nairalanda1:


Subsidy is one of the things contributing to our debt. And since politicans make the decision to keep subsidy and have done so since 1999, it is still their fault

( Other things that keep us in debt is the fluctuations in oil price, import dependency and massive looting and corruption. Failure to diversify the economy worsens the matter).


If we had kept petrol at N65 since 2011, by now subsidy costs would have been running between 900 to 1000 per liter, up from 34 naira in Dec 2011. And we would have been paying for the thing from other parts of the budget.

Nothing like cheap fuel

nairalanda1:


They did.

The refineries did not work because the government then started selling fuel at a loss and paying a subsidy to cover the loss , and then the whole mess came in.

Once you set the price of a good or service below what it costs to produce, there would be sabotage, corruption and evil doings and wrecked production instruments. Because things need a profit to run well.

Niger is poorer than us, they produce crude and they have a working refinery because they sell fuel at a profit. Right now it is above 1000 per liter there. The army junta has not reduced the price.

Communist countries used to subsidize food. The result? Long queues and massive scarcity of products. Then they dumped the subsidy.

nairalanda1:



1. There are 4 other refineries apart from dangote that are privately owned.

Government is not stopping anyone

2. The issue is the uncertainty over pricing. Since government is obviously still controlling prices, why should someone set up a private modular refinery and losse money?

And why should lenders lend money to such a refinery if they won't get their money back?

20 licences have been issued for private refineries, Dangote included. Does that strike you as government not letting people set up refinery?

Ikaeniyan0:
Seun Mynd44 Rayban25 OAM4J is using an alternative account

He has broken Rule 19

adenigga:


Source: https://punchng.com/FG-may-pay-N1.68tn-fuel-subsidy-marketers-forecast-N900/litre

Ikaeniyan0:
What do some of you people want sef? Government no subsidize, una go wail

Government is subsidizing, una don start to dey wail again

The problem with some of you is that, you're dumb but think you're clever

If the landing price of a litre of petrol is #900, when petrol was #200, government will have to pay #700 as subsidy, now that's like #650, Government will only have to pay #250 as subsidy.

There are lots of shallow people on nairaland

Donlexino:
You are a very good BIG COW,A DUNCE AND A MALLOW. you thieves are the reason people are suffering in this country. Don't worry your plate and source of food will be taking away from you very soon and it will happen. You go get sense when you start suffering bcs it's imminent

Kukutente23:

Oga stop the wailing
If you enter fuel station and offer to pay them 900 per liter nobody will arrest you o

Maobichek:


Government owned refineries have been with us before Buhari came ( though not working) to power, he promised to fix our refineries but for 8 years he didn't; PH, Warri, Kaduna all have refineries but were not fixed by the government.

Advance counties are working because their governments are responsible but what do we have here?

smileyoo:
but why is it very difficult for the 6th most crude oil producing nation in the world to have functionable refineries ?
it's actually corruption and the greediness of the political elites that is killing Nigeria, not the so-called subsidy.
every nation subsidize one thing or the other to the benefits of her citizens, but Nigeria 's type of fuel subsidy is abused through the corrupted system of governance .
if the FG cannot make the refineries to be productive, even with all the billions spent on turn around maintainance, they have no other options than to subsidize fuel for nigerians, or else pms could soon become the product of the few privileged citizens.

Kukutente23:

Your claim that subsidy kept us in debt since 1999 flies in the face that a certain govt cleared all our debts in 2005. What's your excuse for that now? No subsidy in 2005 or Nigerians did not use fuel that year

Ykc2:
una go support una brother tire,buhari picked only his fulani brothers for his 8 years government and they distroyed nigeria economy now tinubu is following his footsteps by choosing only yorubas for sensitive positions they will distroy the remaining economy like they distroyed concord news paper and concord airline

emmyN:
Crude oil was over $100 during Jonathan's administration yet price of fuel was kept under N200 even after he attempted to remove subsidy. The damages APC have done to Nigeria, it would take a long time to undo.

nairalanda1:


Corruption and greediness fostered by subsidy.

nairalanda1:


Corruption and greediness fostered by subsidy.

Kachidubem:

Who will fix which infrastructure ?

Bro even from your answer , even you self no say Nigerians will suffer and pay 1k per litre for nothing.

At the end of the day , Na mc olouomo , Abike and co go carry our money dey buy mansion here and dere ...dead the idea of any meaningful infrastructure.

Except Desmond Elliot is kind enough to construct another canal in his constituency and share 1 bag of rice... other than that ,masses go suffer in vain ... mark my words

Taylor92:
So finally Buhari was better than Tinubu


I never thought we could have a president worse than Buhari


I’m so sad right now

If Tinubu no know wetin to use money do make he use am subside olosho for us abeg at least make person see cheap babes carry

Because konji no different from Marlians music

Godszilla:
Guy you really do try to come across with intelligent point but how is subsidy the root cause of corruption n greed in Nigeria?

smileyoo:
lol. but even before subsidy there had always been corruption in the system, because there had never been serious punishment for corrupt government officials caught in the practice of corruptions.
subsidy only made it More easier for them to practice their trademark of corruption.
the basic questions should be; why moribund refineries ?
why fuel importation ? why subsidy without proper monitoring ?
Corruption is the best answer to all the above basic questions.

nairalanda1:
For anyone who wants to understand why I am so opposed to subsides, even though it means that it would hit my wallet badly....and it is doing so, yet I don't think that paying more for subsides is the way forward, read the article linked below

REFLECTIONS ON FUEL SUBSIDY REGIME



The above link is my answer to anyone who quotes me to either call me

1.An oppressor

2.An APC supporter (I am not, and this decision gives me more reason not to vote for them even)

3.A joker

4.Work for the oil companies (I don't, and never have....)

nairalanda1:


Am afraid you missed my point completely

When you bring in a subsidy for anything, you encourage corruption and looting, because the price control inherent in subsides means that there would be no profits made.

Thus money would be made by illegitimate means. Add the fact that subsidy is free money.

I am not saying corruption and greed in nigeria...all of it...comes from fuel subsidy.

Princewill1:

I have read your article, nothing new there... just the usual rethorics; Corruption in the sector, Fuel smuggling to neighboring countries, subsidy being too costly for govt etc.

I have argue with you on this topic here on NL. It seems you're working for some people.

1. What stops govt from tackling the corruption going on in the sector? I thought they are the ones in charge? Egypt, Angola, Algeria, Libya subsidizes oil in their countries with no noise of corruption in their oil sectors. Why is our subsidy different?

2. During Trump's administration, he collaborated with Mexico to send 26 thousands Mexican troops to the border to checkmate illegal immigration. You can't tell me that govt in Nigeria can't drastically minimize oil smuggling

3. About subsidy being too costly for govt., Then govt should divisify to earn more FX. Egypt, Angola, Algeria and Libya still sell cheap fuel in Africa. In fact Egypt with 112m population produces lesser oil than we do, they rarely export. They even import crude oil to compliment their local consumption yet pays billions of dollars to Petro subsidy this year only. Subsidized Fuel is sold at about N301 in Egypt as of today.

Here are reasons why I think subsidy or partial susidy should be a right in Nigeria.

POOR POWER SUPPLY:

Subsidized oil should be a fundamental RIGHT in Nigeria because "petro and diesel" are tied to electricity generation in Nigeria. Millions of businesses in Nigeria rely largely on it for power generation and survival. A country that has stable electricity can't remove subsidy and Nigeria with poor power supply will follow suit.
You stated in your previous post that Ghana sells fuel at over N1000 per liter. Ghana citizens doesn't need fuel for something as crucial as power generation is due to govt provision of stable power supply.

NAIRA FREE FALL:
Govt over the years has failed to fix our refineries making us to rely heavily on imported fuel purchased with scarce Fx. Your 2022 article stated that the landing cost of fuel as of then was N396 now the news on this post is talking of N900 due to the exchange rate. What it means is that in the absence of subsidy, fuel can even be sold for 5k or more per liter in the nearer future as Naira continue to fall.

Is it not idi.otic for politicians in Nigeria to says that corruption in oil subsidy is the main reason they want to end subsidy and the mu.mu masses in Nigeria accepted it. Why not tackle the corruption there first?

All over the world, govts subsidize essential products and basic commodities for it's citizens.

Kukutente23:

Stop repeating this lie. Refineries stopped working because of govt bureaucracy instituted by IBB in 1989 which made routine maintenance of Refineries difficult since it required presidential approval unlike before then.
Subsidy has nothing to do with failure of our refineries.

Godszilla:


Once again I like some of your points but how does subsidy bring about corruption n looting. We have enthrone corruption looting and mismanagement, we celebrate failures ineptitude n people with no moral n integrity what do u expect. Any single avenue is fair game to soulless beings here subsidy is jus one of such avenue.
We need to deal with corruption simple n period. Remove all the subsidies all you like,it's the symptom the disease is corruption.

Besides corruption isn't only monetary so we are clear here too

nairalanda1:
At the end of the day, the APC government was always in support of subsidy.

Nigeria cannot afford subsidy again. If we had kept subsidy since May 29, and fuel remained at N195, by now, subsidy costs would have risen drastically, and government would have either been taking loans from other parts of the budget to pay for the subsidy, or taken more loans, or declare force maejure, and the market would end up having scarcity.

We keep making the same mistake every time, all in the name of cheap fuel

THERE IS NO SUCH THING AS CHEAP FUEL. Fuel costs money to produce. But because we want the poor to breathe, we use tomorrow's money to pay yesterday's costs.

Ah well, everyone should be 'happy' now.

Don't complain when the debt rises, and when we don't have refineries again.



(Yeah, like it makes sense to sell fuel at N617 when it costs N900 in reality. Apparently believing that it is wrong to sell fuel at a loss means you are an oppressor, and hate Nigerians. Well, anyone quoting me to tell me that I am wrong....WOULD YOU sell your goods at a loss to let the poor breathe? )

Am out. .



Modified


As expected, the subsidy supporters are out in force.

LOL.

Well, I cannot help people who don't want to see to see.

nairalanda1:


At the end, when you sell something less than the cost of producing it, you would end up with corruption and looting...because you are attacking somene's right to make a profit.

Why do we have scarcity of petrol, but no scarcity of bread? Because bread is sold at a profit in Nigeria. Petrol is not.

Bring in a subsidy, corruption wills et in in the sector being subsidised.

Plus even IF YOU ELIMINATE CORRUPTION, all your problem is not solved.

If we kept petrol at N195...our subsidy costs would have gone up from N400 per liter in may to N700-800 per liter by now. Buhari did not budget any money for subsidy beyond June. The money for the increase will come from other sectors of the budget, causing a deficit...which has to be filled in by loans.