₦airaland Forum

olukenzo:
Nigerians should stop being cry babies. This is the economic situation we have found ourselves in. Government can not continue to sugar-coat these issues.

We need to look inwards ->

Buy made in Nigeria goods
Import less junk
Be creative and export more
Spend your holiday in Nigeria, go to Obudu, yankari etc
If there's such a huge market in Nigeria for any imported item, ask your foreign partner to come and setup a factory here.

My country must prosper!

You make sense. Unfortunately Nigerian business men are lazy. We like easy business... buy and sell instead of make any sell. To some extent though we are not encouraged to manufacture in this country.

Thanks for sharing these high level numbers. What I'd like to see now are the specific details for each agency, ministry etc. For example which specific projects are budgeted for under the ministry of works, which specific housing projects will be implemented etc.

Boss13:
Kachikwu is a very brilliant man. His utterances inspires hope. This business model for the refineries is pragmatic and can be implemented. Let the refineries be responsible for their cost and revenue, hence consider thoroughly what their profit should be. I think future months to come will be an exciting period in Nigeria. Oil prices are NEVER going to go up except there is a major crisis in one or two oil countries.

Subsidy removal will eradicate fraudulent oil suppliers, whilst only serious marketers will remain. The oil marketers will complement in volume, the total oil consumption expected by the refineries. I know serious downstream investors will be watching Nigeria closely.

The era of impunity from fuel stations will be over soon. Now, these stations should consider customer oriented trainings for their staff because these changes are effectively positioning the customer to be KING. The customer can clearly choose which fuel station he would patronized.

You have a solid analytical brain unlike most people on naira land who are guided by petty sentiment.

https://www.eia.gov/petroleum/gasdiesel/
Some info on prices and make up of the prices.

Personally I think we should just remove the damned subsidy once and for all and sell our refineries. Despite kachikwus best efforts it cannot be as efficiently by him compared to if it's in private hands.

Tongsman:
pls, what formula did u use to arrive at 158, cos the 1 barrel-litre that the world know is 119litre. SMH for some people.

You should also ask him what he has done to the costs of refining and transportations and marketing.

Amberon:
if our government is a sane one, then petrol shouldn't even sell above 30 naira. because crude oil is at its lowest price in the international presently. So naturally, a fall in the global oil price should also mean a fall in petrol for consumption. but our useless government with their corrupt ways won't adjust the price to this effect.

about last year, the U.S govt slashed the price of gas by a third the normal price because gas got cheaper. Our useless government should learn.

Dude, you are not arguing from a point of knowledge. A few reasons why the price of petrol in Nigeria is not perfectly elastic to the price of crude:

1: crude makes up only about 40-50% of the petrol price in most countries. The rest is made up of refining costs, distributions costs, marketing costs and special taxes. None of those would have changed because crude prices have crashed.
2: even as crude prices have crashed (which should take the petrol price down), exchange rate has gone the other direction in the same period (158 to 200), which causes the Naira price of petrol to go up since we import it.
3: our method of getting petrol where we send it out, people refine and send it back means we are paying for extra profit margins, shipping and refining costs that most other people are not paying.

Let's do some maths.
Typical gallon of petrol in us averages about $2=N400.
Let's assume gallon = 4litres (it's actually 3.
The US litre=N100
US price consists if about 20% special tax
If we assume we don't want to put extra levy on our petrol and we back out the 20%, you might get to N80 give or take.

Also your statement about US government reducing prices cannot be true because the sector is fully deregulated in America. If the prices came down its purely due to demand and supply forces.

Hope I've helped.

Kingbilo:
Check out this link. It compares petrol prices of many countries including Nigeria in dollars. You'll see petrol here is quite cheap although it could be cheaper.

http://www.kshitij.com/research/petrol.shtml

Remember also that you can't directly relate the price of oil with the price of petrol. Oil price halving doesn't mean petrol price should halve also. After all, the cost of refining will remain almost unchanged.
Also, the inflation in the country means no change in the price actually makes petrol cheaper.. That is, if you buy N85 fuel a year ago vs buying it today for the same price, it's actually cheaper today even with FG forex regulations it's a fact.

Thankfully, someone with a lot more common sense than the average Nigerian. Really the types of comments I read when it comes to economic matters shows as have a generation of Nigerians who don't know how to think deeply, look for information, analyze information and reach more logical conclusions. Not surprising given our poor educational system.

darlenese:
OK, the government told u their intension is to increase it, and cause hardship right ?

To the best of my knowledge, the government didn't say that too!

But all I know is that they are trying to be professional by charging a market rate. Otherwise the privatisation is a bloody waste of time. I personally don't like things getting more expensive....who does? But as a proper student of economics, I can totally see the rationale. As my dad once said don't pray for prices of things to come down, pray that you can continue to afford it even as they go up.

Some rough analysis:
Average US price per gallon is about $2 = N400. This equals about N100 per litre as a gallon contains roughly 4 liters. The US price is made up of about 20% taxes. So if we back that out it may come to about N80 per litre.

So mathematically we probably shouldn't be expecting it to come down much further. Only possibility is if we refine locally at high capacity utilisation, and we spend less transporting, distributing and marketing.

Some rough analysis:
Average US price per gallon is about $2 = N400. This equals about N100 per litre as a gallon contains roughly 4 liters. The US price is made up of about 20% taxes. So if we back that out it may come to about N80 per litre.

So mathematically we probably shouldn't be expecting it to come down much further. Only possibility is of we refine locally at high capacity utilisation, and we spend less transporting, distributing and marketing.

Is it that NLC don't understand economics or they purposely blind themselves to the truth. Petrol prices are not crashing here because we do not operate a deregulated market system. If we had allowed delegation like ten years ago, it would be reasonable to expect the pump prices to be crashing.

Also prices 'may' increase locally because in as much as we are refining outside of the country, we will be billed in USD. With naira having devalued to 200 (official) it makes it more expensive locally. Assuming we were refining locally, the local price would be more inelastic to the exchange rate.

However having said that I belive we could potentially do away with subsidy even at N87 at current crude prices.

Also, while I agree that the minimum wage is too low at N18, we shouldn't necessarily tie it to the devaluation of the currency. First of all not every single thing we consume is imported. Secondly any serious importer should be passing his transactions through cbn and the rate there has been stable at 200 for awhile. It's usually those who are doing illicit business or who do not want to declare their goods, pay duties etc who insist on buying forex at the black market. You can't tell me Toyota is buying for ex at 280 to import their cars. Likewise Samsung or LG etc.

darlenese:
I support NLC
The removal of fixed charge is a scam, do ur calcation , its ,more expensive

The government never said it's intention was to reduce it.

kihemeje96:
Why are they after Linda. Is she the only land owner who has not paid tax in Naija? Os is it because she made so much publicity about this house? Maybe she should have kept low profile after the purchase.

It's not about going after anybody. Linda has made the most noise on social media about her wealth, so it's only natural they start with her. Left to me, Lagos state government should now go after all other musicians, comedians, fashion designers, make up artists etc who earn very good income but don't pay tax.

The issue of how the government spends the money though is a separate matter, but doesn't mean she shouldn't pay. It's like paying tithes in the church. Your own is to pay. Whether the pastor uses it it well is another matter.

RebelChip:
Buhari maka why? I strongly suspect Buhari's guerilla warfare army for this.

There is every chance the shops there are owned by Igbo Business Men. Christmas is around.... They are now sabotaging their business....

Buhari, your time will soon be up!

Dude, don't be stupid!!

Its not about launching it! Its more about keeping it working effectively and efficiently. Ticketing procedures, timely departures, maintenance inside and out, conducive environment in the train and around the station during boarding etc...those are the things that it should be about, not simply flagging off something that will die off in 6 months.

The Olive court looks pretty drab! Not enough greenery and vegetation.

Asides, why do we keep building these types of houses and we say we are providing housing for the "teeming Nigerians"? How many "teeming Nigerians" can afford this?

Peeps, spectranet will be launching in Port Harcourt imminently and I'd like to know if it's possible to put their sum in my smile modem?

Spectranet have far better data plans and I intend to migrate but I really don't want to have to buy another modem again.

Has anyone been able to achieve this before?

dominique:
Hope Etisalat jumps on the bandwagon and increase their data allocation soon. If not for the juicy bonus I get on my recharge, I would have ported to glo

Babe don't try porting to Glo. I can guarantee you will port back. Just read the thread and you'll see lots of comments about their poor network. It's a marketing gimmick because they know their network is really really poor....except you just happen to live in a area where glo is good, but the chances of that are like 10% in my view.

Glo's data plans are the cheapest because their data network is the worst. Have tried Glo about 3 or 4 times when they bring these types of offers but I always run back to etisalat.

Which is why etisalat s are the most expensive cos their network is the best.

chigo931:
Look @ dem yeyuba bigots being happy because your broda plans to extort from Nigerians.

Obj removed tolls due to tax motorists pay (#1.50) from every litre of petrol bought please let's ask him what happens to the money paid over time


It's only in Nigeria you provide for yourself everytin u need even when yo have a government.

Water=you pay for borehole

Road=you pay toll fee

Electricity=you pay for fuel so that generator can work

To surf the internet =no free wifi,you need to buy your data and if you are not careful social media bill sponsored by Apc senators sends you to jail on top your own data o

To watch cable tv=you pay dstv,startime or gotv

Yet they want igbos to stay in such a hopeless country because they feel they've been too nice to us.

Nigerians should go checkout how Libyans lived prior to moamar gadaffi's death. Anyways Remita(remi+tinubu) will be incharge of the tolling.

I'm still waiting for the day a yoruba man will say tinubu should be hanged for corruption,but whenever it's gej u see them vomiting crap from their decayed mouth

The money tinubu+obasanjo stole while in govt is enough to fix all our roads

All those who liked this post must be very dumb. Which country is there where water, electricity, Internet, cable TV is free?? Even what appears free abroad is because they pay appropriate taxes. My peeps abroad tell me you are almost more likely to escape justice for killing somebody than not paying your taxes.

Here we expect University to be free, yet I was recently researching universities abroad and any standard University in the UK will cost UK citizens anywhere from £3500 to £7000. Even in Europe where some universities have free tuition, what you have to pay for books and materials is more than what we pay for tuition here.

We think we are a rich country where the government should do everything, yet we are actually very poor in spite of our oil considering how many we are in Nigeria. Before we start comparing to dubai, native Emirati population is only about 2million. In Nigeria we are 170m!!


However, having said that I can appreciate that the concern us will the money be used judiciously? My strategy for that would be to concession the road for an upfront cost to raise money while the concession aire takes his money from the toll for efficiency. For those of you in Lagos you will agree that the operation of the lekki toll plazas are efficient.

“In order to make the roads safer, we intend to re-claim the full width and set back of all Federal roads, representing 16% and about 36,000km of Nigeria’s road network by immediately now asking all those who are infringing on our highways, whether by parking, trading, or erection of any inappropriate structure to immediately remove, relocate or dismantle such things voluntarily. This will be the biggest contribution that citizens can offer our country as proof that we all want things to change for the better,” Fashola added.


This part is what I love the most. I've realised over time that one if the main issues with our so called 'expressways" is the amount if commercial activity that goes on by the road sides.

EUROBOMBER:
This is great news for our nation, fix power and 70% of our problems are over.

More power to ya elbow president Buhari.

Nigerians are behind you.

God bless Nigeria.

Not quite right! Even after power we still have many many issues to deal with.

seunmsg:
The sickening part is how some people will still come out and defend these people despite all the allegations against them. Makes me feel like most Nigerians are not really ready for the fight against corruption.

I think the thing is that most Nigerians say they hate corruption but they are secretly waiting for when their turn would come so they can also steal free government money. Less than 10% of naira lands members would be in government and not make money on the side via something dubious! The whole country, even the private sector, is just one huge scam.

What on earth are those tiny drones supposed to do? I doubt they can stay in the air more than 20 to 30 mins.

onatisi:
I wont be surprised if these police cars even become a target for robbers to snatch

Hahaha a hahaha!!

Does she pay personal income tax?

They should just sell the stadium to Lagos state government to turn into modern shopping mall and proper amusement park with rides and lush grass Park (like Agodi gardens in ibadan). Though they should keep a part asides for sports area like tennis, swimming, indoor sports hall etc for the public to use after paying a fee, but the main bowl should be brought down to make way for most of what I described above.

There is no point keeping it now that we have Abuja stadium and to be honest that facility is also grossly underutilized! No point in being overly sentimental about the stadium in surulere. We need to extract maximum value from wasting national assets.

Why us the focus on salary discussions only on the 18k minimum wage? It's not like every single person in the employ of any state government earns 18k. More likely there are far more people who earn above that.

Having said that the governors are showing they lack intellectual capabilities to increase IGR. They are not showing enough creativity at all. If it were me I'd raise taxes for anybody in the luxury space. For eg vehicle license can be increased for those who have luxury cars and suvs, while leaving those with regular saloon cars alone. Also those with luxury houses should pay tenement rates. And in fact the states should just ensure stricter compliance with existing laws on taxes. Too many people avoid tax.

Efisko1:
but dia network in my area has started fluctuating.....frm H+ to H and to E... me self am tired ohhhh

Yeah that happens to me here in pH as well. It's the reason I don't bother using glo despite the fact that on. Paper they have the best data bundles.

They give you so much more than the others to compensate for their crappy network.

1.5m only. Very cheap considering the quality of construction.

Seems there is a trend amongst mobile operators in Nigeria not to put their latest promos on their websites, cos I can't find this there.

I believe it's called figure of speech....