₦airaland Forum

The most painful thing about this removal is that the govt can block the leakages that's inflating subsidy cost and threatening the stop of the only thing the masses truly benefit from Nigeria.
If they could effect border closure and food blockade, why not petrol smuggling?
If protests can be infiltrated, why not smuggling rings?

It was kind of expected. The government does not want to remove subsidy and was never ever serious about removing subsidy. Neither would Peter Obi, Tinubu or Atiku remove subsidy...because subsidy is the one thing that 'benefits' both the corrupt and the suffering poor...

That's why anytime subsidy removal is supported here, you are somehow evil or something...

All in all, the budget deficit is going to keep growing. And we are going to keep on taking loans as a result. And we can't stop the corruption inherent in the thing because when there is free government money flowing, without having to work for it...people enjoy it and forget about tomorrow.

All I know is, Buhari, GEJ, Yaradua, Obasanjo, and the army rulers...they are all alike. They love the subsidy. Meanwhile we have lost four refineries, billions of naira in potential profits, billions in potential tax revenue, billions of liters of fuel, and our chance to be a major exporter of refined product....because we cannot get over our addiction to cheap fuel. We've ruined our economy, and provided a safehaven for the corrupt to steal and loot...because fuel has to be cheap by force. And all Nigerians want is cheap fuel, and using the subsidy corruption to knock their side into power, wherein they take over and continue the looting.

But never mind....let's enjoy our cheap fuel.

After all, we can call anyone who wants the subsidy gone a Buhari , IMF, Hausa, Fulani, Biafra, Satan, Arab, World Bank...supporter...all at one go. We all love our cheap fuel.

RedScorpion:
Buhari's Time Bomb has been rejected

Any Party and President that removes Subsidy should get ready for the backlash from Nigerians....

Any government that dares to remove subsidy will be violently escorted out of power.

Withour ensuring local refining and uninterrupted power supply, subsidy removal is nothing but a fatal attack on the Nigerian masses.

Stupid fools

You'll subsidize fuel and do the same thing to the Naira.
Your economy will be roaring out of control allowing smugglers from neighboring nations make millions and billions of it still you never learn.

A short visit to the border area of places like Lagos would have opened your eyes but you stay in AC cooled halls in Abuja to say what you don't know.

Go to Seme border, Lagos. All the mega fuel smugglers are the one building huge mansions and riding cars like Yahoo boys and most of them are not even Nigerians. All have filling stations that operate only in total darkness at night, selling fuel to crowds of ghosts that pour in from across the border right under the noses of the customs..

You are not yet ready to save your country.

grandstar:
Buhari's incompetence is the real issue here. He has dumped "all the hardwork" on the incoming government and will end his presidency with a populist finish. Sadly, the economy will pay a big price.

Look, APC is incompetent...but subsidy remaining is the fault of most Nigerians, Buhari supporters and anti Buhari supporters included. Attempts to remove subsidy completely have always been met with riots and protests, and the argument that 'you cannot trust the government to do the right thing'. Even the partial removals that have been carried out over the years...have been met with people calling it evil.

Do the masses know one reason why the Naira is now ₦740 and still falling is due to the enormous cost of maintaining this insane subsidy? A dropping Naira is a 'vote of no confidence' on the fiscal recklessness of this administration just like a tanking pound sterling says of the widening budget deficit in the UK.

Explain it a thousand times to the masses...and they will still say the same thing. Subisdy must remain...because it is what we 'benefit' from government.

It is not surprising as it is their cash cow to the detriment of the masses.

BigCowHornn:
Stupid fools

You'll subsidize fuel and do the same thing to the Naira.
Your economy will be roaring out of control and smugglers from neighboring nations will be making millions and billions of it still you never learn.

A short visit to the border area of places like Lagos would have opened your eyes but you stay in AC cooled halls to say what you don't know.
Go to Seme border. All the fuel smugglers are the one building huge mansions and riding cars like Yahoo boys and most of them are not even Nigerians.

They keep the subsidy because it is what the majority of Nigerians want. Our Senators are not blind. They love their power, and they know that yanking off subsidy is a nice way to get them overthrown.

Try opeining a thread supporting subsidy removal on this site. You will see how that runs out.

SaLongs1:
It is not surprising as it is their cash cow to the detriment of the masses.

The masses want the subsidy to remain...because removing it means that fuel would cost as much as N300-400 per liter...and the senators don't want to be kicked out of power...so they keep it. And yes, big people and even some small people 'benefit' a lot from the 'subsidy'.

Gbemini:
wetin concern me... Waiting for tinubu to win... Na wetin dey my mind b this... I won see biafrans cry oyoyo

.

Meaning you don't care about about Policies to make Nigeria better ,Even if Tinubu wins and Terrible Steps and Policies are not Changed it doesn't concerns you.

All that concerns you is that Tinubu should Win ..


Atiku ,Tinubu ,Obi die hard Supporters doesn't really care about Nigeria ,All most of them care about is Sentiments ,Selfishness and Love for their Political Father .

You are a Typical Enemy of Nigeria .

SmartPolician:
You people comment here, but you don't even understand what is at stake. Even Peter Obi himself never said he was totally going to remove the subsidy because he knows that doing so will lead to chaos and national crisis.

Let it be known that all Nigerians (rich, middle-class and poor) enjoy PMS subsidy. And the day any government removes that subsidy, the sufferings will multiply because in a country that doesn't generate enough electricity for its citizens, PMS affects transportation, production and services.

Know this and know peace.

So, stop complaining when government then takes loans to finance/cover the resulting deficit from subsidies

Also, stop complaining about bad refinereis and corruption...because where there is subsidy, there isn't enough profit to fix the refineries.

There is no such thing as cheap fuel. Also, if you can support government setting their price, why don't you let government set the prices you set in your business...so that they can help the poor?

Dididrumz:
Na them sabi.

Nigerians are the most strongest humans on earth, we'll survive whatever they throw at us.

I wish we were not strong but smart

Kasssandra:
So, stop complaining when government then takes loans to finance/cover the resulting deficit from subsidies

Also, stop complaining about bad refinereis and corruption...because where there is subsidy, there isn't enough profit to fix the refineries.

There is no such thing as cheap fuel. Also, if you can support government setting their price, why don't you let government set the prices you set in your business...so that they can help the poor?

Subsidy can be totally removed and many Nigerians won't feel the impact.

There are two major ways of achieving the long-term plan:

1. Increase electricity production to 15k to 20k megawatts. This will cushion the demand for petrol from service providers (barbers, hairdressers, restaurants, cybercafees, etc.) that use petrol generators to power their services. Millions of Nigerians fall into this category.

2. Introduce solar buses. We saw on Nairaland how a Maiduguri-based startup reveal how they have been test-driving their solar buses for some time. The federal government can liaise with such companies and even get other local automakers to explore that technology and build bigger buses that run on solar energy. https://www.nairaland.com/7290522/phoenix-renewables-celebrates-30-days


This will significantly reduce the demand for PMS and cushion the effects of sufferings in the country. In the end, we channel the trillions of subsidy funds into more meaningful ventures. I always tell people that leadership is hard, but you just need a bit of creativity and smart thinking to overcome the murky waters. But when you deliberately elect someone like Buhari to run your country, you have decided to commit harakiri.

But the compromised senate President once said he would approve anything Buhari send to him, , so he made that statement because of his grave political advantage that is now in the mud

Rubber stamped Senators, they will still succumb Rubber stamped Senators, they will still succumb ...

Racoon:
These same sets of bastards that have colluded with the executives to loot this country via the fraudulent subsidy regime.

you want to give obi, a Biafran?! You most be mad

Buhari removing the subsidy would be his greatest gift to the next President. He would take away all the hate of making fuel expensíve away from the person.

ArmaniUhuru:
Removing subsidy without functional refineries will make living more difficult for the masses.

Where the refineries wey bubu promise sef?

Port Harcourt refinery will be ready for use soon. And there's Dangote refinery on the go.
Just be patient.

Shobizz:
I still never understand this subsidy of a thing.

^^^
Believe it or not, you do understand. Your questions I list below are proof of this.

Shobizz:
How many times they want commot subsidy

^^
Good question.

OBJ 'removed subsidy' 6 times if I remember correctly. The Yaradua/GEJ administration also removed subsidy at least once. Same thing with the Buhari administration. How many times will it be removed? Is the subsidy a moving target?

Shobizz:
What is the cost of production, how much is the government subsidizing.

^^
This is why I said you do understand the issues. Government will not answer your questions because it will expose them.

The woman selling bar soap (or dry gin, amala, semo, pure water etc.) down the street can tell us her cost of production. But 9jeriyan government cannot (or will not) tell us how much it costs to locally produce and refine a litre of petrol? If you can't count it, measure it or cost it then how can you explain it? How can you make profit from it?

Shobizz:
Why not work on refinery. To reduce cost of production.

^^
Again...this is why I said you know what the problem is. Your government cannot (or rather will not) answer your question.

Our government cannot successfully build and operate refineries and so that responsibility has been outsourced to Dangote, a private citizen.

Meanwhile...Saudi Arabia has successfully built refineries. Russia too. So have Kuwait, Oman and Qatar. And Niger, our neighbour. Singapore also has refineries...although it doesn't have one drop of crude oil.

But our refineries are not working...and we don't know why.

When we are ready we know what to do.

PHIPEX:
It was a very selfish proposal by this govt, they want to throw the new administration into crises after paying subsidy for 8 years

Trust me, the new Govt would be grateful to Buhari. Deep down everyone know it needs to go. But no one want Nigerians to hate them.
Buhari will take all the hate to himself.

victorsola:
this is the reason I say even if obi wins. Dey won’t allow him succeed.

But his Obidients think Obi can make changes.
So say when he comes, he will reduce the salaries of the Senators. They no nothing about how Nigeria works.

grandstar:
Buhari's incompetence is the real issue here. He has dumped "all the hardwork" on the incoming government and will end his presidency with a populist finish. Sadly, the economy will pay a big price.

Do the masses know one reason why the Naira is now ₦740 and still falling is due to the enormous cost of maintaining this insane subsidy? A dropping Naira is a 'vote of no confidence' on the fiscal recklessness of this administration just like a tanking pound sterling says of the widening budget deficit in the UK.

Things shouldn't go on like this. The middle class is emigrating fast. I don't want to emigrate but I might be compelled to soon if things don't perk up. I find it nightmarish making online payments. The dropping Naira is a huge burden.

The fx controls of Buhari wrecked a simple business I was to have commenced last year. I just couldn't pay for the gig on Fiverr as Nigerian cards were now incompatible with PayPal. This was a business that would have generated me thousands of dollars monthly.

There's another I have partially started now but part of my worries is making overseas payments. I'll also need some extra capital. I'll might be going to Providus bank probably tomorrow as I was informed their debit cards have $1,500 or $5,000 monthly spend limits depending on which type you go for but use the black market rate.

Don't worry, Obi will come and remove restrictions on our imports and our forex will be put on more pressure which will cause the naira to "rise" again.

fkj950ax:
Are you sure you read the report. It has nothing to do with benefits to the senators.

They currently oppose Buhari ending subsidy at the end of his administration as he wants to in order to prevent the next president getting attacked by Nigerians from the hardship subsidy removal will cause.
If subsidy must be removed, it should be done towards the end of next year by the next administration.

Well if the new President get mind, make he add the subsidy back again na..

*How PMB/APC Government put Nigeria in perpetual debt and they think APC will win 2023 election*

https://www.premiumtimesng.com/regional/nwest/544216-nigeria-broke-as-debt-payment-exceeds-revenue.html

*SERIOUSLY SPEAKING :*

Nigeria is sinking to bankruptcy by 2026. And only presidential candidates with disposition and competence to re-engineer of economy without corruption and padding could rescue this nation from the brink of collapse of the Naira, inability to pay salaries and contracts, recession and retrenchment should be sought for at this critical time.

I do not think people realize how important 2023 is. That is why it seems very few are focusing on issues that matter. *What a pity.*

Let me explain

Last year Nigeria made:

₦970.3 Billion from oil

₦1.6 Trillion from non-oil taxes [More revenue from this than oil]

₦2.8 Trillion from a cumulative of other sources.

In total the country brought in ₦5.5 Trillion in revenue

Then it gets really crazy from here.

Out of that ₦5.5 Trillion revenue, ₦4.2 Trillion was spent on servicing (repaying) debts from January to November.

So what is left after paying debts is ₦1.3 Trillion.

Which, as a matter of fact; means that what is left after repaying what we owe is not enough to run the country…

…because in the 2021 national budget, the nation needs to run on a total of ₦13.57 Trillion.

So since we just have ₦1.3 trillion left, an extra ₦12.27 trillion is needed.

Where do we get it?

Yes, you guessed right - we borrow.

In 2021 Nigeria spent ₦12.56 trillion - most of which were borrowed money spent on things that do not bring money back (salary, fuel subsidy, LOOTING, etc).

So if Nigeria was a man who makes ₦100k a month, he borrows ₦5 million every month to pay for light bill, and running of the house.

See the picture now?

Scary, isn’t it?

The excess Crude oil account (which is like our savings) is almost empty.

So not only does this man borrows like a crazy person, he has no SAVINGS for emergencies (like if his boss decides not to pay salary).

Anyways, the finance minister thinks we are doing alright. That what we have is a revenue problem - and not a debt problem & if we make more we will be alright (this is why they are taxing everything)

Of course, she could be lying.

…but she maybe right too.

The rule is we should NEVER borrow more than 40% of our GDP.

We are at 36.9%

3.2% more and all the alarm bell goes off.

Now - imagine if our revenue keeps dropping, and the debt keeps increasing. And one day - voom - 3.2% crossed!

Then we will really have a debt problem.

Since we currently borrow to pay salary, when the alarm goes off - further borrowing is a disaster:

The Government will struggle to pay salary.

(Which is scary considering that the Government is the biggest employer of labour in Nigeria)

More Taxes will be imposed to raise money, Including tax of Goods which will increase the prices you pay on Foreign rice for example.

Our currency will get futher devalued.

Which means things will get even more expensive in the market.

This is the state of the nation…YET…

…the politicians still loot and take home fat salary.

Imagine if we get the wrong President in 2023, who will not get these things fixed.

Imagine the disaster if we push over that 3.2%

If you think politics does not affect you, then maybe you do NOT see the full picture.

Which is why i laugh at people who ignorantly say - ‘’I am not interested in politics’’

Well, guess what it? It is interested in you.

The person who becomes the President will affect the price of your bag of rice…

…your cynlinder of gas

It affects whether or not it is safe to drive from Kaduna to Abuja or fly…

…or whether you need to pay 7.2% or 20% VAT on your Facebook ads.

It affects whether you keep selling on your Instagram page or whether Instagram gets banned in the country OUT of the blues.

It affects the shipping fee you pay on your Tokunbo car.

Get the picture?

This is NOT the time to be tribalistic. Or want a President from any part of Nigeria. It is a time for THE RIGHT ONE.

You really need to get involved. In any little way you can. Even if to get PVC, try go vote. If your Vote does not count they won't be chasing people away at polling stations.

*God Bless You Richly As You Respond To This Clarion Call !*

Copied

This means most of these senators should be voted out..
But trust Nigerians, they're not sophisticated.

grandstar:
If Tinubu sees its inevitable to deregulate the petrol price, he'll first temporary reduce the subsidy and then, fully deregulate the price by the end of the year, preparing the populace for it. Tinubu has the grassroots appeal and also firmness to deal with protesters.

^^^


What does the stuff in bold even mean?

In your 2 posts I didn't see anything about measures to cushion the blow of subsidy removal. What do you recommend?

Very wicked Buhari
Insensitive person

Governance is really more than rocket science. No hope for Nigerians, remove subsidy and economy will collapse, leave subsidy continue borrowing to fund critical sectors of the economy. We are really in deep shit. Can Obi bring us our of this big mess. Is it Tinubu or Atiku!! God guide Nigerians in making right choice in electing next president in 2023. We are almost on the path of destruction by commiting another mistake by electing another non innovative, non challant and irresponsible leader like Buhari. God save Nigeria. Not everyone have the capacity to Japan. God save us.

CSTRR:
This means most of these senators should be voted out..
But trust Nigerians, they're not sophisticated.

The senators are also confused like Buhari. They don't know the best path to take, remove subsidy and inflation will quadruple, leave subsidy and continue borrowing to fund the economy. Nigeria is really in big mess. Next president will be more confused than the present liveless one we have now at Aso rock.

Perfectbeing:
Trust me, the new Govt would be grateful to Buhari. Deep down everyone know it needs to go. But no one want Nigerians to hate them.
Buhari will take all the hate to himself.

^^^
There is a trust deficit with this administration (like all the other failed administrations before it) and nobody should blame ordinary Nigerians for this.

Agreed...subsidy on fuel imports didn't start with the Buhari administration. But people are not blind. If this government actually did what it promised and cleaned up the public sector there would be two outcomes - cost savings that could actually be put to good use (like building new refineries or repairing old ones) AND people would actually trust government enough to act on their behalf. As it is now, the cost of the so called subsidy under this administration far exceeds the cost of several brand new refineries. Does that make any sense?

This administration squandered the goodwill it had and will forever be remembered for coddling bandits, terrorists and other psychopaths. It will also be remembered for a jarring failure to act decisively on public sector corruption - the one thing that people believed Buhari would actually do. What has this government done about the Oronsaye report?

What a waste.

Kasssandra:
Look, APC is incompetent...but subsidy remaining is the fault of most Nigerians, Buhari supporters and anti Buhari supporters included. Attempts to remove subsidy completely have always been met with riots and protests, and the argument that 'you cannot trust the government to do the right thing'. Even the partial removals that have been carried out over the years...have been met with people calling it evil.



Explain it a thousand times to the masses...and they will still say the same thing. Subisdy must remain...because it is what we 'benefit' from government.

You're right the people no go hear word.

The only choice is to impose it on them.

If subsidy is removed fuel go sell for 400per litre.