babaolofin:


Is it Buhari that made diesel to be sold at 850 per litre? No. Nigeria cannot afford to pay subsidy on Diesel. Nigeria cannot peg dollar to naira rate, it is a bad economic theory. Demand and supply must be allowed to regulate exchange rate. Government can only work on factors controlling the forces of demand and supply of foreign currencies.

Until we can produce locally most of the things we consume, we shall continue to have this type of problem.

Nigerians rejected Obasanjo 3rd term. Obasanjo is a Messiah to Nigeria. There could be other Messiah, but till date, Obasanjo is a Messiah. If the 3rd term had been allowed, Nigeria would have gone far. Refineries that were privatised would have been functioning well and other refineries would have been built. IPP which Obasanjo started which was suspended for almost 3 years and later haphazardly implemented would have been successfully completed.

Dangote tried. He is a man of Courage. You cannot carryout such a gigantic refinery project under duress and tension.

Yaradua came and reversed the sale of refineries Obasanjo fought to sell. If those refineries have been left in the hands of Private sector, the Diesel crises we are having today would not have been there. It would have impacted on the economy and generates millions of jobs directly and indirectly.

Now, whenever there is energy crisis, Dangote will be under tension. As I have said, the only option for Dantata family and Dangote is to work for Tinubu to win Presidential Election. Dangote himself knows Tinubu's Presidency is a done deal for the completion of that Refinery. Many people hate Dangote, they never wanted that refinery to be completed. Against all odds, Tinubu will support that project for completion.

Nigeria would overcome her problems.

@babaolofin,

3rd term is not constitutional, and you know that!

OBJ himself said he didn't ask those folks to campaign for 3rd term for him, and this was widely published in the newspapers both online and offline.

I thought Dangote Refinery is due to take off in the 3rd quarter of 2022... what is happening to that projection?

If Dangote gets onstream in late 2022, that should reduce the pressure on the economy and price of diesel and PMS and
APC could have more leverage to win the election... if NOT them APC will have to just take what they get because Nigerians from what I have seen are more interested in the economy and security.

All the best.

babaolofin:


Is it Buhari that made diesel to be sold at 850 per litre? No. Nigeria cannot afford to pay subsidy on Diesel. Nigeria cannot peg dollar to naira rate, it is a bad economic theory. Demand and supply must be allowed to regulate exchange rate. Government can only work on factors controlling the forces of demand and supply of foreign currencies.

Until we can produce locally most of the things we consume, we shall continue to have this type of problem.

Nigerians rejected Obasanjo 3rd term. Obasanjo is a Messiah to Nigeria. There could be other Messiah, but till date, Obasanjo is a Messiah. If the 3rd term had been allowed, Nigeria would have gone far. Refineries that were privatised would have been functioning well and other refineries would have been built. IPP which Obasanjo started which was suspended for almost 3 years and later haphazardly implemented would have been successfully completed.

Dangote tried. He is a man of Courage. You cannot carryout such a gigantic refinery project under duress and tension.

Yaradua came and reversed the sale of refineries Obasanjo fought to sell. If those refineries have been left in the hands of Private sector, the Diesel crises we are having today would not have been there. It would have impacted on the economy and generates millions of jobs directly and indirectly.

Now, whenever there is energy crisis, Dangote will be under tension. As I have said, the only option for Dantata family and Dangote is to work for Tinubu to win Presidential Election. Dangote himself knows Tinubu's Presidency is a done deal for the completion of that Refinery. Many people hate Dangote, they never wanted that refinery to be completed. Against all odds, Tinubu will support that project for completion.

Nigeria would overcome her problems.

paskal16:
Naija is a shiithole
I go japa canada soonest make I dey send my momma Canadian dollars

Ojuntana:


Subsidywise18 aka backbencher where's your massive investment in diesel?
It's been over ten years since subsidy was removed from diesel and handed over to importers and marketers.

You're now Subsidywise20. Oya com and explain why the profits being made from diesel has not been invested into refineries and jobs.

richiemcgold:
only if we can fix power supply problems, more than 50% of Nigeria's problem will be solved, including this diesel wahAla.

In my location here, we currently buy diesel at 1,050 naira. How do you expect business to thrive under such condition? This energy problem is making Nigeria too hard for everybody, including the rich folks. Power supply should be the main focus of the next president. Anybody that has no realistic plan to fix power should not be allowed to near aso rock at all.

I'll keep saying it, 24 hrs power supply will solve more than 50% of this country's problems. And that's apart from increasing productivity and reducing all these excessive demands for gas, petrol and diesel.

oooabbeyooo:


To butress your salient point, the government need to remove subsidy and channel over N4t used for subsidizing petrol to increasing power generation and supply. After doing this the government should just sit back and watch inflation reduce drastically to single digit.
To crown it all, if the government can support Alhaji Dangote in raising funds to complete his Refinery and Petrochemical company, the there will be unprecedented reduction in the stress on Naira that it will become so strong and inturn further reduce the inflation figure to single digit below 5%.
Only a visionary leader and a critical thinker can look this direction.
God bless Nigeria!

AlphaTaikun:

@babaolofin,

3rd term is not constitutional, and you know that!

OBJ himself said he didn't ask those folks to campaign for 3rd term for him, and this was widely published in the newspapers both online and offline.

I thought Dangote Refinery is due to take off in the 3rd quarter of 2022... what is happening to that projection?

If Dangote gets onstream in late 2022, that should reduce the pressure on the economy and price of diesel and PMS and
APC could have more leverage to win the election... if NOT them APC will have to just take what they get because Nigerians from what I have seen are more interested in the economy and security.

All the best.

Zico5:
The vote for Jagaban is not a vote for APC, it's purely a vote for individual who is capable of changing the fortune of this nation.

Tianamen1:
Dear Author,

Nigeria's current problems with inflation stem for decisions made in the last 12 years. Decisions such as GEJ not saving funds in the excess crude account, to Buhari not raising taxes on the rich and/or reducing recurrent expenditure (reduced compensation for public servants and reducing the number of MDA's)

Nigeria's future problems include the shift to renewables which is being hastened by the Russian invasion of Ukraine as you rightly noted.

Between 2011 and 2014, crude prices average over $110 per barrel and the local cost for a liter of petrol without subsidies in naira was about 140(the amount GEJ set it to before the subsidy protest). the increase in price of diesel isn't as a result of crude oil prices but as a result of the reasons I stated in paragraph 1.

As Milton Friedman said " inflation is always and everywhere a monetary phenomenon", so it is true that Nigeria is on a path to hyperinflation because it cannot focus on handling its macroeconomics issues.

You correctly identified the problem, but your solutions would not work.

Nigeria needs to raise taxes on imported goods such as cars, phones, building materials. Basically, tax things that rich people spend money on apart from food, to limit the demand for dollars within the country. This will aid the accretion of our foreign reserves and excess crude account, thus stopping the bleeding of the Naira.

The government should also consider reducing the cost of governance by reducing the number of MDA (implementing the Oronsaye report) and reducing public servants allowances and pay.

This is how to reduce the price of diesel.

Jack005:
Still blaming GEJ after 7 years? Something is definitely wrong with you.

Tianamen1:
Dear Author,

Nigeria's current problems with inflation stem for decisions made in the last 12 years. Decisions such as GEJ not saving funds in the excess crude account, to Buhari not raising taxes on the rich and/or reducing recurrent expenditure (reduced compensation for public servants and reducing the number of MDA's)

Nigeria's future problems include the shift to renewables which is being hastened by the Russian invasion of Ukraine as you rightly noted.

Between 2011 and 2014, crude prices average over $110 per barrel and the local cost for a liter of petrol without subsidies in naira was about 140(the amount GEJ set it to before the subsidy protest). the increase in price of diesel isn't as a result of crude oil prices but as a result of the reasons I stated in paragraph 1.

As Milton Friedman said " inflation is always and everywhere a monetary phenomenon", so it is true that Nigeria is on a path to hyperinflation because it cannot focus on handling its macroeconomics issues.

You correctly identified the problem, but your solutions would not work.

Nigeria needs to raise taxes on imported goods such as cars, phones, building materials. Basically, tax things that rich people spend money on apart from food, to limit the demand for dollars within the country. This will aid the accretion of our foreign reserves and excess crude account, thus stopping the bleeding of the Naira.

The government should also consider reducing the cost of governance by reducing the number of MDA (implementing the Oronsaye report) and reducing public servants allowances and pay.

This is how to reduce the price of diesel.

Tianamen1:
Jack005
Edoboy90
Penguin2


@Penguin2, I know you are being sarcastic, but would still respond. Obasanjo cleared our debt and saved a lot of money in our excess crude account. all the mistakes of the presidents before him were cleared off and Nigeria had a fresh start. the issues Nigeria is currently having is as a result of the presidents who came after Obasanjo.

Of the 4 presidential candidates, if things remain as there are, it is my belief that Emi lokan will win. Of these four, Peter Obi is by far the most competent. Of these 4, I am supporting Kwankwaso.

Ojuntana:

I don't necessarily agree with your theory on Tinubu. He's smart no doubt but we seem to underestimate the impact his poor health will have

Subsidywise20:


Subsidy on fuel for decades is a big reason why we dont have refineries.

Unless you are Dangote and bua, a refinery with subsidy on petrol is a potential loss making refinery. And even then you can just simply export and not sell to Nigeria

oooabbeyooo:


To butress your salient point, the government need to remove subsidy and channel over N4t used for subsidizing petrol to increasing power generation and supply. After doing this the government should just sit back and watch inflation reduce drastically to single digit.
To crown it all, if the government can support Alhaji Dangote in raising funds to complete his Refinery and Petrochemical company, the there will be unprecedented reduction in the stress on Naira that it will become so strong and inturn further reduce the inflation figure to single digit below 5%.
Only a visionary leader and a critical thinker can look this direction.
God bless Nigeria!

Ojuntana:

What does subsidy on fuel have to do with diesel and kerosene.
Why have the investors who are making humongous profit from setting diesel and kerosene price as high as they want not built refineries and create jobs

nesphil:
GEJ actually saved those funds but it was the then opposition Governors (including the likes of Fashola and others in the APC) that took the FG to court and won the case since the constitution didn't support saving of Excess Crude Funds (The constitution position on the excess crude fund is that the fund should be shared). The former Minister of Finance Dr. Ngozi Okonji Iweala have spoken about this several times, how she pleaded with the then Governors that funds in the Excess Crude Account should be saved for rainy days, but out of greed those Governors whom almost all of them are now in APC disagreed. So get your facts right before you start misleading the public.

Subsidywise20:


That's part of the problem.

But even more of a problem, if we build refineries here, they make a profit from diesel and kerosene, then lose money from refining petrol because one liter must cost 40 naira according to apc supporters.

But as you say subsidy removal will make the poor suffer.

On that we don't agree.

nesphil:
GEJ actually saved those funds but it was the then opposition Governors (including the likes of Fashola and others in the APC) that took the FG to court and won the case since the constitution didn't support saving of Excess Crude Funds (The constitution position on the excess crude fund is that the fund should be shared). The former Minister of Finance Dr. Ngozi Okonji Iweala have spoken about this several times, how she pleaded with the then Governors that funds in the Excess Crude Account should be saved for rainy days, but out of greed those Governors whom almost all of them are now in APC disagreed. So get your facts right before you start misleading the public.

Tianamen1:
Dear Author,

Nigeria's current problems with inflation stem for decisions made in the last 12 years. Decisions such as GEJ not saving funds in the excess crude account, to Buhari not raising taxes on the rich and/or reducing recurrent expenditure (reduced compensation for public servants and reducing the number of MDA's)

Nigeria's future problems include the shift to renewables which is being hastened by the Russian invasion of Ukraine as you rightly noted.

Between 2011 and 2014, crude prices average over $110 per barrel and the local cost for a liter of petrol without subsidies in naira was about 140(the amount GEJ set it to before the subsidy protest). the increase in price of diesel isn't as a result of crude oil prices but as a result of the reasons I stated in paragraph 1.

As Milton Friedman said " inflation is always and everywhere a monetary phenomenon", so it is true that Nigeria is on a path to hyperinflation because it cannot focus on handling its macroeconomics issues.

You correctly identified the problem, but your solutions would not work.

Nigeria needs to raise taxes on imported goods such as cars, phones, building materials. Basically, tax things that rich people spend money on apart from food, to limit the demand for dollars within the country. This will aid the accretion of our foreign reserves and excess crude account, thus stopping the bleeding of the Naira.

The government should also consider reducing the cost of governance by reducing the number of MDA (implementing the Oronsaye report) and reducing public servants allowances and pay.

This is how to reduce the price of diesel.

oooabbeyooo:

I believe 2 things will work for HE Tinubu against you opinion on his health. His ability to pick the best brains into his cabinet and his wealth of experience in revenue expansion and long term policy formulation!
I have learnt in business that people are the drivers of business success. If a government will succeed it will have a very good cabinet. This really worked for president Obasanjo. He brought the best people, so far in governance, to his cabinet.
Ideas like BRT that is now the single sector that contributes the highest revenue to the Lagos State economy, Eko Atlantic City that houses the biggest USA embassy in the world, effective taxation of income in a state,s economy and clear blueprint on transportation system in a state economy as a robust source of revenue generation to the state government are some of the bright ideas we need HE BAT to recreate with this opportunity at the presidency. A man like him can harness more opportunities when he gets to Aso Rock to the surprise of so many people eg increase pension collection to all states of the federation, rejig the maritime industry to harness it's potential, efficiently tax the large income in the Nigeria,s economy to widen the revenue collection, plan an effective national transportation system and commence the implementation, increase power generation, assist completion of Alhaji Dangote,s Refinery, removal of subsidy and reduction in the cost of governance to allow more money in the hands of government to implement strategic project and reduce toxic borrowings, develop productive manpower through dedicated attention to Education at all levels etc.
Leading at the Presidential level is more of getting annual budgets right (planning revenue and expenses properly), tracking budget through Federal Executive Council meetings and formulating impactful policies.
I believe HE BAT will Excel. President Bihari knows his routine very well but his administration is marred by bad policies and improper budget planning.

Ojuntana:

The govt will not channel any 4trn into power. If money is the only problem our power faces, it would have been solved by now. Highest you take loans.

babaolofin:


It is not constitutional but the National Assembly can amend it. Nnamani, Chukwumerije led the opposition from National Assembly ably supported by Atiku and IBB.

El - Rufai and other intelligent radicals were the ones in support of 3rd term because of the projection that crude would rise to $118/ barrel by 2008. As at this period, oil was around $60 or a little above or below. 2. Estimated $60 billion in ECA & other investment & oil price is still increasing. Categorically they told Obasanjo anybody coming as president will spend the money lavishly. 3. They believe ongoing IPP and other key projects would be suspended. This made Obj to make upfront payments on IPP to a level. 4 .Refineries that were sold need government protection from NNPC Labour Union and others to takeoff.

At last, they were right. In 2008 oil jumped to $108/barrel, 2013 around $140/barrel, they did not save one (1K) Kobo and they were borrowing. They spent almost half of the money Obj left. The IBOs don't want anybody to do analysis of that government.

Refineries and IPP came to zero.

We should be thinking about the way forward now.

Dangote refinery cannot start work late 2022 or first quarter 2023. They have been postponing commencement since 2018. They may start late 2023 or early 2024 if Tinubu wins.

Deep insights from you there @babaolofin.

It seems you were in that government at that time to have such insider information. I don't doubt your submission because it is NOT EVERYTHING that you find in the public domain. In fact all the politicians from opposing camps are very close friends and they meet in social clubs to fraternise.

The Dangote Refinery not opening in late 2022 will be dire because of the Russian-Ukraine war, and increase in fuel price worldwide, including the global inflation that is already in full effect and biting hard on citizens of major countries of the world.

These video interviews with the American billionaire investor Ray Dalio will give you more insights on what is coming up. The government in Nigeria and the incoming one had better be prepared for the next global recession. A lot of global economic storms will affect Nigeria and Africa as a whole, except for those who are prepared.

oooabbeyooo:

If it is possible to create money there won't be need in the first place to get loans, especially the type Nigeria get that has led her to debt trap. It is a fact that if power generation is boosted inflation will drop and in boosting power generation, the government needs money. Getting loans while the country is busy subsidizing is unimaginable.
We need a leader that is committed to this course!

verygoodbadboi:
Diesel is sold at 820 per litter. God punish and other supporters of this bad government. To those supporters of BAT, God punish you too. Amen and Insha Allah

Ojuntana:

1. It is very simplistic to think all a president does is get the right people in govt and then go to sleep. GEJ had a very good cabinet too but we know how he ended.
3. If you think the Lagos model will work on Nigeria, consider that in 2003 when Tinubu wanted to start the new tax law, he faced stiff opposition from the corporate world more than even individuals. Go and find out what I'm telling you. Presently vat is hung up in supreme Court because most northern states don't want the status quo to change. Think about that.

Back to 1. Go and find out what those who worked with OBJ said about him. He was very hands on. There's no memo that appeared at fec that did not have his input. OBJ became president in his late fifties with good health. He was swift and sharp. If you think all the presidency entails is just gathering people who have diverse interests and mindsets, then you don't understand a thing about the problem facing this country and Africa as a whole.

oooabbeyooo:

1. HE GEJ did not end badly we are all leaving withness at the moment moreso he was not allowed to complete his governance but his economic parameters are better. The country would have ranked better if HE GEJ had returned when he lost elections (barring insecurity).
3. Every leader is faced with oppositions in policy formulation and implementation. HE BAT is not new to that. When he started demarcation of the Ikorodu expressway for dedicated BRT lane, people did more than going to court to stop him but look at it today. He also taxed businesses to fulfil their Civic responsibility, they hated him then and he took all the bad name but the state is better-off today. Even if he faces opposition in taxing the income in the economy, how he will deploy the money into governance will reduce the opposition.
Even when a man is hands-on he cannot be better than or do the job of 36 persons in the cabinet. That is how governance is. Getting the best to work for you! More like using people. Even though the work is collaborative: which is responsible for his hands-on, he wouldn't have excelled without their ideas.
The wise will adopt this rule and have people better than him in the cabinet to work for him.
A lot of the people in Obasanjo,s cabinet are better than him intellectually... Chuckwuemeka chikwelu, Frank Nweke Jnr etc but they all worked for him!
In My Opinion, HE BAT will be like president Bihari with better policies and efficient budgets. He may not be jumping around like President Obasanjo but will sure harness opportunities and excel in governance.

Ojuntana:

Power generation is not the (direct) reason we have high inflation. We have high inflation primarily because we're an import dependent economy. Don't also underestimate corruption in our national life.

My pint is even if you generate power, if you still import toothpick and pizza, inflation will still be high.