₦airaland Forum

Shege banza

How much minimum wage be sef..... someone should remind me

Agbadorians! Where una dey? Another shege is loading and no tribe will be excluded Las Las everybody go dey alright.

InvertedHammer:
/
Subsidy removal?

It is all about common sense which I understand may be a crime in Nigeria.

May 2023: Crude oil $65/barrel.
September 2023: Crude oil $93/barrel.
December 2023: Crude oil $78/ barrel

Yet pump price remains steady at N600+ per liter--no wide variations relative to fluctuations in oil prices.

Feel free to believe whatever you want.

/

Eggzactly people still don't understand oil is a major global market they believe because we have cruise oil we really have price tag over it anyhow

Kukutenla:
cc nairalanda1
Your Ogas say you should rest as the consequences of your beloved policies nor follow

That's what many of us theorists don't get...!

Without eliminating corruption and ensuring transparency, subsidy removal or whatever removal will never improve a damn thing long-term or short term.

Corruption level in Nigeria has gotten to the point under APC that nothing can function well in any sector.

Iamanoited:
TOO MUCH LYING. GOVERNMENT MUST FORCE PETROL DOWN TO N500 PER LITER AND NAIRA TO N500:$1.

Force down?!!! Lol! Okay!

Kingrshd3:
Eggzactly people still don't understand oil is a major global market they believe because we have cruise oil we really have price tag over it anyhow

if the quantity you need in your country is being refined in your country why can't you have a price tag over it?

Nigeria is gone kpata kpata. Buharia killed it but Ebola arrived to bury it completely.

My heart goes out to all salary earners, they must be watching in horror as they get poorer and poorer everyday. Indeed, all Nigerians have suffered and are still suffering terribly but sometimes I don't pity them. When majority of them still believe in tribalism and religious bigotry over common sense, then maybe they actually deserve to suffer.

If you have the means to abandon this sinking ship and fail to do so, you will definitely regret it in the years to come. I once said I won't leave for greener pastures, got US visa and passed it off. But now, I'm of the school of thought that over 90% of the world is better than Nigeria!

I can't stay in this godforsaken dungeon anymore!!!!

naija1stnigar:
if the quantity you need in your country is being refined in your country why can't you have a price tag over it?

.that's why we need more refineries but let's start with 2 so we can see how we can produced more in the future
..

RightChannel:
NAME ONE THING APC CANNOT DESTROY?

H2o

nairalanda1:
On the topic.

Basically, fuel should be above N1000 for the market to recover costs, and for the refineries to work well. It is insanity to keep it at N700 and below.

The problem is, most PDP, APC, LP and others support fuel subsides. Some even think the thing must be removed 'gradually'...which is kind of what Tinubu is doing,(and which everyone before has done, because, they want to stay in power) at the cost of a possible deficit in our budget.

We have kept subsides, because the lie of cheap fuel is seductive. So seductive, that the government won't face reality and remove subsides...because it would lose in 2027.

Sometimes I wish we had courageous government in Nigeria, but we don't. Meanwhile, we continue to lie to ourselves. The truth is , subsidy must go, and it must go totally. No ifs, no buts, no pretending it has been removed. Even if it means N2000 per liter, and it means I have to walk to work.

I wish GEJ had the balls to do this in 2012. But he was a listening leader, and he listened to Nigerians. Here we are. Hell, I wish Abacha or even IBB did this back then, but they got scared...

I agree with complete removal of subsidy, but looking at the cost implication on goods and services, I think some things need to be put in place before this removal is done

That was the major grouse with Tinubu's inauguration speech... It's not after removing, you start putting measures in place

Nothing stopped him from announcing that, in 1 1/2 years time, subsidy will be completely removed. Before that time, electricity supply should have improved considerably, and CNG filling stations would have been set up in many areas, also CNG buses would have been brought in... It's wrong to put the cart before the horse

See where hatred and tribalism have taking us, tinubu and APC have killed this country, na burial remain...

chai

Fkmodhi:
Eleribu ronus wia una dey oooo laslas we go buy it @2k per litre.
This is one of the greatest news on your mandate sir.

Mandate murrafukkas show your faces on this thread. These sheges are on auto renewals. Electricity tarrif to follow despite the denial.

All of una wey vote APC, thunder fire una nyarshes

Hadeylex:
The Nigerian National Petroleum Company Limited and fuel marketers under the aegis of the Independent Petroleum Marketers Association of Nigeria, on Tuesday, clashed again over the removal of subsidy on petrol.

This came against the backdrop of the depreciation of the naira against the United States dollar at both the official Investors & Exporters Window and the parallel market.

On Tuesday, the local currency closed at 998/dollar at the official market, while it traded at 1,225/dollar at the black market.

On the back of the falling naira rate, economists and oil marketers said PMS subsidy was increasing in recent times, but the NNPC quickly countered these positions and declared that it was recovering its full cost on the importation of Premium Motor Spirit, popularly called petrol, countering the positions of

The Chief Executive Officer, Financial Derivatives Company, Bismarck Rewane, had during a live television programme on ChannelsTV on Sunday, explained that fuel subsidy was not removed but reduced.

Similarly, oil marketers told our correspondent on Tuesday that subsidy on petrol was increasing considering the crash of the naira against the United States dollar and the cost of crude oil, stressing that PMS should sell for N1,200/litre in a free market.

Petrol, which is solely imported into Nigeria by the NNPCL, currently sells for between N617/litre to N660/litre, depending on the location of purchase in Nigeria.

Also speaking on the matter, the Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said there was partial subsidy on petrol, but noted that the commodity was subsidised by the government for political, social and economic reasons.

Full cost recovery

But when contacted, the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, described the positions of economists and marketers as assumptions, and insisted that the Federal Government had stopped subsidy on petrol.

President Bola Tinubu had during his inaugural speech on May 29, 2023, declared that subsidy on petrol was gone, a declaration that was effectively implemented the next day by NNPCL.

Before Tinubu’s declaration, the pump price of petrol was below N190/litre, but it jumped to over N500/litre after the President’s statement, and moved up again to over N600/litre a few weeks later.

Asked to state if the NNPCL, being Nigeria’s sole importer of petrol, subsidising the commodity as posited by dealers and experts, the oil firm’s CCCO replied, “We prioritise our time on substantive matters rather than responding to assumptions.

“At NNPC Ltd, we prioritise national development through energy security and sustainable growth. We reiterate that the Nigerian government does not pay subsidy on fuel; we recover full costs from our imported products.

“As a global energy company, our focus remains on fostering a vibrant and energy-secure Nigeria.”

‘Subsidy reduced’

Rewane had earlier explained that subsidy on petrol was reduced and not removed, while featuring on a live television programme on Sunday evening, as he further highlighted the effects of the reduction in fuel subsidy and how it was affecting salary earners in Nigeria.

He said, “At the inauguration, it was said that (fuel) subsidy was gone but subsidy was actually reduced.”

Buttressing his position, he explained, “There is the convergence of exchange rates and reducing the windows into one. The consequence of that is that money has been transferred from consumers to the government.

“Subsidies are reversed taxes; if you reduce them, you increase the people’s taxes and reduce their income. What has happened is that government revenue has increased by 44 per cent between May and June (2023). Money has been transferred to the government but what is the government doing with it?

“The consumers, on the other hand, had a minimum wage, which in dollar terms was $40 in 2002. In 2019, it was about $70, but it has now been reduced to $24.”

Marketers project N1,200/litre

The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, stated that subsidy on petrol was rising and that the cost of the commodity should be around N1,200/litre in a free market.

“To be pragmatic in this analysis let’s consider the cost of petrol today in the United States. For premium petrol, it is $2.99, while super petrol sells for $3.15 or $3.10 depending on the part of that country where you are making the purchase.

“Now, $3 in Nigeria is over N3,000, because a dollar in the parallel market is over N1,000. You can also see the cost of diesel, that is over N1,000/litre, and it is important to state that petrol is usually higher in price than diesel in a free market.

“So if you consider the cost of diesel, dollar and other international factors, the price of petrol in Nigeria should be around N1,200/litre, but the government is subsidising it, which to an extent is understandable,” he stated.

Ukadike noted that he had earlier explained that the government was implementing quasi-subsidy, and by this it means that “the Federal Government, instead of taking out the subsidy by 100 per cent, decides to take out about 50 per cent.”

The IPMAN official, however, expressed optimism again that the cost of refined petroleum products would reduce as soon as the Port Harcourt and Dangote refineries start producing the commodities.

“I also believe that there will be a reduction in the prices of petroleum products this year when you consider what the government is currently doing. The coming onboard of the Port Harcourt refinery and the supply of crude to Dangote refinery are good developments in the sector.

“Their operations will help stabilise the price of PMS and other petroleum products in Nigeria, because it will definitely cut down the importation of products,” Ukadike stated.

Social, economic reasons

The Centre for the Promotion of Private Enterprise CEO said subsidy was being retained partially because of its economic, social and political implications.

Yusuf said, “To protect the citizens from further hardship is the reason why the government seems to have applied the brakes on subsidy removal. We are all witnesses to the pain and hardship that citizens are going through.

“So when you are adopting some of these policies, especially these liberal economic policies, it comes to a point where you have to moderate your position for social reasons.

“Just as the World Bank said, if we want to leave the price fully to market forces and the liberal economic policies, the fuel price will be above N800/litre. Can any government that is sensitive to the feelings of its citizens allow that to happen?

“Even if economically that is the way to go, there must always be a human face to economics. So what the government has done is to moderate the reform, and that is why I think the government has insisted that the NNPC should still hold the price at the current level.”

Yusuf noted that the government must balance the gains and side effects of subsidy, stressing that economic hardship may worsen should subsidy be removed 100 per cent.

“All of us who were saying that they should remove the subsidy, we can see that they have partially removed it now, but look at the consequences. Economically it will sound good, but socially and politically it is very costly.

“So those in government need to balance all those considerations. They need to balance economic, political and social considerations. That is why we find ourselves in a situation where we have partial subsidies, both in petrol and electricity,” he stated.

The World Bank had stated in December that subsidy on petrol was still being implemented by the Federal Government, as it insisted that the cost of PMS should not be less than N750/litre if there was no subsidy.

Naira at N988/$

The naira closed at N988.46/$ on the first day of official trading on the Investors and Exporters Window on Tuesday.

This is an 8.97 per cent decline from the N907.11/$ it closed trading on Friday (the last day of official trading for 2023) according to data from the FMDQ Securities Exchange. This continues a worrying trend for the naira which was one of the worst performing currencies of 2023.

According to Bloomberg, the naira had one of its worst years in 2023, a title that 2024 might usurp. It noted that the national currency lost about 55 per cent of its value as of Thursday 28, 2023.

Based on Kyle Chapman, FX markets analyst at London-based Ballinger & Co, the naira was the third worst-performing global currency in 2023 due to a backlog of unsettled forwards, undelivered promises of dollar inflows, and a two-decade peak in inflation.

Chapman said, “The naira’s downward momentum is likely to continue through much of 2024, and its ultimate trajectory will depend on whether the CBN’s rhetoric transforms into concrete policy moves that drive up the flow of US dollars into Nigeria and shore up trust in the official market.

“If the CBN’s promised measures materialise and Tinubu’s government enacts structural changes to increase oil production or to drive foreign investment, there is plenty of opportunity for the naira to lift from its record lows. But a quick fix is unlikely, and further depreciation will come to counteract supply and demand imbalances.”

In its December Nigeria Development Update, the World Bank noted that naira had depreciated against the US dollar by 41 per cent in the official market and by 30 per cent in the parallel market. It noted that the naira needs increased volume to stabilise in the official market.

It said, “Further monetary policy tightening is expected to help underpin the value of the naira. However, there is also a need to increase FX supply in the market. Facilitating FX flows, especially from all exports, through the NAFEM can help provide additional volumes in the official window that can help provide stability.

“In addition, clarity on the CBN’s net reserve position, and on the CBN’s continued progress in clearing the FX backlog, would also strengthen market confidence.”...

https://punchng.com/nnpcl-marketers-clash-over-subsidy-operators-peg-petrol-at-n1200-litre/

sylve11:
Answer the man's question.

No, because he is not asking a question, he is saying that the government should keep subsidy, and that I am evil for wishing subsidy should go, without using those words.

nairalanda1:
It is like you don't even understand what I have been saying all this while.

Once subsidy went, prices were bound to go up. It makes common sense , because things have to be sold at a profit.

It is your oga Tinubu that is denying reality.

Good morning. Keep supporting APC, and keep supporting subsidy, while the realists like me keep supporting reality..which is things have to be sold at a profit..


P.S You are free to mock me as usual.

Do you let the taunting get to you?

RightChannel:
NAME ONE THING APC CANNOT DESTROY?

Corruption 😁

Kingrshd3:
.that's why we need more refineries but let's start with 2 so we can see how we can produced more in the future
..

do we have a responsible government that has the will power to make them work? Let's not be too flattered by audio refineries. If it works fine! But by now, we should be able to predict an APC led government.

Yampotatocarrot:
I agree with complete removal of subsidy, but looking at the cost implication on goods and services, I think some things need to be put in place before this removal is done

That was the major grouse with Tinubu's inauguration speech... It's not after removing, you start putting measures in place

Nothing stopped him from announcing that, in 1 1/2 years time, subsidy will be completely removed. Before that time, electricity supply should have improved considerably, and CNG filling stations would have been set up in many areas, also CNG buses would have been brought in... It's wrong to put the cart before the horse

The truth is, subsidy should have gone centuries ago...no something like in 1993.

Any palliatives put in place can only go as far as X. Prices would continue to rise because domestic refining won't make petrol cheap, it would only become cheap if we refine enough to make competition bring down prices.

airsaylongcome:
Do you let the taunting get to you?

Yes, it irritates me that people think that supporting subsidy removal means that you support oppressors, and evil people, and the APC or the PDP.

It just means that you support the right ultimately of a business to set its prices in a way that would enable returns on investment.

It also irritates me that people cannot see how subsidy has damaged domestic refining, and caused a domino effect.

And it is irritating that one cannot have a sane discussion on nairaland. Instead...you don't agree with me, you must be a Tinubu supporter.


But then again, that aside, for domestic refining to happen, subsidy has to go, and the market has to set the price.

I don't really care about the taunting. I just do not want to be indetified as being political when I am not.

This is total rubbish

What is even wrong with dis people? Abi una dey mad ni for this Jan 2024 again!

naija1stnigar:
do we have a responsible government that has the will power to make them work? Let's not be too flattered by audio refineries. If it works fine! But by now, we should be able to predict an APC led government.

Hmmmm 🤔 I got your point vividly ..

But let's see d outcome of the propaganda from the resido Tinubu..

Maybe something positive might come out this time

naija1stnigar:
do we have a responsible government that has the will power to make them work? Let's not be too flattered by audio refineries. If it works fine! But by now, we should be able to predict an APC led government.

The APC is already sabotaging future refining efforts by keeping a subsidy.

With the subsidy in place, no sane bank would lend to a prospective refinery owner, unless thy name is Dangote, and you have a collateral that can pay off everything.

It shall favour me and my family

What a balabluu!?

Hadeylex:
The Nigerian National Petroleum Company Limited and fuel marketers under the aegis of the Independent Petroleum Marketers Association of Nigeria, on Tuesday, clashed again over the removal of subsidy on petrol.

This came against the backdrop of the depreciation of the naira against the United States dollar at both the official Investors & Exporters Window and the parallel market.

On Tuesday, the local currency closed at 998/dollar at the official market, while it traded at 1,225/dollar at the black market.

On the back of the falling naira rate, economists and oil marketers said PMS subsidy was increasing in recent times, but the NNPC quickly countered these positions and declared that it was recovering its full cost on the importation of Premium Motor Spirit, popularly called petrol, countering the positions of

The Chief Executive Officer, Financial Derivatives Company, Bismarck Rewane, had during a live television programme on ChannelsTV on Sunday, explained that fuel subsidy was not removed but reduced.

Similarly, oil marketers told our correspondent on Tuesday that subsidy on petrol was increasing considering the crash of the naira against the United States dollar and the cost of crude oil, stressing that PMS should sell for N1,200/litre in a free market.

Petrol, which is solely imported into Nigeria by the NNPCL, currently sells for between N617/litre to N660/litre, depending on the location of purchase in Nigeria.

Also speaking on the matter, the Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said there was partial subsidy on petrol, but noted that the commodity was subsidised by the government for political, social and economic reasons.

Full cost recovery

But when contacted, the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, described the positions of economists and marketers as assumptions, and insisted that the Federal Government had stopped subsidy on petrol.

President Bola Tinubu had during his inaugural speech on May 29, 2023, declared that subsidy on petrol was gone, a declaration that was effectively implemented the next day by NNPCL.

Before Tinubu’s declaration, the pump price of petrol was below N190/litre, but it jumped to over N500/litre after the President’s statement, and moved up again to over N600/litre a few weeks later.

Asked to state if the NNPCL, being Nigeria’s sole importer of petrol, subsidising the commodity as posited by dealers and experts, the oil firm’s CCCO replied, “We prioritise our time on substantive matters rather than responding to assumptions.

“At NNPC Ltd, we prioritise national development through energy security and sustainable growth. We reiterate that the Nigerian government does not pay subsidy on fuel; we recover full costs from our imported products.

“As a global energy company, our focus remains on fostering a vibrant and energy-secure Nigeria.”

‘Subsidy reduced’

Rewane had earlier explained that subsidy on petrol was reduced and not removed, while featuring on a live television programme on Sunday evening, as he further highlighted the effects of the reduction in fuel subsidy and how it was affecting salary earners in Nigeria.

He said, “At the inauguration, it was said that (fuel) subsidy was gone but subsidy was actually reduced.”

Buttressing his position, he explained, “There is the convergence of exchange rates and reducing the windows into one. The consequence of that is that money has been transferred from consumers to the government.

“Subsidies are reversed taxes; if you reduce them, you increase the people’s taxes and reduce their income. What has happened is that government revenue has increased by 44 per cent between May and June (2023). Money has been transferred to the government but what is the government doing with it?

“The consumers, on the other hand, had a minimum wage, which in dollar terms was $40 in 2002. In 2019, it was about $70, but it has now been reduced to $24.”

Marketers project N1,200/litre

The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, stated that subsidy on petrol was rising and that the cost of the commodity should be around N1,200/litre in a free market.

“To be pragmatic in this analysis let’s consider the cost of petrol today in the United States. For premium petrol, it is $2.99, while super petrol sells for $3.15 or $3.10 depending on the part of that country where you are making the purchase.

“Now, $3 in Nigeria is over N3,000, because a dollar in the parallel market is over N1,000. You can also see the cost of diesel, that is over N1,000/litre, and it is important to state that petrol is usually higher in price than diesel in a free market.

“So if you consider the cost of diesel, dollar and other international factors, the price of petrol in Nigeria should be around N1,200/litre, but the government is subsidising it, which to an extent is understandable,” he stated.

Ukadike noted that he had earlier explained that the government was implementing quasi-subsidy, and by this it means that “the Federal Government, instead of taking out the subsidy by 100 per cent, decides to take out about 50 per cent.”

The IPMAN official, however, expressed optimism again that the cost of refined petroleum products would reduce as soon as the Port Harcourt and Dangote refineries start producing the commodities.

“I also believe that there will be a reduction in the prices of petroleum products this year when you consider what the government is currently doing. The coming onboard of the Port Harcourt refinery and the supply of crude to Dangote refinery are good developments in the sector.

“Their operations will help stabilise the price of PMS and other petroleum products in Nigeria, because it will definitely cut down the importation of products,” Ukadike stated.

Social, economic reasons

The Centre for the Promotion of Private Enterprise CEO said subsidy was being retained partially because of its economic, social and political implications.

Yusuf said, “To protect the citizens from further hardship is the reason why the government seems to have applied the brakes on subsidy removal. We are all witnesses to the pain and hardship that citizens are going through.

“So when you are adopting some of these policies, especially these liberal economic policies, it comes to a point where you have to moderate your position for social reasons.

“Just as the World Bank said, if we want to leave the price fully to market forces and the liberal economic policies, the fuel price will be above N800/litre. Can any government that is sensitive to the feelings of its citizens allow that to happen?

“Even if economically that is the way to go, there must always be a human face to economics. So what the government has done is to moderate the reform, and that is why I think the government has insisted that the NNPC should still hold the price at the current level.”

Yusuf noted that the government must balance the gains and side effects of subsidy, stressing that economic hardship may worsen should subsidy be removed 100 per cent.

“All of us who were saying that they should remove the subsidy, we can see that they have partially removed it now, but look at the consequences. Economically it will sound good, but socially and politically it is very costly.

“So those in government need to balance all those considerations. They need to balance economic, political and social considerations. That is why we find ourselves in a situation where we have partial subsidies, both in petrol and electricity,” he stated.

The World Bank had stated in December that subsidy on petrol was still being implemented by the Federal Government, as it insisted that the cost of PMS should not be less than N750/litre if there was no subsidy.

Naira at N988/$

The naira closed at N988.46/$ on the first day of official trading on the Investors and Exporters Window on Tuesday.

This is an 8.97 per cent decline from the N907.11/$ it closed trading on Friday (the last day of official trading for 2023) according to data from the FMDQ Securities Exchange. This continues a worrying trend for the naira which was one of the worst performing currencies of 2023.

According to Bloomberg, the naira had one of its worst years in 2023, a title that 2024 might usurp. It noted that the national currency lost about 55 per cent of its value as of Thursday 28, 2023.

Based on Kyle Chapman, FX markets analyst at London-based Ballinger & Co, the naira was the third worst-performing global currency in 2023 due to a backlog of unsettled forwards, undelivered promises of dollar inflows, and a two-decade peak in inflation.

Chapman said, “The naira’s downward momentum is likely to continue through much of 2024, and its ultimate trajectory will depend on whether the CBN’s rhetoric transforms into concrete policy moves that drive up the flow of US dollars into Nigeria and shore up trust in the official market.

“If the CBN’s promised measures materialise and Tinubu’s government enacts structural changes to increase oil production or to drive foreign investment, there is plenty of opportunity for the naira to lift from its record lows. But a quick fix is unlikely, and further depreciation will come to counteract supply and demand imbalances.”

In its December Nigeria Development Update, the World Bank noted that naira had depreciated against the US dollar by 41 per cent in the official market and by 30 per cent in the parallel market. It noted that the naira needs increased volume to stabilise in the official market.

It said, “Further monetary policy tightening is expected to help underpin the value of the naira. However, there is also a need to increase FX supply in the market. Facilitating FX flows, especially from all exports, through the NAFEM can help provide additional volumes in the official window that can help provide stability.

“In addition, clarity on the CBN’s net reserve position, and on the CBN’s continued progress in clearing the FX backlog, would also strengthen market confidence.”...

https://punchng.com/nnpcl-marketers-clash-over-subsidy-operators-peg-petrol-at-n1200-litre/

Igbo man.

Iamanoited:
TOO MUCH LYING. GOVERNMENT MUST FORCE PETROL DOWN TO N500 PER LITER AND NAIRA TO N500:$1.

See how to catch some Nigerians.

Haha

You are begging for #500

When it was sold for #180 before.

No wonder some Nigerians are slaves.

StaffofOrayan:
You won't have a job to return to
How many companies can afford to triple salaries?
Do you even know what u r talking about?

that guy you quoted is really stupid. The moment he sees any thread on subsidy, his prick gets erect and he opens his smelly mouth and starts saying rubbish.
APC supporters are cursed.

this problem is from diesel engine manufacturers and converters to patronise their business

cucumbar:
that guy you quoted is really stupid. The moment he sees any thread on subsidy, his prick gets erect and he opens his smelly mouth and starts saying rubbish.
APC supporters are cursed.

APC urrcchins are doomed

just wish this is true, I will be the happiest man in Nigeria. Nonsense and agbadorians