₦airaland Forum

Why would they disturb those that earn there money privately I hope he is jailed

Products subsidized in Nigeria - PMS and Kerosene
Demand
PMS - 35 million litres /day
Kero - 8 million litres/day

Prices
PMS Open market Price (OPM) - N145/L ( this number varied from N125 - 165 in 2011 because of crude oil price in 2011)
Kerosene Open Market price  - N150/L (this also varies)

Subsidy Per Liter
PMS Subsidy per liter = 145-65 = N80/L
Kerosene subsidy per liter = 160-50 = N110/L

Subsidy Per day
PMS = N80/L* 35,000,000 L = 2,800,000,000/day  = 2,800,00,000*365days = 1,022,000,000,000 = N1.022 Trillion/year
Kero= N110/L * 8,000,000 L = 880,000,000/day = 880,000,000*365days = 321,200,000,000 = N321 Billion/Year

Total Subsidy
PMS subsidy + Kerosene Subsidy =N 1,022 billion + N321 Billion = N1.342 Trillion

This is a very good estimate on how 2011 was arrived at.

Why the change of subsidy value from previous years, the average crude price for last year was largely above $100/bl, coupled with exchange rate differentials and  increase in energy demand  due to population growth, GDP growth & increase in smuggled products across Nigerian borders.

I hope this helps

I modified the posting based on questions asked

Example of Subsidy Calculation for August 2011 - A Bit More Detailed

Let me give more clarifications on how the Open Market Price (OPM) which determines the subsidy per liter is arrived at. The OPM is the end price that arises after all the players in the product value chain are being compensated. It is PPPRA that sets the benchmark compensation (margin) for each player in the value chain. Below is actual detail computation of Subsidy for the month of August 2011 for PMS showing the players in the value chain, their margins and thus the Open Market price and finaly the subsidy per liter.

PMS Template August 2011 (from PPPRA Website)

Price Element/Player        Naira/Litre

PMS International Price    123.00
Freight                         3.23
Lightering                           3.94
NPA                                   0.60
Fiancing                           2.91
Jetty                                   0.80
Storage                           3.00
Retailers                           4.60
Transporters                   2.99
Dealers                           1.75
Bridging Fund                   5.85
Marine Transport           0.15
Admin                              0.15
Final price    (OPM)       152.97
Pump Price                  65.00
Subsidy                          152.97-75 = N87.97/L

This implies Subsidy for the month of August for PMS only will be based on 31 days in August with 35 million Litre of PMS per day
= N87.97/L*35,000,000L/day*31 days =  N95,447,450,000 ie N95 Billion Naira for August 2011 for PMS only.

Computations for Kerosene are similar, the major difference will be the international Kerosene price and the Pump price of Kerosene, and volume of 8 million litres per day

Brief Explanations of the Cost Elements/Players

PMS Import Price - this is the international price for PMS for a refinery offshore(mostly Europe) as quoted on Platts. Also includes the traders margin.
Freight - Cost of shipping it to Nigeria
Lightering - Cost of Ship to ship transfer to bring the product to berth at the Jetty. It includes demurrage allowance of 10 days
NPA - Nigerian port authority charges
Financing - Interest incurred by the traders or marketers on money they got from bank to buy the product
Jetty - provides a platform to pipe the product from the ship to the depot on the land
Storage - Cost of storing at the depot
Retailers - This is the person buys bulk from depot and takes to a dealer or his own petrol station
Transporters - sure u know these guys, they drive the truck from the depots to the petrol station
Dealers - the person running the petrol station
Bridging Fund - this pool is created to compensate longer haulage trucks with trucks travelling shorter distances
Marine Transport - provision for marine transport
Admin - administrative charges
Final price - this is the open market price and is the sum of all these on top
Pump Price - this is the regulated price at the pump price which was N65/L.
Subsidy - THis is the difference between the Open market price (real cost of delivering the petrol at the pump) and the pump regulated price of N65/L.


Anwser to a question on Why Smuggling increased over the years from 2009

This is how it works the Higher the difference between the Open market price (OPM) and your regulated official selling price of N65/L, the higher the opportunity/incentive for arbitrage (arbitrage is the practice of taking advantage of a price differentials between two or more markets). So what this means is that the incentive for arbitrage has increased over the years. (an incentive is any factor (financial or non-financial) that enables or motivates a particular course of action (smuggling))

Year          OPM(N/L)      Pump Price   Subsidy(N/L)      Incentive
2009            90             65                   25                    1.0
2010           112            65                   47                    1.9
2011           145            65                   80                    3.2

From the above looking at the subsidy(N/L) column, you can see that the incentive/opportunity for arbitrage has more than tripled from N25/L in 2009 to N80/L in 2011 (320% precisely). As the incentives (rewards) increase more investors (smugglers) take the risk of smuggling to take advantage of the arbitrage, its a Risk/Reward thing. This naturally pushes up the demand volumes that could be diverted to markets of economic advantage. The lower the incentives the lower the investors that will take the risk, the higher the incentives, the more the investors that will take the risk. Its is basic economics.

You can cross check some of these figures from PPPRA, website its public information though they might have removed some of historical numbers due to the change in the pricing regime. You might also need to process the information to make more sense of it.

NIJAKING as a nigerian has researched stop asking why and do ur own simple research


Products subsidized in Nigeria - PMS and Kerosene
Demand
PMS - 35 million litres /day
Kero - 8 million litres/day

Prices
PMS Open market Price (OPM) - N145/L ( this number varied from N125 - 165 in 2011 because of crude oil price in 2011)
Kerosene Open Market price  - N150/L (this also varies)

Subsidy Per Liter
PMS Subsidy per liter = 145-65 = N80/L
Kerosene subsidy per liter = 160-50 = N110/L

Subsidy Per day
PMS = N80/L* 35,000,000 L = 2,800,000,000/day  = 2,800,00,000*365days = 1,022,000,000,000 = N1.022 Trillion/year
Kero= N110/L * 8,000,000 L = 880,000,000/day = 880,000,000*365days = 321,200,000,000 = N321 Billion/Year

Total Subsidy
PMS subsidy + Kerosene Subsidy =N 1,022 billion + N321 Billion = N1.342 Trillion

This is a very good estimate on how 2011 was arrived at.

Why the change of subsidy value from previous years, the average crude price for last year was largely above $100/bl, coupled with exchange rate differentials and  increase in energy demand  due to population growth, GDP growth & increase in smuggled products across Nigerian borders.

I hope this helps

I modified the posting based on questions asked

Example of Subsidy Calculation for August 2011 - A Bit More Detailed

Let me give more clarifications on how the Open Market Price (OPM) which determines the subsidy per liter is arrived at. The OPM is the end price that arises after all the players in the product value chain are being compensated. It is PPPRA that sets the benchmark compensation (margin) for each player in the value chain. Below is actual detail computation of Subsidy for the month of August 2011 for PMS showing the players in the value chain, their margins and thus the Open Market price and finaly the subsidy per liter.

PMS Template August 2011 (from PPPRA Website)

Price Element/Player        Naira/Litre

PMS International Price    123.00
Freight                         3.23
Lightering                           3.94
NPA                                   0.60
Fiancing                           2.91
Jetty                                   0.80
Storage                           3.00
Retailers                           4.60
Transporters                   2.99
Dealers                           1.75
Bridging Fund                   5.85
Marine Transport           0.15
Admin                              0.15
Final price    (OPM)       152.97
Pump Price                  65.00
Subsidy                          152.97-75 = N87.97/L

This implies Subsidy for the month of August for PMS only will be based on 31 days in August with 35 million Litre of PMS per day
= N87.97/L*35,000,000L/day*31 days =  N95,447,450,000 ie N95 Billion Naira for August 2011 for PMS only.

Computations for Kerosene are similar, the major difference will be the international Kerosene price and the Pump price of Kerosene, and volume of 8 million litres per day

Brief Explanations of the Cost Elements/Players

PMS Import Price - this is the international price for PMS for a refinery offshore(mostly Europe) as quoted on Platts. Also includes the traders margin.
Freight - Cost of shipping it to Nigeria
Lightering - Cost of Ship to ship transfer to bring the product to berth at the Jetty. It includes demurrage allowance of 10 days
NPA - Nigerian port authority charges
Financing - Interest incurred by the traders or marketers on money they got from bank to buy the product
Jetty - provides a platform to pipe the product from the ship to the depot on the land
Storage - Cost of storing at the depot
Retailers - This is the person buys bulk from depot and takes to a dealer or his own petrol station
Transporters - sure u know these guys, they drive the truck from the depots to the petrol station
Dealers - the person running the petrol station
Bridging Fund - this pool is created to compensate longer haulage trucks with trucks travelling shorter distances
Marine Transport - provision for marine transport
Admin - administrative charges
Final price - this is the open market price and is the sum of all these on top
Pump Price - this is the regulated price at the pump price which was N65/L.
Subsidy - THis is the difference between the Open market price (real cost of delivering the petrol at the pump) and the pump regulated price of N65/L.


Anwser to a question on Why Smuggling increased over the years from 2009

This is how it works the Higher the difference between the Open market price (OPM) and your regulated official selling price of N65/L, the higher the opportunity/incentive for arbitrage (arbitrage is the practice of taking advantage of a price differentials between two or more markets). So what this means is that the incentive for arbitrage has increased over the years. (an incentive is any factor (financial or non-financial) that enables or motivates a particular course of action (smuggling))

Year          OPM(N/L)      Pump Price   Subsidy(N/L)      Incentive
2009            90             65                   25                    1.0
2010           112            65                   47                    1.9
2011           145            65                   80                    3.2

From the above looking at the subsidy(N/L) column, you can see that the incentive/opportunity for arbitrage has more than tripled from N25/L in 2009 to N80/L in 2011 (320% precisely). As the incentives (rewards) increase more investors (smugglers) take the risk of smuggling to take advantage of the arbitrage, its a Risk/Reward thing. This naturally pushes up the demand volumes that could be diverted to markets of economic advantage. The lower the incentives the lower the investors that will take the risk, the higher the incentives, the more the investors that will take the risk. Its is basic economics.

You can cross check some of these figures from PPPRA, website its public information though they might have removed some of historical numbers due to the change in the pricing regime. You might also need to process the information to make more sense of it.

Good let them go and prove there bogus figure and lies in court I wish this is true

lagbaja:
This are additional reasons why the volume went up.
1. The mathematical relationship between exchange rate and value of
imports is not linear. For example between 2007 and 2011, there was a 20% increase in exchange rate
whereas there was a 400% increase in imports ( see attached figure). The main factor responsible for value of imports in Nigeria is forex
availability. If you extend this to the import of vehicles and generators, the inference is clear. That is to say that the volume of generator imports and SUVs may have doubled.
2. The prices of petrol generators have declined by more than 100% within the
last 6 years. SUV prices have also been on a sharp decline. Some SUVs sell for as low as 800k now. The high demand for SUVs is influenced by the deterioration of our roads.



Apart from the above analysis The subsidized fuel consumed by the 36 varies with LAGOS having the highest consumtion because of its population and that is where we have most of the super rich,rich, who owns most of this SUV's and some of them have more than one of the SUV's ,d more cars they consume more of this subsidized fuel in LAGOS while the rest consumption by rhe poor is low in this state so they consume the larger junk of the subsidy oil to the detriment of the less pupolated and poorer states like jigawa,kebbi,ekiti,nasarawa and other poorer state that don't consume as MUCH AS LAGOS!!! And what government is saying is the that instead of subsidizing this fuel for the super rice and those that have 2,3,even 5 cars that. Majority live in LAGOS!! The government is say instead of giving NNPC this money for subsidizing fuel for the supa rich and the reach in states like LAGOS and KANO Let us share this
money equally among the 36 states and over 700 LGA in the federation so that this money can get to the poor people who need it and not the rich who actually benefit from the subsidy that the poor is been deceived to protest on the streets for !!! So sad some elite have let there creed and polital affilition resort to misleading and mis informing the poor masses history would judge the people like bakare and co

ode remo:
govt have not thoroughly think this thru,
my argument is this , the subsidy benefit will be shared btw the 3 tiers, fed, state and local govt.
u now think , hang on what are we benefiting frm the present allocated funds.
start with the local govt, my local govt in ogun gets close to 200 mil every month or thereabt, small percentage goes to run the council and what nots. majority is spent settling obas, chiefs and buying favours here and there.
corruption and inefficiency has become the bane of our problem and this is what jonathan needs to fight.

Go ask ur GOVERNORs and LGA CHAIRMAN but here is what mine told me after they pay salaries the remaining one is used for the development of state and LGA infra structures and programs. Now the FG is saying let us stop giving NNPC the N1.3tr for subsidy and give dis fund to the state and LG to build more infrastructures but we the people are saying no

. If the prices of fuel in Chad goes up to 200 naira, would the smugglers not still be benefiting ? You see it is like having headache and saying the solution is to cut the head off.


Ans. I don't care as long as my LGA is getting its share of the N1.3tr government spends to subsidize it for them initially!!! Instead of me protesting to give NNPC the N1.3tr to continue subsidizing it for them

blacksta:
If you also remember,  a number of times importers have threatened to stop importing unless government settles their accounts

What government is saying that let's stop giving NNPC N1.3tr and give this money. The 3 tiers of government

Provide for their own people.

to

1 .People in LAGOS consume the highest part of the subsidized fuel.

2.Most of the rich people who own more than 2 cars consume more subsidized fuel. And the poor who are dying consume less!

And government is telling us we give 1.3trillion naira NNPC to subsidize this fuel and the government is saying let's not give NNPC this 1.3trillion naira and give it to the each 36 state government and lga to make the life of this poor people better and to hold their state and LGA government to account for the money they get and they are protesting that government should not give the 36 state government and LGA that they should continue to give this monies to NNPC to subsidize
fuel



Which lagos and kano consume more people think

ABUJA— Governors of the 36 states of the federation, Thursday, at the National Economic Council, NEC, meeting, backed the recent move by President Goodluck Jonathan to remove the controversial subsidy on petroleum products.

Also Thursday, Minister of Finance and Coordinator of the Economic Management Team, Dr. Ngozi Okonjo-Iweala, prevailed on the governors to drop their earlier decision to scrap the National Sovereign Wealth Fund, SWF, as NEC opted for dialogue between the Federal and state governments.

Addressing State House correspondents after the NEC session which lasted for over six hours, and presided over by Vice- President Namadi Sambo,  Chairman of the Governors’ Forum and Rivers State Governor, Chief Rotimi Amaechi, said the removal of the subsidy was long over- due, as the subsidy had only enriched very few Nigerians.

Gov. Amaechi was joined by governors Peter Obi (Anambra), Liyel Imoke (Cross River), Olusegun Mimiko (Ondo), Abdulaziz Yali (Zamfara) and the Minister of Planning, Dr Shamsudeen Usman.

Amaechi said: “One of the most important issues that we canvassed and decision reached at, was that governors supported the Federal Government’s move to remove subsidy because we believe it is for the interest of this country.

”We will save money for the development of the economy and at the end of the day, we will provide opportunity for the greater number of people.”

He said: “The other issues we discussed were those of education and agriculture and the need to develop agriculture at the state level and necessary support from the Federal Government, the issue of ETF and UBEC and how to get them to support education in the states.

“On SWF, the governors met yesterday and took a position. It is the Federal Government trying to convince the governors to abandon their positions. We are satisfied that it is a conversation we don’t want to escalate. Let’s look at all the issues and when all the issues are on the table and the governors are convinced, we will take a decision. But as of whether a decision has been reached, no decision has been made.”

He noted that “this policy, at the end of the day, i don’t think the governors or the FG can be insensitive to the people that have elected us and put us in office. Don’t forget that this is a civilian government, it is a democratic government that we seek for votes four years after. We must learn to take very difficult decisions”.

“That is what we were elected to do and that decision is to improve on the welfare of our people. So whichever discussion that will escalate the conversation, we are ready for discussion. We are open to discussions and we are open to the fact that there are social safety nets that the federal government is trying to put in place to cushion the effect”.

He explained that “but beyond the fact that the FG is putting up safety nets to cushion the effect, there is also the argument that only a few Nigerians are just gathering money and we are hearing of subsidy. For Christ’s sake, outside the few state capitals in Nigeria, which other place do you have this subsidy operating. I hear some states in the South East are selling fuel for as high as over N100 per litre”.

So there are no ACN governors in governors forum?

Nchara:
Ekt Bear:

I read where you said we should not play politics with the situation and you are talking about  the gains of it here

Hahahaha!!! You see that life is not about black and white?



Why do Ʊ want to argue with this people at lest with ekt bears answer we can all deduse that the protest is also political some politicians are also fueling undergrond to gain cheap political point!!! Moreover the governors forum as an agreement to pay the 18k minimum wage one of their request to be able to the wage is removal of subsidy today some goons come here to tell us is Imf and NOI.thank God the SS and the SE are watching on and seeing the political angle this protest is taking people like bakare on national TV is predicting that Goodluck would die in government when the ex niger delta militants said they have info that plans are on to assasinate GEJ some fools said is a lie we are watching event unfold if GEJ is harmed this so called occupy nigeria would be a childs play

^^thats what the NLC want it is beyond there control now gombe is on fire and the NLC chairman has called off the protest and ran  shey is revolution Ʊ people want

We have lite in eti osa lga of lagos

georgeiyke009:

SEE WHY I MUST DENY MY NIGER-DELTA BROTHER (GEJ) THIS
SEASON.
>Subject:FUEL
SUBSIDY EQUATION

This economic puzzle is simple enough for anyone to solve.

* Fuel subsidy itself is a scam
* Removal of self subsidy is a scam
* Turn around maintenance of refineries is a scam
* Non development of new refineries is a scam
* Insincerity of government is a scam

Fuel Subsidy Equation
------------------------
1) One barrel of Crude oil = 42gallons or 159 litres

2) Our Refineries (i.e 4) Installed (combined) capacity = 445,000 barrels per day

3) Actual refineries capacity due to ageing equipment = 30% i.e. 133,500 barrels per day

4) . . 133,500 barrels = 21.2 million litres

5) Local required consumption (F.O.S) = 12millions litres

6) It means that even our MORIBOND refineries can actually meet our local consumption need of petroleum.

7) The cost structure of crude oil (i.e. Qua Iboe Crude Oil) production;
- Findings / development - $3.5
- Production cost - $1.5 - Refining Cost - $12.6
- Pipeline/transportation - $1.5
- Distr/bridging fund Margin -$15.69

True cost of one litre of petroleum anywhere in Nigeria ;
- Total sum cost = $34.8
- 1ltr cost = $34.8/159 litres = $0.219
- Naira equiv. 0.219xN160= N35.02k
- Add Tax N5 + N35.02 = N40.02

9) Let FGN refute the above composition above.


This ur theory would only work when our refineries Ʊ mentioned above is working but to be sincere Ʊ and I and Nigerians knw we import fuel. So now factor this into ur calculations and tell me if fuel can sell for 40naira

Imported Petrol has unnecessary additional costs like;

1. International Crude Oil Sale Price and Profit Margins.

2. Transportation Costs of Products from source Country to Nigeria.

3. Port Charges, Taxes and Export duties at source Country.

4. Insurance costs for transportation.

5. Brokerage costs for agents. That is what our goverment is trying to tell us that we cannot continue to subsidize even the small wey our refineries ∂eƔ produce the same nnpc and the marketers go collide claim say dem import am collect big money,

otooro:
Quote from: *Wilywily on Today at 10:08:55 AM

Please every one ignore any Strike called by Fraudulent Yorubas and Dirty Stinking Hausa/Fulanis.
Oil is not theirs, Soooooo if they want free petrol let them kill some of their kinsmen and refine their blood to petrol. Silly Stuuupiid people.


i guess u must be from the niger deltas, right? well, we are all brothers and the peace of the country affects ALL!  



Quote from: karl max on Today at 10:09:36 AM

Here in the lekki area noting is very quiet at home occupying my tele whatching the SNC concert oh sorry protest on channels and phcn has been very faithful to the area


right!! u should be protesting and not 'watching' the protest   i really don,t expect any protest at lekki area,  big boiz


Am not against the policy so why should I be protesting!! People veiws differs!

Here in the lekki area noting is very quiet at home occupying my tele whatching the SNC concert oh sorry protest on channels and phcn has been very faithful to the area

Akainzo (m)
Naija
Posts: 662

Online








Re: Subsidy Removal: Nigerians Made A Mistake Not Electing Buhari – El-Rufai
« #100 on: Today at 11:26:20 AM »




--------------------------------------------------------------------------------


Quote from: karl max on Today at 09:57:06 AM

For those Abokis that come here to spread propoganda that buhari built nigeria refinenary pls read "The Federal Government financially buoyed by these large earnings from oil had embarked on a very large number of projects including a Iron & Steel Industry, road and bride construction projects, and two grassroots refinery projects.

Pls Ʊ people should stop turning our history just to prove to us that your religious bigot leader and a muslim terrorist, Infact is during his Time that the nnpc was coverted to the northerners private property by employing incompetent northerners that mismanaged and distroyed nnpc and the refineries


I shake my head at your reasoning abilities. As you can see, I removed your narrative of what happened. Now tell me, who was in charge while all this your narrative about what happened was going on? Was it Ironsi, Shagari or GeJ?

You are an example of the failings of the educational system.
"Feasibility studies were first undertaken by BEICIP, an international oil and gas consulting firm from Paris , in 1974 for the Federal Government. The objectives were to establish the demand and consumption patterns of petroleum products. These studies were also used to determine the size of a new refinery to be constructed. Following a tendering exercise involving international engineering contractors, a contract was awarded to Snamprogetti Spa of Milan , Italy , in 1975. The contract was for the design, procurement and construction of a new grassroots petroleum refinery in Warri. The design capacity of the refinery was 100,000 b/d, and the lump sum cost was $478 million, for project duration of 30 months.Â
This project was completed in 1978. The refinery commenced operation immediately thereafter.
A second new refinery was planned for the production of lubricating oil products, waxes and asphalt (for the road projects). This refinery which was located in Kaduna consisted of two refining streams, (50,000 b/d fuels units) and (50,000 b/d lubes, waxes Asphalt plants). The contract for the construction of the Kaduna Refinery was awarded in 1976 to Chiyoda Engineering and Construction Company of Japan, at the cost $525 million, for a project completion period of 36 months. The refinery was completed on schedule and was commissioned in later 1979. The existing products pipeline linking Warri Refinery to Kaduna was converted to pump crude oils for supply to the new Kaduna Refinery


AkAINZO SO BUHARI was in charge of THE FEDERAL GOVERMENT from 1974-1979. PLS STOP DISTORTING OUR HISTORY

Quote from: karl max on Today at 09:57:06 AM

For those Abokis that come here to spread propoganda that buhari built nigeria refinenary pls read "The Federal Government financially buoyed by these large earnings from oil had embarked on a very large number of projects including a Iron & Steel Industry, road and bride construction projects, and two grassroots refinery projects.

Pls Ʊ people should stop turning our history just to prove to us that your religious bigot leader and a muslim terrorist,  Infact is during his Time that the nnpc was coverted to the northerners private property by employing incompetent northerners that mismanaged and distroyed nnpc and the refineries


I shake my head at your reasoning abilities. As you can see, I removed your narrative of what happened. Now tell me, who was in charge while all this your narrative about what happened was going on? Was it Ironsi, Shagari or GeJ?

You are an example of the failings of the educational system.






thats how educated people like u distort fact to suit ur dillusions,,,  read the following

Feasibility studies were first undertaken by BEICIP, an international oil and gas consulting firm from Paris , in 1974 for the Federal Government. The objectives were to establish the demand and consumption patterns of petroleum products. These studies were also used to determine the size of a new refinery to be constructed. Following a tendering exercise involving international engineering contractors, a contract was awarded to Snamprogetti Spa of Milan , Italy , in 1975. The contract was for the design, procurement and construction of a new grassroots petroleum refinery in Warri. The design capacity of the refinery was 100,000 b/d, and the lump sum cost was $478 million, for project duration of 30 months.Â
This project was completed in 1978.


PLS ANSWER THIS UNEDUCATED MAN THE FOLLOWING QUESTION


1, WAS THE 1974 FEDERAL GOVERNMENT BUHARIS GOVERNMENT?



THATS HOW U PEOPLE WOULD BE TELLING BLANTANT LIES AND PROPOGANDA

Nchara:
You see? Mere protest they are already betraying. How will they do when it comes to delaring secession from the North? Be careful other southern people. You have a bigger snake than you thought.

U are noting but a wasted sperm Ʊ need to have ur brain checked monkey Ʊ think this subsidy issue is about tribe


Well back to the OP well said NLC/TUC are all toothless dogs there members are the ones manipulating and signing documents the fed the oil cabal death to susidy!!! For those that want to protest or occupy let those that do not believe in ur misplaced protest go about our normal business no be by force to join ur protest, well said RTEAN,

For those Abokis that come here to spread propoganda that buhari built nigeria refinenary pls read "The Federal Government financially buoyed by these large earnings from oil had embarked on a very large number of projects including a Iron & Steel Industry, road and bride construction projects, and two grassroots refinery projects. However, probably the singe most contributory factor to the sharp increases in demand for petrol was the Udoji Awards for salary increases and arrears in the public and private sectors. 
These awards gave a huge step increase in the purchasing power of a large number of Nigerians.   This temporarily created a middle class in the counry. Purchase of all types of vehicles, especially ‘tokunbo’ cars, electrical and electronic household goods sky-rocketed. The domestic demand for petrol more than doubled. Electrical power consumption also sharply increased nationwide. 
Feasibility studies were first undertaken by BEICIP, an international oil and gas consulting firm from Paris , in 1974 for the Federal Government. The objectives were to establish the demand and consumption patterns of petroleum products. These studies were also used to determine the size of a new refinery to be constructed. Following a tendering exercise involving international engineering contractors, a contract was awarded to Snamprogetti Spa of Milan , Italy , in 1975. The contract was for the design, procurement and construction of a new grassroots petroleum refinery in Warri. The design capacity of the refinery was 100,000 b/d, and the lump sum cost was $478 million, for project duration of 30 months. 
This project was completed in 1978. The refinery commenced operation immediately thereafter.
A second new refinery was planned for the production of lubricating oil products, waxes and asphalt (for the road projects). This refinery which was located in Kaduna consisted of two refining streams, (50,000 b/d fuels units) and (50,000 b/d lubes, waxes Asphalt plants). The contract for the construction of the Kaduna Refinery was awarded in 1976 to Chiyoda Engineering and Construction Company of Japan, at the cost $525 million, for a project completion period of 36 months. The refinery was completed on schedule and was commissioned in later 1979. The existing products pipeline linking Warri Refinery to Kaduna was converted to pump crude oils for supply to the new Kaduna Refinery"


Pls Ʊ people should stop turning our history just to prove to us that ur religious bigot leader and a muslim terrorist, Infact is during his Time that the nnpc was coverted to the northerners private property by employing incompetent northerners that mismanaged and distroyed nnpc and the refineries

Buhari goons una no ∂eƔ tire, I knw buhari would die dis year, As per el rough when he was minister we all knew how much he paid his NYSC gal friend, Pls tomorrow I hope Ʊ people go out and protest with ur buhari and co,
Buhari is now history

Olodostein:
Quote from: karl max on Today at 11:40:41 AM

4 Play:
Quote from: Olodostein on Today at 11:18:34 AM

It is a known fact that IMF cripples a country. They start by advocating bad economic policies to a particular country just like they are doing Nigeria on this subsidy issue. Before the country knows it, they are bankrupt and will result to IMF for loans which will further enslave the country for years to come.

Where is your thought?


If it is a known fact, no one will listen to the IMF, never mind borrow from it and it's role will be redundant. It defies logic to claim that by asking that we cut spending, this will increase the possibility of us going bankrupt. Being miserly doesn't make you go broke. In the 70s, we spent to our hearts delight, was it not Gowon that said then that he did not know what to do with our oil revenues. We had the Udorji awards, FESTAC 77, e.t.c

By the 80s when oil prices crashed, we became bankrupt and had to resort to the IMF as we were shut out by other lenders. In an ironic twist, like someone who blames the fire service for fires, we blamed the IMF for our being bankrupt.

Try this thought experiment, if you lend money, is it in your interest that the people who borrow from you suffer hardship? You want your money back and that's only possible if your borrowers are successful.

Now, I know you're going say that a lender has a vested interest in keeping countries borrowing. Even using that line of reasoning, economically developed countries borrow more not less. The US, the king of all borrowers, owes 15 trillion dollars in sovereign debt. So even if the IMF wants us to keep borrowing, it is in their interest that we keep growing wealthier so that our lending needs will be more.

Ʊ don't have to be explaining to this olodos!!! Very soon they would call Ʊ a paid government agent!!


If you don't have something concrete to contribute; why not go to where you belong. It is quite ironic that the Original Karl max was fundamentally against institutions like the IMF. It is obvious that you haven't read his works.

Karl max must be rolling in his grave to see a Non-Entity like you who lack fundamental understanding of political economics idolize him.

What more can Ʊ say EWU subsidy

i-Guru:
Just do the maths, over 744 lga divided by 1600 buses.


So fg would deploy buses to local goverment!! Nigerians are very funny!!!
Pls answer the following. Question
1.What is the purpose of creating a local goverment?

2.Does ur local goverment receive monthly allocation from the FG?

3.If answer to question 2 is yes what has ur local government chairman done with the fund in ur local goverment?

Nigerians should put there priorties right go and occupy the home of ur local goverment chairmen to account for the allocations they receive from FG and leave the FG alone

4 Play:
Quote from: Olodostein on Today at 11:18:34 AM

It is a known fact that IMF cripples a country. They start by advocating bad economic policies to a particular country just like they are doing Nigeria on this subsidy issue. Before the country knows it, they are bankrupt and will result to IMF for loans which will further enslave the country for years to come.

Where is your thought?


If it is a known fact, no one will listen to the IMF, never mind borrow from it and it's role will be redundant. It defies logic to claim that by asking that we cut spending, this will increase the possibility of us going bankrupt. Being miserly doesn't make you go broke. In the 70s, we spent to our hearts delight, was it not Gowon that said then that he did not know what to do with our oil revenues. We had the Udorji awards, FESTAC 77, e.t.c

By the 80s when oil prices crashed, we became bankrupt and had to resort to the IMF as we were shut out by other lenders. In an ironic twist, like someone who blames the fire service for fires, we blamed the IMF for our being bankrupt.

Try this thought experiment, if you lend money, is it in your interest that the people who borrow from you suffer hardship? You want your money back and that's only possible if your borrowers are successful.

Now, I know you're going say that a lender has a vested interest in keeping countries borrowing. Even using that line of reasoning, economically developed countries borrow more not less. The US, the king of all borrowers, owes 15 trillion dollars in sovereign debt. So even if the IMF wants us to keep borrowing, it is in their interest that we keep growing wealthier so that our lending needs will be more.

Ʊ don't have to be explaining to this olodos!!! Very soon they would call Ʊ a paid government agent!!

4 Play:
Quote from: dvee2 on Today at 11:04:43 AM

Can anyone mention any country in the world were SAP/IMF/World bank policy work? Anywhere they go they leave the country impoverish and in hugh debt. A couple of years ago Argentina`s economy was bankrupt due to world bank policy. They have consistently tried to blackmail Malaysia to accept IMF policy by sponsoring former vice president Ahmed Ibrahim not until Malaysian Government under mahatir resisted them. Now ten years after Malaysian currency have been stable against the doller in ten years. 1 : 4.
If Malaysia have accepted their proposal their economy will have crumble by now.
Bottom line we must look inward and develop our economy base on our peculiarities not any world bank theorem. What IMF policy did china used? I believe in free market economy,but model from our own peculiarities. NO AMOUNT OF SUBSIDY OR DEREGULATION WILL SUCCEED IN NIGERIA IF WE DO NOT TACKLE CORRUPTION AND CUT ON GOVERNMENT EXCESSES.


This is nonsense. The IMF only lends money to countries who have so much debt that they are no longer able to raise money by any other means. The IMF is therefore a lender of last resort. Blaming the IMF for the state of its borrowers is like blaming the Fire Service for fires because every time you see a building on fire, you see the fire service close by.

More thinking and less of the blame game will help Nigerians.

My broda no mind them. In football anytime nigeria lose a major match everbody in nigeria becomes a football tactician they become mourinho or sir. Alex this subsidy removal has turn everybody into an economist,

i-Guru:
phcn can go on strike if they want to, but the sun cant go on strike.
Get a solar System.


My broda Ʊ don make ur adjustment already!!! Tell demoo make dem ∂eƔ there ∂eƔ fight for freebie

mrjingles:
If only all this "righteous anger" is directed against Land Use Act, delay in PIB passage and fake federalism I would be a happy man.

That said I think anybody has a right to protest but they must also recognize other people's right NOT to protest. They have a right to oppose subsidy removal others also have a right to support it. Does not mean either party is silly. My worry is that the pro subsidy camp presume their position is the only viable one-if you are not with us you are a demon. That sounds like what an extremist (terrorist?) would say. Lets respect each other's right to hold  different views. Insulting others shows you have no intellectual firepower to debate makes you position look dubious. I support subsidy removal btw.



Don't mind the frustrated subsidy seekers, They are to use to subsidy that they can even sustain their protest. Is because of freebies like subsidy that we are the most docile people on earth that's why we can't hold our leaders responsible. When their is no electricity I don't care atitude of "as long as I can by subsidized fuel I no send" that subsidy is been removed may be we would start paying attention on our local goverment chairman and governors use the resources givin to them.NLC\TUC should better not disturb people that don't believe in their aluta

Omo_Tier1:
Quote from: karl max on Today at 03:50:47 PM


If your not a coward what are Ʊ doing in front of nija embassy carry placard take a flight back home and come and occupy somewhere in nigeria just like the libyan citizens did, oh your visa don expire and Ʊ can't afford flight ticket with your 3 pound an hour job, why don't Ʊ also ask FG to subsidize your life,  your protest in the uk wouldn't change noting after 3 hours your would return to your suffering and smiling job mumu

I look forward to reading your story how the UKBA in Nigeria gave you 10years ban from the UK @Travel Section of NL, 

I know your screwed up education back home would not give you the needed Knowledge to be able to fathom what these protest symbolizes and what they would do to a government back home!


Ơ̴̴͡.̮Ơ̴̴̴͡ this mumu because Ʊ manage smuggle urself go uk ∂eƔ stay for peckam! Stop deceiving ur self Ʊ cannot afford education in the uk is not subsidized there, Ʊ went to night school in nija and managed to dagbo ur way to the uk that's why Ʊ don't knw shit about the policy ur carrying placard for by now I knw ur at ur nite duty as a security gaurd or mortuary attendant

Omo_Tier1:
Quote from: karl max on Today at 03:34:26 PM

Beaf:
Quote from: Omo_Tier1 on Today at 03:20:09 PM

@beaf!, I guess these ones protesting in London are also "criminals" and "touts",

FYI, Protest to grace USA next week, !!!


What are they?
It takes area boy level IQ to demonstrate over govt policy in the UK. Its damn silly! LOLZZZZZZZZZ!!!!

Comedy!

Beaf don't waste your precious Time answering this fools let dem continue there protest, the fuel pump reads N140 per litre. Reasonable nigerians are going about their normal business and planning on how to adjust!!
Leave the internet and diaspora activist to continue barking like dogs with rabbies

COWARD, r u awake ,  We resisted IBB, Abacha, why not this SLOWPICO called GEJ? ,  You can die your 'adjustment' mentality,  but Nigerians say NO!,  Let GEJ and His thieving cabinet 'adjust' their take home pay first, then We will know He is serious with turning Nigeria around,  until then,  He remains a two faced liar!!


If ur not a coward what are Ʊ doing in front of nija embassy carry placard take a flight back home and come and occupy somewhere in nigeria just like the libyan citizens did, oh ur visa don expire and Ʊ can't afford flight ticket with ur 3 pound an hour job, why don't Ʊ also ask FG to subsidize ur life, Ur protest in the uk wouldn't change noting after 3 hours ur would return to ur suffering and smiling job mumu

Beaf:
Quote from: Omo_Tier1 on Today at 03:20:09 PM

@beaf!, I guess these ones protesting in London are also "criminals" and "touts",

FYI, Protest to grace USA next week, !!!


What are they?
It takes area boy level IQ to demonstrate over govt policy in the UK. Its damn silly! LOLZZZZZZZZZ!!!!

Comedy!

Beaf don't waste ur precious Time answering this fools let dem continue there protest, the fuel pump reads N140 per litre. Reasonable nigerians are going about their normal business and planning on how to adjust!!
Leave the internet and diaspora activist to continue barking like dogs with rabbies

frosbel:
GOMBE, Nigeria (AP) — A pastor says gunmen have attacked a church in northeast Nigeria, killing at least three people and wounding others.
Johnson Jauro of the Deeper Life Church in Gombe, the capital of Gombe state, said the attack happened around 7 p.m. Thursday. Jauro said he heard gunfire everywhere and lost his wife in the assault on the church.

Police confirmed the attack happened in Gombe, but declined to offer any details.
No one immediately claimed responsibility for the attack.

The assault came as northeast Nigeria has been facing attacks from a radical Muslim sect known as Boko Haram. It wants strict Shariah law to be implemented across Nigeria, a multiethnic nation of more than 160 million people.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below

http://www.google.com/hostednews/ap/article/ALeqM5icOaICJSf4PHbRyzPfmhHMHln2Vw?docId=5314b56f39354a5ba23611adc7793c8c