backbencher:
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The money that developed countries use to pay subsidies comes from very high tax rates. If we charged the kind of tax rates they did here, Nigerians would be angry.

Plus subsides there go to people who qualify for them...poor people. Not for everyone like in Nigeria. Finally Nigeria funds subsides from oil money..and oil prices have not been stable for decades. , and in some instances have been rock bottom low (like last year)...meaning we have to take loans to keep our heads above water...and those loans also go into subsidy payments.(especially in power where subsidies are paid for in part by loans).

It is costing us a lot of money really.



1.That is why in a democracy, you hold your government to account. Nigerians don;t want to do that because of many reasons...I have listed them upthread.

2.Some of the savings went to salaries, subsides, paying off debt, subsidies, and buffering the Naira..(if we didn;t do the last we would be at N2000 to one dollar by now).




And the IMF is not asking us to remove subsidies on health and education, just power and petroleum...plus removing subsides on power and petrol means
1, More money for subsidies on education and health (right now what we spend on subsides could have enrolled 1 million Nigerians on NHIS for example).

2More taxable income...which can be funnelled to...education and health.

Nigerians pay taxes in developed countries. Japa is popular because we love the good life and won't mind paying for it. The tax culture will improve if we earn and there's accountability. If I had power and i don't have to buy fuel for generator,I wouldn't mind paying more for power.
Many Nigerians are poor and if subsidies are saved for the benefit of the poor,then what about hoarding and looting? Covid19 palliative, even trader money,school feeding comes to mind. We are a greedy people.
Government is not held accountable mostly because we don't know that we can and how. Also ours is a complex society where tribal and religious politics is rated above well being. Many of us don't benefit from the cabal and are not next in line either.
How do we know IMF won't ask for more if this fails afterall their aim is to ensure we service our loans. I want the best for my country and if this will work,Thanks be to God.

Guyman02:


I have worked on Govt projects and sat down as FG representative on meetings with these foreign experts that I can tell you all that you are conjuring doesn't work that way in Nigeria.
Nothing much will change but more hardship for Nigerians, all those we will be creating millions of jobs from implementing IMF recommendations is nothing but arrant nonsense and balderdash

Thank you. When people talk I ask no be this same Nigeria abi it remain somewhere. Remove all the subsidies
Petrol,power, education, health etc you won't see any changes. You will end up creating more problems.

backbencher:


1. Actually we save money. That we don't save more isn't just due to corruption...we also subsidize everything. (In case you don't know, education and health in government institutions is subsidsied...which is why when you gain admission into a Nigerian government uni you don't pay N3 million per session or higher)

2.Nigerians also don't hold their government to account because of laziness and also because many Nigerians are hoping their side will win so that they can get into power and enjoy the corruption there. Fighting corrupt rule is against many Nigerian's self interest....which is why many Nigerians are so cynical about government

3.Remove subsidy, and since in principle, there is no price control, meaning one can earn enough profits..there would be more investment and more investors...meaning more jobs long term and price falls due to competiton. (We could even be an exporter of refined petrol and stuff!)

You still don't get it. A country is not a business venture with the sole aim to make profit. So it's not black or white. Even develop countries still pays subsidies. How much is our savings in the last two years? The money the Obasanjo regime saved during the oil boom what was it used for? The funds repatriated where are they? Looting, multiple leaks and misappropriation of funds is a major problem here. Now oil prices are going up,what has changed?
Nigeria cannot do without subsidized health and education because we are poor. How many Nigerians earn enough to afford standard health care. How much is education and health budget that the government will be claiming they pay much in subsidy? International bodies and NGOs spend a lot of money in our health sector. In the countries where these things are not subsidized they have functional health insurance, school loans, scholarships and good welfare etc. Our unemployment statistics is off the roof. Minimum wage is 30,000.
Buhari during climate change talked about our unique situation. It's not limited to zero carbon.

promisedire:
IMF conditions might have actually worked out in some of these western countries (No Doubt) but you see Africa economy is kinda unique! Especially Nigeria own; there are other important issues we should consider other than focusing on subsidies removal … subsidy removal in the long run will bring a positive effect � but ignoring the current realities will create impediment and further chaos economically which will certainly affect the goal of subsidy removal;

Plus saying it will create more jobs now is a lie; it should ooo but it won’t, with the way Naija dey go so na lie …, we will pay more whereas we are earning little … we should just stop falling for some beautiful economic jargons which we have been blindly implementing on our economy and has failed to produce needed result

Beautifully written. We must factor in our uniqueness.

backbencher:
On a more serious note, removing subsides on fuel and power means two things

1.Government stops spending money on subsides...which means that more money gets saved...plus due to investment flowing in, there is more taxable income from jobs and company earnings..more money for government

2.Second, since there is no subsidy, the electric and power companies now work at a profit, which means they would earn enough money to build more refineries, power stations, etc. They would also be able to afford to buy cables, wires, transformers , so that power customers can stop buying those things. And there would be foreign investment because now people can make profits in the sector...and finally more and more jobs.

Finally, a note on subsides.

Government controls the price of power and petroleum...which they set below the cost of productionmeaning that power and petrol companies run at a loss...meaning that subsides have to be paid to keep the companies from going bust.

But because the cost of production rises, and is never static, the government sometimes has to reduce the amount spent on subsidies to save money...and that manifests as a price increase.

The ideal would be for subsides to go and price to be in the hands of companies in the petrol and power sector...so that they earn profits to fix and upgrade services....and also competition would bring down prices.

The high price aspect of removing subsides...and the knock on effects (food price increase for example) is why most Nigerians oppose subsides. That shock can be mitigated by government doing as was done in some other countries..paying some money to car owners to mitigate subsidy related rises.

This is for a country that works not a complex society nonfunctional one like ours. This is what will happen; Our government saves no money they embezzle it that's number one. So expect no savings but massive stealing and corruption. As Inflation rises, more businesses will shutdown,more unemployment,poverty and hunger, increased insecurity leading to low investment.
Things are Designed to fail here.

People who knew nothing about your home is discussing your problem and insulting your spouse. There's a reason why we have elders.

SuperStriker:


That is what I don't want to do. I don't want to go to another woman but I am suffering...Sometimes I feel like I will tear my shirt and start running round the street when that pressure is too much

Then run down the street but don't grab a mannequin like that boy in the viral video.

Happy birthday P-square

The last time i check ,they are just like agbero in Lagos

Insecurity everywhere

The PIA provision is for full deregulation of the petroleum products and when that happens PMS pump price will be around 400 naira per litre. Don't be deceived,this is very true and the storm is coming. The government is just delaying the obvious because they can't predict how the people will respond. They are proposing to implement this by next June/July while hoping that Dangote refinery will come through by starting operations.

You would have cut him off the day he asked for a relationship but right now you can't help him without jeopardizing your marriage. He saw you as more than a friend and wanted to keep you for himself without considering your own happiness. A good friend will be happy for you trust me. By virtue of work,i have a lot of male friends. As a last push meet him during the day in a very open place (use your head because feelings are involved) and talk to him to fall in line. Be specific and give him a timeline. If that fails,then ignore him forever.

Take it one day at a time

Like i boycotted Titus fish although i found no better alternative.

Kukah my Lord Bishop always hit the truth on the head. Like him or hate him. A lot of bandits lovers are crying here

Congratulations CR7

Congratulations

You keep imagining all you could have done to keep him alive but couldn't. Stop blaming yourself. You did your best and there was nothing more left. Even your late bro knew that and want you to move on and live your life. Stop over thinking it. Even if you got the five million and did transplant,it not a 70% chance. You making first class despite all this has made him proud. Time heals all wounds. May his soul rest in peace.

Happy birthday Mama. 95 wow

Very good write up on the state of the nation. However,it failed to point out that escalation of Farmers and Herders crises( herdsmen murdering farmers),banditry in North west and the agitation for secession is as a result of the nepotism of the present leadership. These problems are not new in Nigeria but the coming of Buhari has turn them into a threat. Even the blind has seen how Nigeria is faring under a General.

Thank you for extending a helping hand.

Glad you are ok.

Girls please stop watching Zee world

I pray to someday work for a destiny helper big heart kind of wealthy boss. Add value and get value. Such people teach how to make and handle riches.

If you look at only removing subsidy without looking at the effect and how to mitigate it ,the country may breakdown completely driven by poverty and insecurity. A country is not a business enterprise and all factors must be considered.

Ours is such a complex society

MNDY:


Aunty, only 1woman wahala fit kill the man. We are talking about the wife wahala-ing her husband to death in the home. Who is talking about sidechicks, relatives, children, friends and strangers and impressing anybody?

Uncle you never ready to accept the koko.

I laugh because it's you men that put yourself under pressure. 1 Wife, 3 children,10 side chicks,20 relatives,50 friends,100 village/church members and 500 strangers these are the number of people you want to impress. Na you dey do yourself

This is the type of ban that will shake things up not sit at home.

When Gumi and all the Myetti Allah are all moving free. Even appointed to government positions.

They rode on horses as bikess has been banned. This is heartbreaking.