nairalanda1:


The minute the guy started saying that NNPC was alleged to be paying subsidy, I knew the argument was flawed, and lost interest.

That's not how subsidy works,at least since 2016, and even before then

It's government that pays subsidy. And subsidy is paid to the sector as a whole to prevent it from losing profits when it has to sell at a loss because of government price controls. Most of the cost went to people importing fuel , to compensate them for selling below the cost of the fuel they imported..to the depots. Depots then sold to marketers at a price above what they bought from the importers, which until 2016 were a variety of people including NNPC, after 2016 it was NNPC alone. (Subsidy claims for others were fully paid up by 2018...it was a long slog).

(Also part of subsidy costs goes to transporters...transport equalization funds...which is why until recently, fuel cost the same everywhere).



I still believe there is scam in the way we did subsidy here...the nature of the beast lends it to easy scam things. Also, when you bring in price controls into anything, you get scarcity, and looting, and smuggling.

You're typing plenty. Watch it to the end.

BoldBrainz:


You're typing plenty. Watch it to the end.

The NNPC comment spoilt the whole thing for me.

nairalanda1:


The NNPC comment spoilt the whole thing for me.

I'm not insisting you watch the video because the narrator eventually said anything different from what you already know. I just want you to always have the patience to take detailed glances at contents so you will be in a place to sift out extra information to cement the knowledge you already have.

The young man didn't say anything different from what you and I discussed on this same issue some time ago. Maybe he only just got the exposition on the true situation of things as regards subsidy from 2013 to 2022, hence his astonishment. The NNPCL has not paid any cash subsidy to any marketers within the period under review, but the corporation has been solely responsible for the "Crude-for-Petrol" swap initiative and every other extra claims of expenses that have totalled to over 3trn naira, which has been claimed to be what the FG owes the body.

The entire NNPCL has been a giant mafia that colonised Nigeria's oil industry. One that has even excluded Presidents GEJ and MB. The Presidents sadly only knew the details that were being given them. It's one of the major reasons Tinubu got rid of the subsidy regime on his very first day, because he doesn't want to run a government where a cabal would be stealing more than him..

Buhari's government produced 3 stupendously wealthy men:
- Abubakar Malami - Attorney General of the Federation.
- Mele Kyari - GMD of the NNPCL.
- Godwin Emefiele - Governor of CBN.

Rotimi Amaechi would have made the list because he had the express access to massive resources as transport minister, he had Buhari's unfettered attention and audience, but he was too keen on delivering on his assignments so he could be in the President's good books, owing to the fact he had ambitions beyond Buhari's government.

Godwin4444:
Ogbeni keep quiet there n don’t think everyone is like u

Many businesses were destroyed during cashless n many people died but u people didn’t say anything cos u thought it will make your candidate win n u even defended it but now u are telling us there is hardship

Between cashless n fuel hike which one is more intense?

If any hypocrite should go out now to protest they should b shot

Personally I haven’t recover from the troubles of cashless cos the loan I was serving have been increased because we couldn’t make sales n it got so worst we had to lock shop at some stage n some people don’t see it as bad

But fuel hike u are ranting about

U no well

Just go out n protest, I will personally join those that will beat u for free

We were dieing n losing money but u don’t care cos u thought it will make your candidate win n now u want to start one rubbish madness

Let d fuel b 1000 we self no go talk, highest we increase our prices too

Omo daada, o ni ku ni rewerewe.

One bottle of beer for you jare.
Leave all those noisy pigs

ESCALATE WHAT?
DONT YOU HAVE SENSE?
BUHARI CAUSEd THE PROBLEMS FOR YOU FOR EIGHT YEARS NOT TINUBU THAT JUST CAME YESTERDAY.
IT SEEMS YOU NAIJA PPL STILL FEAR BUHARI DESPITE LEAVING POWER,YOU DONT CONDEMN HIM FOR 8YRS WASTAGES NO REFINERY OR ELECTRIC,YOU LOUSY YOUTHS KEEP MUTE AND KEEP ACUSING TINUBU WRONGLY. You are cowards and muroonns.
You guys will know the truth but will hide under falsehood to promote evil propaganda.Go home and think of useful things to do to solve Nigeria.
You can challenge ya buhari to account for the trillion loans he took.
You can challenge your senators to account
You find alternative to fuel,use solar and do...

All the data shenanigans to me is not it at this point, Nigeria is a gone country already and I'm only giving Tinubu 6 months of grace to know the direction he's taking us.

They have been claiming to gain much more after the unify fx and subsidy removal so in six months if we are not feeling any ease in his policies then he's going to have more enemies

obailala:
In a scenario that NNPC gives crude oil to receive petroleum products, you can't say "NNPC doesn't pay a dime" cos NNPC is actually paying with 'crude'.

NO! NNPC is paying with Nigerian crude oil!

Godwin4444:
if u didn’t do any video for cashless n u decide to do video for fuel hike u should b stoned


No cap

your kind of foolishness is an inheritance. Your great grandfather was a fool, your father was a fool, now you are a fool and I believe you children are fools who will eventually give birth to fools.
Your lineage supposed to be wiped out from the surface of the earth.

asanausana91:
your kind of foolishness is an inheritance. Your great grandfather was a fool, your father was a fool, now you are a fool and I believe you children are fools who will eventually give birth to fools.
Your lineage supposed to be wiped out from the surface of the earth.

if e sure for u go out n protest now

Make we see wetin go end u

nairalanda1:
I stopped listening when the guy stated that 'NNPC had not paid subsidy to anybody'

That made me know that the argument was going to be flawed from the word go.

From 2016, what was happening....was that NNPC was

1.Made the sole importer of fuel

2.Had to import fuel at the landing price X

3.And then sell to depots at the price Y which was below price X.

4. As a result, NNPC was running at a loss, and NNPC was as a result being paid a subsidy to not run at a loss.


Marketers on the other hand were allowed to buy petrol at price A from depots and sell at price B, which was higher than price A and set by the government.

I know people want petrol prices to fall down again, but the argument being used is poor. Marketers were not being paid subsidy from 2016 by government or NNPC, because NNPC was itself subsidising fuel on behalf of the government, and being paid a subsidy not to collapse.

(I do not work for NNPC, or the government, and have supported subsidy removal since 2012. I also do not like APC, PDP, or LP and wish they all got voted out for Nigeria's benefit).

NNPC did not run and will not run at a loss whether there's subsidy or not

Know this, know peace

StaffofOrayan:


NO! NNPC is paying with Nigerian crude oil!

Nigerian crude isnt worthless because it is Nigerian crude. Nigerian crude is worth about $80/bbl today.

If NNPC pays for a product or service today using 1 barrel of Nigerian crude oil, that is equivalent to NNPC paying $80 for that product or service.

obailala:
Amazing how so many people still fail to comprehend this very elementary explanation you gave above. For those living in the delusion that there was no subsidy, if there was really no subsidy, how come petrol was sold in Nigeria for N185 (way cheaper than all neighbouring countries)?

The argument of the guy in the video was flawed from the very beginning when he asked which marketers the subsidy was paid to. Since 2016, subsidy was not paid to any marketer, but rather NNPC imported and sold petrol at a loss. That loss, or 'under-recovery' as they termed it, was effectively the subsidy! ... If NNPC was to remit N1 trillion to the govt, but it remitted only 800 billion, that loss of N200 billion is effectively the price paid to keep pump prices low = subsidy.

The guy in the video claims NNPC was making over N100 profit per litre when petrol was still sold at N185; he however failed to explain the source of this figure. Would be interesting to know where that figure came from...

Goodluck sold fuel at 87 per litre so the guy is 100% accurate when he said nnpc makes 100 naira per litre

mrcoolautofix:

Goodluck sold fuel at 87 per litre so the guy is 100% accurate when he said nnpc makes 100 naira per litre

What was the exchange rate then? .... You obviously forgot to factor the difference in exchange rate into your calculations.

At the time petrol sold for N87/litre in 2011, susbsidy of at least N55 was being paid per litre of petrol, which made the actual cost of petrol to be about N142 at the time. Recall when GEJ removed subsidy on the 1st of January 2012, pump price rose to N142.

Now let's do some arithmetic. In 2012 January, exchange rate was roughly N155/$ and petrol was imported and sold for N142. Today the exchange rate is officially N788/$ (i.e. about 5 times what it was in 2012. What do you think would happen to the cost of imported petrol following the 5 times increase in value of the dollar?

With the exchange rate in view, do you still think the argument that NNPC imports fuel at N87/litre in 2023 makes sense?

StaffofOrayan:


NO! NNPC is paying with Nigerian crude oil!

Your comment reveals the true point of contention regarding subsidies.

Who owns the crude oil? The federal government through the NNPC or the Nigerian Masses?

According to the act that set up NNPC, NNPC was given an amount of crude oil daily to refine on behalf of the Nigerian masses. Nigerians were only supposed to pay for the refining costs and other associated costs but not for the crude oil. The cost of crude oil constitutes 60 -70 per cent of the cost of petrol. This is why Buhari, a former Minister of petroleum resources, claimed that there is nothing like subsidies.

NNPC claims that they are composed of Nigerians, so what belongs to Nigerians belongs to them, so they take the profits from the sale of petrol derived from crude oil that belongs to every Nigerian as their operational profit. I believe this is where the N100 per litre profit mentioned in the video comes from.

mrcoolautofix:

https://www.youtube.com/watch?v=g1gZjG6oO7M please let make this vodeo viral so we can aweken nigerian youths whoms interest is at the stampede of this political torture.

Nigerians dont deserve this political torture and havoc thats is currently ungoing! I felt terrible if i could spark a riot that will emancipate nigeria. I wouldnt hesistate.

Making life a living hell for nigerian is uncalled for.

in buhari regime nnpc was making N100 profit selling fuel at 195 and yet it wasnt enough, the borrowing and devaluation of naira still kicked it.

Tinubu has gotten more money than he spent on election why this inhuman act upon nigeria?

Still lot of you are fooled to belive that fuel price will come down.. it is a carrot donkey trick in my critical overview
https://www.youtube.com/watch?v=pmP_LaFN5U8

Nigerians don't fight over bad economic policies that threaten their lives and livelihood, but some Nigerians (they know themselves) are known to fight and kill over religion.

Bobloco:


NNPC did not run and will not run at a loss whether there's subsidy or not

Know this, know peace

They did. Subsidy payments prevented them from totally collapsing, but did not let them make the profit they needed to be truly strong and competitive.

APC is the biggest mistake Nigerians made. Buhari govt destroyed the value of Naira and Tinubu is following the same path.

Savedday2:
To say the list, this country is something else!

Evil and wicked hearts everywhere.

What kind of leaders melt so much suffering on his people?

the leaders they deserve

BoldBrainz:
Shonubi has just removed the rug from under the feet of his employer.

The week Tinubu made the pronouncement of currency liberalisation, he specifically spoke on the unification of exchange rates between the open market and the official FX window. He sounded so cock-screw certain of the terminologies he was reeling out that his minions were applauding with gusto.

Couple of weeks down the line, the disparity in rates between the open market and the FX window is spiralling out of control to the point these clueless people are already dipping hands into the external reserve just to keep up with the FX demands of the market. So, not only are prices of basic necessities blowing through the roof, our reserves have lost over a billion dollars in the space of 2 months.

You cannot seek to put control over the spread or usage of a currency you do not produce, especially in an economy that depends on that very currency. I am not an economist from Chicago University, neither am I in an acting capacity at the CBN, but I have the intelligence to read and study situations and the common sense to acknowledge the truth of a situation.

If the Nigerian economy doesn't crumble in six months, going along this particular trajectory, then I'll know my education was a waste.

will remember you

ibtommy:


No wonder Bubu called you a lazy youth. Demented and finished!!! Weed guy. Olodo!!! You are a blind good-for-nothing BAT-ass licking, stinking deranged youth.

chei
E pain you gan
Shebi e dey sweet una dat time

DesChyko:


Because your own brain and smartphone is for decoration.

toh is your leg and your head for decoration?
Enter road na make we see

nairalanda1:


They did. Subsidy payments prevented them from totally collapsing, but did not let them make the profit they needed to be truly strong and competitive.

Do you work at NNPCL

I hope you are basing your submissions on what ever those who runs the organization tell The public

If at all there is deregulation, why is NNPCL fixing prices

We were told that there was no provisions for subsidy in the 2023 budget, how was Buhari able to maintain fuel pump price at below #200 per a litre from January 2023 to May 29, 2023. Then suddenly, at the inauguration ground and by making a subsidy is gone speech, with the excuse that there was no provisions for subsidy in the 2023 budget the price went from below #200 to over #500. Then suddenly went up again to over #600 with the excuse by NNPCL that the price is caused by prevailing market realities

Cromagnon:
chei
E pain you gan
Shebi e dey sweet una dat time

Pain keh? Me I know carry my previous hand go vote for yeye people. I'm not blinded by tribalism and delusion.

Bobloco:


Do you work at NNPCL

I hope you are basing your submissions on what ever those who runs the organization tell The public

If at all there is deregulation, why is NNPCL fixing prices

We were told that there was no provisions for subsidy in the 2023 budget, how was Buhari able to maintain fuel pump price at below #200 per a litre from January 2023 to May 29, 2023. Then suddenly, at the inauguration ground and by making a subsidy is gone speech, with the excuse that there was no provisions for subsidy in the 2023 budget the price went from below #200 to over #500. Then suddenly went up again to over #600 with the excuse by NNPCL that the price is caused by prevailing market realities

There was provision for subsidy until 30th June.

https://www.channelstv.com/2023/01/04/fg-to-stop-payment-of-fuel-subsidy-by-end-of-june-2023/

obailala:
There was provision for subsidy until 30th June.

https://www.channelstv.com/2023/01/04/fg-to-stop-payment-of-fuel-subsidy-by-end-of-june-2023/

Ok, good

Why did we buy fuel above #500/liter in the month of June if there was a provision for subsidy in the budget

Bobloco:


Ok, good

Why did we buy fuel above #500/liter in the month of June if there was a provision for subsidy in the budget

You asked how fuel sold for N200 earlier this year when it was purported that there was no subsidy. I provided useful insight which I believe should have answered your question and clarified your doubts - i.e. contrary to your assumptions, subsidy was actually still enforced until May 29th, which is why petrol sold at N200....

On your question as to why petrol suddenly jumped to N500, I believe the answer to that is common sense; subsidy was proposed in the budget by Buhari, but didnt you witness like every other Nigerian that your president ended it on May 29th?

obailala:
You asked how fuel sold for N200 earlier this year when it was purported that there was no subsidy. I provided useful insight which I believe should have answered your question and clarified your doubts - i.e. contrary to your assumptions, subsidy was actually still enforced until May 29th, which is why petrol sold at N200....

On your question as to why petrol suddenly jumped to N500, I believe the answer to that is common sense; subsidy was proposed in the budget by Buhari, but didnt you witness like every other Nigerian that your president ended it on May 29th?

So where is the money budgeted for subsidy for the month of June, what was the money used for

ibtommy:


Pain keh? Me I know carry my previous hand go vote for yeye people. I'm not blinded by tribalism and delusion.

You nko vote but you expect magic. OK na

Bobloco:


So where is the money budgeted for subsidy for the month of June, what was the money used for

The money is inside my nose.

obailala:
The money is inside my nose.

Typical of a Tinubu minion

Bobloco:


Typical of a Tinubu minion

Smh! who's a Tinubu minion? Oga a little bit of discernment will help you.

You were told that Tinubu stopped the subsidy regime on the 29th of May, and you're still asking me what happened to the money for June. The short answer is 'there is no money'.

The recent subsidy regime has been in the form of 'under-recovery'. NNPC imports products at say N500/litre and sells for N185. That loss incurred by NNPC is effectively the subsidy... Govt doesnt pay cash subsidy to anyone, rather it imports and sells petrol at a loss... Buhari planned to keep doing this till June 30th, but Tinubu stopped it on the 29th of May.