₦airaland Forum

@ziccoit, kindly show me the "ethnic" in all those comments.

I'd love to watch it. I enjoyed Sanusi / Iweala on AIT yesterday. Sanusi made very strong points.

Imagine, INEC office. It proves that it has always been about politics. Nobody is interested in d economics.

Even if one million economists explain to us, we will never agree because our minds are made up already. We say with our mouth "We want change" but our actions say "We don't want change".

That said, the govt also has its share of blame since it did not carry everyone along properly. When you want to introduce a totally new policy, you must prepare the people to receive it.

Did I hear Senator's house on fire? Hmmm, I thot they were "on the side of the masses"? Lol

Simple, sharp and straight to the point! Only that it's just too bitter for the rest of us to swallow.

Anyway, violence and arson is not the way out.

@babestella, your concerns above are very very valid. The country is an undeniably terrible state. A state of "wahalaity" and "potopotoism" if I may borrow a leaf from Patrick Obahiagbon.

That said, we know all these numerous problems will take us time to solve. We have over 50 years of terrible leadership and GEJ has just 4 years to make a total transformation. It's a humongous task but I see he is making the tough decisions necessary to turn things around. I think we need to keep the pressure on him and every other elected official in order to get the best from them. But we must also give them room to do their work.

^ Enough for him to "pray down" a helicopter that didn't pose any threat to him? Give me a break.

Judgment day is here! We should thank GEJ for indirectly starting this process that will finally liberate 9ja from the shackles of the cabal.

I hope this is not propaganda. Did he really do that? If true, then this one has gone beyond ordinary. The man may be having a psychiatric problem. He may need some Yaba attention. It's a pity.

It makes more sense to "debottleneck" the system than to subsidize.

I knew it! This is not a "subsidy" afterall. Read for yourself:

https://www.nairaland.com/nigeria?topic=843727

@babe stella, with respect to point no. 1, I've tried to correct that impression on several threads.

It is a win win situation for us if we have fuel at N140 and our neighbors sell at N200 because, we would have converted a smuggling market to become an export market. Why the old system was bad for us is that the FG had to pay to make fuel cheap. Now we don't have to pay to make it cheap. The price differential will become a plus for us. Furthermore, it keeps us in business and helps us create jobs. The FG loses nothing and we lose nothing as a country.

I can liken it to importation of cars via cotonou. The market is there and the flow is there. The Benin Rep FG doesn't subsidize cars and the flow of cars from Benin to Nigeria benefits Benin Republic directly or indirectly. I hope u get my point?

I can bet NLC / TUC have a covert plan being played out. It's a pity people had to lose their lives for politicians, religious bigots and insincere activists hiding under the cover of "cheap fuel".

Parasites: No better way to put it!

There is a difference between:
A. Convey the message to GEJ within 24 hours.

And

B. Revert the price within 24 hours.

Let's be clear, which one is it?

Amaechi is working while some others sit back and allow the situation "work" them. His actions will soon form a model for d others to follow.

Even if she buys half of Abuja, is there proof that she stole any money? Does she not have a right to spend her own money? What is she using all her knowledge for if she cannot create her own wealth legitimately?

If this does not prove to us that the era of subsidy was a waste, I wonder what will! Think people, this is happening just less than 2 weeks into d new policy! Why do we want to fight and die just to encourage waste?

Exactly @ Cold, I will be reluctant to call this subsidy until I hear all the facts. Long b4 now, northerners who were against PIB and resource control have always maintained that things like this are bound to happen. PMS can be 70 naira in PH but will be 150 naira in Sokoto! Rivers has its own refinery and N4 reduction is just a little less margin. I expect fluctuations in the market will allow pump price fall below this mark.

I seriously doubt if the governor will actually have to pay money (cash out) to sustain this. It will only make sense if the state is offering a reduction in margin, tax or something that doesn't involve the state spending. Any other thing is just a waste.

I've always known that the current price can be brought further down a bit without any subsidy. I await more info.

Err. . . There is a court order restraining NLC from embarking on the strike and by the recent turn of events (in terms of security), FG has proven that its case for restraint was valid.

It is better to attack the policy economic fact vs economic fact and not politics vs economics.

The impact of this on the growth of our local manufacturing industry will be tremendous. Apart from the direct impact on the auto industry, it will also have an impact on others who supply / service the auto industry. The upholstery, the glasses, etc.

People will do anything to bring down a credible woman like Iweala after she has kicked them in their balls as Akunyili did @ NAFDAC.

By this move, jobs will be created and transport costs will be reduced.

January 11, 2012 by Rasheed Bisiriyu

Local vehicle assembly plants are to supply about 6,000 buses in the first six months of this year to cushion the effects of fuel subsidy removal on the people.

The buses, according to the Executive Director, Nigerian Automotive Manufacturers Association, Mr. Arthur Madueke, will be injected into the urban mass transit scheme just inaugurated by the Federal Government.

This came on Tuesday just as the Luxury Bus Owners Association said its members had not increased their fares as a result of the fuel subsidy removal.

The group, which urged the Federal Government to remove import duty and Value Added Tax payable on all imported fully built commercial buses, said it was in support of the removal of subsidy on Premium Motor Spirit.

Madueke told our correspondent in a telephone interview on Tuesday that the new bus deal was sealed in Abuja last Thursday during a meeting between the local bus assemblers and the Federal Government team led by the Minister of Trade and Investment, Mr. Olusegun Aganga.

President Goodluck Jonathan had on Sunday inaugurated the mass transit scheme with 1,100 buses, some of which were imported.

He had earlier approved N15bn for the commencement of the scheme.

Jonathan had said with a robust mass transit culture, the cost of transportation would be reduced, comparable to what obtained in developed economies, adding that the three tiers of government would be involved in the scheme, with the support of transport unions and commercial banks

Madueke also confirmed that 50 per cent of the first set of vehicles for the scheme would be obtained locally.

According to him, Innoson Vehicles Manufacturing Company of Nnewi, Kano-based National Truck Manufacturer and Anambra Motor Manufacturing Company of Enugu are major contributors to the scheme.

“By March, we should be able to supply 2,000 buses to the scheme; and at the end of the second quarter, we promise to deliver between 5,000 and 6,000 buses,” he said.

The NAMA director said that most of the local vehicle assembly plants were currently running on a single shift, adding that with assured patronage, they could run two or three shifts.

He stressed the need for the operators of the buses to carry out routine maintenance of the vehicles with the local assembly plants or their accredited workshops.

“The maintenance cost will be at affordable rates; this will be part of the deal; we don’t want a situation where the vehicles will be mismanaged or poorly maintained and will end up giving the manufacturers/ local assembly plants negative image,” he said.

Madueke had before now said the existing 12 vehicle assembly plants located in different parts of the country with a combined capacity of 150,000 vehicles annually, were currently producing at about 10 per cent of their installed capacity.

Meanwhile, LBOA said in a statement on Tuesday that its memebrs had not increased their fares.

http://www.punchng.com/business/business-economy/subsidy-local-assembly-plants-to-supply-6000-buses/

Yet some greedy ones among us want us to keep paying for fuel consumed by our neighbors. Since when did we become father Xmas?

Occupy your job!

@ hercules, I got your point. It's very clear. What u mean is that if our pump price is N140 and that of Niger is N160, there will still be reason to smuggle. Agreed. But the correction I am making is that it will not be at any cost to us. Rather, it helps us indirectly the way exports help.

Let me break it down:
Assume 20 million litres of PMS gets delivered to us daily. We sell at N140 (no subsidy). Someone takes out 2 million litres of it and sells in Niger at N200. But guess what? It was bought from us at pump price.

Now where does subsidy come in? The subsidy is no longer attached to the pump price but to an individual! It is now like part of your salary. Or like a loyalty credit system which entitles you to more volumes (as an individual). This system succeeds in decoupling the pump price from the subsidy. If you decide to sell of your credit to a smuggler, its your personal loss and not a national loss. Besides, as I suggested, only small volumes get the subsidy. A smuggler will need up to 1000 persons to sell him subsidized fuel b4 it can make any sense to him.

Why did I say it's a gain even if there is still a price differential? The pump price has in it some value added over landing cost. That value is internalized so at the pump, it has already provided jobs for the marketer and for the transporters. It has already provided returns for the govt. Wherever it is taken to be consumed is no longer important. I hope u get my point? I'm mobile so can't really type much even as I have so much to say on this.