₦airaland Forum

mickyeddi:
This is what happens when you allow dumb illiterates to vote.

Why did you and your educated family not vote?
Using dumb for a fellow man like you shows hatred and bitterness. You expect a turnaround with refineries of 1970s.
Your claimed education is unenlightened.

NOETHNICITY:
Which one be monopoly again?
Wetin them monopolize?

Nigerians and their many many different opinions

Our economy is monopolized. Everything is oil and oil and oil.

We can make money from tourism, agriculture, aviation etc but laziness and corruption won’t let them.

Bobloco:
It's a pity

Now tell me, I am willing to learn

The advantage of the Naira for crude deal with Dangote is that it helps to relieve him of the stress of sourcing FX to pay for crude, this is intended to ease the pressure on the nation’s meager FX

This deal does not in anyway insulate the pricing and the attendant cost of fuel in Nigeria from the shock effect brought about by fluctuations in crude oil prices in the international market!


Let me try to explain why

Nigeria sell its crude to Dangote at the international price of crude oil in naira converted to dollars depending on the exchange rate(I think 1600 to the dollar)

For example, when it was 70 dollar per barrel last week, dangote would pay around 112k per barrel for the crude to NNPCL.
Now that the international price of crude has risen to 80dollar per barrel, Dangote will pay about 128k per barrel of crude to the NNPCL.
Any attempt to sell for less than the international price to Dangote would directly amount to introduction of subsidies, and all the corruption associated with subsidies would immediately return!

I hope you understand?

I can explain all the numerous corruption associated with subsidy if you want

NOETHNICITY:
Nigeria sell its crude to Dangote at the international price of crude oil!
For example, when it was 70 dollar per barrel last week, dangote would pay around 112k per barrel for the crude to NNPCL.
Now that the international price of crude has risen to 80dollar per barrel, Dangote will pay about 128k per barrel of crude to the NNPCL.
Any attempt to sell for less than the international price to Dangote would directly amount to introduction of subsidies, and all the corruption associated with subsidies would immediately return!

I hope you understand?

I can explain all the numerous corruption associated with subsidy if you want

If Government simply fix a naira price per Barrel to local Refineries no any subsidy corruption will return...

Fortune109:
If Government simply fix a naira price per Barrel to local Refineries no any subsidy corruption will return...

That too would amount to some kind of government intervention which is still subsidy in a way! I will try to explain.

If the price of crude oil is $80/barrel at the Int market, and the naira is 1600 per dollar at the official exchange market, then govt decides to come up with some kind of intervention and reduces the naira per barrel price to 1500, people will see an opportunity and take undue advantage. Nigeria’s fuel prices will be so cheap that you will have it everywhere in neighboring countries while it will be scarce here in Nigeria!

NOETHNICITY:
That too would amount to some kind of government intervention which is still subsidy in a way! I will try to explain.

If the price of crude oil is $80/barrel at the Int market, and the naira is 1600 per dollar at the official exchange market, then govt decides to come up with some kind of intervention and reduces the naira per barrel price to 1500, people will see an opportunity and take undue advantage. Nigeria’s fuel prices will be so cheap that you will have it everywhere in neighboring countries while it will be scarce here in Nigeria!

😐

That's not an excuse to make the Citizens suffer to get what they are freely blessed with...

You just need to secure the borders and put a very severe sentence on Smuggling of fuel (in certain quantities) like life imprisonment or death sentence...

Governance is not hard...You just need a Man with one part of a POPE and the other part...HELL itself...

Petrol shouldn't sell for more than 200 Naira in Nigeria...any government that can't achieve this no matter what in 8 years has failed...




It is well!

That's not all.
If dey devalue the Naira again as they have already done twice since 2023, crude @ 80 dollars per barrel can be 2000 Naira per litre and even crude @ 40 dollars per barrel can be 2000 Naira.
Kapisch?

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

Earthquakes:
Now what are you doing with the revenue hiked fuel is currently generating??
So you buy fuel of 1000 naira on a salary of 30k or 70k that cannot buy a bag of rice?
Why not subsidize food and transport instead?
No country survives without subsidy.
I live in Canada, aside child support, free healthcare etc, I still got stipend every quarter myself

Even if they do not steal...and they are stealing...we still end up with 49 tirllion naira for 200 million people.

That canada you are yowling about...their budget was 450 billion dollars. 450 billion dollars. Or 729 trillion naira.

That's why they can afford all those goodies you talk about...and they have less than 50 million people.

AM sure you will start shouting that we should not compare it with Nigeria now.



Nigeria is a broke nation. What you don't get about my comment is that we are so broke that even if tinubu and company did not steal at all from day 1, we would still be borrowing. If we got all the money they stole back, we would still be borrowing.

Oh I forgot to mention...our debt is 130 trillion naira....


The problem is, we don't want to do what Canada does...make things the world needs. We don't want to tax the 70% of Nigerian adults who do not pay tax to the state and federal government because poverty. We even do not want to pay for the power we use, even when subsidised.

And at the end, you expect canada goodies on top of poor budget.?


Oga, you guys have to face reality. We are broke. We are not making money. That is why we have never had sane government in this country.


But you people want to label those who do not agree with you agbado.

TaminaliaCatapa:
Listen, Nigeria has too many resources to tap from to subsidize PMS; all the government needs is to put on their thinking cap and halt monopoly.

Nigerians do not get paid any benefit, and you’re justifying this nonsense. Do you also support the wasteful spending of these politicians renovating useless residences and buying foreign cars?

Well, subsidy has been removed, and there is no monopoly.

Ulitimately, and I see where you are going...we are going to expolit our other natural resources (and the government has not been serious about it...what is going on in Zamfara is the result of the government not stepping in to regulate gold mining 20 years ago...and the succesive governments refused to do so too. Australia in the 19th century was like that...fortunately the colonial authorites stepped in, but there was a war before things calmed down).

But at the end, if you have read my comments, (because you are calling me someone who is excusing the government)...you will see that I always advocate we use our natural resources to make goods the world needs. That is how to get enough money. And we need to get the untaxed to pay tax, and we are well on our way.

But nothing comes cheap. The money we pay for petrol , only a minoirty goes into the refinery owners pockets. Most of it goes into the pockets of ordinary Nigerians.And people like to be PAID.

Elusive001:
You guys like lifting any figures from your sleeves.

What's the actual daily fuel consumption in Nigeria? Does your god know the actual daily consumption?

Where did you get the N35trillion from?

Many people have stopped using fuel and yet the daily consumption is still very high.

Trillions? How much have they saved from the subsidy removal?

You just cook up any number to justify corruption.

1. Under subsidy, fuel consumption was between 60-100million liters a day. That was because of the massive smuggling that was going on, plus high dependence on fuel by small businesses. The figures are all easily available.

2. In calculating my numbers, I used the 100 million liters a day, and an assumed government pump price of N65 Per liter....which gave me 35 trillion naira yearly (Most people here cry for tinubu to bring back fuel to N65...so....).

3. Hence my sums.

4. Right now, fuel consumption is between 40-50 million liters per day.

nairalanda1:
Well, subsidy has been removed, and there is no monopoly.

Ulitimately, and I see where you are going...we are going to expolit our other natural resources (and the government has not been serious about it...what is going on in Zamfara is the result of the government not stepping in to regulate gold mining 20 years ago...and the succesive governments refused to do so too. Australia in the 19th century was like that...fortunately the colonial authorites stepped in, but there was a war before things calmed down).

But at the end, if you have read my comments, (because you are calling me someone who is excusing the government)...you will see that I always advocate we use our natural resources to make goods the world needs. That is how to get enough money. And we need to get the untaxed to pay tax, and we are well on our way.

But nothing comes cheap. The money we pay for petrol , only a minoirty goes into the refinery owners pockets. Most of it goes into the pockets of ordinary Nigerians.And people like to be PAID.

Right.

Additionally, apart from natural resources, we need to develop agriculture. Nigeria is blessed with very good soil. Benue and other middlebelt states are blessed in this regard.

Tourism is another one, if insecurity is curbed and we invest in architecture, foreigners will rush to visit. As Nigeria stands, people want to visit, now imagine if things get better.