₦airaland Forum

It will not be out of place, because oil prices are generally controlled by global forces and events. However, you will agree with me that if we have our local refineries servicing our local needs with at least 70% of manpower from Nigeria, international oil price will not have any effect here, rather if the price of crude rises as a result of international events, Nigeria will be making more money.

Leomax, you are funny, if oga GEJ shut down telecoms etc, how will he then meet you. >?? cos he has to communicate with you na.

Lets be serious here, the solution is this:

1. tackle corruption.
2. Build at least 1 new refineries and revive the existing 4 to service local consumption.
3. Roads
4. rail transportation and mass transit buses.

Then remove subsidy and see if Nigerians will complain.

These are projects he can do in phases.

Listen up guys, our govt have agreed that there lots of fraud and corruption in the downstream sector which includes the process of importation of fuels and in its paper work. Now since the govt does not have the guts and muscle to fight and stop of even reduce this corruption to its barest minimum, what they are doing now is to transfer the liability to the Nigerians, so that we continue to pay for the fraud and corruption they are not able to check thereby allowing our govt officials time and chance to share more of our national treasury.

If our president cannot fight the cabals, build new refineries to sustain domestic consumption, so be it, then he has to put up with the problem of paying bills to the importers of fuel.

When you say you are subsidising fuel, it should be a short term measure, so that refineries can be put in place, and when that is done, subsidy can then be removed. we cannot continue to import and say we want to remove subsidy. Subsidy can only be removed when we have refineries working to sustain local consumption.

Nigerians cannot be handed over to these cabals to milk us dry because no amount of regulation can help here, it has never helped. The best way out of this is for our govt to check corruption and check the process and procedure of subsidy payout to the fuel importers until we revive our refineries which will even provide more jobs. PERIOD.

@leomax, Inflation? I am sure you know the definition.

Jona and his cohorts are not sincere with Nigerians, and I can tell you, non of them can come out and give us details of how monies have been spent over the past years, and how they have fought corruption to ensure that public funds get to the right projects.

They are all lies, and never to be trusted. Sometimes, I feel I should trust this govt, but when I check the indices and postulations behind the removal of fuel subsidy, it comes very clear that the process is insincere, callous and fraudulent.

1. I can name several projects that monies have been allocated for and even released and those project s are not anywhere near 25% completion. These includes our power sector, where past governments have sunk billions of dollars, and at the end of the day. we still don't have steady electricity. Probes were called for and nothing came out of it.

2. Health sector is neglected, and monies are allocated and released for the health sector, rather the funds end up in foreign accounts of politicians.

3. there has been massive corruption in this country, how many govt officials have been sentenced. NON.

4. Benin -Ore road projects had been awarded several times, with billions of money released for the rehabilitation of the road, yet for more than 20 years now, that road has never been attended to. The public officials who managed the funds/project were not held accountable.

5. Okonjo and uncle Jona are not sincere with Nigerians. If you look at the sharing formula of the acclaimed money to be generated from fuel subsidy, it has already been shared, the money they have not realised have already been shared. Why is this, do you share what you don't have?

It then means that fuel subsidy funds was provided for in this last 2012 budget, and that is why they have shared it with specific figures to feds, states and local govt councils. For crying out loud, you cannot share money you have not shared??

Lets work some maths here, if subsidy policy comes to stay, it then means that people have to cut down on expenses in fuel. Most people will cut down from 100% a month to about 65% consumption monthly, so if for instance I buy 100 litres of fuel monthly both for my car and generator, I have to cut it down to 65 litres monthly, and the same goes to majority of people around the country, so then government income will definitely drop from what it used to be and it then means that their calculated income of 1.3 trillion from subsidy removal is faulty because at the end of the year, they might not really realise the proposed 1.3 trillion. So how did they share the money to arrive at those figure they are brandishing on TVs that will be shared amongst the feds, states and local govt councils. It is logically clear that our govt is not sincere with the people. The right thing to do is to realise the money first before sharing, but from what I see here, it is like they have already borrowed and shared it. Now even with removal of fuel subsidy, Nigerians will still be paying debts related to this fuel subsidy issue.

6. The subsidy shut up from 250 billion within 1 year to 1.3 trillion, and our president cannot even call for investigation and make sure heads roll. It is like running a company in which you a monthly salary of 10 million Naira to your staffs, and suddenly your accountant brings a salary schedule of 25 million naira for you to sign, won't you call for probe?

we all agree that consumption have increased over the years, but by what percentage, Nigerians should be able to know by what percentage our PMS consumption have increased, because it is logical but that cannot account for 1.3 trillion subsidy in any way.

My deal NL, Nigeria is in deep shit, and this should be taking very seriously, this is no child's play. The Northern part of this country is burning, people are killed on a daily basis by islamic extremist called Boko Haram, and our president feels it is not necessary to tackle that

Refineries are not working which is one of the reasons why the youths don't have jobs, and our president is not bothered about making the refineries work??

Industries are barely struggling to survive due to astronomical cost of doing business in Nigeria.

Corruption is a multi headed monster in our country and especially in the oil industry, and the president feels this monster is bigger than him and Nigerians behind him

Funds/projects have never been properly managed and accounted for in this country, not ever for once, and now the presidents wants Nigerians to believe that the money realised from removal of fuel subsidy can be properly managed and accounted for.?

Why can't our president seek to know why the subsidy rose from 250 billion to 1.3 trillion why is he afraid, what is he afraid of? or is he part of the cabal too/??

In my opinion as a Nigerian who voted for GEJ, I stood in the rain and sun to defend my vote for GEJ, if in the next 48 hours Goodluck Ebele Jonathan refuses to address the nation and revert back to 65 per ltr of fuel, then I think he is not in anyway fit to lead, he does not have the will and sound mind to lead this nation out of corruption which is the major problem setting this country backwards.

talking about buses, 1,600 or 1,100 buses for Nigeria's population of about 150 million is quite laughable. In the city of London alone with population of about same as Lagos state, there are over 2000 buses, including luxury speed trains and taxis, telling us that 1,600 buses will cushion hike in fuel pump price is rubbish and dumb on the part of our president, he should resign now NOW NOW NOW.

This is rubbish, Okonjo, the IMF and world bank and GEJ shoulod go after the cabals taking illegal money from subsidy into kirikiri prison now, since they know that fuel subsidy is a channel of corruption, they should know who and who they are paying this subsidy to, and if they want to be transparent, they know how much they have paid out and to whom, get them and throw them into prison as a starting point for fighting corruption, and we Nigerians will support him.
But if he GEJ cannot face the cabals, he has no business being in government as our president. He should resign at once.

@rafhell


what if fuel subsidy removal is right for nigeria to move on,

u guyz need to rethink or something very bad will happen to this country.

there are worse things to protest about in nigeria.

open your eyes and stop being blind fools.

may God open your blind shallow mind to see where this protest will lead you and i to.


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nothing bad can happen to this country, if it gets to a point where they cannot pay salaries, let them resign and go home, it then shows that they do not have the capacity to lead this nation.

The cabals who are benefiting from the so called subsidy are not up to 200 in number, why can they be investigated, why is it that people just come around, steal billions of Nigeria, and nobody does anything, rather the govt devices another means of doing things, instead of confronting the cabals and dealing with the fraudulent people we have their. In the same vein, if we allow them to take so much from us by way of removing subsidy, it will end of in some peoples pocket and no one will do a thing, and our dumb presido will come up with another tactics.

The strike must start tomorrow.

WHY CAN'T OUR PRESIDENT ORDER A STRONG PROBE INTO THE LONG LIST OF THE BENEFICIARY OF THE ACCLAIMED OIL SUBSIDY MONEY, WHY?

WHY IS HE AFRAID TO PROSECUTE ALL OF THEM, OR ARE WE SURE HIS HAND IS NOT ALREADY SOILED WITH MONIES RECEIVED FROM THE CABALS. IS HE AFRAID THEY MIGHT OPEN THE CAN OF WORMS WHICH EVENTUALLY WILL GET TO HIM AND HIS COHORTS.

HAVE WE WONDERED WHY OKONJO IWEALA RESIGNED FROM WORLD BANK TO COME PICK MINISTERIAL POSITION IN NIGERIA??/?? IS IT THAT SHE LOVES THIS COUNTRY SO MUCH OR WHAT. HOW MANY NIGERIANS HAS GOTTEN PLACEMENT IN WORLD BANK AND IMF AS A RESULT OF HER INFLUENCE?? MILLIONS OF NIGERIANS ARE JOBLESS AND SHE IS TELLING US THAT REMOVAL OF SUBSIDY WILL CREATE JOBS, HOW CAN PEOPLE HAVE JOBS WHEN THEY ARE KILLED BY AN ECONOMIC BOMB FROM GEJ AND HIS COHORTS.

THIS IS JUST FOOD FOR TOT, IT LEAVES A LOT TO BE DESIRED, SHINE YOUR EYES NIGERIANS.

Since GEJ wants to use our hard earned money to finance capital projects, let him REVERSE fuel subsidy, and then do the following project in phases

the man called Mr. Mike Onolememen is as dumb as a goat, I think a goat is even better and wiser. I don't know why people once they get into government tend to lose their sense of reasoning and proper ways of doing things.

My advise to GEJ if he would listen.

Since GEJ wants to use our hard earned money to finance capital projects, let him remove fuel subsidy, and then do the following project in phases:

1. Build 1 refinery at a time and commission it. Then tell Nigerians it cost xyz amount to build and work it on per litre of fuel consumed daily for xyz number of months to be deducted as we buy fuel. when that is complete, you revert back to 65 naira per litre for another 6 months.

2. take on the next project, e.g. modern hospitals all across Nigeria, say 3 in each state. When completed, lets know how much it cost and we fund it the same way and have another 6 months rest.

3. Import government owned fleet of transportation e.g. BRT buses, to ease and improve transportation, and lets funds it the same way.

This can apply to rail system, and lots of things the govt wants to provide.

Since the reason why they want to remove subsidy (if there had been any) is to fund capital expenditure so that they can provide social amenities, I think it should be done the way I have suggested above and not just making money off Nigerians for another set of greedy people to divert it to their pockets.

we are talking about project, corruption will still derail the whole thing, because process of bidding for contracts in this country has been marred with corrupt and sharp practises by our govt officials, the problem of over invoicing and inflation of contracts are there, so you see that our hard earned money might just end up in some private bank accounts across the world.

Nigeria needs to be delivered now, it is time we take over and take our destinies in our hands.

@ beaf and Rhino

You guys do not need to see cash in their hands before you know they were paid. It is simple, what are they queuing up for. I saw the telecast and as soon as their leader finished speaking to NLC officials, his followers were already queuing up, for what? obviously not pure water or soft drink, but for cash. Our government both present and past are always know for such shoddy deals, and that is how the so called fuel subsidy account/re-investment money will be used, to sponsor innocent Nigerians against one another. Our leaders are shameless.

David Mark is simply retarded, the idiot who said telephone is not for the poor, but several years later after his retarded statement, market women, truck pushers can afford to have more than one line and even own blackberry phones. He is a mad man?

There has been several plots by the past and present governments not to build new refineries so that they can continue to import fuel. How can we import what we already have. It is like a cafe who has enough coffee to make, but no coffee maker. The owner of the cafe goes shopping each day and each time he sees the coffee maker,  he ignore it. what does he do eventually? they will go to his neighbours shop to make the coffee for a fee and then bring it back home to sell to his customers. Obviously he will sell at a higher price compared to if he has his own coffee maker in his coffee shop.

That is what we are seeing in our dear country where our leaders have tolled the path of the coffee make who refuses to buy his own coffee maker but prefers to make coffee for us abroad.

This is totally unacceptable, and it pains me so much that our leaders think that Nigerians are dumb, how can you tell us you are subsidizing what we have here. Who even started this issue if subsidy in the first place, whoever did that is the greatest fraudster we have in Nigeria.

Secondly, it is a fact that our law makers are the most paid in the world. I can't imagine idiots in the senate and house of assembly earning more than the American president, I can marry this realities together. What in heaven's sake is going on in this country even a local government chairman earns more than the American president, in a country like Nigeria with it meagre resources which should be channelled into productivity.

After the fuel subsidy saga, Nigerians must sack the lawmakers, we do not need them, if they can not earn salaries per sitting, they have no business leading us as a people. For crying out loud, there should be a regulation that for one to be a senator, one must have at least a manufacturing firm/industry, or farm which employs at least 50 degree holders, and 50 OND or HND holders. and for house of rep their firm should employ at least 25 graduates and 25 either OND or HND holders, and other lower cadre staffs. Our leader must be self employed, governance is not an employment, it is simply a call to serve, not to be served as our leaders have turned it to be. Going by that, they can rely on incomes from their firms and not from govt proceeds. However, this will also deter them from making anti-people policies because it certainly will affect them through their staffs/firms.

FUEL SUBSIDY IS A BIG SCAM IN NIGERIA, OCCUPY NIGERIA, LETS DO IT, THESE GREEDY PEOPLE MUST BE KICKED OUT. HOW CAN A SENATOR EARN MORE THAN BARRACK OBAMA WHO IS EVEN DOING A LOT TO CONTRIBUTE TO THE DEVELOPMENT OF HIS COUNTRY AND THIS WORLD.

FUEL SUBSIDY IS NOT THE ONLY PROBLEM, WE WE HAVE TO START FROM SOMEWHERE, PLEASE I URGE YOU ALL TO COME OUT ON MONDAY AND LET GET THE ENGINE ROLLING, JONATHAN AND HIS COHORTS MUST LEAVE THIS COUNTRY.

READ INTERVIEW WITH PROF TAM DAVID WEST.

Oil Subsidy Is Fiction-Okonjo Iweala Is Here To Seduce People To Accept The Callous "Oil Subsidy" Removal-Tam David West-TheNEWS
Posted: October 28, 2011 - 15:28

Professor Tam David-West
By TheNEWS
Professor Tam David-West, Petroleum Minister during the era of General Muhammadu Buhari, and Mines, Power and Steel in the General Ibrahim Babangida government, spoke with GBENRO ADESINA on the controversy over oil subsidy removal.

For the layman on the street, does oil subsidy exist?

There is no oil subsidy in Nigeria. It is a lie and fraud. After the regime of General Buhari, I challenged government after government, from General Ibrahim Babangida and Chief Ernest Shonekan to General Olusegun Obasanjo and President Goodluck Ebele Jonathan, to appear on national television with me to justify their subsidy.

Let me introduce you to the basics. Let us say a particular commodity like gari is sold for N10 per bag hypothetically and the farmers are producing to make us self-sufficient at N10. But at a time, they can’t produce enough because of either bad harvest or natural causes, the government now says since garri is a staple food, the government goes to another country where gari is produced and buys it at N20 per bag and brings it to Nigeria to sell at N10 per bag. The government now writes off the extra N10 –– that is subsidy. The extra N10 the government pays on behalf of the people for them to still buy at N10 is the subsidy paid on that commodity.

No government should exist if it can’t serve the people because government is a trust. They are trustees for the people. Edmund Burke, the great British philosopher, said that government is a contrivance of human wisdom and the wisdom should be used to satisfy people’s needs. Any government that can’t satisfy the need of its people is irrelevant and must be overthrown and kicked out.

Coming to petroleum, there is no oil subsidy. Oil subsidy in Nigeria is fiction, it doesn’t exist and it is a fraud. During Buhari’s time, we had three refineries. When necessary, I mean, whenever there was shortage of oil, we embarked on offshore processing. If at a time, the production of oil couldn’t satisfy our needs, we selected oil companies like Shell and others that we would give crude oil to refine abroad, sell at foreign exchange and pay to our account. We got quantum of barrels of crude oil and gave to these companies and after they might have refined it, let’s say they got one million litres and we needed only 200 litres, they would give us the quantity we wanted and sell the remaining and give us foreign exchange. We only took our fuel back, never imported fuel.

This time what do they do? These fraudulent people will take our oil, refine it and bring it back and sell it at foreign exchange. This is fraud in the highest places. Why is it that during Buhari era, with three refineries we were self sufficient but at their time, with four refineries we are now importing fuel?

I personally signed the contract of the fourth refinery which we call new Port Harcourt Refinery in 1984. It was one of the best in Africa, with a capacity of 160,000 barrels per day. The first refinery, in Port Harcourt, was built in 1965; Warri refinery in 1978, and Kaduna refinery in 1980. A newly constructed refinery can’t have major problem for about 30 years. The problem they will not tell you is that after Buhari, every Minister and Head of State became an oil sheikh, except General Abdulsalami Abubakar.

Some ministers have petrol stations and oil blocs. You can’t serve the nation and serve yourself at the same time because you can’t serve two masters at a time. One must serve his country and the dividends of doing this is satisfaction. Total capacity of our four refineries is 445,000 barrels per day. If the refineries are working even at 80 per cent, we will have more than enough product. They did not do that but sabotaged our refineries.

I have been shouting since 1995 and I wrote that they are killing Nigeria and poor men. And in 2009, the House of Representatives corroborated me by saying that refineries were sabotaged. Abdulsalami as head of state, reacting to the state of our refineries, said he didn’t want to open a box of scandal. Why did they do this to the common man? Who are the importers? Big people!

A senator said this year, Nigeria spends N860 million on fuel importation and they projected that by the end of the year, over N1 trillion will be spent on importation of fuel when our budget is N4.3 trillion. Insanity! Dan Etete said they needed $250 million to repair the refineries but the same minister said Nigeria is importing fuel at $900 million. Is that not insanity? If you need this huge amount of money to repair refineries, why don’t you build new refineries? The money you are using to import, use it to build refineries.

Why do you think Obasanjo did not repair the four refineries we had and build four extra for petroleum to be sold at N20 as he analysed when he was in power?

Olusegun Obasanjo is a great liar. They will not do so in order to continue to import fuel for selfish reasons.

Is it true that Nigeria has the lowest prices of refined products among oil producing countries?

Forget Jonathan! He doesn’t understand what he is saying. He is only parroting what they told him. He talks like a parrot. Can he remove what doesn’t exist? Can’t we build our own refineries to serve us and remove the untold hardship they want to impose on us? Ngozi Okonjo-Iweala said the subsidy goes to the wrong hands. If they remove it, will people not suffer the more? Everything will increase. The new minimum wage of N18,000 will become N2,000.

But Obasanjo said because it is built in phases, it will take about five years to build a refinery?

It is a lie. I told you Obasanjo is a liar. It took just two years to build the fourth refinery. I signed its contract. It is between two and three years. The problem is that there is intellectual laziness and physical indolence. In developed countries, the president will not just talk without being well quizzed. But in Nigeria, at a media chat once, Obasanjo shouted on journalists or talked to them as a teacher. They kept quiet. It doesn’t take five years to build a refinery.




Okonjo-Iweala talked about cushioning the effect of the removal of oil subsidy?

Rubbish! She is sermonising to seduce people to accept the callous oil subsidy removal. Things she promised are palliative, nobody should agree. Labour and Nigerians should make it impossible because you don’t take away what doesn’t exist. We don’t need oil subsidy to build roads, provide water and electricity; vote for capital projects has taken care of that. Degrees don’t guarantee good governance.

Can a school certificate holder rule a nation?

Yes and very well. What degree does Shehu Shagari and Balewa have? School teachers. Winston Churchill was among the dullest in his class and he became one of the greatest British leaders. Degrees don’t make leaders. Leadership is a natural endowment or one acquires it by hard work.

Jonathan wasn’t born great, he said he was born poor. Rubbish! It is a privilege to be born into a wealthy home. I was born into a wealthy home but one can’t control where God puts you. I tell my son that he should not allow the wealth of his father to go into his head because his minister father could as well be a driver. You don’t regret where you were born. So, I didn’t have shoes or wasn’t born great is rubbish. God is not partial. He does things with reasons.

Being born humble is not an issue. How you articulate your humble situation is the issue. That you are born rich doesn’t say you should look down on people. The problem with Jonathan is that though he has Ph.D, he is a brilliant man, but there is a difference between native intelligence and book intelligence. Jonathan is basically brilliant. The danger in that is that such people whenever somebody like Iweala comes talking, they idolise them like mental geniuses and become internally inferior to them. Whatever they say goes –– garbage in, garbage out. He doesn’t have the stamina to challenge them.

For a prince to be advised wisely, he must be wise too. Iweala is not the most brilliant economist. There are hundreds of people more brilliant than she is. Pius Okigbo and Ojetunji Aboyade, they served the nation meritoriously. She is working with somebody psychologically inferior and she will lead him into a ditch. She talks like the president. She once said that government would not negotiate with the Niger Delta militants. Did they not negotiate later? She was paid in dollars when she served in Obasanjo’s cabinet and her monthly pay was N2.8 million and now she is saying oil subsidy is killing the economy. Hypocrite!

If you know that what you are doing is right, convince people in arguments, facts and figures, not by sermonisation. Now, they have hired consultants with millions of naira to convince Nigeria to accept their rubbish. It was done during Shonekan’s time when a Nigerian was given N20mn for public relations job. He collapsed. They have started again. Please, Senators, Honourables of the House of Representatives, throw out this bill. Don’t think and say we are safe in Nigeria. There could be corporate protest here, just like what is happening in the Arab world. If you do anything that will make Nigerians suffer more, they will go on the streets because the suffering is already too much. I can afford things but millions of Nigerians that form the majority cannot. They should know that government is not about commissioning or investment and profits. Government should have moral dimension. Any government that disregards the moral dimension, that is, respect of God, God will punish such for making Nigerians to suffer.

How do you react to the fact that governors have endorsed it and labour has tactically endorsed it with conditions?

All that is nonsense. NLC should represent the masses well. NLC should not give any condition for the consideration of the removal of oil subsidy. Government has ways of compromising labour. When things are hot, they can approach them with millions and buy them over and they will start to talk with double tongues. NLC should be firm. The government should publish the names of those that are importing fuel and government should sign that if it is removed and the effects are not felt between three and six months, then we must dissolve the present government. If they remove oil subsidy, l will lead a protest. I will organise students for demonstration.

Do you still have faith in Nigeria?

My dear young man, if I don’t have faith in Nigeria, I will not be talking to you. I still have faith in Nigeria. To keep Nigeria as one is a task that must be done. We should differentiate between metaphysical Nigeria and political Nigeria. Nigeria is a great country blessed by God. The way we are going, the political Nigeria will destroy the metaphysical Nigeria. Most of those in government are rogues and thieves. They love themselves more than Nigeria. Every Nigerian owes Nigeria more than what Nigeria owes him/her. Nigeria will change for better when we have more statesmen than politicians.

Now, we have a bunch of politicians who only think of the next election while a statesman thinks of the future. Nigeria will collapse if we have more politicians than statesmen. Nigeria is a country where a senator is earning more than the President of America. They even buy government houses. They spend billions on cars and they can’t pay N18,000 minimum wage. They have morally crippled the country and the governance. They will be destroyed by God. Nigeria is a great country –– no natural disaster, there are able men and natural resources. But people are still crying, no job, graduates are driving taxis, doing menial jobs. Many now engage in armed robbery because they have to survive. May God bless us with good leaders.

The worst enemy of Buhari says that Buhari is not corrupt and that is the truth. It takes integrity and rigidity not to be corrupt and lead the nation. You don’t lead like Jonathan. God will punish those that are punishing Nigerians and Nigeria. When the poor man weeps, the tears go to heaven and come down with burning fire and consume his enemies. And that is what will happen in Nigeria.

We must say no totally to Subsidy removal, no matter the explanation giving by these greedy people, Nigeria, we must stand up and say NO.

The problem of this country is corruption and not subsidy, the govt mentioned that they have a long list of people who are receiving subsidy money including furniture making companies, construction companies etc, what have they done about those who have corruptly included their names as beneficiaries of subsidy money, why can't EFCC, ICPC and what have you move into action and bring this people to justice. If our dear mumu president can check the corruption in this subsidy regime, what will accrue as subsidy will not be more than 250 billion which is quite reasonable to enable Nigerians survive. I see no reason why a country that has Crude oil should buy fuel at the same price even higher than countries that don't have Crude.

Amongst the OPEC countries, Nigeria is the only country operating without her refineries working, why CORRUPTION. why can our refineries work, if they are working and new ones built, we should not buy fuel at more than N32 per liter.

Our honorable minister, Okonjo Iweala sighted that why foreign companies have not come to build and run refineriews is because they price at which fuel is sold in Nigeria will not enable them make profit"

This means that even if they subsidy if removed and the private refineries comes in, we will still buy fuel at more than N100 per litre.

We can all see that things never work in Nigeria, and I can assure you that the money that is being expected to come from removal of subsidy will end up in private countries, and no one will do anything about it.

Read information about OPEC countries and fuel prices as at 25th of Oct 2011:

******Fuel Prices in OPEC Member States

Even with the billions of naira provided currently as subsidy on petrol by the Federal Government, available statistics indicate that at N65 per litre, Nigerians still pay one of the highest pump prices among the 12-member nations of the Organisation of Petroleum Exporting Countries (OPEC).

This is principally because unlike other OPEC countries that enjoy cheap fuel because of their functional refineries, Nigeria ’s total dependent on importation of refined petroleum products accounts for the high cost of fuel in the country.

The plan to remove the subsidy next year will no doubt jerk up the price, but if urgent steps are taken to boost local refining capacity and make the country less-dependent on importation of fuel, the price will quickly go down to possibly below N65 per litre, within a short period.
With over 36 billion crude oil reserves and average daily production of 2.6million barrels per day, Nigeria is the seventh exporter of crude oil, with 10th largest reserves in the world, but the only country among OPEC that imports refined petroleum products.
Since the country imports fuel, the price of products in Nigeria is a reflection of international oil prices, instead of a reflection of the cost of local refining.
The landing cost of fuel from the international market is currently over N147 per litre and it is expected that if refined locally, the cost will be far less.
As the price of oil goes up at the international market, the price of petrol also goes up in the country, resulting in constant adjustment of the pump price of fuel.
Past successive governments adjusted the official pump price of fuel 11 times between 1998 and 2009, to reflect the rising prices of crude oil at the international market.
While late General Sani Abacha pegged the pumped price at N11 per litre throughout his five-year reign from 1993 to 1998, the price was adjusted to N19 during the administration of General Abdulsalami Abubakar, which lasted for nine months.
Former President Olusegun Obasanjo adjusted the price eight times during his eight-year reign between 1999 and 2007, from N19 per litre to N70 per litre, before late President Musa Yar’Adua adjusted it downwards to N65 per litre.

[b]Even with the billions of naira voted yearly to subsidise the price of fuel, studies indicate that at the exchange rate of N155 per dollar, Nigeria’s N65 per litre, which is an equivalent to $0.38 per gallon or $0.42 per litre is still one of the highest among other OPEC nations because other countries that pay less refine their crude oil locally.
In Saudi Arabia, for instance, the price is $0.45 per gallon or $0.12 per litre, an equivalent of about N18 per litre.
In Kuwait the price goes for $0.79 per gallon or 0.21$ per litre, an equivalent of about N32 per litre.
In United Arab Emirates, it is $1.40 per gallon or $0.37 per litre, an equivalent of about N57 per litre; while in Venezuela, it goes for $0.19 per gallon or 0.05$ per litre, an equivalent of about N7 per litre.
Qatar sells at $0.83 per gallon or $0.22 per litre, an equivalent of roughly N34 per litre, while in Iran; it goes for $0.42 per gallon or $0.11 per litre, an equivalent of about N17 per litre.
In Algeria, one litre of petrol is sold for $0.20, an equivalent of N31 per litre; while the pump price of fuel is also relatively cheaper in other OPEC countries of Angola, Ecuador, Iraq, and Libya.[/b]
With viable refineries, other OPEC countries refine their crude oil locally and at cheaper rate, to meet their daily demands of petroleum products and also export to other countries.
But Nigeria’s four refineries are not only non-functional but grossly inadequate.
Even if they are producing at full capacities, the 445,000 barrels per day capacity refineries can only produce about 10million litres of petrol daily, which is far less than the country’s daily consumption of about 35million litres.

However, the current regulation of the prices of petroleum products by the Federal Government has discouraged private investors from building refineries to complement government – owned refineries at Port Harcourt , Warri and Kaduna .
Conclusion
It is envisaged that full deregulation will encourage private-sector participation in the building of refineries and bring down prices in the long run.

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You all can ready full details on this thread:

http://www.thisdaylive.com/articles/crashing-down-fuel-price-imperative-for-deregulation/101243/



Our leaders are never sincere people and they whole structure of governance can never be trusted, we must say NO.

If government want to remove subsidy, we must have good roads, good rail network etc.

Come to think of it, how much crude do we export daily from Nigeria, how much do we make from crude export, what is our govt doing with the money, and the funds generated from customs, taxes that are paid by the people, etc. excess crude oil account.

This is total scam by our government, and we must resist it.

about the fool called Okechukwu Okorie, no be today we begin see mallam with bow and arrow, his own go soon fizzle out. We always know people like that. He is just a businessman who want to make quick cash from GEJ. Both him and GEJ are retarded monkeys.

How much can a horse for go any one with idea of the price??

we also need horses now, where are the importers ooooooo

^^^
bike is just economical,
no Roger
no fuel
no number plate or even drivers liscence

carryin two on your bike?? yu re on your own.
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Once Lagosians start getting bicycles, our dear greedy Fashola will immediately ask FRSC to print and approve plate numbers for Bicycles ooooo,. that is Naija for you, police sef go start to dey do stop and search for bicycles users, watch it. No Govt wants Nigerians to survive, it is just that simple, and we must fight back to survive.

boko haram is just a stupid sect, stupid and full of dumb. How can they ask Southerners to go. can the north survive without our crude oil? Can they??

They want to take on Nigerian Army, that is a bold statement, but lets see if they can survive the fire.

Anyway, i just pity them, because when the chips are down, they stupid leaders in the north who have refused to call these animals to order will have themselves to blame.

I now see what late Ojukwu foresaw when he went to war and wanted to break up this country. Now is it very glaring that there is not like Nigeria, it is just a mere geographical drawing and with time the paper will get torn and we will see where we all belong to.

F***ck boro haram, they are all stupid.

PLSSSSS, Fash can do better than this, why chasing student in dread locks in their campuses? this is total bull pisss, what in this world does he think he is doing, even if he arrests sex hawkers, it is not his business, I am not in support of sex trading, but lets be realistic here, if Fashola cannot provide jobs for them, where and how do they live. His men roam the streets of Lagos including tugs taking money from poor people who are selling gala, pure water and what have you. Pls people should be left alone to live their life abeg.

Why you telecoms be ordered to shut down BB service, what of text msgs services. Why are they afraid??

I dont know why we derive pleasure in lying to ourselves - if the cost of living is low why do so many nigerians queue up endlessly outside various embassies of the world in a bid to get the hell out of the country?

why were there so many nigerians living in libya? why did many of them come back to talk about how much better their standard of livign was when they were in libya?

we love lying to ourselves.


ANSWER:

Because we cannot have good roads, no infrastructure, NO security, No good water, NO jobs for our graduates, people graduate from universities and end up as liabilities/burden to their parents , NO electricity, right now I have been running my genset for more than 6 hours now. What of those who cannot even afford to own the I pass my neighbour gen

Why won't people find their way.

Who ever says cost of living abroad is high, let him return to face the grave dangers Insecurity, BH, Police extortion, Robbery etc) we see every day in Nigeria. You can even enjoy anything at all in this country.

Check this, bro in diaspora, PHCN has increased tariff and we don't even have electricity. We cannot pay for what we used, why, the card meter thing has been suppressed by some cabals. For several years now, the card meter cannot even go round, what is the matter? The moment all Nigerians have the card meter, PHCN will go bankrupt and out of business, because they cannot supply enough power to have a sustainable income to enable them pay salaries.

i cannot imagine people buying pms at 140 per litre and burning the same in the mad traffic gridlock along lekki express, Agege, Ikotun, Ipaja all around lagos. How will you feel when you buy 20 liter of pms, burn in in traffic gridlock, and when you get home, you don't even have up to 5 litres left in your tank.

In advanced countries where pms is sold as high as between 150 to 200 per litre, they have very good roads network that in less than 20 mins drive you are in your home or anywhere you want to go within the city.


There are good rail (in fact luxury rail transportation for that matter) which can et you to your destination within minutes, what do we have here?

Noffin bro, just stupid roads which are even claiming peoples life on a daily basis.

Com'on lets face the fact, is our govt handling things the way it should handled.


At least if people cannot afford to fuel your car all week, you have alternative means of getting around their businesses or to your offices.

What are we talking about this govt should be shut down until they learn how to do things the right way.

[table]Corruption is not the problem of Nigeria. Our almost irreparable ethno/cultural differences is the biggest problem of Nigeria. It is the cause of corruption. We need true federalism or outright disintegration

Also, noone told you they are paying money for fuel they didnt import. The importers are doing a legitimate business. Those talking about naming them or arresting them are funny. They are doing legitimate business. The problem is that the Nigerian situation has created loopholes for them to benefit unfairly. Government simply wants to block those loopholes[/table]

@mainboss

I agree that those who are importing fuel are doing their legitimate business. So who are the people who have leveraged on the loopholes to make money of the govt? Does the govt want to tell us they don't know them. Because I see a scenario where money paid to these people are far more than what the legitimate importers (so to speak) as getting as subsidy.

Now one question, the govt have refused to publish the details of what it cost to import fuel in into this country. I mean the landing cost of PMS at Apapa port, the clearing (duties payable) storage (tank farm fees) and other sundry charges from the customs.

If this can be done, then Nigerians can clearly do the maths and be able to understand what subsidy is all about, it is simple.

Finally, this is a process which would have been done in stages if they are bent on suffering Nigerians. Increasing pump price by over 100% is not done in any economy. The price of essential service and products will also increase in the same percentage. Please let our leaders be reasonable when they decide the destiny of this nation.

where do they keep this stolen funds, in foreign banks, and the banks are so dirty that they don't ask questions, especially EU banks.

He is fake, and his cry is fake. How did he get his doctorate degree sef?

Abeg, he has to step down, he is f*cked up. he has no conscience one bit.

The leaders we have in this country are just pathetic greedy fools who are insensitive to the cry and sufferings of Nigerians, they have misplaced their sense of reasoning and are terribly lacking in innovative ideas on how to run this Nation. Fuel subsidy, when last was a new refinery built in Nigeria When the world was busy evolving, our leaders were busy revolving Nigeria for more than 51 years now.

Who are those being paid money for fuel they did not import, who are they? Can't the CEO of this country mention their names, instead he is busy giving tom dick and harry national awards. People are being killed by BH daily and GEJ is comfortable in his villa? This is absolute insanity to think that removing subsidy (if any) will solve the problem of this country which is majorly corruption, Corruption has killed this nation and it is not perpetrated by ghost, they are humans with face. The monk called GEJ is just something I cannot describe, this is pathetic, OMG.

Crapppy crap. Buhari wouldn't have done any better. It is because he is not there, that is why people think he can do better, lets give him a chance and you will see how he will disappoint Nigerians. Guys, you need to think well. If Buhari had been elected as president, the northerners wouldn't have invented Boko Haram, Boko Haram is operating now because it is GEJ, you don't forget in a hurry that some people from the north, swore to make Nigeria highly ungovernable for GEJ? have we all forgotten.

Buhari my foot, he should go to hell. If come January, violence and senseless killings resurface, please GEJ should get the mother f*cker arrested. His supporters killed hundreds of innocent people including our dear youth corper, the only thing the goat could say is that they are asking for electoral justice since the election was rigged.

If he was elected president, by now, he would dutifully submitted Nigeria to the IOC as an Islamic country.

Buhari should go and sit down please.

It is very simple. Buy car from people you know very well. At least people you know where they stay and maybe a little bit about their family or someone who knows them very well so that if something goes wrong, you'll at least know where to go. Please be very careful ooooooo.