You too will soon leave the government and feel whatever pain your government inflicted on poor and average person in nigeria, we are here together.

Perfectbeing:
N5000 times 40,000,000 will give us 200,000,000,000 (two hundred billion naira), just 50 billion short of what they spend monthly on subsidy.
Well, since they said they'll pay this stipend for a maximum of 1 years, then its not that bad..

Only enemies of the state would see something wrong with this subsidy removal. We can't sacrifice economic growth for cheap fuel.. Next is electricity subsidy..

So why did your party oppose fuel subsidy removal in 2012?

When we had the money and resources to do all that you are positing and more because of sky high oil prices?

You guys played politics, and now you have been forced by reality to do what should have been done ages ago...done and dusted.

FarahAideed:
And your want to spend 200 billion to pay transport allowance ? Are you okay so? Instead of you to find out how daily fuel consumption jumped from 23 million litres a day to 90 million litres in just 4 years

The 200 billion is just for a maximum of 1 yearr.

The warri and PH refinery are under rehabilitation by foreign firms to be operated by private individuals with some percentage of shares from NNPC...

Secondly...the govt is supporting dangote refinery which will come upstream next year...
The thing is dat govt doesn't want to pay subsidies to dangote ...a lot of myopic, cynical and over all illiterates will wail..when it more of a favour...and of course subsidies will just kill the new refinery like it did to the govt owned ones
I believe the dangote refinery will be ready mid next year..so once local production begins...govt will end subsidies totally...
The advantage is the govt gaining up to an excess of 3 trillion naira in revenue and saving more than 15% of our forex reserves..
Dangote isn't going to inflate the price of petrol...it will sell at the standard price which is averaging around $1...that N414...u can check the current prices of fuel in countries that don't pay subsidies... E.g Ghana, Benin republic, Togo ,Algeria, Egypt, SA....they ate averaging $1 per litre... But in Nigeria a litre of the same fuel is $0.4 ..meaning government spends $0.6 average to subsize every litre we all consume...

adonainana:

This is the easiest of the solution to the bigger picture problem now

So trust Nigerian doesn’t have the type of IQ sufficient leaders to implement such

A country has the raw materials to make petrol because it doesn’t have the factory to process the crude to petrol

It therefore exports the crude materials to other countries that can process the crude for it, it now imports it back twice the price it exports it out

So as not to make it expensive to the final consumers ( it pays the companies that imports the final material back into Nigeria a commission ) it’s calls is fuel subsidy

Now it wants to remove the fuel subsidy as it’s too costly

But what about the main problem in the first pragraph, you still don’t have functioning refineries to process the petrol you are removing the subsidy for

If the refineries are too expensive to fix

Why don’t you go to Russia or North Korea or even the UK and invite the government of these countries to take over the refineries and run it like it’s there’s

No need being scared about anything

In life if you neee help you ask for it

I trust a country like China they will run those refineries within 5 days and Nigeria will never suffer or lack from refining crude oil into petrol again

backbencher:


Good morning

I am sorry that I won't be able to answer your questions in the manner you would want them to be answered.

However, as promised, I am going to post a link below that may go some way in answering the questions you have

Fuel subsidies in Nigeria: they’re bad for the economy, but the lifeblood of politicians

Good morning, and do have a good day. Apologies for not being of help.

Tnx for d link but I don't need it because it doesn't address the issues I raised. Without even reading it, u can see that it says that "subsidy is the lifeblood of politicians". Who are the politicians? Isnt the same people who tell u that subsidy must be removed? Are the politicians not the same people formulating oil and gas policy for Nigeria? So then, of what use is your link when the heading already contradicts itself and reality?

allcomage:
Why not repair the 4 refineries, take crude oil refine and sell to Nigerians at N100 per litre because crude is cheap now.

Just look at how easy it is in your mouth. How many billions of dollars do you think they'd use in repairing not one but four refineries? It would cost nothing less than $15 billion to repair all four refineries..
And you're saying they should then refine fuel and sell for N100... So you expect them to recoup the money spent on the refinery by selling fuel for 100 naira? How many centuries do you think they'll sell fuel for N100 before they'll get back 15 billion dollars? Plus they'll still pay workers and other expenses out of that N100 o...

People like you will be the loudest critics of Buhari but with this your statement you've proven to be 1000 times less intelligent than him..

backbencher:


So why did your party oppose fuel subsidy removal in 2012?

When we had the money and resources to do all that you are positing and more because of sky high oil prices?

You guys played politics, and now you have been forced by reality to do what should have been done ages ago...done and dusted.

So who told you I belong to any party?

Perfectbeing:
So who told you I belong to any party?

Okay...

Nobi this full subsidy some morons gathered for Lagos that year . Wetin happened now abi Nigeria don better

If hypocrite is a person he must be father of all Yoruba

lexy2014:


Tnx for d link but I don't need it because it doesn't address the issues I raised. Without even reading it, u can see that it says that "subsidy is the lifeblood of politicians". Who are the politicians? Isnt the same people who tell u that subsidy must be removed? Are the politicians not the same people formulating oil and gas policy for Nigeria? So then, of what use is your link when the heading already contradicts itself and reality?

Well, seems you really don't want an answer to your questions. You only want to be 'right'.

I mean, I did tell you honestly that I could not answer your question and gave you some material which addressed the issues you raised, and you refused to read it, because it really isn't about me answering your questions, it is about you stoking your ego or your need to be always the wise one, the right one who knows all things..


Good morning, and have a good day. You don't need to always be right, my good sir.

Don't quote me again please. You won't receive a reply.

Lol .so u mean GTB, Zenith bank, dangote, BUA,GLO and the likes no dey make profit....

Anyways.. We are talking about refining large amount of crude oil to the best international practice for engines efficiencies

.the ones done in the bushes in the SS are of extremely low quality and low quantity

obinna58:

No be same crude oil naija delta people dey refine manually after mining illegally

Nigerian problem isn't not being able to refine oil, the problem is trusted people are not available to do the work, we all see government money as national cake.

No Nigerian government owned industries or companies are making profit. They're just there working with no passion or interest for their work, no pressure just work. Make profit or not at the end you'll protest for your salary.

adonainana:


On a second note Even the 2 GW is even absurd for a population of just 200 million people , when we don’t want to fry them to death inside thier house

The quote being ready means with the right visiionable leaders the right steps can be made

Even rouge nations like North Korea and China will easily help you

Asking for help and not gettin help is different from keeping your mouth shut and suffering in silence

Power genenration is a 18th century problem

If there is a 18th century problem some countries overcame in the 18th century and you are still battling with it in 2021, then simply go to the countries that solved their problems 300 years ago and ask for help

Power generation is simply engineering

Rocket science isn’t

By 2024, some people are planning to go and live in mars and stay there indefinitely , is it grass they will be eating throughout and is magic they will be using to power thier applicances throughtout

That’s the problem with you village people, you don’t know how advanced the world is now

Any suggestion that tries solve Nigerian problems once and for all you keep arguing blindlessly like you know what you are talking about

It’s even more unfortunate People like you also hold the realm of power and their reasoning is very limited like yours, who told you 1 dollar must be equal to 1 naira before things start working right

Where did you get that one from

Since we can make magic happen once we're "ready" according to you.

For context, since I don't like to argue blindly, the three gorges dam, the biggest hydroelectric dam in the world, took 12 years to build and generates 22,500MW of power.

It took the Chinese 12 years of slave labour and careful planning to achieve that.
Now, if you know anything about power plants you'll understand that they require a lot of money, considerable time and skill to build.

Those nations you're mentioning gradually increased their power capacity over the years and they didn't wake up one day with enough energy for their needs.

What have your country been doing since 1960? Why has it been able to add less than 10000MW in 50 years?

Also, mars has nothing to do with this conversation. Nigeria is a third world hellhole, understand this fact first.

Nigerians we are the most gullibles set of people on earth.
We planned so spend 1.8t on subsidy next year but it gonna stop in 2022 and introduce Transport allowance that will gulf over 2.4t.
If we didn't protest this, our unborn children will kot forgive us.

May Allah deals with Buhari in his own way

Perfectbeing:
The 200 billion is just for a maximum of 1 yearr.

No 200 billion a month

joey150:


Since we can make magic happen once we're "ready" according to you.

For context, since I don't like to argue blindly, the three gorges dam, the biggest hydroelectric dam in the world, took 12 years to build and generates 22,500MW of power.

It took the Chinese 12 years of slave labour and careful planning to achieve that.
Now, if you know anything about power plants you'll understand that they require a lot of money, considerable time and skill to build.

Those nations you're mentioning gradually increased their power capacity over the years and they didn't wake up one day with enough energy for their needs.

What have your country been doing since 1960? Why has it been able to add less than 10000MW in 50 years?

[/b]Also, mars has nothing to do with this conversation. Nigeria is a third world hellhole, understand this fact first.

[b]

When common sense eludes how would it have anything to do with the conversation

The reference was if some people are leaving planet earth and going to to set up life therr that’s how advanced the world has become

A lot of things in this life are very hard to to power generation isn’t one of them

We are talking about solving pracrical problems you are talking about a country being a hell hole so the Empty space people are traveling no be hell hole, is it not practical solutions to the pracrical problems you encounter in space that you will end up solving

Coolgent:
Nigerians we are the most gullibles set of people on earth.
We spend 250b on subsidy but it gonna stop in 2022 and introduce Transport allowance that will gulf 200b monthly.
If we didn't protest this our unborn children will kot forgive us.

May Allah deals with Buhari in his own way

You better don't bask on that audio TP allowance

backbencher:


Well, seems you really don't want an answer to your questions. You only want to be 'right'.

I mean, I did tell you honestly that I could not answer your question and gave you some material which addressed the issues you raised, and you refused to read it, because it really isn't about me answering your questions, it is about you stoking your ego or your need to be always the wise one, the right one who knows all things..


Good morning, and have a good day. You don't need to always be right, my good sir.

Don't quote me again please. You won't receive a reply.

U are already getting emotional. If u say the link u provided "addressed the issues you raised", why didn't u use the information from the link which u read to answer the questions I asked?

adonainana:
[b][/b]

When common sense eludes how would it have anything to do with the conversation

The reference was if some people are leaving planet earth and going to to set up life therr that’s how advanced the world has become

A lot of things in this life are very hard to to power generation isn’t one of them

We are talking about solving pracrical problems you are talking about a country being a hell hole so the Empty space people are traveling no be hell hole, is it not practical solutions to the pracrical problems you encounter in space that you will end up solving

For some reason, I am enjoying this ridiculous engagement we're having.

You have a penchant for joining unrelated conversations.

What I mean by hellhole is to adjust your expectations based on the current reality.

Nigeria is a poor and badly managed third world country that has been marred by bad leadership and a docile population.

Fair enough some people are travelling to mars, good for them. We have different problems to fix. For some it's mars, for others it's water, roads and electricity.

Cognitivereason:
Lol .so u mean GTB, Zenith bank, dangote, BUA,GLO and the likes no dey make profit....

Anyways.. We are talking about refining large amount of crude oil to the best international practice for engines efficiencies

.the ones done in the bushes in the SS are of extremely low quality and low quantity

I said industries, companies owned and run by government
Low quality you call it? How can you even compare with professionally refined but it does it purpose, makes profit and there are times for improvement as well
A government with vision can find a way, start small as long labourers ready and wouldn't see Nigerian money as national cake, with time it can serve communities, can progress to serving the state and Nigerian as a whole.

So let me get this clear

You're complaining that Nigeria is losing N250bn monthly on subsidy, so the solution is to remove it, then spend N200bn a month (5000 * 40 million) on grants to low income earners?


This country is finished

Perfectbeing:
N5000 times 40,000,000 will give us 200,000,000,000 (two hundred billion naira), just 50 billion short of what they spend monthly on subsidy.
Well, since they said they'll pay this stipend for a maximum of 1 years, then its not that bad..

Only enemies of the state would see something wrong with this subsidy removal. We can't sacrifice economic growth for cheap fuel.. Next is electricity subsidy..

Really? You think the growth of our economy is being stunted by 250bn

Racoon:
How many times will the same subsidy or subsidy under-recovery that the government have long called a scam/fraud be removed for goodness sake? Yet zombies are not even asking questions.

Meanwhile, are you lots tired of the corruption after 6 years? No new refineries as promised or revamping of the existent old ones.None of these moribund refineries have processed any drop of crude oil due to their dysfunctional state yet billions of dollars have been expended.

Imagine budgeting $150M for refurbishing of the PH refinery No accurate date on daily fuel consumption to determine how much is being subsidised.Bunch of crooks.

Hello Bro, Your children will not die. They will live and prosper. This is the same question i have been asking for days. Do we have subsidy in Nigeria ? The answer is NO. This govt lies a lot seriously. In 2015, the govt removed subsidy and told us the sacrifice we needed to pay was to allow increment of a petrol litre from 97 to 145. Nigerians accepted this hook, line and sinker. In the course of running the govt, we were hearing a under-recovery from them. Nigerians were calling their attention to it, they insisted nothing like subsidy. Now, they are boldly telling us subsidy in Nigeria is real and genuine. This is still amazing so to speak. Subsidy in Nigeria ? The last time i knew of subsidy was prior to 2015 where Nigeria was spending one quarter ( 1trillion) of its annual budget on subsidy. With the analysis from NNPC 240bn per month on subsidy, the annual payment stands at 2.8 trillion. Is this profitable at all ? These guys are not sincere.

Oh...I missed the government owned part..sorry

Well ..businesses are best left under private firms...if we have learnt anything in the past ..the best way is govt to only generate money from taxes, royalties, customs and likes...

To meet our demand in fuel consumption which is over 40 million litres... Govt can not hire manual labour to dangerously refine crude oil the local way..it can never meet our demands..am not sure u have seen videos of how ijaw people risk their lives to run such buinesses....a standard refinery of high crude refining capacity (dangote refinery) is needed ..no two ways about it...

obinna58:

I said industries, companies owned and run by government
Low quality you call it? How can you even compare with professionally refined but it does it purpose, makes profit and there are times for improvement as well
A government with vision can find a way, start small as long labourers ready and wouldn't see Nigerian money as national cake, with time it can serve communities, can progress to serving the state and Nigerian as a whole.

It's really interesting to read the intelligent views of fellow Nigerians, but the truth remains that Nigeria has always been structured to fail.
Nigeria extracts about 1.4 million barrels of crude oil daily but refines less than 10,000 barrels, and with the ongoing maintenance in warri and portharcourt maybe nothing! as Kaduna refinary is a dumpsite.
These economic blow-outs and internal financial Knots would have been foreseen and predicted even by an intelligent ss1 student of economics. My questions so far is as follows:

1) How fuel consumption jumped from 23millon litres in 2017 to over 90million litres in 2021?

2) is price equalisation part of the subsidy removal in discuss? Or they are only removing the cost of importing the refined products from abroad (Price equalisation is what makes the pump price of a litre of fuel the same in portharcourt, Maiduguri and every part of Nigeria.

3) is this current unsubsidisation process absolute and final? or is it a partial relief to unburden the government( as @backbencher posited) of the ever increasing cost of importing refined petroleum.

4) will the government now through the instrumentality of the NNPC completely hands off by completely deregulating both the up and downstream sectors and allowing the petroleum industry to operate as a free market and NNPC plays only regulatory roles?

satp:


Hello Bro, Your children will not die. They will live and prosper. This is the same question i have been asking for days. Do we have subsidy in Nigeria ? The answer is NO. This govt lies a lot seriously. In 2015, the govt removed subsidy and told us the sacrifice we needed to pay was to allow increment of a petrol litre from 97 to 145. Nigerians accepted this hook, line and sinker. In the course of running the govt, we were hearing a under-recovery from them. Nigerians were calling their attention to it, they insisted nothing like subsidy. Now, they are boldly telling us subsidy in Nigeria is real and genuine. This is still amazing so to speak. Subsidy in Nigeria ? The last time i knew of subsidy was prior to 2015 where Nigeria was spending one quarter ( 1trillion) of its annual budget on subsidy. With the analysis from NNPC 240bn per month on subsidy, the annual payment stands at 2.8 trillion. Is this profitable at all ? These guys are not sincere.

We do have subsidy in Nigeria.

Right now it costs N265 and higher to import one liter of fuel into this country...and we sell the same liter at N162-5.

The money paid to NNPC to cover the losses they sustain in importing fuel at N265 and selling it at N162-5 is what we call a subsidy. Before 2016 when everyone with a license from government could import fuel, the money was also paid to importers.

In 2011, we imported fuel at N99 and sold it at N65...by 2015 it was importing it at N132, and selling it at N87, and by 2016/17 , we imported it at N180 and sold it at N145...and every time a subsidy was paid to help offset the resulting losses.

The problem is that the more the cost of that one liter of fuel rises, the more subsidy money we have to pay. So from time to time, government reduces money spent on subsidy and this manifests as a price increase...which is why we are paying N165 for a liter of fuel instead of the N65 we were paying in 2010/11.

If that money was not paid, NNPC would have long since collapsed.

The reason why we cannot build new refineries is because the money gets spent on subsides...and has been for decades...plus because the subsidy regimen does not allow the petroleum industry make enough money in profit, it cannot build or maintain existing refineries easily....so subsides keep on going on

And then the rich beenefit from free subsidy money while the poor benefit from cheap fuel (5th cheapest in the world as at this month).

Is it your family money? When you abandoned the refineries and depend on imported supplies you are bound to cry.
I see more attacks on oil facility, then, you will know how far.
Lazy bones that derive pleasure in making life difficult for Nigerians.

backbencher:


We do have subsidy in Nigeria.

Right now it costs N265 and higher to import one liter of fuel into this country...and we sell the same liter at N162-5.

The money paid to NNPC to cover the losses they sustain in importing fuel at N265 and selling it at N162-5 is what we call a subsidy. Before 2016 when everyone with a license from government could import fuel, the money was also paid to importers.

In 2011, we imported fuel at N99 and sold it at N65...by 2015 it was importing it at N132, and selling it at N87, and by 2016/17 , we imported it at N180 and sold it at N145...and every time a subsidy was paid to help offset the resulting losses.

The problem is that the more the cost of that one liter of fuel rises, the more subsidy money we have to pay. So from time to time, government reduces money spent on subsidy and this manifests as a price increase...which is why we are paying N165 for a liter of fuel instead of the N65 we were paying in 2010/11.

If that money was not paid, NNPC would have long since collapsed.

[s]The reason why we cannot build new refineries is because the money gets spent on subsides...and has been for decades...plus because the subsidy regimen does not allow the petroleum industry make enough money in profit, it cannot build or maintain existing refineries easily....so subsides keep on going on[/s]

And then the rich beenefit from free subsidy money while the poor benefit from cheap fuel (5th cheapest in the world as at this month).

Attention readers!!
The cancelled part is a lie!! The reason we can't build and maintain refineries is govt incompetence and corruption. Our refineries were working well until 1989 when IBB ordered that all maintenance must be signed off by him, the president!! The ensuing bureaucracy led to lack of timely proper maintenance and gradual collapse of the refineries. Before then, the three (there were three fully functional then) were working optimally and even operating at a profit. As a matter of fact, the PH refinery II was supposed to be only for export!!

backbencher:


We do have subsidy in Nigeria.

Right now it costs N265 and higher to import one liter of fuel into this country...and we sell the same liter at N162-5.

The money paid to NNPC to cover the losses they sustain in importing fuel at N265 and selling it at N162-5 is what we call a subsidy. Before 2016 when everyone with a license from government could import fuel, the money was also paid to importers.

In 2011, we imported fuel at N99 and sold it at N65...by 2015 it was importing it at N132, and selling it at N87, and by 2016/17 , we imported it at N180 and sold it at N145...and every time a subsidy was paid to help offset the resulting losses.

The problem is that the more the cost of that one liter of fuel rises, the more subsidy money we have to pay. So from time to time, government reduces money spent on subsidy and this manifests as a price increase...which is why we are paying N165 for a liter of fuel instead of the N65 we were paying in 2010/11.

If that money was not paid, NNPC would have long since collapsed.

The reason why we cannot build new refineries is because the money gets spent on subsides...and has been for decades...plus because the subsidy regimen does not allow the petroleum industry make enough money in profit, it cannot build or maintain existing refineries easily....so subsides keep on going on

And then the rich beenefit from free subsidy money while the poor benefit from cheap fuel (5th cheapest in the world as at this month).

It's not a lack of funds that's stalling out ability to build refineries. Heaven knows this administration has borrowed billions of dollars at this point.

Subsidy is a much bigger issue because the state cannot seem to crack down on those who falsify oil importation numbers, and those who smuggle the fuel outside. It's also worsened by the fact that a HUGE portion of our populace uses these imported refined hydrocarbons to power personal generators for power. If the government had lived up to its responsibility and transformatively changed the picture for power generation and distribution, the situation would be a whole lot less grim.

We can say all we want about cheap fuel, but our entire society is built on this. The estimation of our minimum wage was based on a world with fuel subsidy. Ditto for food prices, public transportation etc. Taking away fuel subsidy and raising prices while keeping minimum wage the same will cripple families.

To put things into perspective, the government wants to:

- increase fuel price dramatically.
- permit Discos to increase electricity tariffs significantly
- expand taxes

All while keeping minimum wage the same.


And their palliative is to pay N5000 to 'poor people' who may not even exist!

texazzpete:


It's not a lack of funds that's stalling out ability to build refineries. Heaven knows this administration has borrowed billions of dollars at this point.

Subsidy is a much bigger issue because the state cannot seem to crack down on those who falsify oil importation numbers, and those who smuggle the fuel outside. It's also worsened by the fact that a HUGE portion of our populace uses these imported refined hydrocarbons to power personal generators for power. If the government had lived up to its responsibility and transformatively changed the picture for power generation and distribution, the situation would be a whole lot less grim.

We can say all we want about cheap fuel, but our entire society is built on this. The estimation of our minimum wage was based on a world with fuel subsidy. Ditto for food prices, public transportation etc. Taking away fuel subsidy and raising prices while keeping minimum wage the same will cripple families.

To put things into perspective, the government wants to:

- increase fuel price dramatically.
- permit Discos to increase electricity tariffs significantly
- expand taxes

All while keeping minimum wage the same.


And their palliative is to pay N5000 to 'poor people' who may not even exist!

Very true, which I why I think the money should go up to N20000...and should be paid to car and vehicle owners for a year, by which time some of the benefits from kicking out subsidy would manifest (hopefully!!!)

But then again, the oil revenue , which we use to pay for everything, including subsides and the mininum wage, hasn't been high enough to sustain us since 2014. (which is why we have been taking loans ). So, I am not optimistic about government finding money to raise the N5K (AND THEN there is the funny way they are going to identify the poorest of the poor).

Either way, subsidy has to go, because we really don't have enough oil revenue to pay for it, and we have been taking money from other sectors (and going into debt) to feed the subsidy monster. My annoyance is that it should have been done in 2012, or even earlier in 1993...by now we would have been over the worst.

(Note that crude oil prices have never been above $100 since 2014, meanwhile our breakeven price for oil...the price at which we can run a bal;anced budget...was $139 IN 2017 AND $133 recently)

Foolish government. Cut cost of governance, kill corruption, close loopholes where products are diverted to neighbouring countries , you are here trying to add more suffering on the people .God punish all of you supporting evil. This government, and even previous government are evil people. God bless Obasanjo. He is the only man who worked as a patriot even though not 100% but e try.