Aderupoko2:

God!!!I need to win VISA Lottery fast!!!This country is bankrupt

Same feellings here.

Relax101:

I support the removal of fuel subsidy with a big YES.
It will kick out corruption in the oil industry and the money will be used for other meaningful projects and development.
If you want good things to happen in Nigeria, removal of fuel subsidy is one of the basics to kick start any development in Nigeria.
You all will bark and not bite.

Just two words for you! you are an Imbecilious Imbe,cile

I carefully read every post on this thread and was hoping to find something intelligent but was not surprised by all the ignorant comments born of sentiments. Fuel subsidy is an anomaly that should never have been in the first place. It only enriches the fuel importers and improvishes the populace. The military started it as a convenient decoy for not fixing the oil sector and the refineries. In the long run, it doesnt benefit the so called masses. It has to go and will definitely go one day. How can a country that produces crude be paying N77 for every litre as subsidy? Absolute bunkers! That money is money for major major major infrastructural development.

What I was expecting people to comment on are the pillars that must be in place before subsidy can be removed, not that subsidy must not be removed.

1. There must be regular power supply. A major part of the fuel consumption in Naija is for generators for power. If power improves to an acceptable level, then a milestone would have been reached.
2. The refineries must be fixed and their capacity increased. This can then allow for competitive pricing. The N142 someone posted will only happen if we import the fuel. If our local refineries produce it, it wont be up to that amount.
3. Government must invest heavily in agriculture and other minerals. If agricultural development improves, the rise in food produce will counter the rise in food prices that would have occurred due to increase in transportation that might happen when subsidy is removed. For example, if price for a tuber of yam increases because of removal of subsidy, the price can be reduced by the increased production of yam.

These and some others points I might not have mentioned are the issues that must be raised and the things that must be in place before subsidy is removed. People keep talking about minimum wage and it makes me laugh. Reason? Simple. How many people in Naija really work for the government and collect the so called minimum wage? A very small percentage of Nigerians work for the government. Lagos state which has one of the biggest work force, doesnt even have up to 100, 000 workers. Even if you assume that as the average and multiply by 36 and add federal parastatals. you still wouldnt even get up to 5million people working for the government. So forget the minimum wage talk. What we need are standard government policies and accountability, not subsidy and government handouts. When are we going to stop this government handout mentality. This is the reason politicians can manipulate the system because most of you are still looking up to the government to collect stipends. We need infrastructure so we can generate our own income not government payouts.

pls does anybody know whats wrong with nairalist.com

This is a pathetic response and i thought u being a cool guy could have posted something better.
Do u have any proof that theres corruption in the oil sector? what do u mean by 'if u want good things to happen in Nigeris removal of subsidy is one of the basic? im sure u are not an economist or now little about it. answer my questions and i'll explain to u some of the flaws in your post

[/quote]

Any proof that there's corruption in the oil sector?

Are you kidding me? Seriously do you have any idea what's going in this country?

You actually come on here and have to ask that question? Especially after all the Wikileaks, leaks.

Okay let me help just a little:

[quote]http://www.guardian.co.uk/business/2010/dec/08/wikileaks-cables-shell-nigeria-spying

Please abeg, read, and then educate yourself on the massive corruption that Nigerian oil is. Saro Wiwa didn't die for nothing. EDUCATE YOURSELF. It's important for us all.

edicolove:

I carefully read every post on this thread and was hoping to find something intelligent but was not surprised by all the ignorant comments born of sentiments. Fuel subsidy is an anomaly that should never have been in the first place. It only enriches the fuel importers and improvishes the populace. The military started it as a convenient decoy for not fixing the oil sector and the refineries. In the long run, it doesnt benefit the so called masses. It has to go and will definitely go one day. How can a country that produces crude be paying N77 for every litre as subsidy? Absolute bunkers! That money is money for major major major infrastructural development.

What I was expecting people to comment on are the pillars that must be in place before subsidy can be removed, not that subsidy must not be removed.

1. There must be regular power supply. A major part of the fuel consumption in Naija is for generators for power. If power improves to an acceptable level, then a milestone would have been reached.
2. The refineries must be fixed and their capacity increased. This can then allow for competitive pricing. The N142 someone posted will only happen if we import the fuel. If our local refineries produce it, it wont be up to that amount.
3. Government must invest heavily in agriculture and other minerals. If agricultural development improves, the rise in food produce will counter the rise in food prices that would have occurred due to increase in transportation that might happen when subsidy is removed. For example, if price for a tuber of yam increases because of removal of subsidy, the price can be reduced by the increased production of yam.

These and some others points I might not have mentioned are the issues that must be raised and the things that must be in place before subsidy is removed. People keep talking about minimum wage and it makes me laugh. Reason? Simple. How many people in Naija really work for the government and collect the so called minimum wage? A very small percentage of Nigerians work for the government. Lagos state which has one of the biggest work force, doesnt even have up to 100, 000 workers. Even if you assume that as the average and multiply by 36 and add federal parastatals. you still wouldnt even get up to 5million people working for the government. So forget the minimum wage talk. What we need are standard government policies and accountability, not subsidy and government handouts. When are we going to stop this government handout mentality. This is the reason politicians can manipulate the system because most of you are still looking up to the government to collect stipends. We need infrastructure so we can generate our own income not government payouts.

No, you didn't.

GEJ should CHILL, big time! Most people understand the POV of the president and it makes perfect sense but the infrastructures to absorb this shock is not yet ready. Until there is constant power supply, you just cannot cause unbearable hardship.

^^^ that was from page 1

^^^Fair enough, probably skipped that. But that was just 1 in a whole lot

I can smell a rat, it seems uncle Joe want to systematically & knowingly push Nigerians firmly against the wall to evolk the much overdue REVOLUTION - This is why he themed his administration; 'ERA OF TRANSFORMATION'. Dont say i let the cat out of the bag!

Cine:
Are you kidding me? Seriously do you have any idea what's going in this country? You actually come on here and have to ask that question? Especially after all the Wikileaks, leaks. Okay let me help just a little:

i actually gave u the benefit of  doubt in anticipation of finding something new to read regarding what goes on in the oil industry by reading through your link. i found nothing new other than whats known or whats expected. so your contribution didnt meet my expectation. I have posted a history of how the price of PMS jumped from five naira a litre to 75 a litre and back to N65 a litre as it stands today so i dont need u to tell me what goes on in this sector in our nation. I did analyze same from Babangida to Yar adua

Please abeg, read, and then educate yourself on the massive corruption that Nigerian oil is. Saro Wiwa didn't die for nothing. EDUCATE YOURSELF. It's important for us all.  

In the light of my post above, i think its imperative for u to improve on your comprehension or better learn how to read and respond within the context. Hes alleging that removal of subsidy would quench the corruption in the oil industry. In the light of this comment of his, i expected a proof of this corruption and how removal of subsidy would help drive away the corruption. U were in a haste without arming your self with what im looking hence u goofed. The link u gave never said anything about subsidy or did it? we are here to discuss subsidy hence im confining my self within that scope. I want evidence of corruption on subsidy and how removal of subsidy would take away that corruption. if u cant give that, its better u hold your peace

What is the sense in taking off subside and paying for it via increase in cost of production in everything,If you remove subsidy and we pay 145/litre, then it means everything we do in nigeria will increase in the same proportion.

Look at this scenario,u do a 1km road for 25m before the removal, and after the removal you want to do the same length of road,you will be paying the 150% more cos the cost of the road would have increase to 60m, and all you think you are making back from the removal of the subside has been paid back and the importers of this product dont loose nothing cos all they just do is to put back the difference and life goes on.

Otunbakay:

I can smell a rat, it seems uncle Joe want to systematically & knowingly push Nigerians firmly against the wall to evolk the much overdue REVOLUTION - This is why he themed his administration; 'ERA OF TRANSFORMATION'. Dont say i let the cat out of the bag!

suspecting that as well. But knowing Nigerians, we would not react;maybe a few strike here and there but that is it

Me sef wey I dey US, dey find am hard to pull out close to 4 bucks for a gallon of gas ooo . . . na person for naija go come find am EASIER to pay 4 bucks for a gallon of gas?? Una rich ooo!!!

This is a pathetic response and i thought u being a cool guy could have posted something better.

Okay understood. Then you go on to ask two questions;

Do u have any proof that theres corruption in the oil sector?

 

followed by this question;

what do u mean by 'if u want good things to happen in Nigeris removal of subsidy is one of the basic?

In response to;

I support the removal of fuel subsidy with a big YES.
It will kick out corruption in the oil industry and the money will be used for other meaningful projects and development.
If you want good things to happen in Nigeria, removal of fuel subsidy is one of the basics to kick start any development in Nigeria.
You all will bark and not bite.

You asked two fair questions. I fairly challenged one of them. "Do u have any proof that theres corruption in the oil sector?" That's the question you asked.

You did not ask;

how removal of subsidy would help drive away the corruption.

(you did later)

Which is a totally different question. The fact that you followed; "Do u have any proof that theres corruption in the oil sector?" with "what do u mean by 'if u want good things to happen in Nigeris removal of subsidy is one of the basic?" makes no difference to the first question. They're two separate questions. Granted you could have meant; "how removal of subsidy would help drive away the corruption." But you didn't ask it. Hence the link showing corruption within the Nigerian government. Your question is there for everyone to see. And hey, I've even put everything in context for you too.

God Bless.

I nid some gud music. DJ, play NIGERIA JAGAJAGA 4 mi jooh

Edicolove, you just made my day. I wondered how long it will take me to explain typing with my phone but you took my thoughts and explained vividly.

If this government is able to implement just this one policy.

IMO those supporting the removal of the subsidy are just being shallow and not thinking for themselves. The argument about it freeing up resources that would then be used to provide basic amenities does not follow logic one bit. The big question to ask yourselves is, all the resources our govt has amassed all these years what have they done with them? And you think they will do better if they get more? That's crappy thinking. It will only make there loot more. These days we talk about people stealing billions, that will just graduate to trillions in stolen money.
On the one hand I do not want it implemented because of the dire hardship it will add on Nigerians, but on the other hand maybe they shld go ahead with it, then maybe the revolution I have been craving for can finally take place and we can begin to take our place in the comity of sane nations.
Any news out of Naija rite now is just an absurdity!
I really am saddened.

@edicolove, you have spoken well. May the gods be with you.

gentleoyink:

@edicolove, you have spoken well. May the gods be with you.

Iseeee

Kobojunkie:

Me sef wey I dey US, dey find am hard to pull out close to 4 bucks for a gallon of gas ooo . . . na person for naija go come find am EASIER to pay 4 bucks for a gallon of gas?? Una rich ooo!!!

If you worked hard, it shouldnt be that hard.

Chicken change for people like me.

On paper, removing oil subsidy and diverting the money somewhere else sounds like a great plan but the realities of Nigeria will set in and the money will disappear. It will be interesting to see what type of safety net the government will set up for the poor.

^^^^

honeric01:

Noise makers, NOTHING IS GOING TO HAPPEN! they are going to do it and you all are going to run to churches/mosque, praying that God should come and touch the govt's heart as usual.

i repeat NOTHING IS GOING TO HAPPEN AS SOON AS IT'S INCREASED.

Fresh airrr

edicolove:

I carefully read every post on this thread and was hoping to find something intelligent but was not surprised by all the ignorant comments born of sentiments. Fuel subsidy is an anomaly that should never have been in the first place. It only enriches the fuel importers and improvishes the populace. The military started it as a convenient decoy for not fixing the oil sector and the refineries. In the long run, it doesnt benefit the so called masses. It has to go and will definitely go one day. How can a country that produces crude be paying N77 for every litre as subsidy? Absolute bunkers! That money is money for major major major infrastructural development.

What I was expecting people to comment on are the pillars that must be in place before subsidy can be removed, not that subsidy must not be removed.

1. There must be regular power supply. A major part of the fuel consumption in Naija is for generators for power. If power improves to an acceptable level, then a milestone would have been reached.
2. The refineries must be fixed and their capacity increased. This can then allow for competitive pricing. The N142 someone posted will only happen if we import the fuel. If our local refineries produce it, it wont be up to that amount.
3. Government must invest heavily in agriculture and other minerals. If agricultural development improves, the rise in food produce will counter the rise in food prices that would have occurred due to increase in transportation that might happen when subsidy is removed. For example, if price for a tuber of yam increases because of removal of subsidy, the price can be reduced by the increased production of yam.

These and some others points I might not have mentioned are the issues that must be raised and the things that must be in place before subsidy is removed. People keep talking about minimum wage and it makes me laugh. Reason? Simple. How many people in Naija really work for the government and collect the so called minimum wage? A very small percentage of Nigerians work for the government. Lagos state which has one of the biggest work force, doesnt even have up to 100, 000 workers. Even if you assume that as the average and multiply by 36 and add federal parastatals. you still wouldnt even get up to 5million people working for the government. So forget the minimum wage talk. What we need are standard government policies and accountability, not subsidy and government handouts. When are we going to stop this government handout mentality. This is the reason politicians can manipulate the system because most of you are still looking up to the government to collect stipends. We need infrastructure so we can generate our own income not government payouts.

Thanks bro.
If you want to know how unintelligent many of us are, just pop into threads like this one. The very same fools screaming in loud decibels that they have been oppressed, cheated and beaten for 51 years will be the ones to sell their mothers to the enemy for a shilling when a saviour walks in.

@topic
If you do not understand what the subject is, shouting and jumping high does not make you seem morally upright, it does the opposite and makes you look like a pack of id!ots struggling hard to continue wallowing in the same old faeces that you complain about.

Get to know who benefits from the fuel subsidy and why that makes each and every one of us a slave.

edicolove:

I carefully read every post on this thread and was hoping to find something intelligent but was not surprised by all the ignorant comments born of sentiments. Fuel subsidy is an anomaly that should never have been in the first place. It only enriches the fuel importers and improvishes the populace. The military started it as a convenient decoy for not fixing the oil sector and the refineries. In the long run, it doesnt benefit the so called masses. It has to go and will definitely go one day. How can a country that produces crude be paying N77 for every litre as subsidy? Absolute bunkers! That money is money for major major major infrastructural development.

What I was expecting people to comment on are the pillars that must be in place before subsidy can be removed, not that subsidy must not be removed.

1. There must be regular power supply. A major part of the fuel consumption in Naija is for generators for power. If power improves to an acceptable level, then a milestone would have been reached.
2. The refineries must be fixed and their capacity increased. This can then allow for competitive pricing. The N142 someone posted will only happen if we import the fuel. If our local refineries produce it, it wont be up to that amount.
3. Government must invest heavily in agriculture and other minerals. If agricultural development improves, the rise in food produce will counter the rise in food prices that would have occurred due to increase in transportation that might happen when subsidy is removed. For example, if price for a tuber of yam increases because of removal of subsidy, the price can be reduced by the increased production of yam.

These and some others points I might not have mentioned are the issues that must be raised and the things that must be in place before subsidy is removed. People keep talking about minimum wage and it makes me laugh. Reason? Simple. How many people in Naija really work for the government and collect the so called minimum wage? A very small percentage of Nigerians work for the government. Lagos state which has one of the biggest work force, doesnt even have up to 100, 000 workers. Even if you assume that as the average and multiply by 36 and add federal parastatals. you still wouldnt even get up to 5million people working for the government. So forget the minimum wage talk. What we need are standard government policies and accountability, not subsidy and government handouts. When are we going to stop this government handout mentality. This is the reason politicians can manipulate the system because most of you are still looking up to the government to collect stipends. We need infrastructure so we can generate our own income not government payouts.

blink182:

Edicolove, you just made my day. I wondered how long it will take me to explain typing with my phone but you took my thoughts and explained vividly.

If this government is able to implement just this one policy.

gentleoyink:

@edicolove, you have spoken well. May the gods be with you.

Actually he has spoken trash. There is nothing more pathetic when a person thinks he has great wisdom or reasoning, and they more or less are totally deficit/defunct of that quality.

Instead of going to far to defeat your faulty postulations, I'll simply pick on the actual things that you listed and your very own rationalisations.

You say everyone in disagreement to this increment is not intelligent, that that's not the issue, but the conditions that should be fufilled.

All these pre-conditions that you listed, how many of them are in place? And how many of them will be or can be in place tomorrow, by next year, or even in three years time?
Did the goverment say they want to remove subsidy in 2 or 3 years time or after these conditions have been met? No, they want to do it Jan 1st, about 2 months from now, if we count out october. See your life? See how mo.ro.nic your arguement is.

A labour leader was on Silverbread morning show on Friday I believe, and he said since OBJ and PDP came to power in 1999, there have been 12 great speeches in which this very things were always promised: revamping of the refiniries, power sector and giving agriculture utmost priority. Please go and sit down for toilet if u have nothing else to say.

And have u not heard, that even the claim of subsidy by goverment is fraudulent, that there is no subsidy.

Let me make a simple easy to understand illustration. The International price of crude oil is what affects the price of the imported fuel, therefore determining the amount of subsidy needed. Now let's assume the price moves from $10 to $50; now this same upward movement that has increased the cost of imported fuel will also increase the earnings on every single barrel of crude oil that Nigeria exports, and we export more barrels of crude oil than the fuel we import. So why direct our attention to only the increase in cost of imported fuel and not the accompanying many-times-more increase in earnings resulting from the same stimulus. So it's a matter of using a fraction of this increased earnings to pay for the subsidy.

Yes, I know in Macro Economic, revenue, and things like cost of subsidy are calculated separately, but spare all that bullshit. Macro economics exist to better humanity and not for the sake of UN and World Bank seminars and papers. The reality is just what I've said.
By the way, OBJ spent 12 billion naira o power and and equally stupendous amount on refiniries. Where are the results?

very very funny thread. Yea, this move is very very unbelievable. It just wont work. Is this all World Bank madam can bring to the table? What a shame. There is nothing in place to ensure a safer transition. All this big grammar you people are blowing, tell that to the people that live on 2 dollars a day who cant afford to come on the internet and be rational or blow grammar. When they handle all of you here, una go know sey water don pass garri. Food is too damn expensive already because we import everything. Goodluck to you, Goodluck to Nigeria. Presido better put on his thinking cap. You have adviser's yes, but you make the ultimate decision. Not every advise is good advise, at the end on the day it will be Jona's job on the line when chaos breaks out. .  . In the mean time i want to say a special thank you to Father and Mother of 2mch for the alternative plans they made in 2mch's life. Goodnight, sit tight nigerians.  

blink182:

Edicolove, you just made my day. I wondered how long it will take me to explain typing with my phone but you took my thoughts and explained vividly.

If this government is able to implement just this one policy.

gentleoyink:

@edicolove, you have spoken well. May the gods be with you.

edicolove:

I carefully read every post on this thread and was hoping to find something intelligent but was not surprised by all the ignorant comments born of sentiments. Fuel subsidy is an anomaly that should never have been in the first place. It only enriches the fuel importers and improvishes the populace. The military started it as a convenient decoy for not fixing the oil sector and the refineries. In the long run, it doesnt benefit the so called masses. It has to go and will definitely go one day. How can a country that produces crude be paying N77 for every litre as subsidy? Absolute bunkers! That money is money for major major major infrastructural development.

What I was expecting people to comment on are the pillars that must be in place before subsidy can be removed, not that subsidy must not be removed.

1. There must be regular power supply. A major part of the fuel consumption in Naija is for generators for power. If power improves to an acceptable level, then a milestone would have been reached.
2. The refineries must be fixed and their capacity increased. This can then allow for competitive pricing. The N142 someone posted will only happen if we import the fuel. If our local refineries produce it, it wont be up to that amount.
3. Government must invest heavily in agriculture and other minerals. If agricultural development improves, the rise in food produce will counter the rise in food prices that would have occurred due to increase in transportation that might happen when subsidy is removed. For example, if price for a tuber of yam increases because of removal of subsidy, the price can be reduced by the increased production of yam.

These and some others points I might not have mentioned are the issues that must be raised and the things that must be in place before subsidy is removed. People keep talking about minimum wage and it makes me laugh. Reason? Simple. How many people in Naija really work for the government and collect the so called minimum wage? A very small percentage of Nigerians work for the government. Lagos state which has one of the biggest work force, doesnt even have up to 100, 000 workers. Even if you assume that as the average and multiply by 36 and add federal parastatals. you still wouldnt even get up to 5million people working for the government. So forget the minimum wage talk. What we need are standard government policies and accountability, not subsidy and government handouts. When are we going to stop this government handout mentality. This is the reason politicians can manipulate the system because most of you are still looking up to the government to collect stipends. We need infrastructure so we can generate our own income not government payouts.

ABSOLUTE RUBBISH. Why ?

1. The government has not done all you said and does not plan to do those things

2. Electricity as you rightly said consumes a larger part of our petrol bills but what are the steps to make ELECTRICITY CONSTANT AND NOT JUST 20 HOURS A DAY

3. Removal of subsidy does not = Infrastructural development. The Fg just gave the national assembly 2.5 billion naira to buy cars. Are you telling me that each NA does not have at least 3 cars ?

4. Economic diversity has to be in place

5. Subsidy can not be removed without OUR OWN REFINERies WORKING to capacity to feed the nation. If our refineries are working, the fuel price would BE A LOT CHEAPER AND THERE WOULD BE NO POINT FOR SUBSIDY AT THE FIRST PLACE.

6. Please and Please do not insult us by telling us how only a small % of nigeria work force collect the Minimum wage. That is a no brainer really

so those collecting 40,000 to 70,000 should now be suffering for fuel subsidy removal which should not even be there at the first place abi. Now what happens to people collecting less than 18,000. They should suffer all there life ?

-----------------------------------------------------------------------------------------------------------------------------


Before Jonathan and co can even  talk of fuel subsidy removal, he need to [size=14pt]ensure[/size] that the refineries are working and have been working for about a year. These refineries have to be able to refine enough crude oil to power the nation without any external help or importation.

That is even more expensive than what it cost in the US where Nigeria export oil to.

In the US, the average price is about $3.50/gallon, assuming exchange rate is N160/$1; i.e. N560/gallon or about N125/litre.

lanre_front:

Actually he has spoken trash. There is nothing more pathetic when a person thinks he has great wisdom or reasoning, and they more or less are totally deficit/defunct of that quality.

Instead of going to far to defeat your faulty postulations, I'll simply pick on the actual things that you listed and your very own rationalisations.

You say everyone in disagreement to this increment is not intelligent, that that's not the issue, but the conditions that should be fufilled.

All these pre-conditions that you listed, how many of them are in place? And how many of them will be or can be in place tomorrow, by next year, or even in three years time?
Did the goverment say they want to remove subsidy in 2 or 3 years time or after these conditions have been met? No, they want to do it Jan 1st, about 2 months from now, if we count out october. See your life? See how mo.ro.nic your arguement is.

A labour leader was on Silverbread morning show on Friday I believe, and he said since OBJ and PDP came to power in 1999, there have been 12 great speeches in which this very things were always promised: revamping of the refiniries, power sector and giving agriculture utmost priority. Please go and sit down for toilet if u have nothing else to say.

And have u not heard, that even the claim of subsidy by goverment is fraudulent, that there is no subsidy.

Let me make a simple easy to understand illustration. The International price of crude oil is what affects the price of the imported fuel, therefore determining the amount of subsidy needed. Now let's assume the price moves from $10 to $50; now this same upward movement that has increased the cost of imported fuel will also increase the earnings on every single barrel of crude oil that Nigeria exports, and we export more barrels of crude oil than the fuel we import. So why direct our attention to only the increase in cost of imported fuel and not the accompanying many-times-more increase in earnings resulting from the same stimulus. So it's a matter of using a fraction of this increased earnings to pay for the subsidy.

Yes, I know in Macro Economic, revenue, and things like cost of subsidy are calculated separately, but spare all that bullshit. Macro economics exist to better humanity and not for the sake of UN and World Bank seminars and papers. The reality is just what I've said. 
By the way, OBJ spent 12 billion naira o power and and equally stupendous amount on refiniries. Where are the results?

I agree with Lanre and will repost my reply to a previous thread. I won't keep re-typing responses to this subsidy issue.


Below is my response to the following thread

Nigeria Spends N72.8bn Monthly On Fuel Subsidy
https://www.nairaland.com/nigeria/topic-746266.0.html#msg9024300


I agree with Kobojunkie and strongly disagree with ekt_bear and friends.


This is all basic mathematics. Anyone who went to school will work out that this fuel subsidy noise is a LIE or at best gross exaggeration.

FIRST OF ALL, ANYONE WHO TELLS YOU THAT NIGERIA SPENDS $500 million ON FUEL SUBSIDIES MONTHLY IS A THIEF.

This is basic mathematics and a fact.
They can claim that the give out $500 million in subsidy money monthly. That is between them and their thieving companies and friends.

Let's break it down:

Nigeria produces crude oil. Other countries produce crude oil.
Nigeria has 4 refineries with total installed capacity of 445,000 barrels per day (or whatever the NNPC claims nowadays).
Nigeria's refineries are not working at full capacity.
Crude oil is refined to PMS (Premium Motor Spirit) aka Petrol.
Nigerians use PMS to fuel vehicles, generators and other things.
PMS is traded internationally at a particular rate that varies.
Other countries that produce Crude oil refine it and sell to their citizens at whatever rate they please (irrespective of international rates).
Nigeria monthly PMS consumption = Locally refined + Imported refined (at International Rates)
Nigeria sells PMS to citizens for N65/litre
Subsidy = Amount paid to PMS importers for difference between International Rates for Imported Refined and N65/litre.

Example = Importers buy fuel internationally today from Venezuela at N120/ litre for example, they bring into Nigeria and sell for N65/litre. In order for said Importers not to lose N55/litre, the Nigerian Government pays N55/litre balance. This balance is the SUBSIDY.

Problem 1: Due to corruption, Nigerian officials collude with Government officials and claim to have imported more fuel than they actually bring in.

Example: Mr. Otedola's company may only bring in 1 million litres per day but claim to bring in 2 million litres per day. And like in previous example, The Government officials will pay N110 million per day (N 55/litre subisdy x 2 million litres) instead of N55 million (N55/litre subsidy x 1 million litres).

Problem 2: Due to corruption, Fuel importers collude with Nigerian National Petroleum Corporation (who by the way are in charge of the locally refined) and Government officials to buy the Locally refined and claim that the said quantities of petroleum where in fact imported into the country at international rates.

Example: Ms. Deziani's accomplices may buy 1 million litres per day of petroleum from the NNPC for N65 million and then claim that this quantity was bought at N120 million internationally (N120/litre international rate x 1 million) . They would then proceed to collect N55 million (N120 milion - N65 million) from the Nigerian Government as subsidy payment.

Problem 3:Due to corruption and inadequate monitoring, Fuel importers collude with Nigerian National Petroleum Corporation (who by the way are in charge of the locally refined) and Government officials to fraudulently under-report the quantities of locally refined PMS so they can purchase the more from the local refineries and claim to have imported said quantities (problem 2)

Example: The NNPC may claim to refine only 2 million litres per day when it in fact refines 4 million litres per day. The remaining 2 million litres would then be sold to their partners in crime at N65/ litre. These partners will proceed to sell these quantities to the Nigerian populace while demanding N55 subsidy per litre from the Nigerian Government after claiming that this 2 million litres/day were imported from Venezuela or other country. This example is highlighted by the inability of the NNPC to give account of the actual quantities it refines daily.


Therefore taking into consideration that

Subsidy = Amount paid to PMS importers for difference between International Rates for Imported Refined and N65/litre.

and the extent of problems 1, 2, and 3, it becomes easy to see why the true cost to Nigeria of the fuel subsidy may not exceed $100 -$150 million/ month.

Once again, I put forward that

ANYONE WHO CLAIMS THAT NIGERIA TRULY SPENDS $500 million ON FUEL SUBSIDIES MONTHLY IS A THIEF.


Why do Nigerians need a fuel subsidy??

Do average Nigerians really benefit from a fuel subsidy??

Interesting questions. Let me rephrase that.

Do average Nigerians benefit from buying PMS at N65/litre instead of N120, N130, or N140/litre
I think a monkey can answer that.

1. The average Nigerian buys PMS to fuel his/her car i.e N500 daily.
2. The average Nigerian takes public transport in vehicles that use PMS at certain amount i.e N50 per trip.
3. The average Nigerian buys PMS to fuel his generator i.e N1000 daily.
4. The average Nigerian buys food (bread, vegetables, fish) which is transported across the country in Vehicles that use fuel.

No subsidy equals

1. The average Nigerian needs PMS worth N1000 for his/her car daily.
2. The average Nigerian takes public transport at a new amount i.e N80 per trip.
3. The average Nigerian buys PMS to fuel his generator i.e N2000 daily
4. The average Nigerian buys food (bread, vegetables, fish) at a much higher price.

it doesn't take a genius to figure out that the average Nigerian benefits significantly from the lower cost of PMS.

It would be hard to find a Nigerian in Nigeria who wants the price of PMS to rise. It is a slap in the face of average Nigerians for ekt-bear and friends to claim that removing the subsidy will not have a tremendous negative impact on Nigerians. It is easy to sit in the U.S.A and claim that doubling the price of PMS in Nigeria will have no impact on the populace. Akin to saying an increase in gasoline prices in the U.S.A to $7/gallon today will have no significant effect on the populace.

Does corruption allow unscrupulous individuals to benefit from the subsidization of PMS?? Yes.
But why does the average Nigerian have to get shafted for this?? Why not tackle corruption instead??

Solutions.

A. Ascertain the true quantities of PMS locally produced daily.
B. Ascertain the true total quantities of PMS consumed daily nationwide.

Subract A from B and arrive at the true quantity of PMS imported at international rates (This value will then be subsidized)

By tackling corruption, the cost of subsidization can be brought down to no more than $100 million per month.


Solution Part 2 - By bringing refineries to optimum operating capacity and building new refineries.
Locally refined PMS can exceed Locally consumed PMS.

Mythical Solution= Remove the subsidy and hope that the supposed $500 million/ month that is currently being used to compensate corrupt entities will translate into development and improvement for the average Nigerian.

The question now remains, does increasing the burden on the average Nigerian guarantee the resolution of the problem??


PS: Problem 4: Overestimating the total nationwide PMS consumption allows fuel importers and the NNPC to further perpetrate fraud.


Also, please note that selling locally refined PMS at N65/litre is still a profitable venture for the NNPC.



Thank you for reading.

I pledge to Nigeria my country to be faithful royal and , Who said we have not been faithful and royal?. That is why we have been tolerating all these nonsense.

Oletunow:

That is even more expensive than what it cost in the US where Nigeria export oil to.

In the US, the average price is about $3.50/gallon, assuming exchange rate is N160/$1; i.e. N560/gallon or about N125/litre.

This price we dey talk so no be FUTURE PRICE, na the price wey some dey pay NOW . . . as we dey so. Na my keke I bin dey ride most of the year as I think it absurd that gas prices is as high as it is here. Imagine Nigerians dey pay this much already and no dey complain at all.  dem rich for there ooo!! E be like say poor people for naija rich pass some of us so-called middle class for here ooo . . . .   

^^^

Enough already. We don hear, you make $60 000 a year and work as an escort part time and cant afford a decent car. Anything else you want to share with us.

That you now have grey hair sprouting in your mon pubis? Or just had your first a/n/a/l at the age of 65?


If you were young and good looking, we might be interested in your no so busy, horrible private life, at your age those nitty-gritty of your s3x life are best kept to your lonely self.