Mtchew

May God help Nigeria, the suffering is too much

backbencher:
At the end subsidy has to go. The government is just making more mistakes keeping subsidies

TO anyone quoting me to tell me tales about 'subsidy being a benefit' and 'government is suffering us' consider this

1.We pay for subsidy from crude oil revenues, whose prices have not been stable enough or favorable to us since 2014 when the Saudis and the US decided to show each other shege. Even before 2014, crude has never been favourable enough to us

2.We spend billions subsidizing fuel, which is in turn sold in Ghana, Benin, NIger, Cameroon, even Mali....via smuggling. Fuel costs above N300 in those countries. Tell me, who won't smuggle the fuel...unless you want to build a wall around this country. And our Customs is funded from the same source as the subsidy which means not well enough (see no 1)

3.Subsidy is why the refineries don't work. Basically, prices are kept below the production price, and a subsidy is meant to cover the difference. Over the years refineries have not been able to make a profit to pay for expansion, maintenance, upgrades, etc etc. Staff welfare is paid from...crude oil profits. When refineries can't make a profit, they break down. Which is what happened by the year 2010, and which is why we refine our crude in bad refineries in Holland and Belgium so that we can keep it cheap, and have bad fuel.

4.And keeping on no 3...how much do you think we are going to pay Dangote in subsides, and let's also remember that production costs are not static.
Yes, subsidy means that Dangote is going to sell fuel at a loss, and government is going to dash him money to cover the loss. And that money is going to rise with the rise in Dangote's production costs and debt repayment. Meaning more pressure on our already tight revenue (keep in mind we have 4-5 other private refineries and 20 more on the drawing board. All to be paid subsidy money to keep fuel cheap)

5.Our income from tax is not even enough to cover subsidy costs. 30% of taxable Nigerians pay income tax to state and federal government coffers. We use oil money to cover the deficit, and when oil money is not enough, we pay using loans and more loans from IMF to the Chinese.

Keep in mind that right now, we cannot finance or budget well because of bad oil prices. And we already have to take a loan to keep up inspite of subsidy.


If we want a strong petroleum and refining sector, one that not only makes profit, but exports and exports good quality PMS, we have to remove subsidy . If we want more jobs and investment, subsidy has to go. Paying for subsidy is basically asking for more loans, more deficit budgets, and more problems economically speaking, and zero refineries.

The government needs to wake up to reality..

P.S

For a clear understanding of subsidies and why they are damaging, I suggest you read this article

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

So u mean that all Nigeria's problems is because of fuel subsidy and once subsidy is removed all those problems will automatically disappear

BeeBeeOoh:


https://www.thecable.ng/lawan-buhari-did-not-direct-removal-of-petrol-subsidy/amp

Testing the water through psyching

backbencher:
At the end subsidy has to go. The government is just making more mistakes keeping subsidies

TO anyone quoting me to tell me tales about 'subsidy being a benefit' and 'government is suffering us' consider this

1.We pay for subsidy from crude oil revenues, whose prices have not been stable enough or favorable to us since 2014 when the Saudis and the US decided to show each other shege. Even before 2014, crude has never been favourable enough to us

2.We spend billions subsidizing fuel, which is in turn sold in Ghana, Benin, NIger, Cameroon, even Mali....via smuggling. Fuel costs above N300 in those countries. Tell me, who won't smuggle the fuel...unless you want to build a wall around this country. And our Customs is funded from the same source as the subsidy which means not well enough (see no 1)

3.Subsidy is why the refineries don't work. Basically, prices are kept below the production price, and a subsidy is meant to cover the difference. Over the years refineries have not been able to make a profit to pay for expansion, maintenance, upgrades, etc etc. Staff welfare is paid from...crude oil profits. When refineries can't make a profit, they break down. Which is what happened by the year 2010, and which is why we refine our crude in bad refineries in Holland and Belgium so that we can keep it cheap, and have bad fuel.

4.And keeping on no 3...how much do you think we are going to pay Dangote in subsides, and let's also remember that production costs are not static.
Yes, subsidy means that Dangote is going to sell fuel at a loss, and government is going to dash him money to cover the loss. And that money is going to rise with the rise in Dangote's production costs and debt repayment. Meaning more pressure on our already tight revenue (keep in mind we have 4-5 other private refineries and 20 more on the drawing board. All to be paid subsidy money to keep fuel cheap)

5.Our income from tax is not even enough to cover subsidy costs. 30% of taxable Nigerians pay income tax to state and federal government coffers. We use oil money to cover the deficit, and when oil money is not enough, we pay using loans and more loans from IMF to the Chinese.

Keep in mind that right now, we cannot finance or budget well because of bad oil prices. And we already have to take a loan to keep up inspite of subsidy.


If we want a strong petroleum and refining sector, one that not only makes profit, but exports and exports good quality PMS, we have to remove subsidy . If we want more jobs and investment, subsidy has to go. Paying for subsidy is basically asking for more loans, more deficit budgets, and more problems economically speaking, and zero refineries.

The government needs to wake up to reality..

P.S

For a clear understanding of subsidies and why they are damaging, I suggest you read this article

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

All these are sweet to type & read, but the reality is that Nigeria has the poorest people in the world with an estimated 100 million (and more) earning less than enough to feed once a day, having food, transport, health and other basic utilities prices as they are presently.

Now, factor in the level of nationwide insecurity, political tension mutual suspicion, unemployment, inflation rates, etc the country is battling with at the moment.

Then, you now remove those subsidies which immediately skyrockets prices of every commodity and utility across the board overnight.

What do you think will happen next?.

Answer = Anarchy!.


Forget the economics & the sweet feel of the keyboard when typing this.

Governments maintain certain national policies no matter how difficult to maintain national security, and removing subsidy is a direct threat to Nigeria's national security.

When the shit hits the fan, Buhari and his finance minister will (private jet) fly out their families overseas while over a hundred million plus people go raving mad!.

backbencher:
At the end subsidy has to go. The government is just making more mistakes keeping subsidies

TO anyone quoting me to tell me tales about 'subsidy being a benefit' and 'government is suffering us' consider this

1.We pay for subsidy from crude oil revenues, whose prices have not been stable enough or favorable to us since 2014 when the Saudis and the US decided to show each other shege. Even before 2014, crude has never been favourable enough to us

2.We spend billions subsidizing fuel, which is in turn sold in Ghana, Benin, NIger, Cameroon, even Mali....via smuggling. Fuel costs above N300 in those countries. Tell me, who won't smuggle the fuel...unless you want to build a wall around this country. And our Customs is funded from the same source as the subsidy which means not well enough (see no 1)

3.Subsidy is why the refineries don't work. Basically, prices are kept below the production price, and a subsidy is meant to cover the difference. Over the years refineries have not been able to make a profit to pay for expansion, maintenance, upgrades, etc etc. Staff welfare is paid from...crude oil profits. When refineries can't make a profit, they break down. Which is what happened by the year 2010, and which is why we refine our crude in bad refineries in Holland and Belgium so that we can keep it cheap, and have bad fuel.....

The government needs to wake up to reality..

P.S

For a clear understanding of subsidies and why they are damaging, I suggest you read this article

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

Those in government know and understand all you have mentioned.

The question remains, who will bell the cat?

The politicians are afraid of losing their goodwill with the people. Plus, Nigerians are mad in love with cheap fuel and very oblivious to the acute ills of keeping petrol subsidy.

This present administration has been very dishonest and you cannot blame Nigerians for questioning their motives.

Erstwhile governments have dilly-dallied on this subsidy removal, only to pass the buck ahead to the next one after it. Reeks of maladministration and a sole intent to plunder the wealth of this nation.

I hope Nigeians understand that cheap fuel in the guise of subsidy is and has never been in their interest. Subsidy indeed has to go. The earlier, the better. Cheap fuel will only keep us all poor.

nitt:


All these are sweet to type & read, but the reality is that Nigeria has the poorest people in the world with an estimated 100 million (and more) earning less than enough to feed once a day, having food, transport, health and other basic utilities prices as they are presently.

Now, factor in the level of nationwide insecurity, political tension mutual suspicion, unemployment, inflation rates, etc the country is battling with at the moment.

Then, you now remove those subsidies which immediately skyrockets prices of every commodity and utility across the board overnight.

What do you think will happen next?.

Answer = Anarchy!.


Forget the economics & the sweet feel of the keyboard when typing this.

Governments maintain certain national policies no matter how difficult to maintain national security, and removing subsidy is a direct threat to Nigeria's national security.

When the shit hits the fan, Buhari and his finance minister will (private jet) fly out their families overseas while over a hundred million plus people go raving mad!.

Yes, it's all very possible, what you have said.

But at the end of the day, we are paying for subsidy from oil revenue, which is set to fall, as oil prices fall due to the fact that everyone and his cousin's son in law is discovering crude oil. (I even read somewhere that oil prices will fall to $66 dollars)

Which leaves us with one problem...where are we going to find money to fund the subsidy?

1. Crude oil revenue...which is falling, and is going to fall (and part of which we are already using to service more and more debt)

2.Taxes, which most Nigerians don't pay (our tax to gdp ratio is 6.4%, one of the lowest even in West Africa)..and which most NIgerians don't like paying.

3.LOANS. More and more loans.

And the above, (except for taxes) don't look good.

We can keep subsidy, but at the end, we won't have the money to keep paying for it. Already, in december, we had zero revenue from oil to pay for subsidy. Where do you think we got the money to pay subsidy that year? (Loans, obviously).


If you want subsidy to keep on going, then stop complaining when government takes loans, OR....support government to tax everyone...from the richest, to the poorest, at high rates to find money for the subsidy and the budget. (And agriculture and mining face the same issues as crude oil...fluctuating prices, and in the case of agric..strong production in the developed world that makes us look like dwarfs).


It's either we eat that frog of complete subsidy removal...or our rising debt from paying for the subsidy will eventually force us to do so.

And yes, prices will fall eventually, plus the value of the naira may improve a bit, since there would be more forex savings from not subsidsing fuel (not a final solution to our economic issues...we have to become an exporter of industrial consumer goods before things improve, but that's another discussion).

joey150:

Those in government know and understand all you have mentioned.

The question remains, who will bell the cat?

The politicians are afraid of losing their goodwill with the people and Nigerians are mad in love with cheap fuel and very oblivious to the acute ills of keeping petrol subsidy.

This present administration has been very dishonest and you cannot blame Nigerians for questioning their motives.

Erstwhile governments have dilly-dallied on this subsidy removal, only to pass the buck ahead to the next one after it. Reeks of maladministration and a sole intent to plunder the wealth of the nation.

I hope Nigeians understand that cheap fuel is and has never been in their interest.

Yes they know, but they don't want to do it, because people don't get it, exactly.

At the end, people would have to learn to do the hard work of holding their government to account, so that any savings from subsidy removal are spent well and properly.

But people want subsidy to stay, because they like cheap fuel.

Subsidy should be removed and let Everyman feed for himself. Subsidies benefits those who are rich and not the masses. Yes prices will go up. But it will enable us look for alternative. The world is moving away from fossil fuel and we have to start thinking about our future.

Temptee101:


Suffering nor dey tire you?

Has any FG policy benefited the people, why do you think this one will be different? Moreover, how many times is the same subsidy going to be removed?

Who told you removing fuel subsidy will stop corruption or looting by these wicked politicians?

Corruption is embedded in the DNA of Nigerians. We are fantastically corrupt.

backbencher:


Yes they know, but they don't want to do it, because people don't get it, exactly.

A sincere government would enlighten the people about the need for this decision.

This was the single biggest mistake Jonathan made. He would have gone on a massive sensitization campaign before pulling the plug on subsidy in 2012.

People need to really understand why this move has to be made. Isn't this why the government has a minister of information arm? Except Lai has now turned it to a treacherous propaganda machine.

Only big winners from subsidy are the fuel importers and the rich. The poor man gains nothing in the long term from subsidising fuel.

However, it's clear that its removal would cause a massive price spike. But, there are no easy fixes anymore for us. Any meaningful change would be painful and very uncomfortable. The price to pay for our collective docility as a people.

We no dey buy am..

joey150:


A sincere government would enlighten the people about the need for this decision.

This was the single biggest mistake Jonathan made. He would have gone on a massive sensitization campaign before pulling the plug on subsidy in 2012.

People need to really understand why this move has to be made. Isn't this why the government has a minister of information arm? Except Lai has now turned it to a treacherous propaganda machine.

Only big winners from subsidy are the fuel importers and the rich. The poor man gains nothing in the long term from subsidising fuel.

However, it's clear that its removal would cause a massive price spike. But, there are no easy fixes anymore for us. Any meaningful change would be painful and very uncomfortable. The price to pay for our collective docility as a people.

Actually GEJ did go on sensitization campaign. The sensitization campaign that was embarked upon by his government is one of the reasons why I support subsidy removal.(I'm not a PDP or APC supporter, but when they do sensible things, I hail them)

The north is not the only place that has poor people, and the government should look into the money they spent on defending the Naira too, it is getting too much too. Let Naira defend her self

So you are the one removing subsidy and the president is begging you ?

BeeBeeOoh:


https://www.thecable.ng/lawan-buhari-did-not-direct-removal-of-petrol-subsidy/amp

So who did

backbencher:


Actually GEJ did go on sensitization campaign. The sensitization campaign that was embarked upon by his government is one of the reasons why I support subsidy removal.(I'm not a PDP or APC supporter, but when they do sensible things, I hail them)

If you read Okonjo Iweala's book, she mentioned that while the decision to remove subsidy had been taken, Jonathan went ahead to remove it way earlier than agreed.

Subsidy was removed on the 1st of January 2012, as opposed to sometime in March that was agreed - according to her.

Most Nigerians weren't ready for that sudden a change in the middle of their festivities. It wasn't a very well thought out move and the opposition milked that cow for every drop of milk.

It's a welcome development

tempest01:
They won't remove fuel subsidy now. They will "hope" to rig win 2023 elections first. Immediately afterwards, una go see shege.

You're 100% right

This man is a crook, he is trying to put the blame on the finance minister and make himself and the president look like a saint.

post=109492765:
God bless our darling Daddy President Muhammadu Buhari and his amiable Vice president Prof Yemi Osinbajo for all they are doing to make this once battered and looted nation work again

Keep defending mediocrity for ₦30,000. May the heavens rule your entire life the way Buhari is running this country

GardenOfGod:
This one does not know his left from his right, just a blind follower. Someone who is so blind to desipher how and where to draw a line when his personal and foundationationl principles are compromised by his leader. Always seeing good in evil.

She's only earning her living.
...a low-budget media spin doctor.

Ipob, PDP and haters how market?

Lie lie

backbencher:
At the end subsidy has to go. The government is just making more mistakes keeping subsidies

TO anyone quoting me to tell me tales about 'subsidy being a benefit' and 'government is suffering us' consider this

1.We pay for subsidy from crude oil revenues, whose prices have not been stable enough or favorable to us since 2014 when the Saudis and the US decided to show each other shege. Even before 2014, crude has never been favourable enough to us

2.We spend billions subsidizing fuel, which is in turn sold in Ghana, Benin, NIger, Cameroon, even Mali....via smuggling. Fuel costs above N300 in those countries. Tell me, who won't smuggle the fuel...unless you want to build a wall around this country. And our Customs is funded from the same source as the subsidy which means not well enough (see no 1).

your long wailing should be directed to bubu who once held that there was nothing like subsidy.

Confused, insincere, integrity deficient, sadistic, satanic govt of SELF SERVING THIEVES AND BLOODTHIRSTY TERRORISTS !

# association of unrepentant kleptos!

Nig urgently needs a SANE AND SOUND LEADER!

AntonVince:


She's only earning her living.
...a low-budget media spin doctor.

S/he must be a "Nairaland Bobriski" - confused wo/man. That's his/her designate for 2022.

Lies....APC/ Buhari just to bring hardship to nigerians

Crazy world

backbencher:
At the end subsidy has to go. The government is just making more mistakes keeping subsidies

TO anyone quoting me to tell me tales about 'subsidy being a benefit' and 'government is suffering us' consider this

1.We pay for subsidy from crude oil revenues, whose prices have not been stable enough or favorable to us since 2014 when the Saudis and the US decided to show each other shege. Even before 2014, crude has never been favourable enough to us

2.We spend billions subsidizing fuel, which is in turn sold in Ghana, Benin, NIger, Cameroon, even Mali....via smuggling. Fuel costs above N300 in those countries. Tell me, who won't smuggle the fuel...unless you want to build a wall around this country. And our Customs is funded from the same source as the subsidy which means not well enough (see no 1)

3.Subsidy is why the refineries don't work. Basically, prices are kept below the production price, and a subsidy is meant to cover the difference. Over the years refineries have not been able to make a profit to pay for expansion, maintenance, upgrades, etc etc. Staff welfare is paid from...crude oil profits. When refineries can't make a profit, they break down. Which is what happened by the year 2010, and which is why we refine our crude in bad refineries in Holland and Belgium so that we can keep it cheap, and have bad fuel.

4.And keeping on no 3...how much do you think we are going to pay Dangote in subsides, and let's also remember that production costs are not static.
Yes, subsidy means that Dangote is going to sell fuel at a loss, and government is going to dash him money to cover the loss. And that money is going to rise with the rise in Dangote's production costs and debt repayment. Meaning more pressure on our already tight revenue (keep in mind we have 4-5 other private refineries and 20 more on the drawing board. All to be paid subsidy money to keep fuel cheap)

5.Our income from tax is not even enough to cover subsidy costs. 30% of taxable Nigerians pay income tax to state and federal government coffers. We use oil money to cover the deficit, and when oil money is not enough, we pay using loans and more loans from IMF to the Chinese.

Keep in mind that right now, we cannot finance or budget well because of bad oil prices. And we already have to take a loan to keep up inspite of subsidy.


If we want a strong petroleum and refining sector, one that not only makes profit, but exports and exports good quality PMS, we have to remove subsidy . If we want more jobs and investment, subsidy has to go. Paying for subsidy is basically asking for more loans, more deficit budgets, and more problems economically speaking, and zero refineries.

The government needs to wake up to reality..

P.S

For a clear understanding of subsidies and why they are damaging, I suggest you read this article

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

How can fuel subsidy be the lifeblood of d same politicians that want to remove fuel subsidy?

Revolution2022:
Is Buhari not the minister of petroleum?If he was not the one who directed the removal of subsidy,who did?

Oh jubrin did

GardenOfGod:
your long wailing should be directed to bubu who once held that there was nothing like subsidy.

Where do you think I am addressing my complaint to?

Certainly the goverment!