₦airaland Forum

Job is still open, pls send in your cvs

He should send in his CV, experience counts alot too

powerkey:
I know a pro but he is not a graduate.

He is the best that a particular company in lekki has....

if you can pay him, take him.

A logistics firm is in need of a mechanical engineer with vast experience in maintenance and repairs of diesel engine trucks such as MAN, IVECO, DAF, MERCEDES BENZ, MITSUBISHI, ISUZU as a Technical Specialist. The job requires managing workshop and mechanics, techincians to meet up strict key performance indicators which serves as basis of appraisals.

The ideal candidate should have B.Eng/B.Tech/HND Mechanical Engineering with considerable handson experience. Work experience in well structured auto workshop will be an added advantage.

Interested candidates should send in their cvs to samdat2012@gmail.com and samdat2012@ yahoo.com with TECHNICAL SPECIALIST as the subject on or before Friday 9th February 2018.

Shortlisted candidates will be contact for interview.

Goodluck

Our clients plays in the logistics industry with office in ikeja axis, looking to hire a presentable, inteligent, articulate female university graduate, 27 yrs old or below as an Executive Assistant to the MD.

Interested candidates should send in their cv to samdat2012@yahoo.com and samdat2012@gmail.com on or before 7th February 2018

Our clients plays in the logistics industry with office in ikeja axis, looking to hire a presentable, inteligent, articulate female university graduate, 27 yrs old or below as an Executive Assistant to the MD.

Interested candidates should send in their cv to samdat2012@yahoo.com and samdat2012@gmail.com on or before 7th February 2018

Wike is disputing Ameachi/APC winning of LGA elections and Ameachi is disputing Wike/PDP won governorship elections in Rivers. I guess the tribunals are going to be busy in Rivers after May 29th. Personally I think Rivers state did not withness any free and fair elections in 2015. Let's see what the tribunals will say at the end of the day.

Like him or hate him, Owelle Rochas is a smart politician, if not the smartest from the east presently. His defection to APC was a very smart move, now he is the only APC governor in the East, I see him as the best candidate for Igbo presidency as it stands. He may not be perfect but he understands Nigerian national politics. Remaining in APGA couldn't have given him more than a 2nd term and going to PDP would have made him wait in que endlessly, moving to APC and winning 2nd term in APC makes him the undisputed eastern regional party leader of APC, a potential Presidential candidate after Buhari. Rochas is a smart politician, like him or hate him.

I wish Abia people the best. Going by the trend of the last 16years of PDP's Kalu/Orji govts, I'm not expecting much from Ikpeazu because of his political lineage however he can decide to break from the norm of bad governance of his predecessors and make himself a hero. For Alex Otti, the tribunals is his next option, I hope he stays on course and give another challenge in 2019 should he losses at the tribunal.

the issue is not about Wike winning but "how" he won. I believe everyone knows Rivers was a PDP stronghold just like Lagos is an APC strong hold. I believe in a free and fair election devoid of intimidation the result would have reflected the presence of the opposition like Lagos did. the "must win all" attitude of PDP in south south and southeast is undemocratic. PDP won in Gombe, APC did not protest because the incumbent governor was popular. PDP unseat an APC governor in Ekiti, the defeated governor respected the wish of the people. Democracy is not just about winning but allowing the votes of people count. Wike would still be declared governor if the result read PDP 550,000 APC 400,000 but in this case the opposition will feel comfortable to conceed knowing their best effort was not good enough but where you don't allow them to really test their popularity, violence and all you see in the rivers and akwa ibom is what you get. it cast doubt on the legitimacy of Wike apart from the danger of being lockout by tribunal.

Its a shame we have a president whom we cannot trust his words. Its worrisome, he makes statements and deny later.
"Stealing is not corruption" later he only quoted Justice mustapha.
"Boko haran has infiltrated my government",later he said he was quoted wrongly.
About 2010 independence day bombing "this is not MEND's handiwork, I know what MEND can do".....fast forward 2015 in Lagos to start his President reflection bid " Okay was paid to assassinate me".

This guy is a joke! Clueless. FFK described him as clueless 2 yrs ago only for him to his campaign media director.

He is blaming obj utterances for scaring investors. He has forgotten that no investor will bring his hard earned dollars into a country with an highly unstable exchange rate. Dollar exchanges N225 when six months ago it was N165.

He handed over maritime security to "Tom polo" yet crude oil theft has been iincreasing.

Only Nigerians who are gullible will vote GEJ/PDP in next month elections.

This election is not about what Buhari is or is not. Its about GEJ stewardship of the last six years, call it a referendum on his administration, smear campaigns won't change his fate.

He has failed Nigeria and he deserved to be returned to Otuoke. It so painful he lies openly, he has no honour at all. He can do everything and anything to be returned. Nigerians open your eyes. #kickGEJout

SkyBlue1:
But it is okay for a corrupt and incompetent man to govern abi?

Very few supporters for continuance of PDP rule actually seem to have any intelligent debate to offer beyond the irrational "Jonathan must finish his term" "It is his turn" "He is destined to lead". Meanwhile the house is on fire, and you are asking us to continue pouring kerosense on the fire for another four years.

gbam!

#Jonathan inherited 774 LGA, today he has ceded 30 to General Shakau of Boko-haram.
#Jonathan inherited 23 PDP Governors but he ceded 5 to opposition APC.
#Jonathan inherited 4000 megawatts of electricity but we are now left with 2500 megawatts with obnoxious tariff from PHCN.
#Jonathan inherited 2.5 million barrel quota from OPEC but he ceded 1 million barrels to smugglers.
#Jonathan inherited a naira value of 155 to dollar but naira is now traded at 205.
#Jonathan inherited 30% unemployment but he has doubled it to 55%.
#Jonathan inherited positive AAA rating bond but JPMORGAN has rated our bond negative.
#Jonathan inherited a surviving stock market but he killed the stock market.
#Jonathan inherited 10% duty on tokumbo cars but he increased it to 70%.
#Jonathan inherited chibokgirls but he lost them to Shakau.
#Jonathan inherited a rag tag boko Haram he is leaving behind a sophisticated and daring BH.
#Jonathan inherited a booming economy but doom is what he is about to handover.
To worse it off, Jonathan is promoting STEALING against our moral and societal upbringing.
What then is safe under Jonathan? ??
Absolutely Nothing!!!
Dear Jonathan, I can't afford more losses!
Enough is enough!!!

#Jonathan inherited 774 LGA, today he has ceded 30 to General Shakau of Boko-haram.
#Jonathan inherited 23 PDP Governors but he ceded 5 to opposition APC.
#Jonathan inherited 4000 megawatts of electricity but we are now left with 2500 megawatts with obnoxious tariff from PHCN.
#Jonathan inherited 2.5 million barrel quota from OPEC but he ceded 1 million barrels to smugglers.
#Jonathan inherited a naira value of 155 to dollar but naira is now traded at 205.
#Jonathan inherited 30% unemployment but he has doubled it to 55%.
#Jonathan inherited positive AAA rating bond but JPMORGAN has rated our bond negative.
#Jonathan inherited a surviving stock market but he killed the stock market.
#Jonathan inherited 10% duty on tokumbo cars but he increased it to 70%.
#Jonathan inherited chibokgirls but he lost them to Shakau.
#Jonathan inherited a rag tag boko Haram he is leaving behind a sophisticated and daring BH.
#Jonathan inherited a booming economy but doom is what he is about to handover.
To worse it off, Jonathan is promoting STEALING against our moral and societal upbringing.
What then is safe under Jonathan? ??
Absolutely Nothing!!!
Dear Jonathan, I can't afford more losses!
Enough is enough!!!

#Jonathan inherited 774 LGA, today he has ceded 30 to General Shakau of Boko-haram.
#Jonathan inherited 23 PDP Governors but he ceded 5 to opposition APC.
#Jonathan inherited 4000 megawatts of electricity but we are now left with 2500 megawatts with obnoxious tariff from PHCN.
#Jonathan inherited 2.5 million barrel quota from OPEC but he ceded 1 million barrels to smugglers.
#Jonathan inherited a naira value of 155 to dollar but naira is now traded at 205.
#Jonathan inherited 30% unemployment but he has doubled it to 55%.
#Jonathan inherited positive AAA rating bond but JPMORGAN has rated our bond negative.
#Jonathan inherited a surviving stock market but he killed the stock market.
#Jonathan inherited 10% duty on tokumbo cars but he increased it to 70%.
#Jonathan inherited chibokgirls but he lost them to Shakau.
#Jonathan inherited a rag tag boko Haram he is leaving behind a sophisticated and daring BH.
#Jonathan inherited a booming economy but doom is what he is about to handover.
To worse it off, Jonathan is promoting STEALING against our moral and societal upbringing.
What then is safe under Jonathan? ??
Absolutely Nothing!!!
Dear Jonathan, I can't afford more losses!
Enough is enough!!!

https://www.youtube.com/watch?v=Y6fmjy7L7vA this is the prayer Bishop prayed for Jonathan today. I am a winner and voting GMB. Bishop prayer is in line with the bible verses quoted. GEJ reserves the right to worship and ask for prayers. Please let's get our facts before we rush to judgement.

https://www.youtube.com/watch?v=Y6fmjy7L7vA this is a link to the real prayers Bishop Oyedepo prayed for Jonathan. He didn't say any of what he was accused of. I am not a GEJ supporter infact I am a winners and I am going to vote GMB but I don't think its right to twist information for political gain. Its good we verify information before we judge. Just follow the link and see it for yourself

[color=#006600][/color]

Le Ostrich: salary is for slaves.

The term salary comes from the Latin word salarium which translates to salt.


Salt was at one time a very precious commodity in the old world.

The roman soldiers were not paid wages during active service but salt rations which they used to batter for goods and services (woman comfort services) within their local posting. The salt rations were the only thing a Roman soldier was guaranteed. Other forms of compensation were from war booties (if you survived the battle) and a soldier's share was determined by rank and number of survivors. If a Roman soldier then survives a series of campaigns inspired by despotic Generals, he is guaranteed a pension depending on the largess-es of his General. Most soldiers were conscripted by force from the mines or prisons so a retirement meant an end of servitude. Others more fortunate may own a plot of land in servitude to the General in his rural villa.

Not much has changed since for your average salt earner.

The phrase worth his/her salt comes to mind.

This is serious ITK (i too know)

African values are still regarded in Nigeria, the society is governed by some dos and don't s which makes us more predictable than the US where excessive freedom and no cultural values has lead to display of the worst of humanity in social spheres. morality is subjective, I agree so from an african -Christain perspective, Nigeria is more morally sound than the US. We cant answer this question without been ethnocentric.

I used to view Nairaland as A̶̲̥̅̊ neutral forum where nigerians freely express their opinion on national issues. The last few weeks has made me to reconsider this assertion. Most of the Bishop Oyedepo attacks are unwarranted and I accuse the moderators of being baised in that whatever is against oyedepo, adeboye and other men of ĞOD, no matter how silly is what they move to the frontpage. The credibility of this forum is in doubt.

We have A̶̲̥̅̊ nation in crises, unwarranted persecution against Christians in the north. Lives lost for no just cause other than been Christians and I find it appalling that senseless comment about Christianity /christain leaders are moved to front page. The christain leaders are human and bound to make errors. Even in the bible spirit led leaders such as david, moses, eli made mistakes but that didn't make them less Godly. To expect that men of ĞOD won't err is to equate them with ĞOD. Stop all these unnecessary attacks. Christianity preaches LVΞ and forgiveness not hatred and persecution.

Boko haram has waged war on Christianity and our ĞOD is A̶̲̥̅̊ good vegeance and in his own time will repay all the evil deeds against his elect. Seun don't allow nairaland to become A̶̲̥̅̊ forum for persecution for Christians and avenue for scoring cheap points against those who have personal beef against christain leaders.

I saw this peice and it seem to make alot of sense, decided to share it with fellow nairalanders to see another angle to fuel subsidy removal debate. Comments are welcomed.



Finally The Hidden Truth About Fuel Subsidy Comes Out


No doubt, many Nigerians have not seen the facts about fuel subsidy this clearer before: On December 10, 2011, if you stopped at the Mobil filling station on Old Aba Road in Port Harcourt , you would be able to buy a litre of petrol for 65 naira or $1.66 per gallon at an exchange rate of $1/N157 and 4 litres per gallon. This is the official price.

The government claims that this price would have been subsidized at,
N73/litre and that the true price of a litre of petrol in Port Harcourt is N138/litre or $3.52 per gallon.

They are therefore determined to remove their subsidy and sell the gallon at $3.52. But, On December 10, 2011, if you stopped at the Mobil Gas station on E83rd St and Flatlands Avenue in Brooklyn, New York, USA, you would be a able to buy a gallon of petrol for $3.52/gallon. Both gallons of petrol would have been refined from Nigerian crude oil. The only difference would be that the gallon in New York was refined in a US North East refinery from Nigerian crude exported from the Qua Iboe Crude Terminal in Nigeria while the Port Harcourt gallon was either refined in Port Harcourt or imported.

The idea that a gallon of petrol from Nigerian crude oil cost the same in New York as in Port Harcourt runs against basic economic logic. Hence, Nigerians suspect that there is something irrational and fishy about such pricing. What they (Nigerians) would like to know is the exact cost of 1 litre of petrol in Nigeria.

We will answer this question in the simplest economic terms despite the attempts of the Nigerian government to muddle up the issue. What is the true cost of a litre of petrol in Nigeria? The Nigerian government has earmarked 445,000 barrel per day throughput for meeting domestic refinery products demands. These volumes are not for export. They are public goods reserved for internal consumption.

We will limit our analysis to this volume of crude oil. At the refinery gate in Port Harcourt, the cost of a barrel of Qua Iboe crude oil is made up of the finding /development cost ($3.5/bbl) and a production/storage /transportation cost of $1.50 per barrel.

Thus, at $5 per barrel, we can get Nigerian Qua Iboe crude to the refining gates at Port Harcourt and Warri. One barrel is 42 gallons or 168 litres. The price of 1 barrel of petrol at the Depot gate is the sum of the cost of crude oil, the refining cost and the pipeline transportation cost.

Refining costs are at $12.6 per barrel and pipeline distribution cost are $1.50 per barrel. The Distribution Margins (Retailers, Transporters, Dealers, Bridging Funds, Administrative charges etc) are N15.49/litre or $16.58 per barrel. The true cost of 1 litre of petrol at the Mobil filling station in Port Harcourt or anywhere else in Nigeria is therefore ($5 +$12.6+$1.5+$16.6) or $35.7 per barrel . This is equal to N33.36 per litre compared to the official price of N65 per litre. Prof. Tam David West is right. There is no petrol subsidy in Nigeria. Rather the current official prices are too high. Let us continue with some basic energy economics.

The government claims we are currently operating our refineries at 38.2% efficiency. When we refine a barrel of crude oil, we get more than just petrol. If we refine 1 barrel (42 gallons) of crude oil, we will get 45 gallons of petroleum products. The 45 gallons of petroleum products consist of 4 gallons of LPG, 19.5 gallons of Gasoline, 10 gallons of Diesel, 4 gallons of Jet Fuel/Kerosene, 2.5 gallons of Fuel Oil and 5 gallons of Bottoms. Thus, at 38.2% of refining capacity, we have about 170,000 bbls of throughput refined for about 13.26 million litres of petrol, 6.8 million litres of diesel and 2.72 million litres of kerosene/jet fuel.

This is not enough to meet internal national demand. So, we send the remaining of our non-export crude oil volume (275,000 barrels per day) to be refined abroad and import the petroleum product back into the country. We will just pay for shipping and refining. The Nigerian government exchanges the 275,000 barrels per day with commodity traders (90,000 barrels per day to Duke Oil, 60,000 barrels per day to Trafigura (Puma Energy), 60,000 barrels per day to Societe Ivoirienne de Raffinage (SIR) in Abidjan, Ivory Coast and 65,000 barrels per days to unknown sources) in a swap deal.

The landing cost of a litre of petrol is N123.32 and the distribution margins are N15.49 according to the government. The cost of a litre is therefore (N123.32+N15.49) or N138.81 . This is equivalent to $3.54 per gallon or $148.54 per barrel. In technical terms, one barrel of Nigerian crude oil has a volume yield of 6.6% of AGO, 20.7% of Gasoline, 9.5% of Kerosene/Jet fuel, 30.6% of Diesel, 32.6% of Fuel oil / Bottoms when it is refined.

Using a netback calculation method, we can easily calculate the true cost of a litre of imported petrol from swapped oil. The gross product revenue of a refined barrel of crude oil is the sum of the volume of each refined product multiplied by its price. Domestic prices are $174.48/barrel for AGO, $69.55/barrel for Gasoline (PMS or petrol), $172.22/barrel for Diesel Oil, $53.5/barrel for Kerosene and $129.68/barrel for Fuel Oil. Let us substitute the government imported PMS price of $148.54 per barrel for the domestic price of petrol/gasoline.

Our gross product revenue per swapped barrel would be (174.48*0.066 +148.54*0.207+172.22*0.306+ 53.5*0.095+129.68*0.326) or $142.32 per barrel. We have to remove the international cost of a barrel of Nigerian crude oil ($107 per barrel) from this to get the net cost of imported swapped petroleum products to Nigerian consumers. The net cost of swapped petroleum products would therefore be $142.32 -$107 or $35.32 per barrel of swapped crude oil. This comes out to be a net of $36.86 per barrel of petrol or N34.45 per litre.

This is the true cost of a litre of imported swapped petrol and not the landing cost of N138 per litre claimed by the government. The pro-subsidy Nigerian government pretends the price of swapped crude oil is $0 per barrel (N0 per litre) while the resulting petroleum products is $148.54 per barrel (N138 per litre). The government therefore argues that the “subsidy” is N138.81-N65 or N73.81 per litre.

But, if landing cost of the petroleum products is at international price ($148.54 per barrel), then the take-off price of the swapped crude oil should be at international price ($107 per barrel). This is basic economic logic outside the ideological prisms of the World Bank. The traders/petroleum products importers and the Nigerian government are charging Nigerians for the crude oil while they are getting it free.

So let us conclude this basic economic exercise. If the true price of 38.2% of our petrol supply from our local refinery is N33.36/litre and the remaining 61.8% has a true price of N34.45 per litre, then the average true price is (0.382*33.36+0.618*34.45) or N34.03 per litre. The official price is N65 per litre and the true price with government figures is about N34 per litre (even with our moribund refineries).

There is therefore no petrol subsidy. Rather, there is a high sales tax of 91.2% at current prices of N65 per litre. The labor leaders meeting the President should go with their economists. They should send economists and political scientists as representatives to the Senate Committee investigating the petroleum subsidy issue. There are many expert economists and political scientists in ASUU who will gladly represent the view of the majority. The labor leaders should not let anyone get away with the economic fallacy that the swapped oil is free while its refined products must be sold at international prices in the Nigerian domestic market.

The government should explain at what price the swapped crude oil was sold and where the money accruing from these sales have been kept. We have done this simple economic analysis of the Nigerian petroleum products market to show that there is no petrol subsidy what so ever. In the end, this debate on petrol subsidy and the attempt of the government to transfer wealth from the Nigerian masses to a petrol cabal will be decided in the streets.

Nigerian workers, farmers, students, market women, youths, unemployed, NGO and civil society as a whole should prepare for a long harmattan season of protracted struggle. They should not just embark on 3 days strike/protests after which the government reduces the hiked petroleum prices by a few Nairas. They must embark upon in a sustainable struggle that will lead to fundamental changes. Let us remove our entire political subsidy from the government and end this petroleum products subsidy debate once and for all. It is time to bring the Arab Spring south.

This piece was written by Izielen Agbon Izielen Agbon
He writes from Dallas, Texas. izielenagbon@yahoo.com
He is former HOD, Petroleum Engineering Dept, former ASUU chairman, University of Ibadan,
trained many operators in nation’s energy industry with practical experience on
our practices and policy focus in the last 20yrs.

Finally The Hidden Truth About Fuel Subsidy Comes Out


No doubt, many Nigerians have not seen the facts about fuel subsidy this clearer before: On December 10, 2011, if you stopped at the Mobil filling station on Old Aba Road in Port Harcourt , you would be able to buy a litre of petrol for 65 naira or $1.66 per gallon at an exchange rate of $1/N157 and 4 litres per gallon. This is the official price.

The government claims that this price would have been subsidized at,
N73/litre and that the true price of a litre of petrol in Port Harcourt is N138/litre or $3.52 per gallon.

They are therefore determined to remove their subsidy and sell the gallon at $3.52. But, On December 10, 2011, if you stopped at the Mobil Gas station on E83rd St and Flatlands Avenue in Brooklyn, New York, USA, you would be a able to buy a gallon of petrol for $3.52/gallon. Both gallons of petrol would have been refined from Nigerian crude oil. The only difference would be that the gallon in New York was refined in a US North East refinery from Nigerian crude exported from the Qua Iboe Crude Terminal in Nigeria while the Port Harcourt gallon was either refined in Port Harcourt or imported.

The idea that a gallon of petrol from Nigerian crude oil cost the same in New York as in Port Harcourt runs against basic economic logic. Hence, Nigerians suspect that there is something irrational and fishy about such pricing. What they (Nigerians) would like to know is the exact cost of 1 litre of petrol in Nigeria.

We will answer this question in the simplest economic terms despite the attempts of the Nigerian government to muddle up the issue. What is the true cost of a litre of petrol in Nigeria? The Nigerian government has earmarked 445,000 barrel per day throughput for meeting domestic refinery products demands. These volumes are not for export. They are public goods reserved for internal consumption.

We will limit our analysis to this volume of crude oil. At the refinery gate in Port Harcourt, the cost of a barrel of Qua Iboe crude oil is made up of the finding /development cost ($3.5/bbl) and a production/storage /transportation cost of $1.50 per barrel.

Thus, at $5 per barrel, we can get Nigerian Qua Iboe crude to the refining gates at Port Harcourt and Warri. One barrel is 42 gallons or 168 litres. The price of 1 barrel of petrol at the Depot gate is the sum of the cost of crude oil, the refining cost and the pipeline transportation cost.

Refining costs are at $12.6 per barrel and pipeline distribution cost are $1.50 per barrel. The Distribution Margins (Retailers, Transporters, Dealers, Bridging Funds, Administrative charges etc) are N15.49/litre or $16.58 per barrel. The true cost of 1 litre of petrol at the Mobil filling station in Port Harcourt or anywhere else in Nigeria is therefore ($5 +$12.6+$1.5+$16.6) or $35.7 per barrel . This is equal to N33.36 per litre compared to the official price of N65 per litre. Prof. Tam David West is right. There is no petrol subsidy in Nigeria. Rather the current official prices are too high. Let us continue with some basic energy economics.

The government claims we are currently operating our refineries at 38.2% efficiency. When we refine a barrel of crude oil, we get more than just petrol. If we refine 1 barrel (42 gallons) of crude oil, we will get 45 gallons of petroleum products. The 45 gallons of petroleum products consist of 4 gallons of LPG, 19.5 gallons of Gasoline, 10 gallons of Diesel, 4 gallons of Jet Fuel/Kerosene, 2.5 gallons of Fuel Oil and 5 gallons of Bottoms. Thus, at 38.2% of refining capacity, we have about 170,000 bbls of throughput refined for about 13.26 million litres of petrol, 6.8 million litres of diesel and 2.72 million litres of kerosene/jet fuel.

This is not enough to meet internal national demand. So, we send the remaining of our non-export crude oil volume (275,000 barrels per day) to be refined abroad and import the petroleum product back into the country. We will just pay for shipping and refining. The Nigerian government exchanges the 275,000 barrels per day with commodity traders (90,000 barrels per day to Duke Oil, 60,000 barrels per day to Trafigura (Puma Energy), 60,000 barrels per day to Societe Ivoirienne de Raffinage (SIR) in Abidjan, Ivory Coast and 65,000 barrels per days to unknown sources) in a swap deal.

The landing cost of a litre of petrol is N123.32 and the distribution margins are N15.49 according to the government. The cost of a litre is therefore (N123.32+N15.49) or N138.81 . This is equivalent to $3.54 per gallon or $148.54 per barrel. In technical terms, one barrel of Nigerian crude oil has a volume yield of 6.6% of AGO, 20.7% of Gasoline, 9.5% of Kerosene/Jet fuel, 30.6% of Diesel, 32.6% of Fuel oil / Bottoms when it is refined.

Using a netback calculation method, we can easily calculate the true cost of a litre of imported petrol from swapped oil. The gross product revenue of a refined barrel of crude oil is the sum of the volume of each refined product multiplied by its price. Domestic prices are $174.48/barrel for AGO, $69.55/barrel for Gasoline (PMS or petrol), $172.22/barrel for Diesel Oil, $53.5/barrel for Kerosene and $129.68/barrel for Fuel Oil. Let us substitute the government imported PMS price of $148.54 per barrel for the domestic price of petrol/gasoline.

Our gross product revenue per swapped barrel would be (174.48*0.066 +148.54*0.207+172.22*0.306+ 53.5*0.095+129.68*0.326) or $142.32 per barrel. We have to remove the international cost of a barrel of Nigerian crude oil ($107 per barrel) from this to get the net cost of imported swapped petroleum products to Nigerian consumers. The net cost of swapped petroleum products would therefore be $142.32 -$107 or $35.32 per barrel of swapped crude oil. This comes out to be a net of $36.86 per barrel of petrol or N34.45 per litre.

This is the true cost of a litre of imported swapped petrol and not the landing cost of N138 per litre claimed by the government. The pro-subsidy Nigerian government pretends the price of swapped crude oil is $0 per barrel (N0 per litre) while the resulting petroleum products is $148.54 per barrel (N138 per litre). The government therefore argues that the “subsidy” is N138.81-N65 or N73.81 per litre.

But, if landing cost of the petroleum products is at international price ($148.54 per barrel), then the take-off price of the swapped crude oil should be at international price ($107 per barrel). This is basic economic logic outside the ideological prisms of the World Bank. The traders/petroleum products importers and the Nigerian government are charging Nigerians for the crude oil while they are getting it free.

So let us conclude this basic economic exercise. If the true price of 38.2% of our petrol supply from our local refinery is N33.36/litre and the remaining 61.8% has a true price of N34.45 per litre, then the average true price is (0.382*33.36+0.618*34.45) or N34.03 per litre. The official price is N65 per litre and the true price with government figures is about N34 per litre (even with our moribund refineries).

There is therefore no petrol subsidy. Rather, there is a high sales tax of 91.2% at current prices of N65 per litre. The labor leaders meeting the President should go with their economists. They should send economists and political scientists as representatives to the Senate Committee investigating the petroleum subsidy issue. There are many expert economists and political scientists in ASUU who will gladly represent the view of the majority. The labor leaders should not let anyone get away with the economic fallacy that the swapped oil is free while its refined products must be sold at international prices in the Nigerian domestic market.

The government should explain at what price the swapped crude oil was sold and where the money accruing from these sales have been kept. We have done this simple economic analysis of the Nigerian petroleum products market to show that there is no petrol subsidy what so ever. In the end, this debate on petrol subsidy and the attempt of the government to transfer wealth from the Nigerian masses to a petrol cabal will be decided in the streets.

Nigerian workers, farmers, students, market women, youths, unemployed, NGO and civil society as a whole should prepare for a long harmattan season of protracted struggle. They should not just embark on 3 days strike/protests after which the government reduces the hiked petroleum prices by a few Nairas. They must embark upon in a sustainable struggle that will lead to fundamental changes. Let us remove our entire political subsidy from the government and end this petroleum products subsidy debate once and for all. It is time to bring the Arab Spring south.

This piece was written by Izielen Agbon Izielen Agbon
He writes from Dallas, Texas. izielenagbon@yahoo.com
He is former HOD, Petroleum Engineering Dept, former ASUU chairman, University of Ibadan,
trained many operators in nation’s energy industry with practical experience on
our practices and policy focus in the last 20yrs.

Finally The Hidden Truth About Fuel Subsidy Comes Out


No doubt, many Nigerians have not seen the facts about fuel subsidy this clearer before: On December 10, 2011, if you stopped at the Mobil filling station on Old Aba Road in Port Harcourt , you would be able to buy a litre of petrol for 65 naira or $1.66 per gallon at an exchange rate of $1/N157 and 4 litres per gallon. This is the official price.

The government claims that this price would have been subsidized at,
N73/litre and that the true price of a litre of petrol in Port Harcourt is N138/litre or $3.52 per gallon.

They are therefore determined to remove their subsidy and sell the gallon at $3.52. But, On December 10, 2011, if you stopped at the Mobil Gas station on E83rd St and Flatlands Avenue in Brooklyn, New York, USA, you would be a able to buy a gallon of petrol for $3.52/gallon. Both gallons of petrol would have been refined from Nigerian crude oil. The only difference would be that the gallon in New York was refined in a US North East refinery from Nigerian crude exported from the Qua Iboe Crude Terminal in Nigeria while the Port Harcourt gallon was either refined in Port Harcourt or imported.

The idea that a gallon of petrol from Nigerian crude oil cost the same in New York as in Port Harcourt runs against basic economic logic. Hence, Nigerians suspect that there is something irrational and fishy about such pricing. What they (Nigerians) would like to know is the exact cost of 1 litre of petrol in Nigeria.

We will answer this question in the simplest economic terms despite the attempts of the Nigerian government to muddle up the issue. What is the true cost of a litre of petrol in Nigeria? The Nigerian government has earmarked 445,000 barrel per day throughput for meeting domestic refinery products demands. These volumes are not for export. They are public goods reserved for internal consumption.

We will limit our analysis to this volume of crude oil. At the refinery gate in Port Harcourt, the cost of a barrel of Qua Iboe crude oil is made up of the finding /development cost ($3.5/bbl) and a production/storage /transportation cost of $1.50 per barrel.

Thus, at $5 per barrel, we can get Nigerian Qua Iboe crude to the refining gates at Port Harcourt and Warri. One barrel is 42 gallons or 168 litres. The price of 1 barrel of petrol at the Depot gate is the sum of the cost of crude oil, the refining cost and the pipeline transportation cost.

Refining costs are at $12.6 per barrel and pipeline distribution cost are $1.50 per barrel. The Distribution Margins (Retailers, Transporters, Dealers, Bridging Funds, Administrative charges etc) are N15.49/litre or $16.58 per barrel. The true cost of 1 litre of petrol at the Mobil filling station in Port Harcourt or anywhere else in Nigeria is therefore ($5 +$12.6+$1.5+$16.6) or $35.7 per barrel . This is equal to N33.36 per litre compared to the official price of N65 per litre. Prof. Tam David West is right. There is no petrol subsidy in Nigeria. Rather the current official prices are too high. Let us continue with some basic energy economics.

The government claims we are currently operating our refineries at 38.2% efficiency. When we refine a barrel of crude oil, we get more than just petrol. If we refine 1 barrel (42 gallons) of crude oil, we will get 45 gallons of petroleum products. The 45 gallons of petroleum products consist of 4 gallons of LPG, 19.5 gallons of Gasoline, 10 gallons of Diesel, 4 gallons of Jet Fuel/Kerosene, 2.5 gallons of Fuel Oil and 5 gallons of Bottoms. Thus, at 38.2% of refining capacity, we have about 170,000 bbls of throughput refined for about 13.26 million litres of petrol, 6.8 million litres of diesel and 2.72 million litres of kerosene/jet fuel.

This is not enough to meet internal national demand. So, we send the remaining of our non-export crude oil volume (275,000 barrels per day) to be refined abroad and import the petroleum product back into the country. We will just pay for shipping and refining. The Nigerian government exchanges the 275,000 barrels per day with commodity traders (90,000 barrels per day to Duke Oil, 60,000 barrels per day to Trafigura (Puma Energy), 60,000 barrels per day to Societe Ivoirienne de Raffinage (SIR) in Abidjan, Ivory Coast and 65,000 barrels per days to unknown sources) in a swap deal.

The landing cost of a litre of petrol is N123.32 and the distribution margins are N15.49 according to the government. The cost of a litre is therefore (N123.32+N15.49) or N138.81 . This is equivalent to $3.54 per gallon or $148.54 per barrel. In technical terms, one barrel of Nigerian crude oil has a volume yield of 6.6% of AGO, 20.7% of Gasoline, 9.5% of Kerosene/Jet fuel, 30.6% of Diesel, 32.6% of Fuel oil / Bottoms when it is refined.

Using a netback calculation method, we can easily calculate the true cost of a litre of imported petrol from swapped oil. The gross product revenue of a refined barrel of crude oil is the sum of the volume of each refined product multiplied by its price. Domestic prices are $174.48/barrel for AGO, $69.55/barrel for Gasoline (PMS or petrol), $172.22/barrel for Diesel Oil, $53.5/barrel for Kerosene and $129.68/barrel for Fuel Oil. Let us substitute the government imported PMS price of $148.54 per barrel for the domestic price of petrol/gasoline.

Our gross product revenue per swapped barrel would be (174.48*0.066 +148.54*0.207+172.22*0.306+ 53.5*0.095+129.68*0.326) or $142.32 per barrel. We have to remove the international cost of a barrel of Nigerian crude oil ($107 per barrel) from this to get the net cost of imported swapped petroleum products to Nigerian consumers. The net cost of swapped petroleum products would therefore be $142.32 -$107 or $35.32 per barrel of swapped crude oil. This comes out to be a net of $36.86 per barrel of petrol or N34.45 per litre.

This is the true cost of a litre of imported swapped petrol and not the landing cost of N138 per litre claimed by the government. The pro-subsidy Nigerian government pretends the price of swapped crude oil is $0 per barrel (N0 per litre) while the resulting petroleum products is $148.54 per barrel (N138 per litre). The government therefore argues that the “subsidy” is N138.81-N65 or N73.81 per litre.

But, if landing cost of the petroleum products is at international price ($148.54 per barrel), then the take-off price of the swapped crude oil should be at international price ($107 per barrel). This is basic economic logic outside the ideological prisms of the World Bank. The traders/petroleum products importers and the Nigerian government are charging Nigerians for the crude oil while they are getting it free.

So let us conclude this basic economic exercise. If the true price of 38.2% of our petrol supply from our local refinery is N33.36/litre and the remaining 61.8% has a true price of N34.45 per litre, then the average true price is (0.382*33.36+0.618*34.45) or N34.03 per litre. The official price is N65 per litre and the true price with government figures is about N34 per litre (even with our moribund refineries).

There is therefore no petrol subsidy. Rather, there is a high sales tax of 91.2% at current prices of N65 per litre. The labor leaders meeting the President should go with their economists. They should send economists and political scientists as representatives to the Senate Committee investigating the petroleum subsidy issue. There are many expert economists and political scientists in ASUU who will gladly represent the view of the majority. The labor leaders should not let anyone get away with the economic fallacy that the swapped oil is free while its refined products must be sold at international prices in the Nigerian domestic market.

The government should explain at what price the swapped crude oil was sold and where the money accruing from these sales have been kept. We have done this simple economic analysis of the Nigerian petroleum products market to show that there is no petrol subsidy what so ever. In the end, this debate on petrol subsidy and the attempt of the government to transfer wealth from the Nigerian masses to a petrol cabal will be decided in the streets.

Nigerian workers, farmers, students, market women, youths, unemployed, NGO and civil society as a whole should prepare for a long harmattan season of protracted struggle. They should not just embark on 3 days strike/protests after which the government reduces the hiked petroleum prices by a few Nairas. They must embark upon in a sustainable struggle that will lead to fundamental changes. Let us remove our entire political subsidy from the government and end this petroleum products subsidy debate once and for all. It is time to bring the Arab Spring south.

This piece was written by Izielen Agbon Izielen Agbon
He writes from Dallas, Texas. izielenagbon@yahoo.com
He is former HOD, Petroleum Engineering Dept, former ASUU chairman, University of Ibadan,
trained many operators in nation’s energy industry with practical experience on
our practices and policy focus in the last 20yrs.

Uk, Armnesty International all pro homosexual entities can go to blazes. We are Africans and we don't recognize such relationships.

Uk, Armnesty International all pro homosexual entities can go to blazes. We are Africans and we don't recognize such relationships.

very nice move. We are Africans and homosexuality is not in our culture. the West that shouts human rights , respect for minorities are very much indeed discriminating against immigrants in their countries till tomorrow.

Will the Uk or US recognize a man's marriage to more than one wife in their country? absolutely no! so why do they want us to recognize gay marriages. These things are cultural, no right no wrong, A people's culture must be respected for world peace. If you are in the west marry your lesbian or gay partner and stay there. if you marry more than one why remain in Africa where it is tolerated.

Do the job and stop these promises, campaign has been over since March 11. Your promises dont worth much cos u havent fufilled any, Im tired of hearing them. As my boss will say efforts are not rewarded but results. Let see the results.

GEJ is good at making promises, but have a poor record of keeping them. Time will tell this is a man that can no longer be judged by his words but his actions

Make em go lern mechanic or welder. School is not meant for everyone he should learn a trade and earn a living with such

RIP El rufai looks like someone with SS genes. If true then the daughter could be a sickler. May her soul rest in peace.

No amount of makeup can beautify an ape, an ape by nature is meant to be ugly. T.A Orji or Thief After Orji is by nature a thief who have no idea of what governance is yet alone transformation. Paid praise singers on Nairaland obviously do not live in Abia State. There are no such health facility. The ABSUTH Aba is no more than a glorified General Hospital. Enough of all this cheap publicity.