MT:


I challenge you to mention if either the US, UK or Canada - the topmost countries you always rush to mention - subsidise fuel ?

Many countries do And I didnt mention a particular country, but in the USA - many states do.

You still dont get it, Nigeria will have that "jump" because there was no money for any form of subsidy. Buhari knew this and it was not even part of the budget that Tinubu got from Buhari administration.

One thing I can easily point out is that monies for subsidy were budgeted up till the end of June but the frog removed the subsidy abruptly one month before in his inaugural speech. No one does that. You cant make such a significant policy change only minutes into your administration. You need deep and wide consultation and advise for that move. You need to study the system.

You think Nigeria is still a wealthy nation? Don't be delusional, that was then.

You are the delusional one if you dont know that Nigeria is a wealthy nation which has simply been stolen blind and badly mismanaged.
It is still a wealthy nation - wealth is not cash. The resources available to us are still not being intelligently managed.

DeepSight:


It is a pity tht a day has come when we can possibly miss one of the worst and most illiterate presidents in the history of the world.
But here we are.

We have been gifted with a thoughtless insensitive demon straight from hell who is an errand boy for the IMF .

With your moniker being "DeepSight, I was expecting a great deal of "insight".

At bolded says otherwise.

GeneralDae:

But Govt has circled back to paying subsidy though due to the exchange rate difference from that time.

That is an assumption

Gajagojo:

That is an assumption

Ol boy it is an indubitable fact.
Nothing else can account for the price of PMS remaining stable despite the flying pace of the exchange rate.

It is illogical. It is impossible.

DeepSight:


Ol boy it is an indubitable fact.
Nothing else can account for the price of PMS remaining stable despite the flying pace of the exchange rate.

It is illogical. It is impossible.

It is not a fact it is a deduction

MT:


With your moniker being "DeepSight, I was expecting a great deal of "insight".

At bolded says otherwise.

Could it be that you are simply one of those who will defend Tinubu even if we end up like Venezuela as a consequence of his hasty and ill thought out policies?

Are you Boxer in Animal Farm?

"Napoleon is always right?"

Gajagojo:


It is not a fact it is a deduction

Look I dont have time for semantics. If it is a deduction, it is a perfectly logical and indisputable one.
And the IMF itself (Tinubu's Lords and Masters) have confirmed it.

DeepSight:


Many countries do And I didnt mention a particular country, but in the USA - many states do.



One thing I can easily point out is that monies for subsidy were budgeted up till the end of June but the frog removed the subsidy abruptly one month before in his inaugural speech. No one does that. You cant make such a significant policy change only minutes into your administration. You need deep and wide consultation and advise for that move. You need to study the system.



You are the delusional one if you dont know that Nigeria is a wealthy nation which has simply been stolen blind and badly mismanaged.
It is still a wealthy nation - wealth is not cash. The resources available to us are still not being intelligently managed.

So by your illogical reasoning, Nigeria should go out and borrow at neck breaking interest rate to pay subsidy.

Even wealthy nations that can afford it are not paying subsidy.

If Nigeria is a wealth nation, she should be part of the G7.

You are delusional. When you have great resources and you cannot transition it to wealth, it doesnt make you wealthy, you only have great POTENTIAL.

Now, Tinubu is setting us in another direction, retooling and rekitting the nation.

Gajagojo:


It is not a fact it is a deduction

In fact, let me bust your brain. As at today, by every proper calculation available, more money is being paid for subsidy by the backdoor than as at May 29 last year.

Because of the exchange rate.

MT:


So by your illogical reasoning, Nigeria should go out and borrow at neck breaking interest rate to pay subsidy.

Even wealthy nations that can afford it are not paying subsidy.

If Nigeria is a wealth nation, she should be part of the G7.

You are delusional. When you have great resources and you cannot transition it to wealth, it doesnt make you wealthy, you only have great POTENTIAL.

Now, Tinubu is setting us in another direction, retooling and rekitting the nation.

Your last line just shows u up for what you are. Your government will kill you and you will sing their praises while the knife goes through your throat. You dont deserve a working country. You deserve suffering - and you will get it.

A people get the leadership they deserve.

You are painfully slavish and ignorant.

DeepSight:


Could it be that you are simply one of those who will defend Tinubu even if we end up like Venezuela as a consequence of his hasty and ill thought out policies?

Are you Boxer in Animal Farm?

"Napoleon is always right?"

Nigeria cant be like Venezuela because she is not under international sanctions.

Nigeria needs to be repositioned.

The summary of our problem is we have little dollars coming in while we have lot of people demanding for number of dollars we dont have.

The only solution is to either expand our capacity to generate more dollars or reduce the numbers of people and organisation making demands.

Dollar is floated now to reflect the true value of naira to dollar, which wont allow us to go out and borrow to fund subsidy. Thats what Cardoso was saying, there was now inflow of dollars into the country. That policy is expanding our capacity to earn more dollars, we need to combine that with local production.

It wont be easy but doable. Hang in there.

DeepSight:


In fact, let me bust your brain. As at today, by every proper calculation available, more money is being paid for subsidy by the backdoor than as at May 29 last year.

Because of the exchange rate.

That is what You have deduced based on assumptions and information available to you.

DeepSight:


Look I dont have time for semantics. If it is a deduction, it is a perfectly logical and indisputable one.
And the IMF itself (Tinubu's Lords and Masters) have confirmed it.

Does not make it true
It just makes sense in your head

Many of you like to.talk.nonsense thinking you know everything. When you know nothing
There is such a thing as a futures contract
Find out how that works and stop running your mouth

GeneralDae:

But Govt has circled back to paying subsidy though due to the exchange rate difference from that time.

Gbam!

Agbegbaorogboye:
Interesting take
But Tinubu's govt have actually shifted to managed float. They are just not saying it.
I said it before the election that if not for trust Issue and ethnic bigotry of it's the south's turn, Atiku had the best manifesto of the contestants in the last elections.
But politics is more about sentiments and not logic or best man winning

Bros ..forget Atiku manifesto.....it's still the North...they can't change ...

DeepSight:


Your last line just shows u up for what you are. Your government will kill you and you will sing their praises while the knife goes through your throat. You dont deserve a working country. You deserve suffering - and you will get it.

A people get the leadership they deserve.

You are painfully slavish and ignorant.

All great countries had gone through this phase before.

America went through the great depression.

A prodigal son must suffer for the years of the locust. That is our state as a nation

So, what exactly was your point. You dont have firm grip of economics.

DeepSight:


In fact, let me bust your brain. As at today, by every proper calculation available, more money is being paid for subsidy by the backdoor than as at May 29 last year.

Because of the exchange rate.

You are simply impossible

Gajagojo:

Does not make it true
It just makes sense in your head

You must be kidding.

Ol boy, 2 + 2 = 4, okay? Its not in my head.

If you dont get it, let me break it down for you.

1. PMS is imported - with dollars.
2. At the time of removal of subsidy, the dollar was circa 700 naira.
3. Today, the dollar is circa 1500 naira.
4. Automatically, the cost of importation of PMS has more than doubled.
5. The pump price at the time of removal of the subsidy only factored the cost at the time - and that is no longer the cost. The cost has more than doubled due to the exchange rate.

Unless you are saying that the FG practices black magic and voodoo, there is no other way around this - they are paying subsidy by the backdoor otherwise the pump price of petrol would have jumped yet again to over a 1, 200 per litre.

And the IMF has confirmed this.

If you dont understand this elementary stuff, I cant help you.
Keep worshipping the frog.

MT:


All great countries had gone through this phase before.

America went through the great depression.

A prodigal son must suffer for the years of the locust. That is our state as a nation

So, what exactly was your point. You dont have firm grip of economics.

Governments must take pro active steps to protect their economies and their people. What we are doing is simply adopting IMF instructions hook line and sinker. IMF prescriptions have NEVER saved any developing economy in the world. If anything, IMF prescriptions have a LONG HISTORY of wrecking developing economies.

Gajagojo:

Does not make it true
It just makes sense in your head

Many of you like to.talk.nonsense thinking you know everything. When you know nothing
There is such a thing as a futures contract
Find out how that works and stop running your mouth

You are ignorant and illiterate and trying to hide your ignorance and illiteracy.
What do futures have to do with what I said? ? ? ?

DeepSight:


Governments must take pro active steps to protect their economies and their people. What we are doing is simply adopting IMF instructions hook line and sinker. IMF prescriptions have NEVER saved any developing economy in the world. If anything, IMF prescriptions have a LONG HISTORY of wrecking developing economies.

Where do you expect Nigeria to subsidise both exchange rate and petrol?

Please just tell me

MT:


Where do you expect Nigeria to subsidise both exchange rate and petrol?

Please just tell me

Do you realize that both policies were inflicted on us within a month of the resumption of this administration?

Tell me - do you really think it was wise to do the subsidy removal within minutes of assuming power?

Not even with one or two week's pause, analysis, consultation and consideration of facts on ground (especially when funds had been provided for subsidy till the end of June) - tell me seriously - was it right to do it that way - in the inauguration speech?

As for the floatation of the naira, no one was chasing the FG so desperately that it had to be done so quickly.

You need to bear in mind that doing it simultaneously with the removal of the subsidy was a double disaster. It creates a vicious cycle that is difficult to exit.

DeepSight:


You are ignorant and illiterate and trying to hide your ignorance and illiteracy.
What do futures have to do with what I said? ? ? ?

You are rude and mannerless with no home training
It has everything to do with what you pay for petrol today
Go and find out how futures contracts work
All you said is assumption

Gajagojo:

You are rude and mannerless with no home training
It has everything to do with what you pay for petrol today
Go and find out how futures contracts work
All you said is assumption

Sharrap. You started being rude and I have only addressed you the way you deserve to be addressed.

You dont know jack about macro economics.
You are just throwing in the phrase "futures contract" without understanding what the issues in this discussion are about.

A futures contract is simply a contract which takes future earnings upfront and yes, we have done that because of our debts - this does not mean that we are out of creative options in the entirety of our sovereign resources on the subject of subsidies - if they are not corruptly bloated.

You dont understand anything.

DeepSight:


Do you realize that both policies were inflicted on us within a month of the resumption of this administration?

Tell me - do you really think it was wise to do the subsidy removal within minutes of assuming power?

Not even with one or two week's pause, analysis, consultation and consideration of facts on ground (especially when funds had been provided for subsidy till the end of June) - tell me seriously - was it right to do it that way - in the inauguration speech?

As for the flotation of the naira, no one was chasing the FG so desperately that it had to be done so quickly.

You need to bear in mind that doing it simultaneously with the removal of the subsidy was a double disaster. It creates a vicious cycle that is difficult to exit.

The announcement during inaugaration speech was not right.

Are u saying that if by end of June, he stops subsidy, Nigerians wont complain same way? If he had not removed the subsidy and petrol still sells for 180 naira now, with the international price reading 1500 naira per litre, Nigeria will be paying a differential of 1320 naiira for every litre bought!! The 650 naira per litre now has reduced the amount being spent to subsidise via the backdoor and let me tell you, that has to go with time too if we really want to reposition the country.

As per the floating of the naira, he had no choice. No foreign investors will invest in Nigeria when you are not giving him the right value for his dollar. Why should the FG be paying a the differential of each dollar bought.

Nigeria gave people who were travelling to saudi arabia, jerusalem and schooling abroad cheaper dollar at CBN rate while the FG kept on paying the differentials in price. Do you know how much in billions being wasted in that process, not to talk of those importers?

And yet Nigerians would be saying the country has never done anything for them, not knowing that they have been subsidising almost everything for them. Now the hen has come home to roost

DeepSight:


You must be kidding.

Ol boy, 2 + 2 = 4, okay? Its not in my head.

If you dont get it, let me break it down for you.

1. PMS is imported - with dollars.
2. At the time of removal of subsidy, the dollar was circa 700 naira.
3. Today, the dollar is circa 1500 naira.
4. Automatically, the cost of importation of PMS has more than doubled.
5. The pump price at the time of removal of the subsidy only factored the cost at the time - and that is no longer the cost. The cost has more than doubled due to the exchange rate.

Unless you are saying that the FG practices black magic and voodoo, there is no other way around this - they are paying subsidy by the backdoor otherwise the pump price of petrol would have jumped yet again to over a 1, 200 per litre.

And the IMF has confirmed this.

If you dont understand this elementary stuff, I cant help you.
Keep worshipping the frog.

Makes sense to you
Based on that is all the information you have
In practice it does not work that way

You just open your mouth to talk nonsense

The CBN OBLIGATIONS to The airlines backlog are not based on the exchange rate today they are based on a contract for a very different rate
So if the petrol landing today was bought on a futures contract 6 months ago it has nothing to do With the exchange rate today

Gajagojo:
Atiku a clown
What was Emefiele doing?

https://www.bloomberg.com/news/articles/2021-03-23/nigeria-using-managed-foreign-exhange-regime-central-bank-says

The truth is bitter and painful.
Nigeria and Nigerians have a lot more pain ahead and no one can tell them the truth

We must curb our appetite for imported stuff
Otherwise we will see dollar at 5000
No matter who is in charge . Tinubu should see this through even if it costs him the next election and the rest of his damaged reputation.
We have to start feeding ourselves. Imagine Nigeria spending tens of billions of dollars importing food. How Do We pay for that? Bitter and painful truth.
We have to take this very bitter medicine. I see dollar at 3000 this year before it starts to stabilise. I do not blame Tinubu because it is the right thing to do and whoever does it will.incur Nigerians anger and that is why past leaders have avoided it. Now we have no choice
The only thing that will change the exchange rate is inflow of dollars on a major level
Not going to.happen.

Learn to stop eating rice . If you don't produce rice start eating cassava and cocoyam


The one thing I will criticise Tinubu for is he and his government as well as the National Assembly. Have to be seen to visibly make sacrifices too
But if the exchange rate reaches 10000 is all good
We don't need dollars to plant yam and cassava. Nigeria must curb this addiction to rice

No, you're wrong

Before floating the naira, he should have worked on importation of capital goods like tractors, raw materials etc. and even stockpiled
That is the only way we can produce local products inspite of a weak naira.

Now, FG can't control price if they didn't provide/subsidize input. All those local alternatives you mentioned are also expensive.
Increasing minimum wage would cement inflation permanently and make naira worthless. All associations would also raise their charges subsequently I.e bricklayer, babrbers, transporters

He did not lay the foundation to become a productive economy first. His critics are right, execution is everything.

He must partially manage fx to keep this economy from collapsing meanwhile.

DeepSight:


Sharrap. You started being rude and I have only addressed you the way you deserve to be addressed.

You dont know jack about macro economics.
You are just throwing in the phrase "futures contract" without understanding what the issues in this discussion are about.

A futures contract is simply a contract which takes future earnings upfront and yes, we have done that because of our debts - this does not mean that we are out of creative options in the entirety of our sovereign resources on the subject of subsidies - if they are not corruptly bloated.

You dont understand anything.

It is not a contract that takes futures earnings
It is a contract to buy a product or service at a specified price in the future
E.g. I can sign a contract to buy crude oil 1 million barrels in August from NNPC at $80
Come August and the price rises to $200 they are obliged to sell to me at $80
The price drops to $40 I must still buy at $80

That is how it works. It could be the same for a farmers harvest or any other commodity
That is why Dangote cannot get oil from NNPC today

Many of you are ignorant and just argue blindly and foolishly with EMPTY HEADS

MT:


The announcement during inaugaration speech was not right.

Thank you for at least admitting this. Maybe you are a good man who does not deserve to suffer. There is hope for you.

Are u saying that if by end of June, he stops subsidy, Nigerians wont complain same way? If he had not removed the subsidy and petrol still sells for 180 naira now, with the international price reading 1500 naira per litre, Nigeria will be paying a differential of 1320 naiira for every litre bought!! The 650 naira per litre now has reduced the amount being spent to subsidise via the backdoor and let me tell you, that has to go with time too if we really want to reposition the country.

You are getting it all wrong, if the naira was not simultaneously floated, you will not be speaking of N1,500 per litre!

And listen, remember that GEJ tried to do this in 2012 - and it was not a complete removal - only a partial one. Do you remember the rage and protests led by this same Bola Tinubu? What is hypocrisy, tell me?

Now, when I say it should have been done in phases, that is the way it is done everywhere else in the world if you do not wish to fling your people into murderous hardship. Which is what has happened and what we are facing. This is no sensible way to run a country. No seasoned administrator will do things in such a reckless and thoughtless way.

Believe you me, for a sovereign economy such as Nigeria, there are always many creative options - which have been unexplored. Licenses of all kinds which the government has not even thought of regarding a vast array of solid minerals and new technology. It only takes creative and out of the box thinking which is lacking in government. Government still has tunnel vision focused on crude oil.

As per the floating of the naira, he had no choice. No foreign investors will invest in Nigeria when you are not giving him the right value for his dollar. Why should the FG be paying a the differential of each dollar bought.

Government was not paying an actual subsidy for each dollar sold. And foreign investors were still in our very large market. If anything, more investors have exited since this govt came on board with its disastrous market shrinking polices. One thing this govt fails to understand is that when you reduce the purchasing power of the populace, the market becomes less attractive to any investor because consumers are poorer.

Nigeria gave people who were travelling to saudi arabia, jerusalem and schooling abroad cheaper dollar at CBN rate while they kept on paying the differentials in price. Do you know how much in billions being wasted in that process, not to talk of the importers?

That was fraud.

IndexMode:


No, you're wrong

Before floating the naira, he should have worked on importation of capital goods like tractors, raw materials etc. and even stockpiled
That is the only way we can produce local products inspite of a weak naira.

Now, FG can't control price if they didn't provide/subsidize input. All those local alternatives you mentioned are also expensive.
Increasing minimum wage would cement inflation permanently and make naira worthless. All associations would also raise their charges subsequently I.e bricklayer, babrbers, transporters

He did not lay the foundation to become a productive economy first. His critics are right, execution is everything.

He must partially manage fx to keep this economy from collapsing meanwhile.

What difference does the bolded make.

Even if tractors etc were ordered before the floatation of the naira, the FG would still be paying the true value of the naira to dollar for the purchase.

Nothing changes from the solution you seeemingly proferred

IndexMode:


No, you're wrong

Before floating the naira, he should have worked on importation of capital goods like tractors, raw materials etc. and even stockpiled
That is the only way we can produce local products inspite of a weak naira.

Now, FG can't control price if they didn't provide/subsidize input. All those local alternatives you mentioned are also expensive.
Increasing minimum wage would cement inflation permanently and make naira worthless. All associations would also raise their charges subsequently I.e bricklayer, babrbers, transporters

He did not lay the foundation to become a productive economy first. His critics are right, execution is everything.

He must partially manage fx to keep this economy from collapsing meanwhile.

What am I wrong on ?

Gajagojo:

It is not a contract that takes futures earnings
It is a contract to buy a product or service at a specified price in the future
E.g. I can sign a contract to buy crude oil 1 million barrels in August from NNPC at $80
Come August and the price rises to $200 they are obliged to sell to me at $80
The price drops to $40 I must still buy at $80

That is how it works. It could be the same for a farmers harvest or any other commodity
That is why Dangote cannot get oil from NNPC today

Many of you are ignorant and just argue blindly and foolishly with EMPTY HEADS

You are not thinking straight. When you make a futures contract and fix a price at which it will hold, do you not do this to take advance earnings? Otherwise what will be the point in short changing yourself? It is called exactly that because you sell your futures olodo, and of course you do so at a lower fixed price because of the time value of money.

Now what does that have to do with what I said re: the manner of subsidy removal?