Angelfrost:


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.

did you say this during Jonathan? Yoruba people self neither here nor there

APC, the bringers of pain n suffering.

naija1stnigar:
Agbadorians! Where una dey? Another shege is loading and no tribe will be excluded Las Las everybody go dey alright.

people that has their own filling station at irigbaju where fuel is sold for 130per litre

It doesn't exist!

RightChannel:
NAME ONE THING APC CANNOT DESTROY?

...

So if Nigeria govt is selling fuel at heigh cost because of dollar rate.
Why is Nigeria govt not paying same minimum wage as USA 🇺🇸 ?

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.

If you can't buy it leave Nigeria

I really need to get out from this space.
The inhabitants of this plantation are brainwashed , ultimate , forever , dimwits.

Unknown to them, the evil European nations subsidise many of their citizens lives:-

Social security
National health insurance
Food banks
Fuel and electricity.


These are nations without the mineral resources, yet they subsidise. They even subsidise food production.

The Nigerian dimwits don't know that the term " free market" is a yt supremacists bójú boju term, to pauperise black ppl.
In actual fact, the yt supremacists does not operate free market, because he has many obstacles to you bringing your products freely into his country.
Why is it that Nigerian agric FINISHED produce are not always allowed to get into European markets, except raw produce?



Many paid APC/ government fools here.

Okechinwadike:
did you say this during Jonathan? Yoruba people self neither here nor there

Don't mind the slow mind.
Chief Awolowo said, " after careful consideration, he concluded that corruption CANNOT BE Eradicated". But it can be minimised .

How can you eradicate corruption? Which nation has ever done that?

Awọn oniranu gbogbo.

mrvitalis:

How would the port Harcourt and dangote refinery lead to reduced price abeg

port Harcourt ref can reduce the price but dangote own looks more of export/international than domestic......

This is just the beginning... Na APC New Year package be this

CodeTemplar:
Better adopt ogogoro-driven engine or even vegetable oil driven engine before they overtake the dollar rate.

The ogogoro and the vegetable oil price will increase, for this owo da government, emilokan nothing productive.

SSFeedsNigeria:
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!!!!

Together we can make this country better bro

Fearyourcreator:

If you can't buy it leave Nigeria

Are you this fullish, do you know the ripple effect on the economy?

Nigeria and its pathetic economists. if they know what to do, then they should FIX the economy

Bizibi:
port Harcourt ref can reduce the price but dangote own looks more of export/international than domestic......

How tell us

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/

Aswear to defend this government hard ooo. Agbadorians una dey try.

nairalanda1:


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.

Naaaah, you should let it run off your back like water on a duck. People are always going to criticize. I enjoy reading your takes even though I don't necessarily like the immediate profit-focus. Doesn't mean if I criticize that, that I then think you are pro-APC or pro-PDP. But I guess when loads of people come at you for supporting the current position of the government, it can get annoying.

caye:
I really need to get out from this space.
The inhabitants of this plantation are brainwashed , ultimate , forever , dimwits.

Unknown to them, the evil European nations subsidise many of their citizens lives:-

Social security
National health insurance
Food banks
Fuel and electricity.


These are nations without the mineral resources, yet they subsidise. They even subsidise food production.

The Nigerian dimwits don't know that the term " free market" is a yt supremacists bójú boju term, to pauperise black ppl.
In actual fact, the yt supremacists does not operate free market, because he has many obstacles to you bringing your products freely into his country.
Why is it that Nigerian agric FINISHED produce are not always allowed to get into European markets, except raw produce?



Many paid APC/ government fools here.

Best response so far!

Gist4u:
1200 per litre ontop 30k minimum wage

that's 25 litres of fuel

mrvitalis:

How tell us

dangote will make more profits exporting refine products to Africa countries than selling to Nigerians because Nigerians Don't have the purchasing power to buy it so the best option is to repair any of the refineries and use that refinery to focus on meeting domestic demand so the government sets the price for products from pH refinery.dangote refinery will sell at international price.

But we don't know if pH refinery can meet domestic demand.

Whatever truth is in this, the future shall tell. Fingers crossed
YET, may GOD bless NIGERIA

Whatever truth is in this, the future shall tell. Fingers crossed
YET, may GOD bless NIGERIA

See as everybody dey speak English like say the people them dey defend no go still thief the whole money wey for make our rifinary take stand... Fuel for #1,200... Some person go sheet chop the sheet

Anything you can do to survive please do if God doesn’t kill these politicians then you are a sent with whatever you do to survive…and let no one come and preach under this comment…

Now I understand better that Nigeria is exactly the hell fire I've been hearing about.....if the fire in hell can be quenched ,then there's hope of things getting better in this country!!

CodeTemplar:
Better adopt ogogoro-driven engine or even vegetable oil driven engine before they overtake the dollar rate.

My paddy this evening was gisting me how for the past 1 year he has not bought petrol to power his 10kva genset in his remote farm, all he does is change of oil. How? He connected it to a shit pit where all the pig shit goes to. He said the poo from his farm animals produces the gas to run the Gen 24 hrs.
It seems very soon, we will be carrying pigs in our booth along with a small soak away to power our cars.

Stevosty:
Are you this fullish, do you know the ripple effect on the economy?

Which effects... Go sleep

Una still dey chant this statement when the nation and majority of its people aren't behaving sane nor blessed in any way?

PHAYOL81:
Whatever truth is in this, the future shall tell. Fingers crossed

YET, may GOD bless NIGERIA

You got that right! Even the devil wouldn't want to associate with this accursed place called a nation

abauhere:
Now I understand better that Nigeria is exactly the hell fire I've been hearing about.....if the fire in hell can be quenched ,then there's hope of things getting better in this country!!

Ehn, you say wetin?! You and who?

tyup:


Together we can make this country better bro

Àti APC o, àti PDP o, àti whatever o they all are ravenous wolves whose greed can't even allow them wear their sheep clothing well again. These people don't just care and unfortunately for the majority, they'd rather use religion and tribe to curse themselves and wrestle for non-existent superiority on social media platforms. Our dear leaders already know this and will forever milk the power and enslavement such social weapons constantly give them.

caye:
I really need to get out from this space.
The inhabitants of this plantation are brainwashed , ultimate , forever , dimwits.

Unknown to them, the evil European nations subsidise many of their citizens lives:-

Social security
National health insurance
Food banks
Fuel and electricity.


These are nations without the mineral resources, yet they subsidise. They even subsidise food production.

The Nigerian dimwits don't know that the term " free market" is a yt supremacists bójú boju term, to pauperise black ppl.
In actual fact, the yt supremacists does not operate free market, because he has many obstacles to you bringing your products freely into his country.
Why is it that Nigerian agric FINISHED produce are not always allowed to get into European markets, except raw produce?



Many paid APC/ government fools here.