₦airaland Forum

edoairways:
What most Nigerians fail to understand is the fact that there is change in technology. Few years from now, the demand for petrol cars will reduce

At least if that occurs it becomes Dangote's problem and not the FG's.

Besides that analysis is faulty. Asides petrol, he will produce aviation fuel, petrochemicals for pharmaceutical and plastic industries as well as fertilizer. All of which there is good demand from West, Central and Southern Africa. And petrol still has a long way to go in Africa. Even if all cars become electric in Europe in 2030, Africa will still be using the junk petrol cars for a while longer. Dangote would have broken even before then.

jtjohn:
This country self...Dangote trying to monopolize everything.

It's not Dangote's fault that Nigerian businessman know nothing about large scale technical businesses that require a lot of attention to detail and would rather not take the risk.

All we know how to do is trading and rent seeking businesses, where we stand as a middle man. i,e buying and selling, building house and renting it out, collecting contract and selling it etc - no real value add. And to be honest it's not anyone's fault. It's a symptom of poor education system, lack of government support, lack of faith in Nigerian bureaucracy, poor infrastructure, corruption etc

Simplyleo:
Forget it.

It doesn't make any sense for Nigerians to be buying fuel at a pump price from Dangote competitive with international prices. What then is the benefit of Nigerians by reduced forex for him for the importation of the refinery equipment?

Besides, Nigeria is an oil producing country, meaning crude oil is nearby, he doesn't have to transport it from another country. Additionally, the refined products doesn't need transportation to Nigeria.

The benefits are as follows:

1. Reduced requirements for forex to import crude.
2. Direct Jobs for those who work there
3. Technology transfer
4. Better exchange rate stability (which affects many other things)
5. frees up government money for other things
6. Eventually they will pay taxes to FG, improving their revenue. FG can't tax profits made by a refinery in Houston
7. Indirect ancillary jobs from businesses supporting the refinery
8. Benefit and wealth spread to land owners in that axis. Land that would otherwise have been significantly less valuable.

That is how one big investment can spur economic activity. Which is why governments that know what they are doing provide conducive environment for companies. See how cities in America were literally fighting for Amazon to site a second headquarters in their city.

Did anyone really expect him to do so?

If he sells it lower than 'international price', he bears an opportunity cost and doesn't maximise profit like a business man normally would

If FG sells crude to him below 'international price' , then FG also bears an opportunity cost and is in effect subsidizing and does not maximize potential revenues.

A CASE FOR WHY FG SHOULD NOT MAXIMIZE ITS REVENUES AND NOT SUBSIDIZE:

The world is currently witnessing a peak in the demand for crude oil. Medium to long term forecasts sees demand for crude declining consistently from 2023 or so (depending on the model). In fact, due to COVID-19, one could argue that it has started already.

And where is this decline supposed to come from? Wind and Solar are the fastest growing electricity sources in the world today. This means that many developed countries are replacing gas and heavy oil fired turbines with Solar and Wind. Electricity utilizes about 8% of crude oil.

The real big deal is petrol. Many European and Asian countries are planning significant restrictions or outright bans of internal combustion engine (ICE) cars from 2030 - 2040.

https://en.wikipedia.org/wiki/Phase-out_of_fossil_fuel_vehicles

Road transportation utilizes 50% of crude oil. Imagine what happens in 2035 when this happens. A good chunk of crude demand is going to evaporate. . The real shock to the system will happen when America announces it's own ban on new ICE cars. America is the driving capital of the world. From passenger cars to trucks and SUV's to heavy articulated trailers.

All this means that crude has a potential to become as cheap as $20 -$30 in the medium term. In fact, in many cases it will make no sense to continue production in the most expensive areas, hence you hear a lot of talk by NNPC of reducing operating cost. Unfortunately, we make operating cost high in Nigeria by our own actions (NDDC that collects 3%, Security, Corruption etc)

This means that Nigeria is looking down the barrel of reduced earnings from crude by 2030, so it makes NO SENSE to fritter away what we make now in the name of subsidies.

Nigeria needs ALL the money it can make now to diversify it's economy. The removal of subsidy in the electricity sector is also in line with this. If we do not make our electricity sector bankable before 2030- 2035 and almost all new cars are electric, where will we get the electricity to power it? And this will be happening at a time when FG revenues would have significantly reduced. It's a situation the FG has to GET OUT OF NOW!!

Even the mighty Saudi has seen this handwriting on the wall and a notoriously stubborn country that believed it had all the money in the world in finally taking steps to diversify its economy and improve productivity. What has Saudi done in the last few years?

1. Allowed its women to drive in order to enable them to be more productive and add to the economy.
2. Reduce it's subsidy on petrol
3. Introduced taxes for citizens, albeit small.
4. Introduced relaxed visa for outsiders for tourism purposes
5. Invested massively in solar power generation facilities

UAE is a country that has done this already. Yes they have oil, but they used their oil wealth over the last 20 years to invest in infrastructure and a well designed and planned country. Now asides oil, they have a vibrant global airline, global shipping sector, global financial services sector, global tourism sector, solar power sector and even educational sector (many universities have a Dubai center) and relaxed residency visa requirements (now with guaranteed income of $5k a month, you can get a retirement residency visa). So when oil reduces significantly in value, they will have a semblance of an economy to power it forward. Nigeria unfortunately has NONE of the above!

This is why Nigeria can no longer put it's head in the sand and basically flush money down the toilet in the name of subsidies. We are a relatively poor country. Oil brings about 60% of revenue and 90% of forex. Our tax base is really low. Even worse for Nigeria, a lot of our economic activity happens at the informal, subsistence level where it's very difficult to track and tax. Brazil a country with about 5 times our GDP has a budget that is like 36 times bigger, because they are able to generate better tax revenues from their more developed and more formalized economy.

Not really worth the hype!

Too much traffic
Filth everywhere
Too densely populated - everywhere you go, too many layabouts everywhere
Poorly planned - no proper separation between residential and commercial areas.
Air pollution - lots of smoke from vehicles, particularly commercial ones

She should be careful though, make DSS no come arrest her.

This is the kind of petty thing our security agencies will take interest in because it's Abuja.

And this is the same Rivers that Gov Wike says is safe and Oil companies should come and put headquarters?

Unfortunately our leaders don't know much about economics, international business etc. They think it is by fiat. Its not by mistake London, Hong Kong, Singapore, Dubai etc are economic centres. They do what is necessary by way of taxes, infrastructure, human capital, rule of law, security etc to make their locations a hub. Not by one governor or mayor giving order.

SegFault:
Brazil runs free universities I hope you Know

Which caters mostly to the privileged white elite!!

https://www.businessinsider.com/brazil-has-tuition-free-college-but-it-only-serves-a-portion-of-its-citizens-2015-6

Meanwhile are you even joking with Brazil?? Not take small eye look that country o.

Brazil’s government budget is $779bln. Nigeria is $22bln, yet our population is almost exactly the same. That’s why I always say that despite our supposed oil wealth, Nigeria is a relatively poor country.

https://en.m.wikipedia.org/wiki/List_of_countries_by_government_budget

Their annual budget level is 9th in the world, our is 79th. Most Nigerians don’t know much about South American countries because they are not always in the media like America and Europe. Brazil is in the next level below G7. Nigeria wouldn’t even make G100.

Their GDP is $1.8trln our own is $400bln. They are far ahead of us developmentally.

Focusmind:
My people, work harder so that your children do not near the gate of any Nigerian University. As for me, the project is on course and I am doing everything possible to realize that dream for them. Our government and those in power have all left us behind to rot and kill ourselves.

Their children are in Universities abroad, spending our money. I pity the poor masses. However, all blames should not go to the government alone. Nigerian people are the worst when it comes to cleanliness and maintenance. We lack maintenance culture. Even if you build a world class hostel there, come in years time, you will be shocked by the level of degradation.

Students in Nigerian universities are one of the worst indiscipline, forming G-guys and hardman and not maintaining decency and decorum.

Not just students. Generally we Nigerians are filthy and dirty. Look at our markets, roadsides etc. All filled with junk. People eat and second nature is just to throw the wrapper on the floor.

JAMZ1:
https://www.google.com/amp/s/www.thecable.ng/photos-the-decayed-infrastructure-serving-as-unn-hostels

This is the opportunity cost of almost free education. I have rarely seen anything that was dirt cheap and also good quality. You can't eat your cake and have it.

While there is also the fact that the university and hostel management could be more competent, but that's what you get with grossly subsidised education in a country thats almost broke.

Is Covenant like this? Is Afe Babalola like this? Is Babcock like this? Is Redeemer like this? Is Igbinedion like this?

Nuff said!!

Cryptofxt10:
Haaaaa Taye Taiwo still dey play ball?. Him twin sister dey celebrate 45years old, him dey celebrate 31 years old something is certainly wrong somewhere

But funny enough he isn't really looking old in the picture. Or is the gist about his age wrong?

Slawormir:
Damnnnnn niggarrr
Beautiful
No doubt we are the real niggarrrs of Africa
We will continue to show those low budget asss Moda fuckkking noisy neighbors of ours called Ghana and south Africa that we are the real niggarrrs of Africa

Though i woke up on the right side of the bed....but the need to still dragg two or more tie of weed can not be over emphasized
Light up my weed...there is gonna be light at the end of my weed anyday anytime twice on Saturday

Unfortunately we ain't no niggarz nothing. In 5 years come back and look at this airport and then go look at OR Tambo in Johannesburg or kotoka and tell me which one looks better.

Like we always say, we still lack maintenance mindset.

The only thing that will save these airports is if they are concessioned.

Crenzywilliams:
South Africans pay about 9200 naira for what we pay about 13k for, and their content is even better than ours, why shy ours be higher?

Thats not correct. I went to Multichoice SA site recently and the SA packages cost more than equivalent Nigeria ones

rentAcock:
TSTV should never be trusted. They were a flop the last time after an overhyped intro. I will wait for at least 3years before trusting them with my money.

Good point. It might be a scam.

surgical:
This is kindergarten reasoning,if the product is not imported, the issue of subsidy will not arise ,we must produce here,and firm our currency all this is the fault of the government
Secondly in countries where they value their citizens there is one form of subsidy or the other
So it not out of place lf Nigerians enjoy some subsidy don't make it look like a sin,when it is a right

What gives you I impression that if we produced petril here there wouldn't be subsidy. Is crude oil free?

Teewhy2:
That is the deputy president but sincerely he can handle every correspondence he needs someone to coordinate them and I think that is why he asked them to channel their request through him for proper documentation and tracking.
I just hope the deputy president will not also ask them unofficially to channel them to him through his own P.A

Ordinarily this is not a bad thing if the spirit behind it was right and if it would make things more coordinated.

Issue is that as Nigerians are want to do, we take every little 'power' that we have and make ourselves demi-gods, thereby frustrating laid down processes and procedures. That was the problem Kyari had. I hope Gambari doesn't go down that same road.

That said, it shouldn't mean a Minister shouldn't be able to get access to Buhari as often as required. The question now is if Fasola requests to meet Buhari once a month, will Gambari block it? Or will Buhari himself say there is no need and avoid meeting his Ministers.

As a leader in my organization, my direct reports can reach me as often as they need to, both formally and informally and I'm glad to get their feedback and assess how things are going as well as give my input or if warranted my instructions. And if I cannot meet with them due to other commitments, we reschedule - simple!

Cruise control makes more sense for long inter city trips anyway. Even abroad, within town, it wouldn't make as much sense due to frequent stoppage for traffic lights, how much more Lagos where you drive with one foot permanently on the brakes.

GoodofNaija:
To help you think, the people committing atrocities in America are the police and they are not getting away with it, they are being arrested.

Here in Nigeria, Herdsmen are killing and they are owning up to it, yet your grandpa buhari cannot arrest them.

Zombie, what do you call that

Arrested is one thing. Convicted is another. Most white police shooters of black people do not serve jail time. In most cases they are sent on administrative leave for the investigation. Most times they are either taken back into the force or retired, but rarely do convictions stick.

Tobbydhayor90:
http://serap-nigeria.org/serap-condemns-arbitrary-electricity-tariff-fuel-price-hike.ngo/

This press release from SERAP is just noise and doesn't even suggest an understanding of the issues.

First of all electricity tarrif for the base consumers of less than 50kwh per month was left unchanged at N4. That is pretty much free electricity. Also the poorest of the poor in this country reside in our villages. There is zero electricity in most of our villages anyway, so what electricity are they paying for?

Second of all, the poorest of the poor do not use cars and perhaps do not even use generators. While you can argue that higher petrol prices will increase the prices of goods, by definition of being poor, they don't buy a lot of stuff anyway. Also that argument of petrol prices increasing transport cost of good should not arise, cos trucks and trailers use diesel and not petrol.

Don't get me wrong, I'm not anti poor people. I would love for poor people to be able to move up the ladder of poverty into comfort, but i am just stating facts as they are. As unfortunate as it may sound, even the Bible tells us that the poor will always be among us.

Nackzy:
With this P & ID i came to a conclusion that everybody is Corrupt in Nigeria...but in different ways

Quote Me and die in 3 Days

If you propose a shaddy deal to 100 Nigerians, where they will make say N10mln and won't be found out, I can bet you that those that will refuse will not be up to 10

kingreign:
I use cruise control alot.

I'm curious to know on which road that is.

Kelvin30286063:
I use my cruise control effectively when I travel but it's obviously unusable in traffic or in a bad road which is almost everywhere in Nigeria. The main disai notice to cruise control is that it waste fuel

Really!! Cruise control wastes fuel I would expect that it actually improves fuel consumption, since you are going at a constant cruising speed.

Great100000:
AJ. See the Legend (Klitschko) dey Dance because of AJ uppercut. AJ sef no get joy

This uppercut is one of the most savage uppercuts I have seen in the heavyweight division!!

I just got back from a road trip from Houston, Texas to Temple, Texas. This is my first time driving intercity in the US and it was a 3hr trip. I was blown away by how organised and stress-free driving long distance is in America and why driving 5-6 hrs is no big deal for Americans. Driving that kind of distance is a decision they can make overnight here, whereas common Lagos - Akure, I would call like 5 people 1 week in advance to find out state of the road, which route to pass, where robbers are operating etc. It also explains why cars imported from America can often have high mileage 70k miles in like 2 years. My 10 year old Camry in Lagos is still on 54k miles.

Anyway, the trip got me thinking of auto tech and road infrastructure I used on that trip which would be generally unusable in Nigeria.

1. CRUISE CONTROL:

Cruise control enables you to set a cruising speed and your car automatically keeps that speed, enabling you to take your foot of the accelerator and rest your feet. All you need to focus on is the steer your car. More modern versions of this called dynamic cruise control have radar to sense the distance between you and the car in front of you, such that if the car in front slows down, your car will automatically slow down to maintain the distance to the car in front of it and if the car in front picks up some speed, your car will also automatically accelerate, but WILL NOT exceed the set limit.

More advanced dynamic cruise control systems found on luxury cars will even steer for you and use in built mapping tech to slow down when the car is going round curves in the road.

This tech is pretty much unusable in Nigeria due to the horrible state of our roads. Our roads require so much braking and swerving to avoid pot holes that it remains to be seen if cruise control could work effectively here. In 3 hours of driving from Houston to Temple, I can safely say my car experienced ZERO pot holes. Granted, there are a few roads where it would work such as Abuja airport road, maybe PH Eket road (if it hasn't fallen apart by now), but point is roads where you can use it are very few and far between.

2. ROAD SIGN RECOGNITION:
This is tech works hand in hand with cruise control and enables the car to recognize speed limits and other road signs and adjust accordingly. i.e if the speed limit drops from 70mph to 60mph, the cars camera will spot it, automatically drop the speed and automatically increase when you exit the 60mph zone.

This tech will never work in Nigeria for obvious reasons...our highways do not have signage!! There would be no way to know what the speed limit is!!

3. ROAD LANE CENTERING & STEERING:
Again this works with cruise control in the sense that most modern cars are able to recognize the lane markings and keep the car centered in the lane. This has many safety benefits in that drivers who are tipsy will have their cars automatically stay in lane instead of veering off the road and running into others. In the even you wish to change lanes, the more expensive versions of this found in luxury cars will turn off the feature temporarily, scan the entire road and if safe, automatically change the lane and re-engage lane centering. All you have to do is hit the trafficator to signal intent to change lane.

Again this tech won't work here because we have no road markings. There are very few roads in Nigeria, maybe 1 in every 1000 that has proper lane markings.

4. ELECTRIC VEHICLES
Due to restrictions on emissions and concerns over global warming and climate change a number of auto companies are introducing electric vehicles. these are vehicles that run on rechargeable battery power and an electric motor, as opposed to the petrol/diesel fueled internal combustion engine that we are used to. An electric engine produces zero CO2, whereas petrol/diesel engines produce considerable amounts of CO2, particularly in Nigeria where we use a lot of rickety trucks and commercial transport vehicles that spew out lots of emissions. Most European countries have set dates between 2030 and 2040 for the complete eradication of internal combustion engine cars on their roads. Remains to be seen what Nigeria is doing to prepare. Perhaps we intend to take the scrap cars from everywhere and continue living in a fools paradise based on our crude oil and petrol.

Unfortunately, the era of using electric vehicles in Nigeria is a long way off for the simple fact that we have one of the most unstable electricity infrastructure in the world. Where people have little access to electricity at home, how will the vehicles be charged? One of the reasons we have to sort out our electricity situation pronto!!


Suffice to say, I was really impressed by how people largely obeyed speed limits and road regulations without being prompted. And it was not necessarily because of cameras or police, but more because they are just a more disciplined society. Even on one of two occasions where these was like 5 minute congestion, lanes were maintained and there was ZERO case of cars migrating to the service lane or shoulder of the road to beat traffic. This made the traffic to clear in just a few minutes. Had it been Nigeria, within 1 minute, you'd have dozens of cars, mainly danfos, driving on the shoulder of the road, only to make 5 minute traffic into 1 hr of hell.

Bottom line is we have a long way to go to become an organized and disciplined society. In fact whilst we should be catching up to the rest of the world seeing as we can just adopt what works elsewhere without much thinking, we are actually being left further behind.

georgeiyke009:
Lol. Well technically its possible but thats where economics will come in.

A lot of people move around too much and buy and drive cars cuz fuel is affordable. When they make it unaffordable, then the following will happen:
1. Most fuel people buy is for commuting to work and back. Discussions for people to start working from home permanently and maybe just come to the office once in 2 weeks will happen.

2.Ride sharing will become the order of the day as guys will team up and fuel a guys car for the week, then another person's car.

3. People will start trekking more especially for within movement.

4. Online shops will surge in profits as people will prefer to buy and pay a delivery fee which will be less.

5. Less traffic as few cars will be on the road as a result. The few times people really need to go out the road will be at least free saving fuel.

6. V6 and v8 cars will become junks as smaller cars will become more attractive. Only the truly rich can now afford to drive one.

So in the end it does not matter if they band and make it 1000/liter. A lot of people will simply not be able to buy and drive as regularly as they do and they will be forced to drop their cars and limit movement as much as possible. They can no drink their fuel. Literally.

Good points. It's funny how in UK most people drive tiny cars for maximum fuel efficiency. Its rare to see a car the size of accord or carry on UK. Yet in Nigeria we have this obsession for benz and SUV partly because petrol price was never an issue. Maybe this will cause a rethink. Very likely my next car will be a hybrid.

Maybe this is also a time for car conversion to LPG to kick off in Nigeria.

Ehinmen3:
This timing is good according to your buhari book of wisdom Abi?

Unfortunately, there is no "good"time! Majority of Nigerians have been extremely poor for that past 30 years and that won't change anytime soon.

Not because I like it like that, but thats the unfortunate truth. There is no magic wand to it. And one of the biggest reasons is because we are also majorly illiterate. In this modern economy, a country just can't have people as poorly educated as Nigerians are and expect they won't be living in poverty

Seikiri1:
The countries in the chart what are their minimum wage?
You should have included that as well.

That is where the real issue is. Wages in this country are way too low.

khingTony:


DJ cuppy's chest though

The baby just dey add anyhow! She's looking very puffy

Blue3k:
Lol 2020 is an interesting year, 1/4 of rice production is washed away. These little events along with news of Nigeria importing grain put Nigeria's Argo sufficiency into question. I think its safe to say the agriculturual policies have failed and the government should admit like they did the subsidies.

Not quite sure how you deduce that from the article . Flood is a natural occurrence, so how is that tantamount to policies having failed?

money121:
https://lagosstate.gov.ng/blog/2020/09/07/lasg-reassures-boat-passengers-of-safety/

I thought the 100,000 passengers in 124 days was a lot, till I divided it and it turned out to be just 800 per day.

Still a lot of work to be done. The waterway system in Lagos has a lot of potential. It should be doing like 5000 per day. From Iyana Oworo and Bariga to CMS/Marina and Oniru or VGC area to Marina/ Oniru should be very popular routes for those going to work.

If only they can make it work properly by doing the following, it will work well.

1. Have clear schedules with specific departure and arrival. This way people chasing their appointments will be clear on their arrival times at destination and plan departure time accordingly.

2. Online real time ticket purchase.

3. Parking stations on mainland. Can be free at first to encourage users, say for first 2 years, but it would eventually have to be paid parking.

4. Quality and well maintained boats like the one they have now.

5. Very clear safety protocols and processes to give users assurance of their safety, even if the boat malfunctions in water.

kokomilala:
@COMPAQ, why not?You sound pro discos. They are a collage of irresponsibles. They overcharge consumers for what they don't use.
It's not rocket science, the problem of the power sector. If the legal frame work is in order, the grey areas sorted out, and the parties adhere to the terms, why not.Please,do not put a lead on the possibility of serious investors coming on board. The communication sector is a good example of where investors put in their money and it worked, still works.
These discos here are just useless. They don't seem to be building capacity at all. They just roll out bogus and outrageous estimated bills monthly for power they don't give.

Everyone quotes the gsm sector as one that works. Did you ever hear that the government forced operators to any specific tariff? Sim went as high as N20k, which is like N100k in todays value yet people bought it before it came down. Tarrifs have stayed about the same for 10years, but in real terms when you consider inflation and devaluation it has really come down.

The gsm sector is unique though in that the marginal cost of add I ng one subscriber to its network is zero. If 100k people move to MTN, it doesnt cost anything extra to provide service to them, so its easy to reduce cost, cos the fixed costs are now spread out over more users. Most other sectors are not like that. To supply electricity to 100k more people means a DISCO must also pay for that extra electricity.

Like I said earlier, when we do the right things, we get the right results.