This new subsidy will surely favour some ediots and their family.

Pacesetter123:

I am surprised you Tinubu supporters could be so indecisive like this.

So when you people were busy applauding him for hurriedly removing subsidy without any risk mitigation plan, you didn't realize what you are just typing now?
Same you that applauded subsidy removal few months ago, it's the same you that is now applauding the return to subsidy regime.
Indeed,this is what we called policy summersault!

Policy summersaults, that's not new in any country on this planet, infact policy is all about for the betterment of the people, if the policy formulated causing hardship on the people.

No reasonable government won't rethink and find ways to augment it. In order not to make it worse. That's the only option the govt can use to alleviates situation of her citizens for now pending when other policies projected for the revival of economy will be materializing.

emmyclassic:
Your foolishness sir

I knew you had nothing tangible to contribute except to wail.

nairalanda1:


Because we spent a large chunk of that revenue from the 100 dollars per barrel to pay for subsidies

Even then GEJ wanted to remove it. You his supporters and the opponents like Tinubu said no.

I would appreciate if you kept your assumptions to yourself.

We spent a large chunk of the revenue on subsidies, yet exchange rate still hovered around N200 and we had savings in the form of excess crude account.

APC excused their failure by saying Jonathan had oil boom. Now they are getting the same but the whole economy is suffering a devastating ripple effect. APC is a curse!

Why removing it before when you will later re-introduce it.

emmyN:


I would appreciate if you kept your assumptions to yourself.

We spent a large chunk of the revenue on subsidies, yet exchange rate still hovered around N200 and we had savings in the form of excess crude account.

APC excused their failure by saying Jonathan had oil boom. Now they are getting the same but the whole economy is suffering a devastating ripple effect. APC is a curse!

Yeah, because we were earning far more from oil then. Even then, N200 was ten times more than the N20 it was some 20 years earlier.

Look, I am not excusing APC. And I have no time for PDP either. The naira is weak because it is hooked to oil. The more we rely on oil, the more the naira becomes weaker.

APC had a very weak naira because the oil prices were lower. AND.....AND....AND....because the government of Buhari refused to remove subsides, refused to diversify, and refused to do the hard work to get us off oil, and that is why the naira collapsed under the rule of APC.

I think you can see I am no APC supporter.

And yes, GEJ wanted to remove subsidies because in 2011, we was spending three times more than we spent in 2010 on subsidy. Keep on doing that, and we would have been in serious mess in the next few years. Hence the partial removal. It should have been total.

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

You always come online to deceive gullible people with something you know nothing about. You have been championing subsidy removal since but yet you do not even understand the cause you are championing.
Subsidy is not even one of the things making Nigeria to borrow and it's not the reason Nigeria is in debt, the government themselves said they have not paid a single Kobo as subsidy payment to anybody since 2015 see where are you getting this misinformation that government is borrowing to pay subsidy.
What has been happening before the recent price adjustments by Tinubu is that nnpc is the sole importer of petrol and they have this crude for petrol swap deal in place instead of outright payment for subsidy other marketers will buy from nnpc.
So where did you get your misinformation that government is borrowing to pay subsidy?
While you may say swapping crude for petrol declines government revenue but is that not better than government earning the same money only to be looted by politicians. To me I prefer the crude swap arrangement cos at least all Nigerians benefits from cheap petrol but it's not all Nigerians that will benefit from politicians looting.

VeeVeeMyLuv:

Op is telling a boldfaced wicked lie

Disregard. Don't believe him.

Petrol is not $3.9 per litre in USA. This is very misleading.

Petrol is $3.9 per gallon in USA instead even lower than that in some regions.

A gallon is equivalent to approximately 3.8 litres.

He can lie for Africa just to sound woke and deceive gullible people to support his wicked government.
That's how he said government is borrowing to pay for subsidy.

coleon:

You always come online to deceive gullible people with something you know nothing about. You have been championing subsidy removal since but yet you do not even understand the cause you are championing.

I know far too much about it...after all I have been on this case since 2011.

Subsidy is not even one of the things making Nigeria to borrow and it's not the reason Nigeria is in debt, the government themselves said they have not paid a single Kobo as subsidy payment to anybody since 2015 see where are you getting this misinformation that government is borrowing to pay subsidy.

Well

1. If you read the comment of mine you quoted, you would have seen where I pointed out the other reasons why we borrow. The fluctuating oil price, the lack of a diversified economy, the low income from taxation, and massive corruption. Subsidy is another reason, and a major one.

2.Yes, government stopped paying subsidy in 2016...to the marketers.

In 2016, Government made NNPC the sole importer of fuel. As a result, NNPC was importing fuel at a high price and selling it to the market a t a price below what it imported it. To prevent NNPC from collapsing below the loss, government paid NNPC the subsidy.

Prior to 2016, everyone including marketers could import, and government paid them subsides. Even then, it was not sustainable. Infact government was still paying subsidy claims to the marketers till 2018.

What has been happening before the recent price adjustments by Tinubu is that nnpc is the sole importer of petrol and they have this crude for petrol swap deal in place instead of outright payment for subsidy other marketers will buy from nnpc.

Yes, dat's true.

So where did you get your misinformation that government is borrowing to pay subsidy?

Simple., The fact is, low oil receipts...from the markedly low oil prices especially between 2015-2021, (for Nigeria...we need oil to be above 100 dollars per barrel before we can earn enough cash)...means we have to borrow for everything...including subsidy payments.

Also debt service is eating most of our oil revenue. 80% of our revenue overall is from oil. How do we replace the money lost to servicing loans? BORROWING.

We are in deep mess...and you can blame the APC government for not diversifying, and not improving government revenue, and for not fighting corruption at all.

While you may say swapping crude for petrol declines government revenue but is that not better than government earning the same money only to be looted by politicians. To me I prefer the crude swap arrangement cos at least all Nigerians benefits from cheap petrol but it's not all Nigerians that will benefit from politicians looting.

Ultimately, nothing beats fuel being sold at a profit.

Ghana and Niger have working refineries, and do not have subsides. (AND both produce crude oil domestically)>

Only countries that have working refineries and subsides are countries that produce far more oil than we do, and have much lower populations, which means they have heavyier revenue per capita compared to we Nigerians.

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

All these points raise doesn't add up because the father of all is corruption.

Nigeria is an oil producing county therefore the citizens should benefit from it massively, if the sale of the oil is being put to proper use I don't think our refineries would have been grounded.

The politicians should stop milking our resources and see how the country bounce back in year or two.

Nigeria shouldn't be borrowing money ideally, the money politicians loot every month is more than what they would have used in paying for subsidy of a whole year.

“Therefore, it is better the government assists the masses by paying subsidy. From our records, in the United States, the super product or petrol is sold around $3.9, which is close to about N3,000/litre.


US stations sell in gallons not litres..
That's $4 per gallon
$1 per litre
N950 per litre

Govt gave subsidy to reduce prices....marketers ship petrol to neighboring countries for higher prices and made profits...volume is low ....govt imports more and gave more subsidy to prevent petrol shortage....marketers ship more subsidized petrol to neighboring countries for more profits...you Gerrit...if you don't Gerrit, forget aborrit

RepoMan007:
so marketers benefitted from subsidy? I don't think so.

They benefitted from the corruption aspect of it and the masses from the subsidy itself. That's why people are complaining and the marketers too are angling for return of their corruption window. Corruption can be fixed is the message and point from the average Nigeria out there.
Where are the palliatives now if not for corruption?

nairalanda1:



Buhari did EXACTLY what Tinubu is doing now. And both of them did what EVERY NIGERIAN LEADER has done in the name of subsidy since 1973.

Sell petrol at a loss, and pay a subsidy that cannot cover the loss long term without us running into debt.

You guys, and the Tinubu guys do not see it, because you think you can buy something that costs N100 at N1.

Anyway, enjoy your subsidy. At the end, all of you Nigerians, you are the same. You want cheap fuel.

If we sold fuel today at the N145 it was under Buhari, we would be paying N800 per liter as subsidy by now. Is that sustainable, oga?

If we sold fuel today at the N87 it was under GEJ, we would be paying N900 or more per liter as subsidy now. Is that sustainable?

Tinubu=Buhari-=GEJ=Obj=Yaradua=army.

We dey pay too much for this cheap fuel.


Indeed, if you think that Buhari is better than Tinubu, you don't have any awareness of how much debt subsidy has plunged our economy into, apart from the other causes of our debt, corruption included.

The honest truth is, we have paid too much for cheap fuel. And for tinubu to bring back cheap fuel, it shows that his government has decided to return to one more failed government policy.

Well, let's keep lying to ourselves. Niger and Ghana buy fuel above N900 per liter...and BOTH HAVE WORKING REFINERIES. No subsidy, working refineries. The income we earn from oil is too low for us to pay for subsides and pay for good refineries. Not when we produce less than Libya....for a population twenty times the size of Libya/

please stop this. You are totally ignorant. Are you feeling the inflation?.

onez:
please stop this. You are totally ignorant. Are you feeling the inflation?.

Lol.

Your leaders are all alike.

Sylva2147:



All these points raise doesn't add up because the father of all is corruption.

Nigeria is an oil producing county therefore the citizens should benefit from it massively, if the sale of the oil is being put to proper use I don't think our refineries would have been grounded.

The politicians should stop milking our resources and see how the country bounce back in year or two.

Nigeria shouldn't be borrowing money ideally, the money politicians loot every month is more than what they would have used in paying for subsidy of a whole year.

We cannot benefit from oil because we produce ten time less than Saudi for five times Saudi population

Which is why where APC has failed is simple. Lack of diversifying the economy

The oil we produce would be enough if Nigeria had 10 million people