₦airaland Forum

Insincerity, mediocrity and vested interest have been the clogs in the wheels of Nigeria's development.

anorexicmuster:
1.The matketers were.engaging in sharp practices because subsidy made it difficult for them to make a profit.

Back in 2012 it cost N99 to import one liter of.fuel. Marketers then sold same fuel at N65


By 2015 it cost N132 to import one liter of.fuel. Marketers were then selling it at N87.

Meanwhile the falling price of crude meant available revenue to pay the difference ie subsidy was running out. Oil was at 108 dollars per barrel in 2012, by 2015 oil fell to 60 dollars per barrel

Under such circumstances the only way to make a profit was by sharp practices


2. Even now marketers are barely breaking even. If not for the fact that goverment also subsidises the transport of.fuel from.depot to base they would have been broke


3. Add the fact that the cost of refining fuel goes up...

So, you are saying outrightly that the government short changes the marketers ??

Since all this while dangote said he wants to build refinery. He should embark on this journey to helep is remove dis subsidy, but the truth remains that a lot of wealthy and influential men are gaining from others pain. Truth be told.

rex21:
So, you are saying outrightly that the government short changes the marketers ??

Kudos for engaging the guy. You're the 1999999th person on this forum who will floor his flawed and false claims.
My joy is the govt have now come out to spell it clearly, the reason everyone knows subsidy can't be removed.
Subsidy is social order. It is like food stamps or welfare bonuses. Remove it and in a month, you'll witness an Arab Spring of some sort.
Even with subsidy, we are having social challenges.
As for that dude, I suspect he's a fuel marketer or related to one, or engaged by one to push his propaganda. He has opened many monikers and failed severally, even vowing at one instance to leave the forum for good.
But here he is again. Man must whack

iwaeda:
https://punchng.com/why-fg-cant-remove-fuel-subsidy-now-nnpc-marketers-experts/

These are the issues. If there is no budget for subsidy, then from where is it funded? It only means the subsidy is a form of tax.

Agboriotejoye:
Kudos for engaging the guy. You're the 1999999th person on this forum who will floor his flawed and false claims.
My joy is the govt have now come out to spell it clearly, the reason everyone knows subsidy can't be removed.
Subsidy is social order. It is like food stamps or welfare bonuses. Remove it and in a month, you'll witness an Arab Spring of some sort.
Even with subsidy, we are having social challenges.
As for that dude, I suspect he's a fuel marketer or related to one, or engaged by one to push his propaganda. He has opened many monikers and failed severally, even vowing at one instance to leave the forum for good.
But here he is again. Man must whack

I noticed. I have engaged him on this same topic sometime ago. He used another moniker then. He most likely is a marketer and probably a greedy one.

rex21:
So, you are saying outrightly that the government short changes the marketers ??

The problem with subsidy is that by its nature everyone is shortchanged. And everyone resorts to sharp practices...whether it be government corruption or false claims to make money...because if you don't , you lose.

At the end of the day, price controls don't work. Someone is going to lose money as a result.

anorexicmuster:
The problem with subsidy is that by its nature everyone is shortchanged. And everyone resorts to sharp practices...whether it be government corruption or false claims to make money...because if you don't , you lose.

At the end of the day, price controls don't work. Someone is going to lose money as a result.

Lolz, i was expecting you to say yes so that i can agree to your points. Instead you whip up some more hilarious stories.

Guy, you are very funny

BeeBeeOoh:



Buhari once told us some time ago that subsidy is a scam, now, that same Buhari is into that same scam.


No be juju be that?

Buhari is a scam


https://www.youtube.com/watch?v=y7nNWw_lXDk&ab_channel=AyoAlexAlao

rex21:
Lolz, i was expecting you to say yes so that i can agree to your points. Instead you whip up some more hilarious stories.

Guy, you are very funny

If subsidy goes

1. Marketers would earn more profits

2. Goverment would save money and would actually earn more money in taxes

3. There would be more refinereis since it would now ve profitable to refine fuel in Nigeria

4. No more.sharp practices like smuggling and so on

5. There would be more jobs and more jobs and more investment. That for me is what i care about more than the above reasons

We are all shortchanging ourselves by using cheap fuel. And the results are bad refinereis, bad practices and no jobs. And trillions dowb the drain.

Venezuela sells fuel at 40.naira. they also lose 18 billion dollars to smuggling alone

You can laugh, you can call me a propaganda man and a fuel marketer. I am not. I dont even know any fuel marketers personally. I am.not in governemt nor do i back any of the main parties. I backed fuel subsidy for a long time until i got my wake up call in 2012

Thanks for chatting anyway. But as for me price controls and subsides dont work. Whoever is in charge.

Cheap fuel is really expensive

anorexicmuster:
If subsidy goes

1. Marketers would earn more profits

2. Goverment would save money and would actually earn more money in taxes

3. There would be more refinereis since it would now ve profitable to refine fuel in Nigeria

4. No more.sharp practices like smuggling and so on

5. There would be more jobs and more jobs and more investment. That for me is what i care about more than the above reasons

We are all shortchanging ourselves by using cheap fuel. And the results are bad refinereis, bad practices and no jobs. And trillions dowb the drain.

Venezuela sells fuel at 40.naira. they also lose 18 billion dollars to smuggling alone

You can laugh, you can call me a propaganda man and a fuel marketer. I am not. I dont even know any fuel marketers personally. I am.not in governemt nor do i back any of the main parties. I backed fuel subsidy for a long time until i got my wake up call in 2012

Thanks for chatting anyway. But as for me price controls and subsides dont work. Whoever is in charge.

Cheap fuel is really expensive

The only problem with fuel subsidy is its toll on the government. You really dont understand how economics works.
Do you know why the Nigerian govt is building railways, even though they are running at a loss ??

rex21:
The only problem with fuel subsidy is its toll on the government. You really dont understand how economics works.
Do you know why the Nigerian govt is building railways, even though they are running at a loss ??

They are running it at a loss because they are the government, not a business.

Back when British railways was run by their government, tickets were very cheap, yet many of the trains, while running were rundown and poor.

Then the government privatized the railways. While ticket prices went up too high, the quality of the trains went up.

Government is not a business. They exist to 'serve the people'. So, they run things at 'people's prices' . That's how many communist countries used to roll...till they started running out of money , and collapsed. Now, the private sector runs a lot of things in those same countries.

At the end of the day, they (NRC) would be forced to privatize because they would run at a loss.(AND then they have to pay back the chinese loans)

In a way, I am not surprised the government is running rail at a loss. That's how they run most things around here. And, eventually...down the line, they may privatize the thing lock, stock and barrel. Or keep running at a loss, meanwhile no profit to fix the train carriages well, to upgrade the lines, to pay for new innovations. And then corruption and patronage sets in too.

They better remove the subsidy now and let the price skyrocket.

We Nigerians are survivals. We will be alright.

Remove this subsidy shiit..

God dey

anorexicmuster:
They are running it at a loss because they are the government, not a business.

Back when British railways was run by their government, tickets were very cheap, yet many of the trains, while running were rundown and poor.

Then the government privatized the railways. While ticket prices went up too high, the quality of the trains went up.

Government is not a business. They exist to 'serve the people'. So, they run things at 'people's prices' . That's how many communist countries used to roll...till they started running out of money , and collapsed. Now, the private sector runs a lot of things in those same countries.

At the end of the day, they (NRC) would be forced to privatize because they would run at a loss.(AND then they have to pay back the chinese loans)

In a way, I am not surprised the government is running rail at a loss. That's how they run most things around here. And, eventually...down the line, they may privatize the thing lock, stock and barrel. Or keep running at a loss, meanwhile no profit to fix the train carriages well, to upgrade the lines, to pay for new innovations. And then corruption and patronage sets in too.

See why i said you know little to nothing of the topic you choose to delve in. Somethings are simply 'giving back' to the people. These services are used to balance the effects of hard economy on a nation. As time goes and things fall into place, they are then restored to profit making operation. Does govt make profit from healthcare ?? Road maintenance ?? Bridge building ?? Education ??
These are not profit making sectors. This is where your tax money goes to.

Nigeria is not properly managed, stop blaming subsidy. If the govt makes profit from everything, average man go fit survive ??

rex21:
See why i said you know little to nothing of the topic you choose to delve in. Somethings are simply 'giving back' to the people. These services are used to balance the effects of hard economy on a nation. As time goes and things fall into place, they are then restored to profit making operation. Does govt make profit from healthcare ?? Road maintenance ?? Bridge building ?? Education ??
These are not profit making sectors. This is where your tax money goes to.

Nigeria is not properly managed, stop blaming subsidy. If the govt makes profit from everything, average man go fit survive ??

Well the only way Nigeria can give back to the people is by raising enough revenue so that we can do that

Subsides on petrol and power and many otjer things prevent growth in those sectors which means reduced taxes .Why? Because as i have said many times it involves price controls which reduceprofitability , job growth and investment

Then because most of us dont pay taxes ( it is a fact and the World bank has criticised our goverment for it and it is because most of us work in the informal sector) goverment ia forced to rely on oil which doesn't give us enough of a revenue because of fluctuating prices

All that is part of the bad management of the government. Then corruption and nepotism is the cherry on the top so tp speak

But most Nigerians are a Marxist anyway. They want goverment to spend imaginary money on solving real problems. No wonder we are in debt.

Good morning

anorexicmuster:
Well the only way Nigeria can give back to the people is by raising enough revenue so that we can do that

Subsides on petrol and power and many otjer things prevent growth in those sectors which means reduced taxes .Why? Because as i have said many times it involves price controls which reduceprofitability , job growth and investment

Then because most of us dont pay taxes ( it is a fact and the World bank has criticised our goverment for it and it is because most of us work in the informal sector) goverment ia forced to rely on oil which doesn't give us enough of a revenue because of fluctuating prices

All that is part of the bad management of the government. Then corruption and nepotism is the cherry on the top so tp speak

But most Nigerians are a Marxist anyway. They want goverment to spend imaginary money on solving real problems. No wonder we are in debt.

Good morning

We are almost on the same plain now. We have established that Nigeria's problem is bad govt/management right ??

Now lets exonerate subsidy.

rex21:
We are almost on the same plain now. We have established that Nigeria's problem is bad govt/management right ??

Now lets exonerate subsidy.

No can do. I cannot exopnerate corruption, susbsides, etc

The only way we can affrod subsides is if we tax everyone in Nigeria...including farmers, herdsmen per head of cattle, labourers, etc etc....at tax rates of 30-40% and raise our tax to gdp ratio to something like 40% from the 6.1%

Anything else is just using imaginary money to pay for real problems.

The issue with subsidy is that THE COST OF REFINING AND TRANSPORTING PETROL IS ALWAYS RISING. As is the cost of the raw material called crude. So, no how, no how...any government paying subsidy would be throwing millions away every year. Like now, we have thrown away an amount of money we could have used to enroll a fresh 1 milllion people on NHIS on subsidy..and the year is not over.

Again, as crude oil prices rise, the cost of keeping fuel at N162 would rise. At that point, either we spend more of our crude revenue on keeping fuel prices at n162 PER LITER...or we partially remove some money from the subsidy ie partial 'removal of subsidy'

And guess where we get most of the subsidy money...from crude oil revenue (not from taxes, like Canada does ). That's a part of the reason why no benefit from rising oil prices...because we have to spend more of our crude revenue on paying for subsides....when the price rises. (That's the problem GEJ had and that is why he wanted to remove subsidy...and why people like Okonjo Iweala and SLS don't like subsidies at all)

That's why I could not vote for PDP OR APC. APC was saying N40 per liter of fuel in 2015, PDP was saying N90 fuel in 2019. Each idea would have involved us spending billions of our revenue on keeping prices that low...and would have pushed us into more debt.

Get it? If not, then I am sorry.

And FYI...I include corruption, nepotisim, and lack of good security in government mismanagement. I am not an APC supporter.