₦airaland Forum

Xscape1993:
Why are we importing fuel when we have the crude? What is wrong with Nigeria's leadership? Why suffering the masses when you are not doing what you are suppose to do? Someone on this platform should please provide me with good answers.

Xscape1993:
Why are we importing fuel when we have the crude? What is wrong with Nigeria's leadership? Why suffering the masses when you are not doing what you are suppose to do? Someone on this platform should please provide me with good answers.

nairalanda1:
Because since the 1970's, we have kept fuel subsidised, which in simple terms, means we have sold fuel below what it costs to produce it , and the government pays a subsidy to cover the resulting loss.

This means that over the decades, refining fuel has become unprofitable in Nigeria. Also, the refineries cannot make enough of a profit to run properly, and thus as a result they break down, meaning that we have to import fuel.

(Something similar happened in Venezuela. Fuel costs under N100 per liter, and has been like that for decades. Meanwhile, most of its refineries are also in a bad state).

The only way out is allowing fuel to be sold at market price (as you can see APC and tinubu have never really removed subsidy), but this means that fuel would be sold over N1200 per liter. While this would allow for domestic refining to be profitable in Nigeria, and also in theory save money for the government, and also prevent forex flight, the problem is, it is very and always has been unpopular among most Nigerians.

Indeed, this comment is going to attract a lot of abuse, and a lot of people labelling me tinubu supporter. If you said the same thing in 2012, you would be called a PDP supporter, and a GEJ slave.

What government has done over the years, is partial removal of subsidy, to reduce subsidy costs. If fuel had remained around N65 per liter as it did in 2012, government would have been spending nearly N1800 per liter in subsidy today. That isn't sustainable.

The sad thing is that most of us prefer cheap fuel, even if it pushes us into more debt.

tojahh:
Don't give yourself any defense saying people will call you a Tinubu supporter. We know you here, you're a Tinubu supporter. No one will bash you especially not me for supporting a candidate.

What I want to ask since it seems you know more than an average Nigerian is WHERE IS THE MONEY SAVED FROM SUBSIDY REMOVAL IN THE LAST 13 MONTHS?

drlaykay:
This is what you I do not understand about Nigerian economy. When prices go up, supply should be higher and demand lower. Hence, there shouldn't be scarcity.

But in naija, economics is upside down. That's why beautiful policies don't work here.

Abee79:
I heard that APC supporters are not included in all this fuel wahala. They are lucky O! 😁

nairalanda1:
(You are free to disbelieve me though)

I am not a tinubu supporter, or an Obi or atiku supporter. MY experience of Nigerian politicans has taught me not to trust them or look at them nicely

I became pro-fuel subsidy removal in 2012 under GEJ, when I started listening to the arguments for removal of subsidy back then. The final straw was the concept of landing cost, and the fact that GEJ was able to use the massive savings from the partial removal of subsidy to fund things like sure-p.

Also, in 2011, we spent thrice what we spent in 2010 on subsidy due to rising oil prices.

Since then, I have argued for fuel subsidy removal. Especially since I found out about its impact on our debt and on domestic refining.

Tinubu is not someone i like. I have been suspicious of him since 2005 when Gani Fawehimni raised issues around his certificate back then. If Gani suspects you, you have issues. And he wasn't fantasic as a governor.

AM sure back in 2012, you wouild have called me GEJ supporter, and called the Ojota people sane.




Spent on salaries, spent on debt service (we have high debts partly because of subsides, and also because of prolonged periods of low oil prices for a nation our size forcing us to borrow...which is why I don't like our leaders, diversificantion they know not).....and also corruption still rages on, as seen in the debt padding of national assembly.

bluefilm:
Very lucky

If I had known, I would have chosen to vote Ronu

By now, I will be buying the fuel for free just like the Ronus

Xscape1993:
Why are we importing fuel when we have the crude? What is wrong with Nigeria's leadership? Why suffering the masses when you are not doing what you are suppose to do? Someone on this platform should please provide me with good answers.

tojahh:
Are you aware of how much the president has borrowed on the last 13 months?

If he has used the subsidy money to repay debts... Why then is he borrowing? Are you also aware he borrows to run the national budget? Where over 40% of such monies goes unaccounted for? Just explain to me, why are we still borrowing?!

Sir, I am not a politician or one who discusses Nigerian politics as I respect anyone's stand in their choice. What I will not agree to is telling me the policy so far by this administration is best for the common man especially subsidy removal. Since the money from the removal can't be seen as productive in any sector rather than enriching the elites and sycophants in government.

Blazetrailer:
Lol...
One of the lies they told was that if they removed subsidy, it will liberalise the market and it will make the products flow in without hindrance and hence bring the prices down after some time.

I laughed at the above postulations when some of the public commentators were pushing this stupid narrative.

Same narrative was said for the devaluation of the naira...that it would rise but will eventually come down to about 600/700 to a dollar in a short while. This was emphasised several times by the current minister of finance. The thing is 1500 and rising

I knew they were deceiving the people...the gullible ones

nairalanda1:
Because since the 1970's, we have kept fuel subsidised, which in simple terms, means we have sold fuel below what it costs to produce it , and the government pays a subsidy to cover the resulting loss. The idea being to protect the poor from rises in prices due to rises in cost of production brought about by rises in crude oil price (the subsidy came on line as a result of the massive oil price rises due to the Yom Kippur war of 1973)

This means that over the decades, refining fuel has become unprofitable in Nigeria. Also, the refineries cannot make enough of a profit to run properly, and thus as a result they break down, meaning that we have to import fuel.

(Something similar happened in Venezuela. Fuel costs under N100 per liter, and has been like that for decades. Meanwhile, most of its refineries are also in a bad state).

The only way out is allowing fuel to be sold at market price (as you can see APC and tinubu have never really removed subsidy), but this means that fuel would be sold over N1200 per liter. While this would allow for domestic refining to be profitable in Nigeria, and also in theory save money for the government, and also prevent forex flight, the problem is, it is very and always has been unpopular among most Nigerians.

Indeed, this comment is going to attract a lot of abuse, and a lot of people labelling me tinubu supporter. If you said the same thing in 2012, you would be called a PDP supporter, and a GEJ slave.

What government has done over the years, is partial removal of subsidy, to reduce subsidy costs. If fuel had remained around N65 per liter as it did in 2012, government would have been spending nearly N1800 per liter in subsidy today. That isn't sustainable.

The sad thing is that most of us prefer cheap fuel, even if it pushes us into more debt.

Tianamen1:
Why does the price of petrol in Nigeria keep increasing all the time?
A) Subsidies
B) rise in global production costs
C) The naira constantly losing value
D) Bola Ahmed Tinubu

nairalanda1:
We borrow because 80% of our revenue comes from oil, and for that money to be really enough, we need oil to be consistently above 120-130 dollars per barrel.

The corruption they do makes it worse.

The alternative is for Nigeria to diversify its economy, and eventually become an exporter of manufactured goods and services...

But I don't see your government doing this sadly.

nairalanda1:
Prices will always rise...also subsides must be cut to reduce costs as the cost of production rises, which manifests as a price increase.

Fuel can't cost 15 kobo as in the good old days.

TInubu is part of the problem tho.

Tianamen1:
if the government requires oil to be 120 dollars per barrel and oil has not crossed 100 dollars in 9 years, should the government not reduce the cost of governance instead of borrowing every year? How does borrowing solve any of these problems?
Is the government increasing fuel prices to tax Nigerians to maintain a wasteful budget?

Tianamen1:
this isn't a JAMB question. You have 4 options, which of the options is most correct to you?

surgical:
The husband appreciate the wife that serves him his best food,the Nigerian masses loves suffering, disrespect,that's their comfort zone ,that's exactly what the government is doing to them, you can see in the same vein the same government is doing everything possible to make the elites,who don't like suffering nor tolerate disrespect very comfortable
To check this see the way the masses were misbehaving during Jonathan because that time they don't have much problem but see how they comport themselves now that they are seeing shege,not only shege but shege banza

nairalanda1:
If you don't want petrol to be sold at market price, just say so.

That's the point of your argument really.

nairalanda1:
If you don't want petrol to be sold at market price, just say so.

That's the point of your argument really.