₦airaland Forum

jamafa:
Nah today suffering start??

Will bringing subsidy end suffering??

Reserve that suffer wish for u and you family

nairalanda1:
Still shows that you have no way of refuting my points though, because you don't have any point to make. Hence your comment. AM glad we settled that.

CHECK THE MEANING OF THE WORD AND PHRASE and paste it here for all to see before u start jumping to conclusions

nairalanda1:
You said the above because you do not have anyway of refuting them.

Pls check the meaning of RELATIVE and NOT TENABLE

nairalanda1:
The reason why dangote has to make enough profit is because unfortunately

1. It does cost a lot to refine crude into petrol and other components
2. Some waste, which cannot be used for anything would be left over
3. Transport costs are very expensive
4. Price of crude can fluctuate well well.

So, if he is not making enough profit, he won't be able to cover for all those things....

And note that i have not even mentioned his maintenance and upgrade costs, which are very expensive because most of what is in that refinery comes from abroad. Any upgrades or expansion would mean installing machinery which also comes from abroad.

A subsidy would mean in principle government pays something like N1000 for every N1200 of crude dangote sells. And pay transport costs as well. Which on the surface looks good, but in reality

1. Crude oil prices fluctuate. If crude goes as high as 150 dollars per barrel, government may have to spend far more than 1000 naira per liter to keep fuel prices low.Which could lead to borrowing, and also lead to government cutting down on spending on education, health, etc, and salaries going unpaid.
2. Also, if crude prices fall, that may in theory ease costs, but in reality, it means that government ironically has lower amounts of money to spend on subsides...which could in turn lead to government borrowing or taking money from state allowances to pay for subsidy, which could force states to either not pay salaries, or borrow money. And again, no spending on education, health, etc.

Note I did not mention smuggling. Smuggling, most of which is done by small scale operators, would further drain costs (Nigeria has less than 100000 customs and excise and immigration people, manning a border as large as ours would not be easy at all atall...).

The best government can do is to reduce dangote's tax, which amounts to a production subsidy, which won't reduce prices by much, but would not let them go sky high either

Keep a subsidy, and the refinery would run at a loss....to the point that the refinery would stop spending money on maintenance and repairs to keep subsidy costs low, which would lead to the refinery breaking down eventually. (It happened in the same way to our NNPC refineres)

All these ur reasons are not tenable ..they are relative

PENSION TRANSITIONAL ARRANGEMENT DIRECTORATE ·
Afeez Olowookere
·
20 September 2024
·
Here's a breakdown of the costs that make up the landing cost of Premium Motor Spirit (PMS), also known as petrol, in Nigeria, totaling N1107 per liter:
1. FOB cost: N434.32
2. Freight cost: N86.48
3. Insurance cost: N10.58
4. Lightering cost: N23.45
5. Jetty depot fees: N15.35
6. Storage fees: N12.58
7. Financing costs: N34.67
8. Foreign exchange costs: N23.45
9. NPA charges: N10.58
10. NIMASA charges: N5.29
11. Customs duties: N51.17
12. Other levies and charges: N50.00
Total landing cost: N1107.00
Please note that these costs are subject to change and may vary depending on market conditions, exchange rates, and other factors. This breakdown is based on publicly available data and may not reflect the current or exact costs.
*With Dangote refinery you may not pay 2,5,6,7,8,9,10,11*
So the cost will significantly be reduced but spoil business for these Parastatals and the CABALS.Just imagine all these taxes and more are scrapped and the NAIRA TO CRUDE arrangement with DANGOTE refinery is diligently adhered to,FUEL can be sold for at least N300 PER LITER.Mind you this is a 2024 illustration

jamafa:
Nah today suffering start??

Will bringing subsidy end suffering??

Yes massively it wud reduce suffering.Just imagine that u can but fuel for N200 per liter now ...the effect on the economy wud be massive it wud impact on our dollar rate and effectively reduce d cost of living.That N8TRILLION that is being frittered away by the Governors can made to good use.Thank God Dangote is already onstream,those exorbitant taxes he is being made to pay wud be completely srcapped.

Wike is really scared now...Atiku has held Tinubu and its corrupt team by d balls with this his latest plan to restore subsidy if elected.As it now I have decamped from Obi to Atikus camp

Removal of subsidy has done this country no good

CharlesCNG:
You are focusing only on the half-empty bottle aspect of fuel subsidy removal—often with deliberate distortions—while ignoring the half that is filling up.
Atiku's plan - of which he has not provided a single detail will be a total disster. indeed it will collapse the economy. I will provide you with more than twenty reasons but will start with just one:DANGOTE AND LOCAL OTHER LOCAL REFINERS.

Nigeria’s petrol market is no longer the old import-dependent system: with Dangote and other local refiners now producing, Atiku’s detail-free “restore subsidy” talk raises one simple question: will government force local refiners to sell below cost, or will taxpayers pay them the difference?

Until he answers that, “I will restore subsidy” is not a policy; it is a slogan without an invoice.

BEFORE ATIKU “BRINGS SUBSIDY BACK,” PLEASE GET ATIKU AND HIS SUPPOERTERS , AT LEAST THE OLD SUBSIDY ARITHMETIC RIGHT

Dangote wud find a way to reduce fuel price.Atiku wud scrap those multiple taxation Tinubu collects

Parachoko:
It's going to be so dumb for any Government to start paying subsidy on Fuel again

But we cannot continue like this..pple are suffering

SocialFinance:
How many times are you people going to get this same file release? Na monthly?

Don't you have manifesto to sell your party to the electorate? Every time Tinubu this Tinubu that. I tire for Una

With 5000 vote in Osun, you ppl no dey shame?

They are using TINUBUs tactics against him

Cyberterror:
Congrats to the governor. He didn't deserve it but he won based on his promise to support President Tinubu in 2027.

Data boys don start.

That would be a very good PRECEDENT...that means TILUBU wud also be arrested too.The reckless GENOCIDE going on in LEBANON comes to mind

NaijaCrusader:
So life is generally hard all around? because millions of people will literally kill to be in that UK and face the quagmire

Speak for youreslf

Airtel unlimited rocks... U pple shld stop wasting ur money on data bundles

Bamz:
Final result: 1 - 1.

Still waiting for the first African victory.

Ivory beat Ecuador 2days back.South Africa is crashing out tomorrow.

Gboss247:
Checkmate Dangote with substandard petrol?

No quality fuel

nairalanda1:
Dangote is not a shylock...he is the result of you nigerians refusing to support subsidy removal before 2023.

You were amongst those that fought against d subsidy removal.

nairalanda1:
If you Nigerians had allowed subsidy removal before 2023, by now you would have had more refineries, and dangote won't be dictating the price.

NO one go refine fuel when a subsidy is in place, because banks won't lend you money for refinery building. Dangote was an exception because he had other lucrative businesses that he could use as collateral.

You were amongst those that fought against subsidy removal.... I bet u re an AGBADONIAN.

nairalanda1:
Dangote is not a shylock...he is the result of you nigerians refusing to support subsidy removal before 2023.

If he is not a SHYLOCK tell me why he has reducued the fuel price by just N75 after crude oil price has fallen below $80.

Pootle:
still not enough, the govt need to provide alternatives to dangote, other billionaires should invest in the petroleum sector too

Its only importation that can actively checkmate Dangote.That guy is a SHYLOCK
.

Abandoning what GUMI shldnt he be arrested too.

They sold start with the Oyo kidnap bandits and why are they even announcing it.Action speaks louder

franchasng:
I think why the Police were swift in rescuing the Adelabu Sister and her twin sons is because the kidnappers live within the city/town unlike the other monsters that live in thick forests, and always moving their victims from one forest in one state to another. My thinking




But then, our forests should not be allowed to be a hiding place for criminals, kidnappers and terrorists, Nigeria need to take over our forests by all means.



Well done NPF

My thoughts

StonedLex:
I still enjoy around 24 hrs of power everyday

Sincerely how much do u pay monthly?

Cajal:
Tell us who else was better than tinubu then
Was he the packaged fraud from agulu with no single legacy project during his eight years reign in Anambra
Or the just crowned kachalla of Nigeria
You people are very funny
God bless Nigeria

Tinubu is the worst thing that have happened to Nigeria every sector in the country destroyed.

Akpabio would not allow them

nairalanda1:
LOL, first off, the big men don't loot all your money, otherwise, salaries won't have been paid for decades.

Second, we gain a lot from forex...it's why the naira isn't N10000 to one dollar right now, and why most of you can enjoy imported stuff. It's also how salaries, wages, projects , etc are funded

Third,competition won't bring down fuel prices, because the crude oil price is still high. At least not below N1200 right now.

I DISAGREE

nairalanda1:
NNPC failed because of cheap fuel.

The corruption was just a byproduct of the whole system of subsides and forced losses.

If you were selling say bread at 100 a loaf , instead of the price of say 1500 naira a loaf which would make a profit for you,because government said you should, meanwhile subsidy payments which would have covered your losses are irregular and not able to cover your rising costs, the truth is, you are going to

1. Lie about how much bread you sold because that's the only way to get more subsidy money

2. Sell the bread on the black market at higher price of 3000 nairas to get more money

3. Smuggle the bread to Cameroon to sell at 4000 naira and get more money

And even then the money may not be enough to help you keep your bread factory working at full capacity, so it breaks down.

And you end up being a bread importer who makes fake subsidy claims to survive

That's how it works

I strongly disagree with u cos importation was still going on massively wen dangote had not come on stream, so drop that fake analogy. Corruption killed NNPC Q. E. D

nairalanda1:
Well

1. If subsidy had gone in 1993, there would have been more refineries since.

2. Prices won't fall down even if there were more refineries because crude oil sold in Nigeria domestically has to be sold at opec prices because of opec rules AND because government revenues are dependent on how much crude is sold at

3. A problem with importation is that it means a lot of exodus of forex. Forex that we don't have enough of. That's not going to help our economy

I gree it would impact on our forex .. but wud create a healthy competition.Afterall what wud the masses gain from the saved forex...it wud still be looted