP and the President of the day, some clowns come here to tout "reforms" being "carried" out by GEJ even as it is crystal clear to all that affairs are exactly as they have always been. Anyway, GEJ the "reformer", rather than vigorously pursue privatisation,  has directed that the disgraced NNPC "turn around" our refineries with 24 months . Abeg , Nigerians should enjoy "fresh air" . All that is written below is enough to make aware Nigerians weep.

http://www.sunnewsonline.com/webpages/news/national/2011/oct/07/national-07-10-2011-002.html

Dunce. You just try very hard to hate on GEJ and talk nonsense. The Senator makes it very clear that his questions were in the [size=14pt]6th senate[/size], which was Yar Adua's tenure, only a fool or serpent would allude to GEJ's "reforms" during Yar Adua's tenure. One day, you will get tired of lying sha.

Most tellingly, the man put the blame for the NNPC Act squarely on the military. But for you, GEJ created NNPC and all manner of fuckery you are suddenly alive to in your crusade of deception. Rubbish.

Here is your own quote again, in case you diddn't read it before posting it.

Gbawe:

Oil subsidy: Nigerians shouldn’t pay for govt’s inefficiency -Senators
• Demand scrutiny of NNPC accounts, budget
From ADETUTU FOLASADE-KOYI, Abuja
Friday October 07, 2011
•

Senate Minority Whip, Ganiyu Solomon and Chairman of the Senate Services, Senator Suleiman Adokwe said yesterday that Nigerians must not be made to pay for government’s inefficiency in managing subsidy on petroleum products.

Speaking against the backdrop of the Presidency’s proposal to remove oil subsidy in 2012, the senators said the Presidency should tender a breakdown of the oil subsidy to Nigerians. The duo faulted the secrecy attached to the annual budget of the Nigeria National Petroleum Corporation (NNPC) as well as how it managed the oil subsidy.


Speaking in separate interviews, the lawmakers faulted the NNPC Act, which made the nation’s indigenous oil agency accountable only to the President and demanded that its accounts be made public through the National Assembly. Senator Adokwe noted that the Senate Petroleum Resources Committee was deliberately frustrated when it asked questions on NNPC and its accounts. “[size=14pt]In the sixth Senate[/size], I served on the Downstream Petroleum Committee and I had a position, which was that the major issues were how to manage the subsidy.

“There were speculations here and there that the subsidy was getting into the wrong hands that it wasn’t getting to the real people, who actually needed the subsidy. “We tried to ask so many questions, to find out why and what was happening. My biggest grouse then was that NNPC account was shrouded in so much secrecy and nobody knew what was going on there. It’s a fundamental error that a major organization like that, which is responsible for our wealth, its activities are shrouded in secrecy, its budget is not subjected to scrutiny by the National Assembly.

“[size=14pt]The military made the NNPC Act in such a way that they are[/size] answerable only to Mr President. Its budget needs to be properly scrutinized so that we would know how they are managing the subsidy.“In spite of the fact that we are paying trillions of naira for oil subsidy, the pump price is still very high in the North; particularly in the North-east and the North- west. There’s still continued shortage of petroleum products in that part of the country and we wonder really who is being subsidized.“We really need to know how the subsidy is being managed. If we know how it’s being managed, probably there may be no need to take it off.

“So, it’s not a straightforward answer I can give. I cannot give a straightforward answer until I get the facts concerning the subsidy.”
On his part, Senator Solomon urged government to have a re-think on removal of the subsidy, as doing so would simply be punishing Nigerians.“Government should seriously have a rethink on this matter. That we are where we are now is quite sad.

arsenefc:

Really, there should not be four refineries in Nigeria. There should be 14 or more refineries in Nigeria. We have four now that are not working. They are not going to work as long as we continue to import because the importers will not allow it to work. The government itself doesn’t want the refineries to work. Before Babangida came, the NNPC engineers and staff maintained the refineries adequately and perfectly. When Babangida came and introduced SAP and said he wanted to deregulate the economy, he wanted private sector to take over the economy, he took the maintenance of the refineries from the NNPC and started awarding contract to fake people-politicians, army people who have no skill to maintain the refineries. Those people will take the contract, award the contract to some other people until the final man will not have enough money to repair the refinery. That was when the refineries went into liquidation. If only Babangida did not take the management of the repairs and the turn-around of maintenance of the refineries from the NNPC, they will not only have been maintaining the four refineries very well, they would have built four, five, 10 or more refineries by now.

[size=14pt]At that time, Babangida introduced a system whereby he will compel the NNPC to give potential refinery builders to export the crude oil, make profit and invest their profit in building refineries. They would export two ships, make their money and disappear into thin air. That is what has been happening since Babangida time till today.[/size]

The only way to get rid of these vultures is to remove the subsidy. All the ex-generals are involved in ra'ping Nigeria in broad daylight, from IBB to Buhari. These people also have strong and active cliques in the armed forces, so they are a dangerous lot indeed. But they have their filthy paws squeezing us by the jugular and reinforcing corruption.

Enough is enough. They need to be taken down by every available measure.

You are the dunce here in trying to tell us that GEJ is a follow follow president. Now,since Yar adua is still our president, why dont we appeal to his ghost to backtract this reform? after spending almost 2 years in Aso rock, you stuupidly want us to believe that yar adua was still in charge. Who secretly send the bill to legistilooters last month? yar adua's ghost

Beaf:

Dunce. You just try very hard to hate on GEJ and talk nonsense. The Senator makes it very clear that his questions were in the [size=14pt]6th senate[/size], which was Yar Adua's tenure, only a fool or serpent would allude to GEJ's "reforms" during Yar Adua's tenure. One day, you will get tired of lying sha.

Most tellingly, the man put the blame for the NNPC Act squarely on the military. But for you, GEJ created NNPC and all manner of fuckery you are suddenly alive to in your crusade of deception. Rubbish.

Here is your own quote again, in case you diddn't read it before posting it.

The decision to remove subsidy at this time is ill-conceived,pure and simple.

Beaf:

Dunce. You just try very hard to hate on GEJ and talk nonsense. The Senator makes it very clear that his questions were in the [size=14pt]6th senate[/size], which was Yar Adua's tenure, only a fool or serpent would allude to GEJ's "reforms" during Yar Adua's tenure. One day, you will get tired of lying sha.

Most tellingly, the man put the blame for the NNPC Act squarely on the military. But for you, GEJ created NNPC and all manner of fuckery you are suddenly alive to in your crusade of deception. Rubbish.

Here is your own quote again, in case you diddn't read it before posting it.

You are nothing but a m.or.on (with a capital M) and a liar to boot. The substantive point is that things are exactly as they were , lack of transparency et al, while you run around the forum shouting that PDP is "reforming" , GEJ is reforming the NNPC and all manner of nonsense when , in reality, various 'dirt' is dished up daily that confirms governance affairs to be business as usual. As usual, because of your total dedication to mischief, you fail to acknowledge that it is GEJ, the President of the day, the Senators are making demands on in the article. Asinine dolt.

Speaking against the backdrop of the Presidency’s proposal to remove oil subsidy in 2012, the senators said the Presidency should tender a breakdown of the oil subsidy to Nigerians. The duo faulted the secrecy attached to the annual budget of the Nigeria National Petroleum Corporation (NNPC) as well as how it managed the oil subsidy.

There is nothing to jubilate about this senatorial sweet talk, at the end of the day, we will still hear "Ayes have it", all this prapapa na to score some cheap point, mscwwwww

The subsidy should be removed.

let the subsidy be removed, there re lot of parasites benefiting from the this subsidy of a thing while million of citizens are dieing

Here is what I know, I maybe wrong
*the only way private entities will participate in the downstream sector is if it is deregulated
*for a the sector to be deregulated, government has to hands off price fixing, prices will be driven by market forces.
*Proposal is for removal of subsidies by 2012
*if private entities come in, then first private refinerys may may start pumping by 2014 or so ( consider bureaucratic bottlenecks, red tapes etc, construction, and other associated efforts)
*decisions to be made.
do we import fuel without subsidies from 2012 till when ever the private guys come on stream?
maybe we can quickly repair the existing ones to provide a cushioning effect,

this may be the line of thought that might have gone into the decisions to repair the refineries and probably sell them off latter.

I think I am not comfortable with government repairing these refineries, they should be immidiately privatised.
the buyers can repair and start pumping as soon as possible.
I think this will close the loop on my suspected way GEJ govt is thinking

The senators are very right

Well when we have a retardeed President who cant locate his as5 with his 2 hands what are we too expect.

Nigerians dont worry Odechukwu Retardeen is on top of the situation

Beaf:

Dunce. You just try very hard to hate on GEJ and talk nonsense. The Senator makes it very clear that his questions were in the [size=14pt]6th senate[/size], which was Yar Adua's tenure, only a fool or serpent would allude to GEJ's "reforms" during Yar Adua's tenure. One day, you will get tired of lying sha.

Most tellingly, the man put the blame for the NNPC Act squarely on the military. But for you, GEJ created NNPC and all manner of fuckery you are suddenly alive to in your crusade of deception. Rubbish.

Here is your own quote again, in case you diddn't read it before posting it.

who saw out Yar adua/GEJ's tenure?stop passing the blame

I agree with the Senators. Why should we be made to pay for losses that we know nothing about? Any attempt to remove the "subsidy" will be an open invitation for poverty and frustration of majority of struggling Nigerians. Most businesses are run on generators while road transportation is still the most prominent mode of moving man and goods in Naija.

Lets hope NLC and TUC will come together and let the govt know how bad the situation is for most people. It seems our politicians are very comfortable and therefore blind to what is happening around them.

While some reasonable ones amongst us are pointing out the effects of removing subsidy, some are just totally against corruption that they don't even mind starving to death for it to be removed. Verily I say unto you, it is wise to remove subsidy but certainly not at this time the economy(inflation) is thriving 7.7% on paper but void in reality. Its not now that ill fortunes have increased and are increasing.