₦airaland Forum

The lower and middle class will be affected. The upper class will take a stroll to Dubai, London etc. The politicians will not even feel the heat. All their allowances will be paid and in fact, they will even be paid more to compensate for the "inconvenience" of the strike action. The biggest losers will be private business owners who cannot operate.

Tell me how you will enter Forcados and Bonny terminals. Also tell me how the numerous FPSOs on the ocean will be shut by NLC. I dey laff o.

I'm rich so I don't need subsidy or palliatives. Tax me more and give to the poor. We need to find ways in which whatever subsidy benefits only the poor.

The way people have been screaming against removal of subsidy, you will think people will just fall and die instantly. Agreed prices will generally rise up but over time, they should stabilize at certain bearable rates.

The issue of rising prices in transportation is mostly one of greed on the part of transporters. Let's look closely at this: Before subsidy removal, an 18 seater bus may require N5000 fuel per trip from PH to Lagos carrying 18 passengers. Each passenger pays say N2000. Post subsidy, fuel cost is 217% more ie say: N10,850. Now, the increase is, N5,850. Spreas N5850 amongst 18 passengers and what you get per head is just about N325! So transport cost per head should be N2,325. Even if you want to factor in other things due to "general inflation", transport per head coud be say N2,500. But no! The transporters want to rip everyone off and demand the whole 217% increase per head giving N4,340
. WHY? We just want to take advantage of every situation and plunder ourselves.

In all, as time goes on when the euphoria of the new price fizzles out, things will stabilize. Meanwhile, I advise we focus our protests towards the real issues:

1. Swift passage of PIB
2. Reduction in size and cost of governance
3. Corruption
4. Resource control (Every region has huge resources that should be developed strategically and not plundered unreasonably)
Etc!

I just bought at NNPC today for N138 per litre and my fuel gauge did not act like it felt the impact of N5000 worth of PMS. . . But I still support subsidy removal!

BTW, we can also subsidize beef; we have lots of it in Sokoto.

There are too many lazy Nigerians out there. Give Nigeria to the Chinese or Germans for 10 years and oil will become 5% of GDP!

You need to see all of them with their fat bellies!

Source: AIT

NLC intends to strike and guess what? They plan to shut banks, fuel stations, airports, markets etc. Those in Aso Rock will continue to have their full supply while the masses roast back home. Why don't they limit the protests to where it really hurts (Oil facilities etc) and allow the masses go to their markets and banks? Anyway, I'll just stay home chilling out and planning my next move.

Nice article. They have divested a significant number of assets. Some affected OMLs are 4, 26, 38, 41 and 42. OML 30 is still in the oven.
I heard a number of staff were also "sold" along with the assets.

The concern is whether the new operators will fare better in terms of corporate social responsibility and environmental issues.

I'm in love with Ngozi. By the time she's through with our economy, US citizens go begin line up for Nigerian passport. Carry go madam!

All the bad rumor peddlers; fire burn them!

Nice except that the lowest earners at less than N30,000 still have to pay 7% now as against 5% then so it's worse for them. Or maybe I don't understand the scale.

because Nigerians are protesting for a dumb reason.

I hope they will be Innoson busses.

Fresh busses! Hahaha

The experts at the economists also think the way I do on this subject. I guess that makes the writers of the article "GEJ fans" as some have suggested. Lol

If the subsidy is re-introduced in any form other than tax reduction, we gain nothing and I will not support it. I'm with Iweala on this one.

Do you expect them to admit it? If they do, they'll lose public confidence.
Why have they not taken any decisive step as you have noted also?

NLC and TUC have long bought into the idea of subsidy removal.

I have no idea!

Retailers of petroleum products are beginning to lament low margins as a result of the new price regime. In September 2011, Jimoh Ibrahim announced his intention to transfer operatorship of Energy service stations nationwide to "young entrepreneurs" as a result of the derregulation of the downstream petroleum sector. Others have simply lamented the new situation. The question therefore is: Why has the business suddenly become less attractive even with the higher price?


One reason as some  marketers have lamented is that higher working capital is required. More money has to be committed to procure the product before selling.  Another reason is lower ROI. Prior to subsidy removal, ROI was about 15% now it is down to about 9%. Other factors are higher operating cost due to direct increase in cost of fuel etc. These are some of the reasons we see on the surface but are there other reasons we may not know about? Was there something special the subsidy brought behind the scenes? Were these marketers involved in sabotaging supply in order to force prices up or where they involved in smuggling across borders? I leave these questions for those who may know better to comment on.

Source: efisher

Thank you mods for educating my fellow posters.

The less the FG participation, the more likely it would succeed. Let FG just create the environment and others do the investing.

IBB said subsidy removal is political not economic. This may have been his line of thought: Resource Control.

People need to start looking inwards. That is one area where Fashola leads the rest. I bet if Fashola were president, his first task as president would have been to remove the damn subsidy.

@Beaf, you beat me to it. I was about creating this thread and my title was to be: "Rent Seekers Protest Subsidy Removal As Resource Owners Sit Back!"

Our per capita indicies are terrible because we're overpopulated.

See what unemployment can cause!

There is no justification for killing the young man. Live weapons should never be used to supress protesters.