₦airaland Forum

leanonme82:
What was the economic sense and benefit in this statement by ur obi? Aligning wt cabals, sacrificing peoples pain in order to win election. As in, the SOLE AIM of this statement was to reduce his opponents' chance and win an election.
God is truly not asleep!

TemplarLandry:
Y'all gotta start trusting Tinubu's discretion.

nairalanda1:
Then run for office and implement your plans then.

Stop disturbing us here.

nairalanda1:
Still won't work.

nairalanda1:
Okay let's keep borrowing to pay the subsidy.

Let's start by conducting a comprehensive audit of the 2023 budget. You will be sure that significant funds will be recovered from there because a lot of budget padding has gone into preparing it. Efcc should resume their pursuit of government looters and help recover stolen government funds.

Until there is no money left and government starts owing salaries even for Senators

Our problem is not subsidy but corruption. Please let's get this straight. It's corruption that is slowly strangling the country and the government is idly watching as the masses are being roasted in economic penury, provided their own interests are protected.


The palaver is that subsidy is good but paying for it is overexpensive. Even if we remove the senators and governors excess salaries.

Says who? Leadership is supposed to be by example. If our leaders are expecting us to tighten our belts they should lead by example by sacrificing their incomes and allowances towards improving our economic position. But will they do this?

nairalanda1:
Still won't work.

nairalanda1:
Subsidy has gone.

Accept it

nairalanda1:
Still won't work.

nairalanda1:
Probably just about.

Subsidy costs, if we kept them, would have soon risen far above that. Even if we removed corrupt practices and smuggling

airsaylongcome:
Right. So this is where I fail to understand a lot of the projections. Is the reported local daily consumption anywhere near actual consumption? I personally think corruption and smuggling at least 50% to the reported consumption. If those (corruption and smuggling) were removed and electricity distribution radically improved, are you saying we would still breach current reported consumption?

State governments are responding to the price hike by reducing working days for civil servants. Is the attendant reduction in productivity not going to result in aassive contraction? Schools and hospitals working only three days in a week

nairalanda1:
Okay let's keep borrowing to pay the subsidy

Until there is no money left and government starts owing salaries even for Senators

The palaver is that subsidy is good but paying for it is overexpensive. Even if we remove the senators and governors excess salaries.

oikirodah:
10 Strategies To Navigate Fuel Subsidy Removal


Osigwe Omo-Ikirodah
source ireporteronline.
https://ireporteronline.com.ng/blog/10-strategies-to-navigate-fuel-subsidy-removal/

TemplarLandry:
Countries like Benin Republic, Cameroon, Chad, Ghana, and Niger are leeches, sucking hard on our struggling economy.
Thank God for sending us Asiwaju Bola Ahmed Tinubu, GCFR.

LeoDeKing:
Tinubu will not leave any stone unturned. Tinubu can turn waste to money, first class isn't something you can plug from a tree.

The difference between first class in accounting and 3rd class in one shitty course is like the difference between Albert Einstein and SS1 Physics students.

A practical case in point is Lagos and Anambra as a case study.

Perfectbeing:
The reason the Govt will still allow importation even with Dangote and other refineries is to prevent monopoly..

Your reasoning is ok here. It's not really the business of government how you get your fuel to supply provided you can source your dollars and remain competitive in the market. However it doesn't make sense to go import a product into the country which is in plentiful supply by domestic producers unless you can get it here and supply at a cheaper rate. It would however encourage Forex outflow which given our current balance of payments position we may not want to support.


Not everyone can build a refinery, so Govt want as many people as there can to be in the oil business..

Not exactly true. Liberalisation of the import licensing is a short term arrangement to break the monopoly of the nnpc pending the revitalisation of our refineries and the full takeoff of the Dangote project. It will help encourage competition short term but domestic production anyday anytime will be cheaper than importation especially on a product which we have comparative advantage over and which we are naturally endowed with. As such the medium to long term goal is to make Nigeria a refining hub and migrate as many of these major oil players from being just oil marketers/importers/tank farm owners to engaging in domestic refining which of course boost our reserves and improve our Balance of payments position. Dangote sourced for funding to build the largest refinery in Africa. Interested players can form consortiums with other interested parties to build refineries in addition to sourcing for alternative funding.


You talk about modular refineries.. Go and read about modular refineries. They don't make much gains.

Says who? You need to brush up on your reading on modular refineries. Modular refineries are smaller refineries that do not have the capacity to produce higher octane distillates like PMS but can produce heavier distillates like kerosene and diesel. This will encourage the capture into the legitimate oil sector of those into the informal oil bunkering and widen government's tax base in the industry. Nigeria has a market of over 200million talk less of neighbouring countries so the market is available for them to thrive whilst reducing our oil theft issues.

There are barrels of oil that a modular refineries must refine a day to even break even let alone make profits. That's why not everyone would venture into it even though the license is free..

So Government would give license to PMS importers at a non subsidized rate.. Even NNPC and Dangote will import fuel (everyone at the same rate). It's now left for you to find imported fuel at cheap price so you can sell. Cos if yours is too expensive, no one will buy from you..

I don't see any sense in what you wrote here sir. The whole point of giving out licenses is to stop price regulation so what do you mean at the same rate? Also what do you mean by saying Dangote will leave his refinery to import fuel. Really? Does that make sense? Nnpc owns 40% of the Dangote refinery for the express reason that they see it as a potentially profitable enterprise. Dangote will buy crude from nnpc to refine and sell not go and import fuel.

As long as there's no subsidy I don't see anything wrong with importing fuel..

The issue is that we are IMPORTING what we should be producing and EXPORTING. Basic Economics. Incentives should be given to marketers looking to set up their local refineries over those looking for import licenses because of the FX outflow importation causes.

Also, the only addition cost of importation over local refining is storage cost shipping cost, which is even less than N50 per litre. So don't you even think that imported fuel is very much expensive than locally refined fuel...

There are more fees than just the shipping fees and the profit margins of the importer from the country of importation. The Country fuel is imported from also charge taxes as well as our NPA and NIMASA fees. This is exclusive of the local transportation costs which have also gone up due to the increased price of diesel and road levies.

I suggest you watch Mele Kyari's interview with asleep

I suggest you Google Bala Zakka to watch his detailed analyses on the oil and gas industry and the subsidy scam. While at it you can also check our a YouTube channel called Refresh Nigeria. You will come across a rich compendium of materials on the subsidy discussion.

Mêle Kyari has been unable to give us an accurate figure on our daily fuel consumption as a nation. His last attempt at this was countered by the Nigerian customs a fellow organ of government. In 2021 when fuel was sold N165. The real cost of fuel then was N212. In September 2022, when fuel was N180 real cost of fuel excluding subsidy was N280. How did fuel now jump to N480 in 2023 when we have not had a doubling of the dollar rate? Kyari and NNPC's handling of the subsidy issue has left more questions than answers in an area where transparency is critically needed. So it's pointless listening to Kyari.




.

chloride6:
Keep quiet and make yourself scarce.

chloride6:
She is dodging the issue at hand.

The lirs is contesting Personal Income Tax not the sundry taxes she paid.

Nvestor02:
Subsidy removal remain the best option to make Nigeria better. anybody that want New Nigeria will not against it.

The only people against it is IPOB terrorist, that were born and bread in Baby factory.

Abi1985:
If you have business thriving in Nigeria, please don't japa. If you are rich, please don't japa. The only exception is to further your education or you have businesses oversea that you are managing or you planning to born your children overseas for citizenship purpose. Please Just come and visit. Enjoy your holiday and come back to Nigeria. I was reading a post on Instagram on someone in Nigeria with thriving business making some serious money and she was thinking of relocating to Canada. Please do yourself a favor and stay home.
Escaping from political enemies or enemies or insecurity doesn't count.

post=123613736:
People with ten cars will now find it unfunny fueling the convoy, and this may result in selling off some of the vehicles.
This should further increase the supply of cars and drive down the price.

seunmsg:
It is still valued in dollars and paid for in Naira equivalent. Crude oil is not valued in Naira. NNPC will sell crude oil to Dangote in Naira equivalent of the international price in dollar.

Perfectbeing:
Haven't you been hearing the news since last year that Dangote would be buying in Naira and even selling refined fuel to outside countries in naira?

Buy in naira.... Sell in Dollars to foreign countries

What I'm saying is that whether Dangote buys oil in naira, dollar or shillings, fuel will not get cheap.

Let the right things be done first and then we will get to know the true domestic price of fuel. Not this stage managed affair based on inflated inaccurate subsidy information from the NNPC.

Dangote has bills to pay. He has workers to pay and has a refinery to maintain.

Obviously Dangote is not a charity but Government has a key role to play to ensure there is no exploitation of the local market and that there is a level playing field for competition in the downstream oil industry. Everything should be done to prevent his monopolistic tendencies and to break up any cartelization tendencies.

According to Mele Kyari, license will be given to more people to import fuel (not at a subsidized rate).

If refineries are working we shouldn't even be talking about importation because it is more expensive, drains our FX and generates inflation. So focus should be on granting licenses to SERIOUS investors to develop refineries either full scale or modular. Those who have previously been issued licenses and have not done anything serious should have their licenses immediately revoked.


Everyone including Dangote, NNPC and other importers will be given a level playing ground to import PMS and no one (not even NNPC) will have more than 30% stake in the market.. It's now free for all..

Dangote still import fuel? I don't think so! In fact fuel marketers and tank owners should be mandate to build their own refineries even if they have to collaborate or that their licenses revoked.

Perhaps with more supply and competition and if oil price comes down, PMS will reduce..
But anything subsidy or palliative is a no no for me.
FG cannot remove subsidy from oil and transfer to subsidy to transport or any other thing (that's not education, health and infrastructures), else it will be the same thing as transfer of subsidy..

There is nothing wrong with subsidy. I repeat there is nothing wrong with subsidy the only problem is corruption in the industry.

Also, gas price as reduced by about 50%, diesel has reduced by about 68%..

Don't you think the coincidence is a little suspicious? All these products that have been ridiculously high suddenly crashed around the period of fuel deregulation? All these are just stage managed their prices will soon go back up.

seunmsg:
Exchange rate is key to determining the price of petrol since crude oil is traded in dollars and not Naira.

seunmsg:
We’ve spend more than what Dangote used to build his own refinery to turn around our old refineries but they are still as dead as dodo. Spending money on the refineries is just like sinking money into a bottomless pit. It has never worked since 1999 and it won’t work. We must sell those refineries immediately and allow private investors handle the sector.

Perfectbeing:
You're still emotional about it.

Currently, brent oil is $75 per barrel (that's about N46k), so how much should FG sell crude to Dangote or any other local refinery?

Guy, other poor African nations are selling fuel over N600 and they've not died.
Nigerians won't die. Diesel has reduced from 800 to about 550, Gas has reduced from 13k to 6950.. That in a way is cushioning the effect of fuel subsidy removal..

Era of cheap fuel is dead in Nigeria and nothing will resurrect it.

seunmsg:
Obasanjo did not make the refineries work. Jonathan did not make the refineries work. Buhari did not make the refineries work. Hopefully, Dangote refinery will work and PH refinery will come back alive.

seunmsg:
The part in bold is wrong. Very wrong. Government is not paying subsidy because we import petrol. Government pay subsidy because Nigerians don’t want to buy petrol at market determined price. We want to buy petrol at a price regulated below the cost of production and profit margin of petrol importers and refiners. Let’s understand this and not confuse each other, please.

renderme:
This IMO state guy is just being partisan. Everyone knows BUA will also finish his refinery next year.

So why not wait for BUA and other refineries to come up and then visit the subsidy issue? Why not put in place the palliative measures before removing subsidy?

What are the other options this country has?

- Combat smuggling and our porous borders.
- Fight corruption.
- Cut the cost of governance.
- Give tax incentives like zero tax/duties for food importation to help lower food prices.
- Do everything humanly possible to secure the North so that farmers can return to their farms by facing and eliminating the terrorists in the North that have chased locals from their homes and farms.
- Combat the issue of multiple road taxes and bribes food transporters face on the road to reduce cost of food transportation.
- Ensure transparency and accountability.
- Expedite the renovation of the local refineries.
- Encourage the set up of more modular refineries nationwide etc


Government can’t run any business. All their refineries keep swallowing money & is useless.

- Why can't government concession out the refineries to qualified private companies to renovate and manage?

Subsidy is a pit that also swallows money wt no benefit for expansion. Subsidy is gone. The goal is increasing states revenue generation and providing a living minimum wage.

ALL governments including the US, China and Russia give subsidies to ensure gas prices and food prices in their countries remain affordable in addition to establishing robust social welfare programmes. So my brother subsidy is not the problem but corruption in the subsidy process and this is what should be addressed head on.

Let's stop being political about this. Already 133 million Nigerians are living below the poverty line and you want to increase fuel price by 300%? How will the common man cope?

ppogba:
Even at the lowest depth of my thinking, I am still asking a question you have not answered. Is a nation wide strike the solution to the problem at hand?