₦airaland Forum

nairalanda1:
Okay, let's crunch some numbers.

Let's assume that tinubu said on Jan 1 this year that fuel would cost N65 per liter.

That means that subsidy cost would come to about 100 billion naira daily. Or 36 TRILLION Naira annually.

As you know, our budget for this year was N49 trillion, meaning that once we take 36 trillion out, we would have 13 trillion left.

Salaries won't be paid, projects won't be executed, and services won't be done. You may not be able to get passports, documents, etc...because no money.

And the debt would rise as we try to borrow more. Our debt is N135 trillion as at the end of last year, and rising. Maybe it would shoot to N200 trillion.

Meaning, no money for even importing anything...ashewo included.

Result...Sri Lanka ten times over.


Who do you this kind thing?

Oga, you're only interested in speaking about how the masses should bear the grunts...All the salaries, allowances, cars, jet, yatch, house renovations allocated to themselves, where's the money coming from?

How much have they saved from the removal subsidy? No body knows but yet they can appoint hundreds of aids doing nothing..

Our problem is wastage of our resources and inability to be transparent in our dealings. Let everyone be on minimum wage and see if things will not change.

You can't be living large yet asked Nigerian to tighten their belt.

The more u look the less you see..which rising component again no be crude oil be the major raw material with some other disposables and nigeria has been supplying the refinery with 200, 000 barrels of crude daily so how should it affect us.

Simple math illustrates this concept well. Imagine you're a refinery that buys raw materials for $70 and sells the finished product for $75. However, when the cost of the same raw material increases to $80, would you still sell it for $75? That's where subsidies come in, but the government has opted out of subsidizing. As a result, petroleum prices will continue to fluctuate, increasing and decreasing accordingly. I hope this explanation helps clarify the situation.

Endinjustice:


I thought they claimed that two refineries have started working at full capacity and that we should expect price of petrol to fall below #500/l this week.


Propaganda does not fix economy.

nedu666:
So at 80 dollars fuel is 1150. It means at 100 dollars fuel will be 1450 or 1500. At 120 dollars, fuel will be 1700. At 150 dollars fuel will be 2000 naira. We are getting there. Nigerians must suffa

Should the dollar be a benchmark on how to control our resources? We have the crude, refineries and resources yet countries without these things are doing well than this shit hole called Nigeria. Let change our currency to naira.

Richie6:
Oga, you're only interested in speaking about how the masses should bear the grunts...All the salary, allowance, cars, jet, yatch, house renovations allocated to themselves, where's the money coming from?

I don't support our government buying yachts, cars, etc...and I regard your assertion or implying that I do as a libellous statement.

Don't you ever repeat such again.

Anyway, even if we used the cash from all that to pay for those things...it won't pay for subsides for at best 2 months.

Again, government has no business wasting money on frivolous things.

How much have they saved from the removal subsidy? No body knows but yet they can appoint hundreds of aids doing nothing..

Our problem is wastage of our resources and inability to be transparent in our dealings. Let everyone be on minimum wage and see if things will not change.

You can't be living large yet asked Nigerian to tighten their belt.

Yes, all true, but at the end, ending wasteage still leaves us with the same figures i quoted above.

And that's the problem.

Remember the wasteages are comming from a budget of N49 trillion naira. Stopping the wasteages, and subsidising fuel at N65 a liter leaves us with a 36 trillion naira budget for subsides, and very little money for salaries, wages, contracts, projects, obligations, etc etc.

Option b is to do as they do in saner climes and have everyone of age pay heavy tax...rich and poor....to fund subsides for a select few poor people.

This is what happens when you don't have any capable competition to Dangote!
Secondly,how is it possible that NNPCL cannot provide Dangote with enough crude which has necessitated him to import the raw material from US?
That NNPCL is a cesspool of corruption and the present head and his cronies need to be ejected!
But I doubt if that will happen since the continued stay of kyari serves the corrupt purpose of the presidency!

Standing5:
That is what deregulation connotes but Nigerians like to believe it should much lower than that and of a fixed price.

Oga deregulation or not, Nigeria as an oil producing national should not be a push around to int'l market price.

it makes no sense global oil price boom is a burden to Nigerians, we cant celebrate rise we cant celebrate fall in int'l price, regulation my ass

Nigerians are right to believe pms price should be lower as a producing nation ... we just have the worst set of people ruling us

bentenny:
This is what happens when you don't have any capable competition to Dangote!
Secondly,how is it possible that NNPCL cannot provide Dangote with enough crude which has necessitated him to import the raw material from US?
That NNPCL is a cesspool of corruption and the present head and his cronies need to be ejected!
But I doubt if that will happen since the continued stay of kyari serves the corrupt purpose of the presidency!

Well, we could have had compettion to Dangote if we had removed subsidy ages ago.

In 2012, as GEJ was attempting to remove subsidy, there were 60 entities with licences to start refining fuel. Subsidy was not removed, and most of those licences lapsed.

Dangote was able to build his refinery inspite of subsidy because he had the kind of collateral that banks felt comfortable with to lend him the money. Namely, his other business holdings and personal wealth. If the refinery was not profitable because of subsidy, they simply use those to pay themselves back their loans.

The problem with subsidy is that it made refining at home not profitable...so no one, unless you had the financial muscle of Dangote....was willing to go and build refinery...to lose money because fuel must be cheap.

But now subsidy has gone...BUA is building refinery, and a few people have already gotten licences to do some refineries. And NNPC is suddenly reviving its refineries. It is now profitable to refine here.

Where are those hopless Apc zombie happy slaves every Apc supporter is an irredeemable zombie. Facts!.

nairalanda1:
Well, we could have had compettion to Dangote if we had removed subsidy ages ago.

In 2012, as GEJ was attempting to remove subsidy, there were 60 entities with licences to start refining fuel. Subsidy was not removed, and most of those licences lapsed.

Dangote was able to build his refinery inspite of subsidy because he had the kind of collateral that banks felt comfortable with to lend him the money. Namely, his other business holdings and personal wealth. If the refinery was not profitable because of subsidy, they simply use those to pay themselves back their loans.

The problem with subsidy is that it made refining at home not profitable...so no one, unless you had the financial muscle of Dangote....was willing to go and build refinery...to lose money because fuel must be cheap.

But now subsidy has gone...BUA is building refinery, and a few people have already gotten licences to do some refineries. And NNPC is suddenly reviving its refineries. It is now profitable to refine here.

Did the retaining of subsidy impede the three national refineries from working despite humongous funds allocated for consistent turn around maintenance for more than 2 decades ago?
Whether subsidy was removed now or years ago will not change the corruption in NNPCL!
Guy talk something else....this line of logic is stale!

This man believes he can do an undo , reason I hate him with passion

Endinjustice:


I thought they claimed that two refineries have started working at full capacity and that we should expect price of petrol to fall below #500/l this week.


Propaganda does not fix economy.

No be small matter oo.

Let's wait for their explanation how OPEC this and that.

donself9:
Oga deregulation or not, Nigeria as an oil producing national should not be a push around to int'l market price.

it makes no sense global oil price boom is a burden to Nigerians, we cant celebrate rise we cant celebrate fall in int'l price, regulation my ass

Nigerians are right to believe pms price should be lower as a producing nation ... we just have the worst set of people ruling us

you have the right to feel entitled to cheap petrol seeing Nigeria is a petroleum country, but remember the rice farmers, and how they used the intl price of rice as benchmark for their harvest, even after enjoying the lion's share of govt support to agric.

joytothewise:
My question is do they sell to dangote in dollar?

even if they sell to him in Kobo, it still translates to a dollar equivalent.

nairalanda1:
I don't support our government buying yachts, cars, etc...and I regard your assertion or implying that I do as a libellous statement.

Don't you ever repeat such again.

Anyway, even if we used the cash from all that to pay for those things...it won't pay for subsides for at best 2 months.

Again, government has no business wasting money on frivolous things.





Yes, all true, but at the end, ending wasteage still leaves us with the same figures i quoted above.

And that's the problem.

Remember the wasteages are comming from a budget of N49 trillion naira. Stopping the wasteages, and subsidising fuel at N65 a liter leaves us with a 36 trillion naira budget for subsides, and very little money for salaries, wages, contracts, projects, obligations, etc etc.

Option b is to do as they do in saner climes and have everyone of age pay heavy tax...rich and poor....to fund subsides for a select few poor people.

The problem is not subsidy but wastage of public funds and corruption... Even developed countries like UK and US subsided food, fuel, education, medical Supplies e.tc for their citizens...Stop mentioning subsidy as the only problem we're facing..

An ex governor was charged for stealing billions but the court gave him bailed for 500 million.. Subsidy is not the problem here.

Normally I will be empathetic how typical nigerians will survive this yoke of heavy burden

No

Typical nigerians don't deserve pity

bentenny:
Did the retaining of subsidy impede the three national refineries from working years ago despite humongous funds allocated for consistent turn around maintenance for more than 2 decades?
Whether subsidy was removed now or years ago will not change the corruption in NNPCL!
Guy talk something else....this line of logic is stale!

Let an external auditor check NNPCL, hell will let loose.

Dangote himself publicly announced a price reduction to 899 from his gantry, to ease the pain of people during the festivities.

Some retards here were praising their Ebola god, saying what happened with sim cards is happening and that prices are coming down due to 'competition'. Which competition I no know, who dey compete with Dangote I no know.

Just a legion of people content with lies and living like dregs. I never see this kain spell before. Ogbontarigi edi leleyi!

Smh

And I hope you remembered that BAT led the protest back then? What changed in his ideologies? Don't be deceived. These people are only out for their selfish interest

nairalanda1:
Indeed

But the thing is, Nigerians are fixated on the idea of fuel must be cheap

That's why.most of them were protesting in 2012. Despite the fact that cheap fuel back then was eating most of our revenue

Matrixoba:
And I hope you remembered that BAT led the protest back then? What changed in his ideologies? Don't be deceived. These people are only out for their selfish interest

Yes.

Politicians are ready to sacrifice the economy if it means power.

Richie6:
The problem is not subsidy but wastage of public funds and corruption... Even developed countries like UK and US subsided food, fuel, education, medical Supplies e.tc for their citizens...Stop mentioning subsidy as the only problem we're facing..

An ex governor was charged for stealing billions but the court gave him bailed for 500 million.. Subsidy is not the problem here.

And what is needed to pay for subsidies is in trillions not billions.

That's the problem

Richie6:
Let an external auditor check NNPCL, hell will let loose.

Hell nah understatement!
The revealed Embezzled funds by external auditors have the capability of making half of the country's population faint!

IronCondemned:
Honestly, I am confused at the government arrangements with the agreement between it and Dangote.
Since the crude is supplied to Dangote in Naira, is the global spike in the crude oil prices supposed to affect it? The crude is local, the Naira is local, all are in a stable condition, so why the increase.

This government of Tinubu is not sincere in all it does. There is no transparency in this at all.

You can read and write but you lack good education.

Richie6:
Oga, you're only interested in speaking about how the masses should bear the grunts...All the salaries, allowances, cars, jet, yatch, house renovations allocated to themselves, where's the money coming from?

How much have they saved from the removal subsidy? No body knows but yet they can appoint hundreds of aids doing nothing..

Our problem is wastage of our resources and inability to be transparent in our dealings. Let everyone be on minimum wage and see if things will not change.

You can't be living large yet asked Nigerian to tighten their belt.

You are firmly grounded in reality.

I have always said it that if the politicians and government officials were living on just thier salaries, they would have found better and less destabilising ways to manage the situation. They would have addressed the corruption, insecurity, high fx rates and other issues affecting the subsidy issue.

It is said that when the mosquito lands on the scrotum, even the most violent of men would realise that there are gentler ways to resolve problems.

Imagine the government says subsidy must go, but budgets billions of naira to fully subsidise its own transportation costs. If subsidy was so fantastic, why aren't they dropping subsidy on their own expenses.

Petrol can't be sold at 500 naira/litre again

Endinjustice:


I thought they claimed that two refineries have started working at full capacity and that we should expect price of petrol to fall below #500/l this week.


Propaganda does not fix economy.

Lo and behold a country.... NOW IT IS JUST ONE MAN WHO DETERMINES PRICE OF PMS FOR MLLIOMS OF NIGERIANS!!!!

LETS JOIN THE RONUS AND CONTINUE TO BLAME THE PETERU

Endinjustice:


I thought they claimed that two refineries have started working at full capacity and that we should expect price of petrol to fall below #500/l this week.


Propaganda does not fix economy.

the intelligence of those who fell for that should be questioned......as well as those who propagated it.

Treadway:
Dangote himself publicly announced a price reduction to 899 from his gantry, to ease the pain of people during the festivities.

Some retards here were praising their Ebola god, saying what happened with sim cards is happening and that prices are coming down due to 'competition'. Which competition I no know, who dey compete with Dangote I no know.

Just a legion of people content with lies and living like dregs. I never see this kain spell before. Ogbontarigi edi leleyi!

Smh

more nauseating is the fact that learned individuals and groups also pushed that erroneous narrative of "competition" bringing the price down.....and some people believed such! Gosh!!

Your comment is very funny you know.
I don't want to engage you on this discussion.

I leave you to your conscience

nairalanda1:
So because business people decide to increase the price of fuel, which is a business decision taken in the interests of their shareholders, workers and so forth....Nigeria is a mirage.

I guess you want fuel to be at N65 per liter? Thanks for donating N40 trillion naira for that to be possible.

It's just surprising you know

TheWitchKing:
U never see anything

mannobi:
Prices will become very unstable again

stable at what price,the method they are using cannot stabilise prices and 2 no reasonable government would move prices from 197 naira to over 1000naira it is too steep and will have consequences, price increase are usually gradual but Tinubu own is massive and all encompassing reflecting a reckless man playing ludo with the lives of people under him
Hoping to navigate the chaos he has unleash with propaganda and bribing of the elite
He will fail spectacularly

andyprez:
As expected. When there is a reduction in pump price, it will take marketers days to implement but the minute they hear there's an increase, they stop all sales immediately and update their meters.

I've said it countless times... we're our own problem.

You have made an honest summary of what is really happening.