₦airaland Forum

gare:
I disagree with you on that , fixing refineries under subsidy is very much do able its just the will to do it, for how long would it take to fix them ? even if they have to change the designs to meet current standard they should have finished by now, and why all at the same time, start with one finish and move to the next, I bet you by 2027 they still would not have finished them

The problem with subsidy is that fuel is sold below its production cost...which means there is no profit left to fix refineries.

Unless you want to incurr large debts like Iran does in keeping its refineries running and maintaining a subsidy.

The problem also with subsidy is that with low profits, the NNPC becomes reliant on government money...which of course provides opportunites for looting.



That is why subsidy had to go....to force NNPC to make enough of a profit to fix things...and since NNPC would be reliant on profit made from fixing its refineries....it cannot afford to let them go bad .

After all, see the GSM people. Obasanjo did not subsidise GSM services, but let them set whatever price they liked. We all complained. Yet thanks to that we went from having zero home internet in 2001 to having home internet now for example...because the GSM companies made enough profit to build and fix things.And because investment would yield more profit.

nairalanda1:
The problem with subsidy is that fuel is sold below its production cost...which means there is no profit left to fix refineries.

Unless you want to incurr large debts like Iran does in keeping its refineries running and maintaining a subsidy.

The problem also with subsidy is that with low profits, the NNPC becomes reliant on government money...which of course provides opportunites for looting.



That is why subsidy had to go....to force NNPC to make enough of a profit to fix things...and since NNPC would be reliant on profit made from fixing its refineries....it cannot afford to let them go bad .

After all, see the GSM people. Obasanjo did not subsidise GSM services, but let them set whatever price they liked. We all complained. Yet thanks to that we went from having zero home internet in 2001 to having home internet now for example...because the GSM companies made enough profit to build and fix things.And because investment would yield more profit.

The problem with subsidy is that fuel is sold below its production cost...which means there is no profit left to fix refineries.
Was NNPC expected to make profits from the sale of PMS? they could still run the subsidy while they source for funds to fix the refineries, at PMB borrowed a lot of money part of which should have gone in the repairs of the refineries, all sell out some substantial part as equity to buyers and the money used in fixing the refineriesm there always solution to all these chanllenges.

for me at this stage 45% stake of all refineries should sold out I beileve is the best way to go government can still have controlling shares,.

Unless you want to incurr large debts like Iran does in keeping its refineries running and maintaining a subsidy.
How they run their refineries and also continue to subsidize the Petroluem products.

gare:
The problem with subsidy is that fuel is sold below its production cost...which means there is no profit left to fix refineries.
Was NNPC expected to make profits from the sale of PMS? they could still run the subsidy while they source for funds to fix the refineries, at PMB borrowed a lot of money part of which should have gone in the repairs of the refineries, all sell out some substantial part as equity to buyers and the money used in fixing the refineriesm there always solution to all these chanllenges.

for me at this stage 45% stake of all refineries should sold out I beileve is the best way to go government can still have controlling shares,.

Unless you want to incurr large debts like Iran does in keeping its refineries running and maintaining a subsidy.
How they run their refineries and also continue to subsidize the Petroluem products.

NNPC has to make profit from PMS sale, otherwise they won't have enough money at all...infact the rising cost of subsidy is due to the rising difference between the cost of producing PMS and the cost of sale set by government

And borrowing won't have made a difference. NNPC has to make far more profit than is paid in subsidy to run refineries effectively.

(A word about borrowing...we use our oil revenue to pay for subsidy...money that would have been used for day to day governance....and borrow to cover up the resulting deficit. No way it would have gone for refineries. Also, subsidy money does not go to NNPC, there is a bit that goes to transporters to keep fuel prices the same across Nigeria for example).

See Venezuela. Fuel is dirt cheap....and their largest refinery went from being 900000 bpd to 100000bpd.

You have to make a profit selling and making things...otherwise you won't be able to afford upgrades, replacements, even new refineries.

dre11:
https://leadership.ng/we-expect-fierce-opposition-from-fuel-subsidy-beneficiaries-shettima/

Nlfpmod

Our haters will keep hating.... This is time to love

Government subsidize fuel for yahoo boys buying Benz and driving aimlessly about and then return home to turn on generator just to blast music for 24 hours straight. Make fuel enter 2k sef

The masses is now opposition abi?

Change begins with you . . . lol.

Spirit04:
Government subsidize fuel for yahoo boys buying Benz and driving aimlessly about and then return home to turn on generator just to blast music for 24 hours straight. Make fuel enter 2k sef

Na only yahoo boys go buy am for 2k
Fuel go soon enter 3k

AntiChristian:
I just don't know why some have started criticism! Nothing good comes cheap!

And we are Nigerians! Majority of us act like animals that need to be forced to act right!

You guys should shut up. What happened to the refineries that Buhari couldn’t fix. How can you take crude to abroad and refine them import it to sell it to your fellow citizens. Una no get sense at all.

Switruth:
You guys should shut up. What happened to the refineries that Buhari couldn’t fix. How can you take crude to abroad and refine them import it to sell it to your fellow citizens. Una no get sense at all.

It is you who should shut up! And where is the sense that you have?

AntiChristian:
It is you who should shut up! And where is the sense that you have?

I asked you a question and you’re blabbing

They are here on nairaland and being led by mannabbqgrils

HacheNoire:
Shettima nailed it! These is the kind of leader we need, who can say it as it is.

Those subsidy thieves will do everything to cripple the economy, and Nigerians must not give-in.


The criminals will act like they are on the peoples side so as to get subsidy running again.

Just as Tinubu acted like he was on our side 11yrs ago to just to gain popularity and good will of the people
slowpoke

Tinubu supporters, APC supporters and Thugs are all buying fuel at 150 per litre in my area here at Ayobo-Ipaja.

Stop spreading fake news please.

What we are expecting is an unbearable inflation, this government is heading towards being worse than buhari's government already

alanto:
Of course. And those that doesn't want anything good for the country.
I trust Asiwaju's leadership skills.
Nigeria will be respected again.

But u didn't trust GEJ wen he removed it😂
Tinubu just dey use una head

Funny you... Was it not said in 2014 and all that end it was occupy Nigeria
Leaders are good at saying it as it is but won't do the talking.
Subsidy will go but we must feel it in this first tenure by channeling it to other areas

HacheNoire:
Shettima nailed it! These is the kind of leader we need, who can say it as it is.

Those subsidy thieves will do everything to cripple the economy, and Nigerians must not give-in.


The criminals will act like they are on the peoples side so as to get subsidy running again.

dre11:
https://leadership.ng/we-expect-fierce-opposition-from-fuel-subsidy-beneficiaries-shettima/

You don't have to look far because your principal Tinubu and former President Mr Buhari fiercely opposed it when Jonathan removed it in 2012.

Wambiz:
The newly Inaugurated President just announced removal of subsidy and boom oil marketers have started selling at exorbitant prices
Aren't we the problems of ourselves 😔

Maybe you need some economics lessons

We ask Allah to guide BAT and whoever he appoints to ease the affairs of the teeming masses!

May it be for all of us as we wish!

Whoever looks down and hope for the failure of the new government will fail woefully in all endeavors as hoped!

And whoever is hopeful for the good and betterment of the new government and Nigeria will surely encounter good and geometric increase in serenity and prosperity!

May all policy saboteurs be arrested and doomed!

Aamin!

These dafts seems not to know or pretend not to know, how and what to put out in place before subsidy removal...fix refineries or allow Dangote refinery begin to produce before subsidy removal else you are hurting the masses you claim to be assisting

HacheNoire:
Shettima nailed it! These is the kind of leader we need, who can say it as it is.

Those subsidy thieves will do everything to cripple the economy, and Nigerians must not give-in.


The criminals will act like they are on the peoples side so as to get subsidy running again.

Have you forgotten those that fiercely opposed it in 2012 when former President Goodluck removed it? They are the beneficiaries.

Una all know all these and were calling for GEJ head 2014. Becareful what u accuse people with.

All these people hailing Tinubu for removing fuel subsidy were part of those that, the same Tinubu sponsored in 2012 to protest against subsidy. Some of the supporters here were still playing naked on the street in 2012.
Moreover many of you hailing Tinubu for the careless talk are trekking from from their bus stop to their destination. Many of you can no longer buy little fuel for your I-pass-my-neighbor generator.
If you think you're doing some particular tribe, Lol... I laugh. If you like sell fuel N2000/liter, we will add the cost to what we sell to you and still make enough money to live large and buy off your inheritance.

Their strategy is to make you poor, very poor so that they can control you. That is what they have done to all the APC supporters here..

Wambiz:
The newly Inaugurated President just announced removal of subsidy and boom oil marketers have started selling at exorbitant prices
Aren't we the problems of ourselves 😔

But if a policy is announced today why the fuss when stakeholders implement it the following day?

There is a lot of pain about marketers selling at exorbitant Gian. But isn't it money they are going to use to buy the next stock as well?

If their new stock will cost them 3 times to buy, where will the money come from. And even if they make gain now, she it's only once they will make it.

How does their one off gain effect Nigerians who will be buying petrol for N600 for the foreseeable future.

The only issue I have is with them hoarding it and making it hard for Nigerians. But if a pump price has been adjusted to a deregulated price and I can drive in freely and buy it, I have no business with the marketers supposed gain. Cos if the pre deregulated petrol was bought at N10mln for a tanker, it will cost him N30mln for the next tanker.

Redoil:
Same way when the past regime of President Goodluck Jonathan wanted to remove and rid Nigeria of this economic monster 13 years ago, but all you demons in the APC vehemently opposed him only to perpetuate the same fraudulent fuel subsidy then lied of removing it again and again. God punish you. Bunch of fucktards and retards.

what makes you think those supporting the removal of subsidy must be APC supporters? If you really understand the organize crime going on in the name of subsidy, you will surport the removal whether APC, PDP, LP or non party supporter. It is an organize crime, they collect subsidy money and still sell PM's at exorbitant prices so what is the essence of paying them subsidy again?