DropShot's Posts
Nairaland Forum › DropShot's Profile › DropShot's Posts
1 2 3 4 5 6 7 8 ... 71 72 73 74 75 76 77 78 79 (of 122 pages)
Bassee:Let's hear what the govt plans to do to ease the burden but removal of subsidy is the way to go. |
Bassee: |
juman:That's because you've chosen to be blind to it. |
Esseite:How do you know anything about me? |
juman:How? |
LadyExcellency:No sir. He had already proved to be Ineffectual since his days as acting president and later president in 2010. |
DesChyko:The plan was right but he didn't have the trust of Nigeria not to waste the ploughed back subsidy. If the scenario occurs again with GEJ at the helms, we will resist him. There lies the difference. |
LadyExcellency:As I said, he would have been right and successful if he had not proved to be corrupt and ineffectual. End of story. |
Times are tough, no doubt. The situation we find ourselves as a nation is dire, no doubt. As the FG announced the new price regime for fuel pump price from 87 naira to 145 naira max, a lot of people including on this forum have criticized the action of the government and accusing it of insensitivity to the plight of the common man. While this article is not deliberately focused on the past administration of GEJ and how it managed our resources, it’s nearly impossible to attempt to justify the current government’s action without needing to make reference to the oil boom period of 2011 to 2014. Had the immediate past administration judiciously utilized what we earned and what it inherited from OBJ/Yar’Adua, it’s very unlikely that we will find ourselves in this messy situation. While I don’t oppose a government providing palliatives to its citizens to cushion effects of high cost of essential commodities, it makes no economic sense to do that if there are no resources to do it. Nigeria with a paltry $27 billion dollars in foreign reserves (GEJ met it at $47 billion, earned more than any president in Nigeria’s history, yet depleted it to abysmal level), $2 billion in Excess Crude Account, lacks the resources to subsidize fuel. In the same way, it will be disastrous to support a corrupt regime to remove subsidy from essential commodities while the president watches helplessly as his foot soldiers defraud the citizens and enrich themselves corruptly. Numerous corruption cases ongoing is a reminder of how GEJ allowed the Dasukis, Bafarawas, Akpobolokemis, Mettuhs, Diezannis, Inde Dikos and many others steal us blind. Brief History of Fuel Subsidy Beginning from when OBJ re-introduced fuel subsidy in 2006 as a palliative for high landing cost of imported refined fuel, Nigeria has spent more than N6 trillion to subsidize fuel since then *2006 – N151.9 billion; *2007- N188 billion; *2008 – N256.3billion (January to July); *2009 – N421.5billion; *2010 – N673 billion; *2011 – (N1.3 trillion)revised to N2.19 trillion; *2012 – N888 billion + N161.6 billion supplementary *2013 – N971 billion; and, *2014 – N971.1 billion http://www.vanguardngr.com/2015/05/why-fuel-subsidy-must-go-2/ The amount spent on subsidy in 2015 was in excess of N1 trillion http://www.dailytrust.com.ng/news/general/nigeria-spends-n1tr-on-fuel-subsidy-in-2015-kachikwu/124416.html Why Fuel Subsidy Is Not Sustainable Now It’s not a hidden fact that our earnings from crude sale has nose-dived; more than halved from what it used to be. The average crude price per barrel now is below 30$ since beginning of this year. When compared to an average of $90 to $100 for the four years of 2011 to 2014, no one need a rocket scientist to understand the money to subsidize the product is no longer there. Throughout the world, all countries that have their economy largely dependent on crude oil have experienced economic set-back and most of them have taken drastic actions to cut back on their expenses on subsidy. Saudi Arabia, at the beginning of crude price fall had more than $600 billion in foreign reserves, yet she increased fuel pump price by 50% http://money.cnn.com/2016/01/05/news/economy/saudi-arabia-oil-budget-gas/. Qatar increased fuel price by about 35% and still planning to increase it further, UAE and many other Gulf countries refine their own crude locally, can afford to keep subsidy, yet have all removed some subsidy from petroleum products. The only places where fuel prices have gone down since crude price crash are the economies that were not enjoying any form of subsidy when crude price was high. Going by this summation, it amounts to irrationality, lack of having any grasp about happenings in the world economy, or pure and deliberate emotional blackmail to expect Nigeria to be able to keep subsidizing fuel especially with her current economic recession. Why Nigerians Were Right to Oppose GEJ’s Subsidy Removal in 2012 I, among many other Nigerians were opposed to GEJ’s plan to remove subsidy from petrol in 2012 and here are some of the reasons: 1. GEJ by then had already proved to be shamelessly corrupt and lacking the political will to stem the tide. So, we were right to believe that the subsidy to be removed will still end up being looted one way or the other. Events since after the partial removal have proved us right as not a single measure of the promised palliatives was fulfilled. No mass transit buses. No new refineries as promised. No new roads built as promised. 2. Nigeria was earning excess from crude oil as at then. As such, we should be able to enjoy some part of the excess profits through subsidy. If ministers, Special Advisers and other top government officials were stealing us blind and we saw them, why should we not have a right to some subsidy which was paid for by the excess earnings from our crude? The Way Forward For Nigeria to get out of the fuel crisis quagmire, there are certain things we should be doing but are failing to do: 1. Diversify the economy: In the past, lip service was paid to economic diversification. To be sincere, we have missed our best opportunity to diversify our economy with little or no pain. The second best opportunity is NOW which unfortunately comes with pains and sacrifice. We cannot expect the government of PMB to diversify the economy and not plough resources from subsidy towards the diversification; especially when we are earning far less than we require now. 2. Build more refineries: Without having the capacity to refine our local petrol demand in the next two to three years, fuel price will go up further and we will be back to square one when crude price goes up astronomically again. It’s good to hear that the FG in partnership with some businesses is planning to have new refineries on board within three years from now. I hope it comes to fruition. So, should we find ourselves in the same position as 2012, with a president who acts like GEJ, I am certain Nigerians will resist any attempt to remove the fuel subsidy. But given the current economic situation and the type of president we now have, it will be unpatriotic not to support him. Even his worst detractors know in their deep heart that this president is not an IB and not a corruption personified. Constructive criticism is welcome. Empty brains should stay away! |
kessler53:Both combined as opponent on the ballot paper can't come close. |
OgbonnaUbani:Hypertension is real. |
EliteQueen:You're not making sense. I understand your frustration though! |
AreaFada2:Stop making excuses for GEJ's failure. Yes, it could have been best done during excess crude earnings but since the govt of then had proved to be hopelessly corrupt, and lacking trust of the citizens, Nigeriana were right to resist it. BTW, the palliatives promised for the partial removal they eventually did, where are they? |
TANTUMERGO007:Senseless post. So, businesses should continue to shortchange the govt ? |
ndcide:In 2012, Nigerians were entitled to subsidy given that we were making a hell lot of money from crude sale. Now, we're not making reasonable profit from crude sale and it's not sensible to still subsize when you're already losing money. Check other countries where they enjoyed subsidy prior to crude prise crash and you'd realize that they've all removed some subsidy. Qatar, Saudi, UAE, and many others have increased fuel pump price. It's only those countries where there was no subsidy prior to crude price crash that have witnessed reduction in fuel pump price in tandem with reduction in crude price. |
PMB has my support throughout his four years. After it, we will rate his performance. omenka:You just took them to the cleaners. Wicked you. |
Great. No place to hide for looters who brought this calamity on us. |
Knighttemplar:You don't have to ride it from Lagos to Ibadan. It's just enough for local commuting. It's what's obtainable in many developed cities around the world. |
Knighttemplar:Isn't a nice bicycle better? Plus advantage of the exercise it offers. |
Flets:Joker! Frustrated soul. Go bring IB there nah. ![]() |
TippyTop:Dreamer! ![]() |
![]() The numerous pronouncements of our Dilector are enough to influence the judges to convict him nah. Where you put your brain when you dey yarn dust? It has not even started for you. Na Dilector and ATM Dasuki PMB dey refer to here: "I admit that there are a few cases where apparently stringent rules have been applied as a result of threats to national security and the likelihood that certain persons may escape from the country or seek to undermine the stability of Nigeria". - PMB ![]() |
BarryX:A man who, in 2003 singlehandedly scored 12.7 million (32% of all votes) votes against the rigging machine of PDP, who got 12.2 million (still 32%) against GEJ in 2011 despite the massive rigging still, is the man you say he never stood a chance? If anyone is forgetful or lazy to check records, it's you. |
Kingspin:And why is it difficult for you to think another credible candidate so we don't have any reason to worry? |
wordychap:By who nah? Why will he not allow free and fair election? Anything to think in that direction? |
BarryX:Buhari had always stood a chance but for rigging. Go check records. |
LaExpert:OK. |
LaExpert:My post that triggered this was specifically a response to insinuation that most parents earn 18k. So, I end that issue here. You needn't disappointed for a stmnt of fact that university education is not for everyone. It has always been a fact and it will remain one till end of time. Not getting university education doesn't mean one's life is incomplete or worthless. Many people attended technical colleges, many engaged in trading, others opted for special education just to fit into the society and many later turned out better than some that got university education. Think through my posts before replying. |
No way for any other politician in 2019 as far as PMB is still contesting. And if you doubt me, tell us who you think has a 50% chance of defeating him? |
[size=16pt] grafikii: If this guy was ibo, they will say Buhari wants to humilate the entire tribe.[/size] Edit your original post as this. |
So? David Cameron was right and we know it. PMB doesn't have to deny we're corrupt. Or are we not? However, Cameron or any other leader is not expected to ridicule a fellow nation, especially the one you call your ally. |
1 2 3 4 5 6 7 8 ... 71 72 73 74 75 76 77 78 79 (of 122 pages)


