₦airaland Forum

These guys are just playing to the gallery , no clear cut policies , just playing games on Nigerians

Good

Thank God I quickly japa to the Uk through the student route!! Na make I find way secure my pali remain. God it’s on you..! No going back to that Nation Nigeria.

You guys are really mad. How did the APC blame PDP for 8yrs, organized shutting down of the country because of #140 per litter yet you stupid idiots kept cheering them on. Today APC have literally obliterated every penny in the savings of everyone and you are here ranting Aso Rock cabals. We're it not the cabals that were ruining the country during PDP era? Infact, I trust you must be mate.

Dsalvo:
Abeg you people should shut up about this APC idiocy. Only Nigerians I know will see A to consistently claim it is B because they are as dishonest and deceitful as the leaders they love indicting of misrule.

What exactly is "APC" about Buhari and a crew, now labeled Aso rock cabal, hijacking power, ostracising others and refusing to consult or carry the wider APC along before they do things?

What is shown below is still APC ba with the APC-led FG, at a very volatile time for Nigeria, hosting a confrontational, incendiary and unhelpful stance in contrast to Tinubu's sensible suggestion ?

In civilized countries, with sophisticated voters, they call that a rogue and compromised government and not a ruling Party.

Defenders of the current subsidy regime are of the view that subsidy removal would cause inflation, as higher costs of production would be passed on to the final consumers. This is true. However, the increase in the average price level would be proportional to the share of fuel in overall costs of production or share in consumer expenditure. Hence, for the low fuel-intensive sector, the direct impact of higher fuel prices would be low. However, the extent to which the increase in price from higher fuel prices can be passed on to consumers would depend on the nature of the elasticity of demand and supply for the product.

However, what many people fail to appreciate is that the current subsidy regime also fuels current inflation through higher budget deficits that are financed through ways and means and other forms of public debts. Most economists are in agreement that budget deficits financed through ways and means are inflationary. Current data shows that 95 per cent of government revenue is spent on payments of interests on government debts. It follows, therefore, that nearly all non-debt recurrent expenditure is financed by debt, including fuel subsidy. This is inflationary.

Unfortunately, besides the fact that the current fuel subsidy is inflationary, it has additional negative consequences on the economy.

The current fuel subsidy and removal of subsidy are both inflationary. However, a shift to liberalization will ensure that fuel prices like other commodity prices will crawl around a long-term trend rather than by fits and jumps that cause significant price shocks in the economy. This will be a lot easier for consumers to adjust to, and less disruptive of economic agents’ budget constraints.

Both current fuel subsidies and what will occur after subsidy removal have negative equity effects. Nearly 80 per cent of current subsidies are appropriated by the top 20 per cent of the society. The last 40 per cent of the society benefits less than 10 per cent with poor rural folks even with lesser benefits. In the short term, the poor will not only lose their share of the benefits but also pay some share of the inflationary costs. It is this category of society that should be considered in petrol price adjustments. Some forms of cash transfers, or more appropriately channeling more government expenditure to support commodities that the poor consume could be one way of mitigating the economic impacts on the poor. The subsidy recovered from the rich can be used to support the poor.

Another common argument against subsidy removal is that the additional revenue from subsidy removal will be stolen, or misappropriated by the government. This argument does not recognise the essential element of liberalisation.

The current subsidy regime has given so many discretionary powers to government officials that have turned the administration of subsidies over the years into a cesspool of corruption.

The sudden increase in daily petrol consumption from 30 million litres in less than five years to a current estimate of around 100 million litres per day is a testimony of underlying sleaze and perhaps smuggling effects, as fundamental economic drivers do not justify the growth, after controlling for the rise in the price of fuel, downturn in economic activities due to the pandemic, insurgency, decline in transportation activities, among others.

The 2012 House of Representatives report on the downstream petroleum sector shows the network of corruption in the regulated environment, including the foreign exchange sleaze that took place during the period.

With liberalisation, the government’s involvement in the sector will move from direct participation to indirect, as is happening in another network industry, the telecommunication sector. The downstream petroleum sector should be able to attract global players in the sector like MTN, Airtel, Globalcom and others. MTN and Airtel today are among the largest contributors to domestic investment, employment, and tax revenue.

According to the Federal Inland Revenue Service (FIRS), the combined taxes revenue from top 17 companies listed in the Nigerian Exchange Limited (NGX) was N589,6b in 2021. MTN paid N138.03b, second only to Dangote Cement Ltd which paid N173.92b. Total company income tax in 2021 was N1747.99b, while total Petroleum Income Tax was N2006.45b.

In other words, MTN alone pay nearly 8 per cent of total company income tax in 2021.

Furthermore, with liberalisation of the downstream petroleum sector, the government’s direct participation will cease, and hence that source of corruption will be removed. The government will only depend on tax revenue from players in the downstream petroleum sector. Hence, corruption from fuel subsidy management will disappear or be substantially reduced as was the case with liberalisation of telecommunication, and the electricity sectors.

Tunji Oyebanji of the Major Oil Marketers Association of Nigeria (MOMAN), expressed fear that the attempt to continue to control petrol price would negatively affect investment in the sector, stressing that the government has historically been constrained to retain the price due to political considerations, especially since the move has always had civil unrest as fallout.

Oyebanji disclosed that the lack of uncertainty in the sector has already led to divestments, adding that the industry needs significant investment, which could only come from certainty and full deregulation, as well as a level playing field.

Demanding an enabling environment to make the sector drive the nation’s sick economy, Oyebanji said: “We need to put behind us the need to control price. What we need is an agency to come down heavily on anyone who abuses regulations and imposes significant fines as it is done in other sectors like telecommunication. That would address the concern that some people may have expressed.”

An energy professor at the University of Lagos, Yemi Oke, insisted that it is now clear that agitations against subsidy in 2012 were politically motivated.

He said that such political gimmicks would not help any country, adding that petroleum products remained a global commodity that reflects economic realities that may be beyond local politics.

“It was clearly a political game and it’s backfired. The fact that we don’t have people on the streets, campaigning and demonstrating against the current administration shows it was all needlessly politics,” he noted.

Oke said given the realities in exchange rates and other economic indices, improving on local refining of crude oil and subsidising production instead of consumption remains the most sustainable option.
He said: “We are discussing the removal of a subsidy that no one knows for sure how much it amounts to. How much exactly will you be removing when you eventually come around to deregulating?

“The problem really is that because corruption has dogged all efforts at fixing our refineries over the years. It defies every logic that we could be a super-producer and still be here talking about the economics of spending nearly a trillion naira in just over two years for freighting refined products back home for domestic consumption. How can you be a yam titleholder and be depending on other people to eat pounded yam?” Oke questioned.

Taking a glance at what a post-subsidy era economy will look like in the long term, experts maintain that first, there will be an influx of new private companies in the sector that will bring innovation, efficiency, competition, investment, new jobs, and that would pay billions of naira into government coffers as taxes.

“Next, we will have a sector with new and modern infrastructure including refineries, pipelines, depots, storage tanks, and petrol stations. Long queues and fuel adulteration will no longer be a regular occurrence across the country. There will also be less dependence on inefficient fuel tankers to deliver fuel over long distances. Normally, fuel trucks are supposed to carry fuels from the nearest depots to fuel stations in the city or town. The current practice of using trucks to move fuels from Lagos to different parts of the country has destroyed our roads, led to the deaths of innocent Nigerians, and destruction of property.

“In addition, smuggling of fuel to neighbouring countries will no longer be profitable as prices of fuel across the region will closely align. Nigeria will no longer subsidise fuel consumption across the neighbouring countries and provide a source of revenue for their governments through taxes imposed on fuels smuggled from Nigeria. Government-controlled refineries will likely be sold to the private sector or run like private sector companies. Nigeria will no longer spend N13 billion every month on refineries that are not producing and are inefficient.

“Furthermore, removal of subsidies will encourage efficiency in fuel consumption, and promote the switch to green energy in the energy consumption mix of Nigeria. The rich folks will pay for the fuel they consumed, while some support will be provided for the poor, for instance, by diverting more government expenditures to social goods.

“After the initial shocks, the adjustment process in fuel prices will follow those of other normal commodities delivered by the market. Fuel prices will move more instantaneously around their long-term trends rather than proceed in fits and jumps that have caused major shocks in the economy.” in the Department of Economics and Centre for Petroleum, Energy Economics and Law at the University of Ibadan, in this report provide many reflections on this development in an ailing economy.

SAUCE; Reflections on fuel subsidy. The Nigerian Guardian, 14 August 2022

No one has bothered to ask, why FG is stalling on full deregulation, why NNPC for the last 8 years couldn't rehabilitate a single refinery in Nigeria despite billion made.
Why is a broke govt insisting of subsidizing fuel.
Why has the so hyped dangote depot refinery not come onboard?

Horlamidei:
Thank God I quickly japa to the Uk through the student route!! Na make I find way secure my pali remain. God it’s on you..! No going back to that Nation Nigeria.

And in the UK, you pay much higher for fuel, and more tax.

Anyway, enjoy.

Is Tinumbu reading this? He installed an impotent government. And he wants to rescue us them, abi?

One thing have never understandis why will some sell at 190 and some 350 and they buy from same depot Nigerians are greedy bastards reason why this country is like this

Pls stop all this political support let's do the right thingsas Nigerians

JASONjnr:
There was a little protest demonstration in Edo and Delta states recently and as the suffering is touching people, the protest will increase to other states...


The president is the petroleum minister and he's completely unaware of the scarcity and increment of the PMS pump price.


Why should we be suffering in this country when we're blessed with natural resources?


We even have the most wanted resources in the world, Vibranium and we are still suffering?


And some people want to vote another calamity and put over 200milion people into another 8yrs of complete Bu La Bla.

vibranium doesn't exist Sir

Buhari led administration are so wicked and poor. They have no knowledge of how to manage the situation of the country, if the fuel is available to the oil marketers at at lower price, then they should make law enforcement agency to ensure that they sell withing the price range.

Kobonaire4:
LOL...if you were in business, would you sell at a loss to help the poor?

At the end, the problem arises from the fact that we are selling at N195, what costs above N500 per liter to bring in...and that is before we bring in transport costs.

Abacha did all that, yet when he died, fuel queues were still a way of life...because like most Nigerian leaders, he avoided facing the truth of deregulation being the answer (He also increased fuel prices three times...to allow for the subsidy to cover things without causing scarcity)

Even if Buhari or anyone does what Abacha does...they can do nothing about the actual market price of fuel. That one is beyond their control.

As long as Govt still pays for subsidy, they control the price. NNPC has the price template which exposes the antics of greedy marketers who at every opportunity inflate the invoice. These are people who take our products across the borders hence making us suffer for what we have in abundance. Despite the fact that the Govt had increased the price of fuel a couple of times with existing subsidy payments. Govt must take drastic actions, revoke the license of the saboteurs and give to those willing to abide by the guidelines.

AdaojoTheUrchin:
IPMAN is made up of greedy bastards. If they had their way fuel will be N2000 per litre even if they buy from the depot at N174 per litre.

Let them close, we will not die.

Don't mind those idiots. They keep blaming Everyone but themselves. Did they get product from depot at 350? Most of them sold for about 450 naira. They should leave the business if it is not profitable to them.

APC has failed Nigeria in every imaginably possible way.

I agree with the man that said that APC should be apologising to Nigerians rather than asking us for votes.

You can imagine that from this article NONE of the 21 NNPC depots is working. Similarly, NONE of our refineries are working, almost 8 years after this same APC campaigned with it. These are some of the reasons fuel scarcity has persisted for at least 4 months now.

They should be rejected- top to bottom and everywhere

Dsalvo:
Abeg you people should shut up about this APC idiocy. Only Nigerians I know will see A to consistently claim it is B because they are as dishonest and deceitful as the leaders they love indicting of misrule.

What exactly is "APC" about Buhari and a crew, now labeled Aso rock cabal, hijacking power, ostracising others and refusing to consult or carry the wider APC along before they do things?

What is shown below is still APC ba with the APC-led FG, at a very volatile time for Nigeria, hosting a confrontational, incendiary and unhelpful stance in contrast to Tinubu's sensible suggestion ?

In civilized countries, with sophisticated voters, they call that a rogue and compromised government and not a ruling Party.

Suddenly you are separating APC from APC...lol. Sentimental fool

AdaojoTheUrchin:
IPMAN is made up of greedy bastards. If they had their way fuel will be N2000 per litre even if they buy from the depot at N174 per litre.

Let them close, we will not die.

It is mostly on Nairaland you'll see a Nigerian exhibit bare-faced ignorance such as this, with a very troubling measure of confidence.

Kobonaire4:
And in the UK, you pay much higher for fuel, and more tax.

Anyway, enjoy.

When naira is weaker. Fuel in uk is 143p

So after Supporting buhari and apc for the past 8years what has changed....
you think we are brainless ba...


we go teach APC bitter lesson

Dsalvo:
Abeg you people should shut up about this APC idiocy. Only Nigerians I know will see A to consistently claim it is B because they are as dishonest and deceitful as the leaders they love indicting of misrule.

What exactly is "APC" about Buhari and a crew, now labeled Aso rock cabal, hijacking power, ostracising others and refusing to consult or carry the wider APC along before they do things?

What is shown below is still APC ba with the APC-led FG, at a very volatile time for Nigeria, hosting a confrontational, incendiary and unhelpful stance in contrast to Tinubu's sensible suggestion ?

In civilized countries, with sophisticated voters, they call that a rogue and compromised government and not a ruling Party.

Ozuo. If a party is in power and things go bad, that party is voted out, simple. Tribalism and hatred for a particular ethnic group has made you delusional to the extent that something as straightforward as voting out a failed party is now looking like complex mathematics "if x is the cabal, and y is the APC, find Tinubu?

Dsalvo:
When I read this sort of post I know I am viewing the utterance of a self-destructive person.

With all that is being revealed every Nigerian still decent at heart, and capable of critical thinking, know only Tinubu has the capacity to battle and defeat the entrenched forces determined to keep issues business-as-usual for their private benefit and continous detriment of ordinary Nigerians.

Atiku is simply more-of-the-same and the coward Obi is minus one. This is not his level. While Obi and Atiku hid, Tinubu boldly called out Buhari and the cabal in Aso Rock to put them on notice that Nigeria is bigger than them.

Tinubu is also telling them uncompromisingly that no one made them God over Nigeria's direction or vested in them the power to determine who becomes or does not become President of Nigeria.

You guys should shun bigotry and see what is staring you korokoro in your face. It is not just to shout that your candidate must win.

It is mainly about recognizing, from verified history, what your candidate has the character, talent and capacity to do in office.

gonkin:
When naira is weaker. Fuel in uk is 143p

Which is over 800 naira.

adenigga:
Source: https://punchng.com/N195-enforcement-Fuel-marketers-plan-shutdown-Monday

buhari don successfully end Nigeria.

Putindbutt:
As long as Govt still pays for subsidy, they control the price. NNPC has the price template which exposes the antics of greedy marketers who at every opportunity inflate the invoice. These are people who take our products across the borders hence making us suffer for what we have in abundance. Despite the fact that the Govt had increased the price of fuel a couple of times with existing subsidy payments. Govt must take drastic actions, revoke the license of the saboteurs and give to those willing to abide by the guidelines.

The problem is the money budgeted for subsidy is no longer sufficient to cover it

When that happens, as has happened several times since 1973, scarcity results

You are struggling to prove a point in a very glaring obvious case because you have lost your sense rational thinking, you can't be redeemed from your level idiocy.

Dsalvo:
When I read this sort of post I know I am viewing the utterance of a self-destructive person.

With all that is being revealed every Nigerian still decent at heart, and capable of critical thinking, know only Tinubu has the capacity to battle and defeat the entrenched forces determined to keep issues business-as-usual for their private benefit and continous detriment of ordinary Nigerians.

Atiku is simply more-of-the-same and the coward Obi is minus one. This is not his level. While Obi and Atiku hid, Tinubu boldly called out Buhari and the cabal in Aso Rock to put them on notice that Nigeria is bigger than them.

Tinubu is also telling them uncompromisingly that no one made them God over Nigeria's direction or vested in them the power to determine who becomes or does not become President of Nigeria.

You guys should shun bigotry and see what is staring you korokoro in your face. It is not just to shout that your candidate must win.

It is mainly about recognizing, from verified history, what your candidate has the character, talent and capacity to do in office.

We are in for it...this might just be an indication that thing would only get worse...May God help us all....

Kobonaire4:
SAUCE; Reflections on fuel subsidy. The Nigerian Guardian, 14 August 2022

It's Source not Sauce

naijainstinct:
vibranium doesn't exist Sir

Thanks, corrected...
Meant lithium

Kobonaire4:
Not surprised...the subsidy cannot cover the losses being sustained in selling fuel that was brought in above N500 per liter.





So in short

1.NNPC depots no longer have fuel...simply because NNPC cannot sustain subsidising fuel below its production cost.

2. The independent marketers who own depots...are buying at a higher price than the N172 EX-Depot price...because NNPC cannot sustain subsidy price without losing too much money.

3.Independent marketers cannot sustain selling fuel at a loss..because they are buying fuel from independent depots above N200 if not more.

4.At the end scarcity results.

Therein lies the issue...subsidy cannot cover the difference between the cost price and the market price....which is why we are here.

Either government finds more money....or removes subsidy and ends the whole nonsense.

The end result is another fuel scarcity since the independent marketers will stop selling to avoid any embarrassment from the enforcers.
And usually it's the fuel that determine price of commodities in the market.
NAIRA SCARCITY + FUEL SCARCITY + INSECURITY = NO 2023 ELECTION.
Where are the soldiers who are true loyal to the nation? YOU KNOW WHAT TO DO.

How can you enforce a price regime as govt where you don't have refineries.buha was busy using our trillions to construct stupid railways and weak bridges while naija had no refinery key to economic growth TO PAY FOREIGN DEBTS AND FUEL NIGERIANS SOCIOECOMIC SYSTEM PROFITABLY WELL.

Is all hidden agenda buha says dangote is building refinery,imagine a FG depending on an individual for refinery,after buha kept borrowing trillions of dollars as a sovereign state. WHAT DID HE USE D MONEY FOR?

Horlamidei:
Thank God I quickly japa to the Uk through the student route!! Na make I find way secure my pali remain. God it’s on you..! No going back to that Nation Nigeria.

Guy how you take run am and how much did you spend to get there?.

Treat with urgency.

Kobonaire4:
Not surprised...the subsidy cannot cover the losses being sustained in selling fuel that was brought in above N500 per liter.





So in short

1.NNPC depots no longer have fuel...simply because NNPC cannot sustain subsidising fuel below its production cost.

2. The independent marketers who own depots...are buying at a higher price than the N172 EX-Depot price...because NNPC cannot sustain subsidy price without losing too much money.

3.Independent marketers cannot sustain selling fuel at a loss..because they are buying fuel from independent depots above N200 if not more.

4.At the end scarcity results.

Therein lies the issue...subsidy cannot cover the difference between the cost price and the market price....which is why we are here.

Either government finds more money....or removes subsidy and ends the whole nonsense.

You even got everything wrong.
NNPCL is the sole importer, now they import but refuse to keep their depot running to store petrol, then sell these imported petrol to private people who have deport, now these private poepke who have depot are the ones to see to the private retail marketers just imagine how insane our government can be.

Why not NNPCL selling directly to the private retail marketers ?