₦airaland Forum

The hustle finally pays off! ...Oga Festus I hail!

I think they should have just explained what truly happened. E.g. "the phones were missing but were later found" or "OBI was referring to something else in the video and not his phones".

Not necessary to follow the clandestine path of other Nigerian political groups that want to keep even meaningless things a secret.

All Tinubu's camp needs to end this is to just commision one or two keyboard warriors to spread propaganda that "OBI and Igbos" are the ones sponsoring the protesters.

NOETHNICITY:
Gbam. If I was a woman, I for chase you die.

Hahaha... Abeg ooo

emkz:
I enjoyed the part of the report that cited that once the subsidy was removed, the financial incentive for smuggling was killed.

Removal of subsidy was a brilliant move by the President. For many years, Nigeria was taking from our purse to feed criminals and foreigners. How do you collect subsidy and still take our fuel to sell it elsewhere? Let our states government step in to help our people by addressing the after-effects.

Subsidy did not help the poor it was meant for.

You see that last bolded statement you made? I terribly dislike when people use that as an argument against subsidy cos it's patently flawed and devoid of logic.

Last time I checked, the greatest mass of people suffering untold hardship since the removal of subsidy are the poor. It is not the rich or middle class who can no longer afford food due to the inflation; it is not the rich or middle class who can no longer afford that korope bus ride and are now forced to treck countless miles to and from work. By all standards of measurement, the poorest in society are most badly hit by the current effects of subsidy removal.

A rich man who moves with a convoy of 10 cars may decide to now move with 3 cars, but how can you compare that to the effect on the poor man who now has to walk 10 miles daily cos he can no longer afford that rickety bus?

In summary, everyone benefits from subsidy, both the rich and the poor. In fiscal terms more money may have been spent on subsidizing the lifestyle of the rich, but measuring by the impact of subsidy on standard of living, the impact of subsidy is most felt by the poor.

iwaeda:
https://www.vanguardngr.com/2023/07/fg-urges-nigerians-to-consider-bicycles-for-transportation/

Meanwhile national assembly members just cornered over N30 billion for purchase of SUVs... Bastards!!!

Bobloco:
Typical of a Tinubu minion

Smh! who's a Tinubu minion? Oga a little bit of discernment will help you.

You were told that Tinubu stopped the subsidy regime on the 29th of May, and you're still asking me what happened to the money for June. The short answer is 'there is no money'.

The recent subsidy regime has been in the form of 'under-recovery'. NNPC imports products at say N500/litre and sells for N185. That loss incurred by NNPC is effectively the subsidy... Govt doesnt pay cash subsidy to anyone, rather it imports and sells petrol at a loss... Buhari planned to keep doing this till June 30th, but Tinubu stopped it on the 29th of May.

Bobloco:
So where is the money budgeted for subsidy for the month of June, what was the money used for

The money is inside my nose.

Bobloco:
Ok, good

Why did we buy fuel above #500/liter in the month of June if there was a provision for subsidy in the budget

You asked how fuel sold for N200 earlier this year when it was purported that there was no subsidy. I provided useful insight which I believe should have answered your question and clarified your doubts - i.e. contrary to your assumptions, subsidy was actually still enforced until May 29th, which is why petrol sold at N200....

On your question as to why petrol suddenly jumped to N500, I believe the answer to that is common sense; subsidy was proposed in the budget by Buhari, but didnt you witness like every other Nigerian that your president ended it on May 29th?

Bobloco:
Do you work at NNPCL

I hope you are basing your submissions on what ever those who runs the organization tell The public

If at all there is deregulation, why is NNPCL fixing prices

We were told that there was no provisions for subsidy in the 2023 budget, how was Buhari able to maintain fuel pump price at below #200 per a litre from January 2023 to May 29, 2023. Then suddenly, at the inauguration ground and by making a subsidy is gone speech, with the excuse that there was no provisions for subsidy in the 2023 budget the price went from below #200 to over #500. Then suddenly went up again to over #600 with the excuse by NNPCL that the price is caused by prevailing market realities

There was provision for subsidy until 30th June.

https://www.channelstv.com/2023/01/04/fg-to-stop-payment-of-fuel-subsidy-by-end-of-june-2023/

mrcoolautofix:
Goodluck sold fuel at 87 per litre so the guy is 100% accurate when he said nnpc makes 100 naira per litre

What was the exchange rate then? .... You obviously forgot to factor the difference in exchange rate into your calculations.

At the time petrol sold for N87/litre in 2011, susbsidy of at least N55 was being paid per litre of petrol, which made the actual cost of petrol to be about N142 at the time. Recall when GEJ removed subsidy on the 1st of January 2012, pump price rose to N142.

Now let's do some arithmetic. In 2012 January, exchange rate was roughly N155/$ and petrol was imported and sold for N142. Today the exchange rate is officially N788/$ (i.e. about 5 times what it was in 2012. What do you think would happen to the cost of imported petrol following the 5 times increase in value of the dollar?

With the exchange rate in view, do you still think the argument that NNPC imports fuel at N87/litre in 2023 makes sense?

StaffofOrayan:
NO! NNPC is paying with Nigerian crude oil!

Nigerian crude isnt worthless because it is Nigerian crude. Nigerian crude is worth about $80/bbl today.

If NNPC pays for a product or service today using 1 barrel of Nigerian crude oil, that is equivalent to NNPC paying $80 for that product or service.

mrcoolautofix:

https://www.youtube.com/watch?v=g1gZjG6oO7M please let make this vodeo viral so we can aweken nigerian youths whoms interest is at the stampede of this political torture.

Nigerians dont deserve this political torture and havoc thats is currently ungoing! I felt terrible if i could spark a riot that will emancipate nigeria. I wouldnt hesistate.

Making life a living hell for nigerian is uncalled for.

in buhari regime nnpc was making N100 profit selling fuel at 195 and yet it wasnt enough, the borrowing and devaluation of naira still kicked it.

Tinubu has gotten more money than he spent on election why this inhuman act upon nigeria?

Still lot of you are fooled to belive that fuel price will come down.. it is a carrot donkey trick in my critical overview
https://www.youtube.com/watch?v=pmP_LaFN5U8

Was the subsidy regime laced with fraud?... Absolutely YES! But saying there was no subsidy at all is just ignorant talk.

The argument of the guy in the video was flawed from the very beginning when he asked which marketers the subsidy was paid to. Since 2016, subsidy was not paid to any marketer, but rather NNPC imported and sold petrol at a loss. That loss, or 'under-recovery' as they termed it, was effectively the subsidy! ... If NNPC was to remit N1 trillion to the govt, but it remitted only 800 billion, that loss of N200 billion is effectively the subsidy paid to keep pump prices low.

The claim that N100 profit was being made when petrol sold at N185, that's an interesting claim. In essence, petrol was being imported at roughly N85/litre? Would have made sense if the guy explained the source of this data better.

StaffofOrayan:
This is the lie they have been telling the uninformed citizens!

NNPC gives these companies crude oil and they in return send back petrol, kerosine and diesel while they keep the rest of the resources gotten from crude oil.

NNPC doesn't pay a dime to bring the processed fuel into Nigeria! It's all in the terms of agreement,

Of course no one tells u Nigeria has some of the most preferred crude oil in the world!

Don't believe the scam!

In a scenario that NNPC gives crude oil to receive petroleum products, you can't say "NNPC doesn't pay a dime" cos NNPC is actually paying with 'crude'.

nairalanda1:
I stopped listening when the guy stated that 'NNPC had not paid subsidy to anybody'

That made me know that the argument was going to be flawed from the word go.

From 2016, what was happening....was that NNPC was

1.Made the sole importer of fuel

2.Had to import fuel at the landing price X

3.And then sell to depots at the price Y which was below price X.

4. As a result, NNPC was running at a loss, and NNPC was as a result being paid a subsidy to not run at a loss.


Marketers on the other hand were allowed to buy petrol at price A from depots and sell at price B, which was higher than price A and set by the government.

I know people want petrol prices to fall down again, but the argument being used is poor. Marketers were not being paid subsidy from 2016 by government or NNPC, because NNPC was itself subsidising fuel on behalf of the government, and being paid a subsidy not to collapse.

(I do not work for NNPC, or the government, and have supported subsidy removal since 2012. I also do not like APC, PDP, or LP and wish they all got voted out for Nigeria's benefit).

Amazing how so many people still fail to comprehend this very elementary explanation you gave above. For those living in the delusion that there was no subsidy, if there was really no subsidy, how come petrol was sold in Nigeria for N185 (way cheaper than all neighbouring countries)?

The argument of the guy in the video was flawed from the very beginning when he asked which marketers the subsidy was paid to. Since 2016, subsidy was not paid to any marketer, but rather NNPC imported and sold petrol at a loss. That loss, or 'under-recovery' as they termed it, was effectively the subsidy! ... If NNPC was to remit N1 trillion to the govt, but it remitted only 800 billion, that loss of N200 billion is effectively the price paid to keep pump prices low = subsidy.

The guy in the video claims NNPC was making over N100 profit per litre when petrol was still sold at N185; he however failed to explain the source of this figure. Would be interesting to know where that figure came from...

Which kain contri be this?

Flathead8:
https://www.thevaluechainng.com/dangote-refinery-completion-shifts-to-2025/

Lol the man is minding his life doing his business, but people that he barely knows and interact with are constantly hoping for his down fall

Look at the source sef, he couldn't wait for legit ones like vanguard, dailytrust, Thisday etc to report. Just to show you how eager he is

Many of them recently were even jubilating when he was overthrown as Africa's riches person

Is it because he is hausa/northern!? Omo you guys have energy and time oo

I pray I don't ever have this level of hate towards anybody

If someone says "the Dangote refinery isnt yet complete", how does this statement equate to "Igbos praying for Dangote refinery to fail"?.... Don't you think this is a foolish conclusion influenced by tribal bigotry?

The way some Nigerians carry religion on their heads; if you check now, it's possibly only northerners that would have a problem with Davido.

If a rerun happens between Tinubu and Atiku, then it would be a walkover for Atiku cos he'd easily inherit the majority of OBI's 6.1 million votes.

Definitely a waste of scarce resources. Without being told, every nigerian knows 80% of the funds would definitely end up in pockets of people who by definition are far far far from being poor. With the judiciary and NASS already billed to get almost N120 billion from the 'borrowed' funds, it's already clear the money wouldn't be ending up with the poor.

Borroring $800 million to fund consumption instead of production, the very thing Peter OBI keeps ctiticising but they say he's an idiot. $800 million can build model schools in all 774 LGAs in Nigeria; that amount can also build 108 world class hospitals in all 108 senatorial districts across the country. But the want to share it for food.

samunaka:
So all of a sudden he is now having shishi to give people

OBI says he's allergic to money badly spent. In other words, he doesn't have shishi to give to political jobbers, boot and ass lickers, praise singers, thugs, online warriors, etc. He'd rather give 'more than shishi' to the lesss privileged, schools etc...

Image123:
Subsidy was removed May 29. June FAAC was about 750billion, i don't remember the exact amount. July is 1.9trillion. This is almost three times of June. Logically explain how subsidy removal is a MAIN factor. Where was this factor in June FAAC?

I said subsidy removal AND the change in exchange rate are the major factors. These wouldnt reflect in the June's FAAC cos the revenue received in June would typically be shared in July's FAAC.

June FAAC was N750bn because it was revenue from the montb of May when subsidy was still deducted from source, and when dollar receipts from oil sales was exchaged at about N400-N450. Subsidy stop being deducted from June and exchange rate also almost doubled; that explains the massive jump you see in July FAAC. Hopefully this is clear, but if you still think otherwise, please can you tell us what you think is the reason behind the jump?

Meabwhile see extract from the report on the frontpage:

...Allocations are usually shared from the preceding month’s revenue — meaning June will be shared in July....

Image123:
https://leadership.ng/nnpc-makes-zero-remittance-to-federation-account-for-7-consecutive-months/

https://punchng.com/reps-to-probe-nnpcl-over-non-remittance-of-revenue-2/

https://businessday.ng/energy/article/nigeria-records-n16trn-oil-sales-as-nnpc-remits-nothing-to-cbn/

The news seem to say otherwise for a while now. In summary, their remittance or non-remittance is not the main factor in this. FAAC is not only oil based BTW.

FAAC isnt only oil based, but oil revenue makes a chunk of it. Non-payment of subsidy and an increase in the exchange rate are the 2 main factors responsible for the surge in FAAC allocation.

Image123:
Subsidy was not deducted before sharing before. Hold your governors very closely. They pay salaries and made budgets and contracts in naira. They are owing some of you months of salary.

Thats not correct!

NNPCL made fuel cheaper by selling products cheaper than they were bought and therefore incurred losses (termed 'under-recovery' or subsidy) before remitting oil revenue to the govt.

In summary, NNPCL deducted subsidy before remitting oil revenue to govt.

This increase is apparently for 2 main reasons:

1. Oil revenue exchanged at N750 instead of N450
2. No subsidy paid

Could that really be the Official DSS twitter account dropping such unprofessional tribally bigoted agbero tweets?

Could this be Nigeria turning to a proper banana republic before our very eyes?

Could that be the DSS official twitter account dropping such unprofessional tribally bigoted agbero tweets?

Could this be Nigeria turning into a proper banana republic before our very eyes?

Some will still hate him for this... Humans are irredeemably complex!

Buhari must be hurt and limping by now... I shake my head in shame when I recall hoe I regularly had this argument with fully grown adults few years ago.

An absolute waste of resources...

The very thing Peter OBI keeps lamenting about; governments borrowing to fund consumption instead of production.

Borrowing N500bn to eat food instead of growing food.

N500bn if well spent can do great wonders, but it's about to be eaten.

N500bn can build massive world class hospitals in all 36 states of the federation.

N500bn can also build model schools one in each of the 774 LGAs of the country.

I would have said the people coming up with these silly ideas are dumb, but in reality they arent; they're just desperately wicked, insensitive and greedy.

The N500bn was never about the poor, but rather a ploy to bribe the NASS and the Judiciary while they line their pockets with the rest.

God save us!