Nakss(national association of kano state
students) are conducting a peacefull rally
from fce kano to the govt house, the turn
out is very good and the police are so far
behaving, we are half way to the govt
house

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.

that's a good one Ade77

Fuel subsidy removal protest is unpatriotic,its removal has a long term positive effect as it will spring up competition in the multiple erection of refineries across the nation whereby the price of fuel will have no option but to be pushed down by competition in the market . But government should make alternative arrangement to cushion the harsh effect on her citizens pending the proposed positive effect is achieved. I suggest that States through their various ministries of transport should subsidize transport fares for commuters within the state environ. Evangelist Odogbor Udume vincent

@Udumevin_o^^^^^[/b]Without the risk of sounding offensive (and l apologize if my comments come across like that; l am in a foul mood since the new year day.), Let me ask: [b]HOW OLD ARE YOU SEF?

Where you "around" in 1986 when IBB increased fuel price?
If you were not around, l will advise you go to the nearest Library and read-up on the "reasons IBB gave Nigerians" for the removal of same subsidy.

Where you around between 1999 and 2007 when OBJ increased the price of fuel seven (7) times within his eight year govt?
Again, If you were not around,   l will advise you go to the nearest Library and read-up on the "reasons OBJ gave Nigerians" for the removal of same subsidy.

In both cases, you will discover that its always the same reason each President gave (same and Jonathan is giving us now!).

Question are: what happened to those PROMISES? What happened to the SAVINGS recouped from the removal of the Subsidy?
How many times do you remove subsidy in the life cycle of a product?
Are there no "alternatives" than this criminal doubling/tripling of fuel price?
Can any so-called "PALLIATIVE" work, when our Refineries are in a state of comatose and ELECTRICITY which would have reduced our demand for "subsidized fuel", in the same state it was when Fela Anikulapo Kuti sang "E go britee small, E go britee gaaan"!

So, why must we (or people like you) be falling for the same putrid and lame excuses, over and over again?
Is  it a case of kwashiorkor-induced, perenial amnesia?

Where is the "competition" that you are talking about going to come from?
Did you not notice that the only four Refineries we have are owned by government or have you ever seen government competing with itself?
Despite all the licenses given in the last 13years, have you seen any beneficiary build a REFINERY IN NIGERIA (instead, OBJ built one for himself in another West African country!)

Take Cement for example, despite its liberalization and privatization, did you see any "competition" bringing down the price of Cement?
Dont the producers "gang-up" to form a "Cement-Cabal" to[b] FIX THE PRICE[/b], as high as possible?
Did OBJ's deregulation and unending junketing around the world in eight years, bring any "FOREIGN INVESTOR" to Nigeria?

When will Nigerians learn? When will we wake-up and smell the coffee?
[/color]
Okay, this is Jonathan, NOT IBB or OBJ, right?
Why wold you trust a "leaders" who is a LIAR, to his followers?
Or did he not tell the nation that "He will be consulting the concerned parties" between now and April, TO DECIDE WHETHER THE SUBSIDY WILL BE REMOVED?
[color=#990000]How come he suddenly stabbed us in the back on the first day of a New Year?
Again, why would you trust this man who met 23Billion dollars in the excess crude-oil account and blew/shared it out with his cronies!
Where are the infrastructure to show for the 23 Billion dollars?
why would it be different this time around? Or does a Leopard change his spots?


Now, if YOU WERE AROUND when all these were happening and you still write the above, then l am sorry for you.

Like a blood-thirsty VAMPIRE, the Nigerian elite will ensure the wriggle out the blood of life (using poverty inducing policies like this one) out of the common man, EXCEPT THEY SAY "ENOUGH IS ENOUGH" and go out on the streets, to FIGHT FOR FREEDOM OR DIE TRYING

Nigerians: Fight this govt to a standstill or keep quiet and forever remain slaves (even your unborn children) to a few thieves like Jonathan!


Lastpage

One "Anishe" posted this. Let me crave his permission to reproduce it here (all credits goes to him for it).

@Anishe

this jonathan is a bastard. plz read onWhen President Olusegun Obasanjo was in power we spent 300 billion per year on the fuel subsidy. Under the administration of President Goodluck Jonathan it shot up to 1.3 trillion naira in the last one year alone. Can someone please explain to me how it got so high in 4 years and what exactly they were subsidising with the extra one trillion naira? When the Obasanjo government left power in 2007 the country was no longer in debt and the 30 billion dollar foreign debt that Obasanjo met when he came to power in 1999 was fully paid off. Today, under the administration of Jonathan, our country is back in debt to the tune of 30 billion dollars and we are still borrowing. Can someone please tell me what the loans were used for and whether we will ever be able to pay them off? When the Obasanjo administration left power in 2007 our foreign reserves were 80 billion dollars even though when he came into office in 1999 we only had 1.5 billion dollars.

Today our foreign reserves have dropped from 80 billion dollars in 2007 to 33 billion dollars. Can someone please tell me where all the money went? When the Obasanjo administration left power in 2007 23 billion dollars was left in the Excess Crude Account after he built it up from nothing in 1999. Today we do not have one dollar left in that account because the money has been squandered and the account scrapped. Can someone explain to me who spent that money and precisely what it was spent on? By the time the Obasanjo administration left power in 2007 not one bomb had gone off in Abuja throughout his 8 years in office and neither did we shy away from confronting the evil and dealing a hard blow to the terrorists wherever and whenever it was necessary to do so. Today bombs go off at will all over the north, the President hides in the Villa and churches were targetted on christmas day in Abuja. When Obasanjo was in power we did not remove the fuel subsidy because it would have caused too much pain to the Nigerian people and because there was no safety net in place to reduce that pain. President Jonathan however did not have any such inhibitions or qualms. Just seven days after we suffered the horrendous trauma of the xmas day bombings and probably as a New Year’s Greek gift to the Nigerian people, our President finally removed the oil subsidy. He did this knowing fully well that it will lead to untold suffering and terrible hardship for the next few years for the Nigerian people, most of whom still live below the poverty line. Can someone please tell me why President Jonathan wants Nigerians to cry? Yesterday he not only said that he would “crush Boko Haram” but he also declared a state of emergency in a few local government areas in some northern states. Can someone please tell me why our President could not do this 6 months ago when some of us first advocated it and thereby save many lives? Why has it taken him so long to find the guts to confront Boko Haram and to lead the fight against them with ruthless zeal, strengh, courage and total faith in God? Why has he done so little when it comes to this matter and why has he done it so late? Does he not know that a king is meant to lead his people into battle and if necessary die for them? He has been unable to handle and contain Boko Haram and now he has removed the fuel subsidy which is something that is expressly against the wishes and interest of the overwhelming majority of the Nigerian people.

Can someone please tell me precisely what has happened to this man and what has got into his head? This government is not only weak, it not only lacks direction but it is also insensitive and callous. The removal of the fuel subsidy is the final straw: President Jonathan, the King Rehoabam of our time, has hardened his heart unto destruction, just like Pharaoh once did, and he has fallen into the trap that has been set for him by God and by his enemies. May the Lord save Nigeria from this mess and from this weak man and may the Nigerian people themselves wake up from their accursed slumber and take their destiny into their own hands. The smell of religious war, sectarian violence, regional and ethnic conflict, insecurity, untold suffering, rampant poverty and economic hardship is in the air. Nigerians are divided as never before and our country is slowly crumbling and dying before our very eyes. Who will save Nigeria? Who will stand up and say enough is enough? Who will pull us back from the brink? Who can we count on to take the bull by the horns and do the right thing? There must be a lawful and democratic change. My God let there be a change.

Think about the above commentary for a moment please.