₦airaland Forum

designking:
Exactly... Dangote actual price cannot be less than ₦1,000.

The advantage with local production is that, the subsidy is easier to pay as Dangote will pay tax and FG is also a co-owner of the refinery.

Eventually subsidy on petrol will be totally removed as Naira strengthens. With local petrol production, the pressure on the Naira will moderate allowing Naira to exchange around ₦1,000 - ₦1,200 to a dollar in the near future. This implies a 30% reduction in the cost of petrol.

The focus should be how local petrol production eventually stabilise the Naira-Dollar exchange rate.

Exactly and Naira may not stabilise in the immediate though because Dangote would still have to import above 250,000bpd crude oil in dollars and NNPC's crude to Dangote in Naira means NNPC is not exporting that crude so the net gain is little.

The biggest problem for the fx market in all of these would have been Dangote taking all those Naira he gets from selling in Nigeria and then seeking for fx with all of those from the CBN. That would have meant more pressure on the naira but the president solved that issue by arranging with Afrexim Bank. Afrexim would take all the naira from Dangote and give him dollars. Afrexim can then get those dollars back from Nigeria in small measures overtime so as not to put pressure on the fx.

designking:
Without a subsidy on petrol, price per litre might go as high as ₦1,100 and this will spell doom for the government and APC. The opposition wants petrol to sell above ₦1,000 and this will be a template for civil unrest.

The best option is to subsidize petrol for now using Naira and also doing crude-petrol swap with Dangote Refinery.

This way, we can reduce the pressure of the Dollar allowing Naira to exchange around ₦1,000 to ₦1,200. Also inflation will gradually reduce.

A stronger naira means cheaper petrol. Within the next 6months the economy will greatly stabilise.

Naira may not stabilise in the immediate though because Dangote would still have to import above 250,000bpd crude oil in dollars and NNPC's crude to Dangote in Naira means NNPC is not exporting that crude so the net gain is little.

The biggest problem for the fx market in all of these would have been Dangote taking all those Naira he gets from selling in Nigeria and then seeking for fx with all of those from the CBN. That would have meant more pressure on the naira but the president solved that issue by arranging with Afrexim Bank. Afrexim would take all the naira from Dangote and give him dollars. Afrexim can then get those dollars back from Nigeria in small measures overtime so as not to put pressure on the fx.

Deltamani:
EXCLUSIVE:
Randy Waldrum's resignation letter.


We wish his wife a quick recovery and goodluck to him and his family in the future..

Best news ever. I also wish his wife a quick recovery.

9jatriot:
If we check now, we may find them asking question like "Why build a stadium when people are hungry", as if there was ever a time when they were no hungry people.

Someone was also saying why build a coastal road when people are hungry and I told him: When Babaginda’s Government was building 3rd Mainland Bridge in 1986, people were also very hungry and many complained with this same sentiment. Today it is still one of the most important infrastructures in Lagos.

nairalanda1:
Uyo people are going to enjoy some world class football, including lots of Grade A matches, for some time.

Lucky them.

And if they complete their international airport, dejavu

Katampe Extension Abuja


https://www.youtube.com/watch?v=Z2Qp6uHtbV4?si=GS3-MQIBkzB1nfvL

Slightly off topic. Does anyone have any idea when the result of the domestic dollar bond would be announced? Wasn’t settlement supposed to be last week Friday?

AkoniMoipei:
So you think Kenya is the cheapest country in Africa, cheaper than Nigeria ? Jokes on you! There are tonnes of cheap aass countries like Nigeria where the value of the local currency is useless and a typical American would become an instant millionaire. But they dont go there. Why? Because of other things, including the quality of life, constant access to electricity, etc. Thats why Nigerians and other Africans are trooping to Kenya and vlogging about it day and night. It's important to understand that the conversation around black American travelers, including passport bros, isn't just about stereotypes or seeking relationships abroad. There are layers to this conversation that touch on economic freedom, cultural exchange, and even the search for identity outside the confines of Western society.

Your claim doesn't fully explain the diversity of motivations behind black Americans traveling abroad. Reducing the movement to a simple narrative of exploitation overlooks the complexity of why humans seek different experiences and connections in other countries.

It's also crucial to be careful not to lump everyone into the same box. Travel, whether for leisure, relationships, or self-discovery, is multifaceted, and discussions around black unity and empowerment can apply to many of these contexts, or NOT!

I encourage you to look deeper into the various reasons behind these movements and not just focus on the surface-level interpretation. Watch the initial video I shared that drove you nuts to understand why the guy interviewed (not Auston) moved to Kenya with his mum and has stayed for 10 years. Why didnt they move to Nigeria for instance? Thats all explained.

There are black Americans who have been living in Nigeria for years as well. They live and work quietly in mostly Abuja. Maybe not as many as what you would find in Kenya and Ghana especially but they are there.
It’s like a Ghanaian asking you why there aren’t so many black Americans in Kenya like in Ghana. If you answer by saying they go to Ghana for spirituality then Ghanaians would also accuse you of limiting the diversity of experiences of those black Americans travelling to Ghana to just spirituality.

BeforeJuly:
You need to stop posting 'passport bros' as some sort of Kenyan win here.

I've watched that guys content. All he has in his head is the cheap hook ups he can get in Kenya and Africa at large.

He finds Kenyan girls so friendly 😁

theenchanter:
white elephant. It wouldn't see the light of the day.

Why??

ProblemChild1:
Massive road construction with bicycle lanes in Abuja. Abuja is now looking more beautiful? This is beautiful I must say!
Wike is really doing a good job in Abuja.


https://www.youtube.com/watch?v=1E6J_JUoimg?si=72PRo1cCdT8xE9EY

Wike is planning an underground train system and a bus terminal.

adanny01:
That's in the case of private refineries.

Let me explain.

Say IOCs extract crude and give Nigeria 60% of it. Assuming 20% is enough for local refining and every derivative is gotten from it locally. We have our own pipelines to transport to refineries. The only FX need in the entire process is for maintenance equipment and training. This means that the price of all refined products is at least 80% independent of FX. It means one thing, that the 40% crude left will be sold for FX, and the pressure on the Naira is off because of refining.

Nigeria will now earn more than the demand for dollars to always import. Do you know that to build roads, we import Bitumen, a product of refining. Do you know we import fertilizer to farm, another product of refining. Imagine the huge list of imported products that we don't need dollars to import.

If you talk about the temptation to sell petrol at international price, let me ask you this. Does a farmer sell all his farm produce and go back to the farm to buy? Or does the farmer sell food to his family at market price? A farmer stores his entire produce, sells from his store as needed to buy other things he doesn't produce. He doesn't save money in the bank but produce in the barn. Price of farm produce go up because once a farmer needs goods or services, his produce must provide and that will determine the price he sells.

Therefore Nigeria will sell refined products to Nigerians not for profit, but for the good of our economy. As it is, there is profit in transporting our crude to refine in a far away country, there is tax to that country, there is profit for that refinery which will also pay tax, there is profit and tax to export finished products to Nigeria, lastly, there is transportation back to Nigeria. All this profit and tax could easily amount to half of the cost per liter we pay. All these will be eliminated with local refining.

There is no way we can pay for fuel at international price if we refine.

Even Dangote cant sell at international price.

NNPC would be losing fx from that 20% it’s selling at a subsidized level. So if NNPC refines that crude and sells it at 500 locally when they could have sold it at 900, they lose a massive profit and gain little compared to exporting that crude for dollars but if they sell closer to 900, then that may be better for them.

adanny01:
Let me itemise my reply respectively.

1. Yes, it was consuming a large amount of Forex. Are you aware subsidy is back and they are spending more than double the amount they were paying before Tinubu removed it? Do you have an idea how much fuel will be if there is no subsidy? Our economy will be dead, 500k minimum wage will not even work. Our currency will be worst than Ghana. Subsidy was very important for the stability of the economy, the only way that government was supposed to remove it is not by outright removal and palliatives, the only way is local production.

2. There has never been budgeting issues, NNPC is simply too corrupt to function well. Revenue projection is the backbone of budgeting but with NNPC that is not transparent with or without subsidy, government will always have a challenge. Subsidy is not the issue of budgets.

3. Subsidy is not the reason local production of petroleum products has failed. It is corruption and greed. Look at exactly how they are treating the Dangote refinery, isn't it obvious that there are some people that don't want us to refine crude?

4. How is the loss of revenue the result of subsidy. It is simple corruption. Removal of subsidy is like throwing away a baby with the bath water.

5. Has the smuggling ended by removal of subsidy. When Buhari close all land borders, the smuggling reduced to the minimum, we all saw it. So how is subsidy responsible for smuggling?

You have to understand that subsidy is not a bad thing. It is the people incharge that are responsible for all the issues. Tinubu said revenue doubled since the removal, what he didn't say is that inflation also doubled and the entire additional revenue he saved has no value.

When you speak of local production, you must also consider that crude oil is priced globally using $. So the production of crude oil in Nigeria is priced in dollars, so even when we refine locally there is this temptation to set it at the international price.

Elsueno:
I still stand by what I said. SAP IS SHYT, and any further implementation of SAP again would be a disaster for us.

Like Ur western masters, ur criticism is directly at the average Nigerian, You expect them to endure the incompetence of the political elites to the benefits of ur western masters, as all the stolen $$ loot would be stashed away in western banks.


Don't even compare Argentina to 9ja, their president reduced ministries, travelled commercial airlines when he was sworn in.

As opposed to tulumbu who immediately increased number of ministries, bought luxury cars 4 himself, lawmakers & wife. Spend billions in mansion. Private jets & yatch.

Did Tinubu buy luxury cars for lawmakers or lawmakers bought for themselves?

Akwamkpuruamu:
Obi won't have devalued the naira instantly and that makes a hell lot of difference. Devaluation should come in place when you have built policies and export production oriented policies first

Isn’t that what Buhari was doing? So why was he criticised then?

Honestey:
Everything I read here doesn't make mathematical sense. You can't tell me that now that I'm paying you more, I'm owing you more. Please those at NNPC should tell us if they need calculator because it sounds like they are still using fingers to calculate figures oo

It’s simple. Landing cost of imported petrol by NNPC doubled due to the naira rate.

nairalanda1:
It is a mistaken assumption that devaluing the haira has anything to do with subsidy. At best it would have made the cost of petrol go up to N1500 per liter or more.

But as you know, your beloved Tinubu essentially recommenced subsidy in October 2023, and thus, we lost even more money...alongside the money we lost from buhari under subsidy.

At the end, that 9trillion leaves a huge deficit in our budgeting, which has to be filled with loans.

I don't like GEJ, but looks like you guys goofed when your masters led out you people to disrupt subsidy removal in 2012, which would have been the last time we could have done this painlessly.

Karma is always a harsh mistriess.

You are funny. Even at 700 people were protesting recently that it should be brought down to 300 but here you are saying it should be 1500. Can you pay for it at 1500?

kingsways:
I believe it’s an impeachable offence to spend public funds without appropriation


I don't get how the government who said they removed subsidy and more than trippled fuel retail prices have ended up paying more subsidy than governments who actually did pay subsidy.

Naira devaluation.

That Edo queens midfielder with long hair at the middle, who’s she? A good playmaker.

Enugu Nigeria


https://www.youtube.com/watch?v=Ga0KKazQUhE?si=83tfLfpN-pqo8wSc

Jamestown123:
WTF!!! 22%? No wonder things are freaking expensive in Accra, I didn't even took notice of that. Omo I ran back to my naija base immediately oo.

22% for an African country is fvcking too much. Here in Nigeria it was only increased to 7.5% from 5% a few years ago.

Just30:
All the vocational schools are also universities.

If Ghanaians are paying 22% value added tax while people in the US are paying 6% and things, then this is the least of service the state should offer.

Wait, Ghanaians are paying 22% VAT?? Butanshai.

vaxx:
free fees for the 100 level students in Ghanaian universities.

That will make Ghana the only country with free tertiary education in the whole of subsharan Africa . If that policy comes to fruition.

Not a smart policy. They should rather give the tertiary students interest free loans like Tinubu just did and channel that effort on vocational schools instead.

adonainana:
To add a bit of economic context

Dollars rate to the naira in 1983 was 0.765 so a bag of beans being sold for 200 naira was exactly $261 dollars (200naira / 0.765) back in 1983.

Today bag of the same beans is 100,000 naira and the exchange rate is $1 - 1600 naira . Which works out as 100,000 naira divided by 1600 which is 62 dollars

In real economic terms, the hardship in 1983 was 5 times worse than the one we are experiencing now

According to the principal of the school letter a bag of beans sold for $261 dollars then. It sells for 62 dollars now

Also historically speaking just the way 1983- 1985 and life eventually got better after

This time too in 2024 shall pass.

No country can experience inflation forever

Have faith

Shalom

I think our best years ever prior to now (since 1960) in terms of all economic indices were in the Jonathan era. 2012 and 2013.

Slimvincent:
200 a bag of beans is good deal compared to the reality of today.

That’s not how money works. 200 in 1983 is the equivalent of around 150 thousand today.

Cindypresh:
Shatap

1983 hardship was caused by the same buhari you, Apc and tinupoo packaged for Nigeria in 2015 and voted him again in 2019.

People like mannabbqgrillz, seunmsg, omoawoke, freestuffng, Madridguy and host of other urchinnns defended for 8 wasted years

Buhari only took over around October 1983, so how did he cause the 1983 hardship?

This is what I’m talking about.

“As Minister of Sports, I will not tolerate this utter recklessness. It is highly inexcusable, and there will be thorough sanctions after investigations into where and from whom this gross negligence originated. All parties must take their duties very seriously. The current way of operating the Federal Ministry of Sports Development does not allow for incompetence at any level”.

Senator John Owan Enoh.

daveP:
provided the system continues to remain this way, any form of justice will be merely a scapegoat situation. Because another even more incompetent fellow will fill in that void and no one can predict the level of tyranny that will follow. Things as flimsy as ego comes between sport bosses and that's how career and sweat of athletes nosedive. In a sane sports system with accountability, such two bosses will never smell a sports administration job ever again, even in their state. If that happens, others will sit up. But where is the presence of fear and shame needed??

Presence of fear and shame from whom? There are people who are there already who should be responsible for check and balances and who should be feared, but are doing nothing. That’s what is refffered to by some here as the system. The bad system is simply people not doing their job.

daveP:
Someone named one Samuel Obiweku or so. That he's the one in charge of entries. 2nd omission is already sabotage.

He’s supposed to have resigned or be sacked. When quick decisions are taken and people are shown no mercy for mediocrity, the system gets better.

mostob:
Oshoala and Macleans dey bench, you dey bring in Ify. This is not a personal something or whatever.

1. Ify has not been in great form

2. She is slow whereas we need fast attackers

3. She is barely fit.

Even if he brought in Esther that would have been something.

elyte89:
Co asking …any good link

808fubo