₦airaland Forum

Proudlyngwa:
The same way you guys took Buhari and Tinubu to be the minister of petroleum.
Osibanjo was in charge of the economy.

I didn't say it, they said it

Since we want to go with half truths I guess the Paris club debt cancellation was an illusion

Gboss247:
Imported petrol is heavily subsidized

Whalis:
^{Many of us seem not to know what is happening. The government wants petrol to sell above 1500/l. This is the only way they won't have budget deficit. Anything less as Dangote is trying to help out is anti-government but pro-people. He will be fought with anything available including using government agencies.}

Mynd44:
Whoever taught you econonics owes you a profound appology

Proudlyngwa:
Not just him, the whole Nigeria.

UncleJJ:
Sir, you are correct on this assumption.

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Sir's - a coward dies a thousand dies a thousand times before his death.
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NOTES
1. Pres. Tinubu is the Minister for Petroleum, Heineken L. is minister for state. See IBE Kachikwu vs. NNPC to understand the weak hand the minister of state plays with. He is merely a pawn - an errand boy at the best.
2. Ex. Pres. Buhari signed the PIB bill against all odds - odds refer to the NNPC cartel in this case.
3. 14 years ago; Dangote paid $700,000,000 for Kaduna, and Port Harcourt refinery via BlueStar - what happened, why did that did fall through?
4. Aliu Adisa; a fuel importer whose company - Matrix Energy has been found culpable for importing dirty diesel (extremely high sulphur) is a member of Pres. Tinubu (Petroleum minister) economic committee.
5. Matrix purchases petroleum products from Russia, blends them with ethanol in Malta and ships them down to Nigeria to make hyper-normal profits.
6. Matrix energy, A. A. Rano and Shafa are currently listed in an Anti-trust suit by Dangote. Dangote claims, at this time, Nigeria has no reason to import fuel products, especially filthy fuel products from partially blacklisted nation states (See SWIFT).
7. Wale Tinubu (OandO) is Pres. Tinubu (Minister of petroleum) nephew. Could his miraculous purchase of Agip resources in 2024 be a coincidence?
8. Guaracara Refining Company Ltd in Trinidad and Tobago is a 100-year-old oil refinery plant. The minister of petroleum's nephew (OandO) has recently Feb. 2025 secured a lease for the facility. Could this also be a coincidence, like the purchase of Agip resources?
9. Dangote refinery has reduced prices twice in an attempt to stave the economic plunder of our dear nation via hyenas and vultures. He continued to do so, though:
9(i). NNPC violated contracts and agreements.
9(ii). Minister of Petroleum turns a blind eye to a modern $20,000,000,000 oil facility; that guarantees: easing forex pressure, reduce cost of business as a consequence ensure price stability across the board.
10. If Nigeria can do this to her very own, can we blame MTN and other foreign investors and what Bismarck Rewane refers to as hot money when they use every opportunity; legal or otherwise, to eject their profits from this economy?

nedekid:
Budget deficit? All I see here is personal interest. People in the highest positions have invested heavily in Malta and all sorts of places, they have invested in infrastructure for importation. It is not in their best interest for prices to reduce as the margin they make is eroded. If dangote is selling at low price, reducing his price at will and making it unpredictable, it makes it risky for legacy importers to import product as they will get their hards burnt. This means they have to find other means to push prices up hence the likely suspension of crude in naira.
Which people do you think have the power to influence the suspension?
If you know you know.

Mynd44:
Whoever taught you econonics owes you a profound appology

Mynd44:
Whoever taught you econonics owes you a profound appology

smileyoo:
please what was their reason for the suspension of crude in naira sales arrangement ?

Bellotelli:
The decision to conduct crude oil transactions in naira within Nigeria has had notable economic implications:

1. Foreign Exchange Conservation: Traditionally, Nigeria expended a significant portion of its foreign reserves on importing refined petroleum products. By selling crude to local refineries like the Dangote Refinery in naira, the country aimed to conserve approximately $7.32 billion annually, thereby reducing pressure on foreign exchange reserves.


2. Exchange Rate Stabilization: Reducing the demand for foreign currency by settling transactions in naira was intended to alleviate pressure on the naira, potentially leading to a more stable exchange rate.


3. Development of Local Refining Capacity: This policy sought to encourage local refining by providing a more favorable operating environment for domestic refineries, potentially leading to increased investments, job creation, and technological advancements in the sector.


4. Fuel Price Stability: By mitigating the influence of foreign exchange fluctuations on the cost of petroleum products, conducting transactions in naira aimed to contribute to more stable fuel prices domestically.



However, the recent expiration of the six-month naira-for-crude agreement between the Nigerian National Petroleum Company (NNPC) and local refineries, including the Dangote Refinery, has led to a reversion to dollar-denominated transactions. This shift raises concerns about potential increases in fuel prices and renewed pressure on the naira, as refineries may need to source foreign currency to purchase crude oil, potentially leading to higher operational costs that could be passed on to consumers.

In summary, while selling crude oil in naira was designed to strengthen the local currency, conserve foreign reserves, and bolster domestic refining, the transition back to dollar-based transactions may reintroduce challenges such as currency depreciation and increased fuel prices. The long-term economic impact will depend on the government's ability to implement policies that support currency stability and the development of local refining infrastructure.

Proudlyngwa:
Just two questions
What brand and What location.

Back to the topic

Issue of crude is a very dicey one.

Crude is supposed to be sold in dollars, but it's constituents except when being exported are meant to be sold in local currencies.

The problem is Past government have sold our crude upto our grandchildren allocation, and we are not producing enough for local consumption.
During Buhari s era, there was an understanding to ramp up production to four million barrels.
https://www.theheritagetimes.com/oil-and-gas-we-are-looking-to-ramp-up-production-to-at-least-4-million-barrels-per-day-buhari/
why that was not achieved only yemi Osibanjo can explain.
Until we have our daily crude above 4 million don't expect any improvement, because we won't be able to meet local consumption quota, pay up our debts and still have some dollars for expenditure left.

franvincoop:
There is nothing like an understanding here oga.
Neither Buhari nor Osinbajo nor Tinubu can move production to 4 million barrels per day.
Don't you know how oil production works?
Nigeria has no say in it.
OPEC+ na the real cartel.
OPEC+ gives each country a quota to produce, you can go below but not above.
Even when you go below, another country will ramp up production to meet the quota.
OPEC+ cartel ensures that there is just enough oil to meet demand to get a particular price and prevents an excess of crude oil which will crash prices.
If Nigeria wan produce even 100 million barrels per day, no wahala but it must exit OPEC+ like Angola and others.
Stop blaming Osinbajo please, that Prof and a good man don suffer because of VP to Buhari.

UncleJJ:
Sir, you are correct on this assumption.

----




Sir's - a coward dies a thousand dies a thousand times before his death.
----
NOTES
1. Pres. Tinubu is the Minister for Petroleum, Heineken L. is minister for state. See IBE Kachikwu vs. NNPC to understand the weak hand the minister of state plays with. He is merely a pawn - an errand boy at the best.
2. Ex. Pres. Buhari signed the PIB bill against all odds - odds refer to the NNPC cartel in this case.
3. 14 years ago; Dangote paid $700,000,000 for Kaduna, and Port Harcourt refinery via BlueStar - what happened, why did that did fall through?
4. Aliu Adisa; a fuel importer whose company - Matrix Energy has been found culpable for importing dirty diesel (extremely high sulphur) is a member of Pres. Tinubu (Petroleum minister) economic committee.
5. Matrix purchases petroleum products from Russia, blends them with ethanol in Malta and ships them down to Nigeria to make hyper-normal profits.
6. Matrix energy, A. A. Rano and Shafa are currently listed in an Anti-trust suit by Dangote. Dangote claims, at this time, Nigeria has no reason to import fuel products, especially filthy fuel products from partially blacklisted nation states (See SWIFT).
7. Wale Tinubu (OandO) is Pres. Tinubu (Minister of petroleum) nephew. Could his miraculous purchase of Agip resources in 2024 be a coincidence?
8. Guaracara Refining Company Ltd in Trinidad and Tobago is a 100-year-old oil refinery plant. The minister of petroleum's nephew (OandO) has recently Feb. 2025 secured a lease for the facility. Could this also be a coincidence, like the purchase of Agip resources?
9. Dangote refinery has reduced prices twice in an attempt to stave the economic plunder of our dear nation via hyenas and vultures. He continued to do so, though:
9(i). NNPC violated contracts and agreements.
9(ii). Minister of Petroleum turns a blind eye to a modern $20,000,000,000 oil facility; that guarantees: easing forex pressure, reduce cost of business as a consequence ensure price stability across the board.
10. If Nigeria can do this to her very own, can we blame MTN and other foreign investors and what Bismarck Rewane refers to as hot money when they use every opportunity; legal or otherwise, to eject their profits from this economy?

Proudlyngwa:
So Buhari did not know all that when he sent Heineken to make that statement.


Did they tie Nigeria's leg to OPEC
Moreover everything is about negotiation,
Our OPEC quota keeps falling because we can't meet up, it will equally rise if need be,

Osibanjo was the coordinating minister of economy, how difficult is that for people to understand.
That was his responsibility to make things like that mareralise

Omalicious1:
I wish 2 more Nigerians could set up a refinery that is as large as that of Dangote...then this war in price reduction would be a very interesting movie to watch

Treadway:
Nairalanda1, oya come and see sweet vindication

Topic (as always): Subsidy removal as a magic bullet vs corruption

Now that subsidy removal (which I'm not even against) has been effected on fuel, electricity, education, forex, what positives have we seen so far over the last two years?

Are you humble enough to admit now that corruption no be any policy mate? Are you humble enough to admit that without tackling corruption all theoretical theorems are mumbo jumbo and hogwash as far as Nigeria is concerned. 5-6 years later with your theories on local rice vs foreign rice is local rice now cheaper...

Corruption na your mate?

Lol

No be this same naija wey I know? Una go dey talk theorems, I go just dey laff

We couldn't hear enough about how once Dangote starts our forex problems will ease, and subsidy removal will help his business thrive bla bla bla. Dangote don start now, govt is actively trying to sabotage same once touted solution to all our problems by going back to the same thing we have always been doing which is importation. Why? Cos of vested interests and corruption.

Corruption vs Corruption: Dangote wan entrench a monopoly as refiner cum laude, as usual. Since govt won't grant his request to ban import licences, nigga is crashing prices to effect market takeover his own way. People are praising him now, and to be honest who won't be happy with him now, given the high cost of fuel, any sort of reduction is a huge relief, but some like us know when he achieves that him aim, na that time he go show him true colors, and we go hear am, just like we're hearing it hot hot for cement. Alas! now he don piss the corrupt powers that be off, to the extent that they now want to cripple same Dangote by starving him of crude. Same Nigeria that wants dollar-naira rate to fall, has now fully backtracked on the naira for crude deal that is supposed to strengthen the naira, and ease up pressure for dollars, and is now further using up scarce dollars to resume importation in full swing, same importation that is supposed to be a thing of the past. Shebi subsidy removal suppose in theory liberate that industry and attract investment? Only problem is those investors will also take note of all the mess going on, that they will buy crude in dollars and compete with imported petroleum products that will be ferried in by the NNPCL, that they will likely
be frustrated out of business, just so that some vested corrupt business interests must vest.

Again, corruption na your mate?

When we spend more time facing the elephant or in this case demon in the room, rather than speaking empty English and discussing ineffective and worthless theories as far as this contraption called Nigeria is concerned, then and only then we may begin to see progress.

Corruption na your mate?...hahahaha🤣🤣🤣

nairalanda1:
Strawmen in evidence.

Also, selective blindness

Nigeria must industrialize.

Treadway:
subsidy removal has solved all our problems. Hurray!🤣🤣🤣

franvincoop:
Ngwaman, you are old enough to know that u can never judge politicians by their words but by their actions. No insults intended.
Our quota can never rise unless OPEC+ says so.
They did not tie Nigeria's leg to OPEC+, but which 9ja President get the liver to leave OPEC+? as Angola did a few years ago.
OPEC+ is made up of both oil producing countries and oil dependent countries.
Na the cartel be that.
If Nigeria leave OPEC+ like Angola, for sure it can produce even 100 million barrels per day but at what price will it be selling it? and to who?
Way below OPEC+ price and Nigeria might even be subject to blackmail from the buyers of its own crude since its no longer in OPEC+ as they would want to buy it only if its cheap.
China and India are the biggest buyers of crude at the cheapest rate in the world, they are snapping up crude from sanctioned countries like Venezuela, Iran and Russia.
Even Angola that left OPEC is feeling the heat.
Would you want Nigeria to also go down this route by leaving OPEC+, where there is a ready buyer at a predetermined price for Bonnylight?
I think not Ngwaman

Willing buyer
Willing seller
Age of bronze did not come to annend because of lack of bronze, but because something better came up.
If crude goes below 10 dollars per barrel we will keep selling.
For every sold barrel is more profitable than no sold barrel.
That was a statement from one of the prince of Saudi.

Keep your OPEC quota for export, while producing 2 million barrels for local consumption and debt clearance, I remember osibanjo making that statement in a televised interview.

Unfortunately am not good at keeping records

Dotherightthing:
So far there is no subsidy of any kind involved, whether currency or commodity, it's okay by me.

Lookmun:
If there is some subsidizing going on and the culprits don’t want you to know, then you likely wouldn’t.

franvincoop:
Agreed ngwaman but I go fight u cuz of osinbajo name for your mouth lol but I no be Lukumi ooo, make u no talksay I dey support my own.
In a normal country Osinbajo suppose be President meanwhile Buhari go be Minister of Livestock but there's nothing normal abt the Niger Company Ltd abi na UAR or Nigeria.
What the Saudi Prince said stays in Saudi.
Na who get local refinery na im go dey produce to sell for local consumption.
Nigerian local refinery dey na Malta and Trinidad.
That agbero leader for aso rock suppose build refinery cuz everybody dey use fuel but guess what, na coastal road dem wan go build wey everybody no go use am.
Shows you that those governing Nigeria are not Nigerians, I dey judge person na by action, not words not intention, action only.
The fuel increase and inflation wey I dey see for horizon is bae.
I wonder how some citizens go survive.
May God be their helper.
Good day to you.

Proudlyngwa:
Just two questions
What brand and What location.

Back to the topic

Issue of crude is a very dicey one.

Crude is supposed to be sold in dollars, but it's constituents except when being exported are meant to be sold in local currencies.

The problem is Past government have sold our crude upto our grandchildren allocation, and we are not producing enough for local consumption.
During Buhari s era, there was an understanding to ramp up production to four million barrels.
https://www.theheritagetimes.com/oil-and-gas-we-are-looking-to-ramp-up-production-to-at-least-4-million-barrels-per-day-buhari/
why that was not achieved only yemi Osibanjo can explain.
Until we have our daily crude above 4 million don't expect any improvement, because we won't be able to meet local consumption quota, pay up our debts and still have some dollars for expenditure left.

kinguwem:
You don't need to become a government spokesman. Any government that is resource constrained should institute austerity measures instead of hacking up prices of petroleum products to the masses to increase revenues for reckless spendings. Look at the salaries of government officials, the kind of cars they import, frequent unnecessary foreign trips etc. Cutting this excessive expenses can save a lot of money for debt servicing.

Mynd44:
Whoever taught you econonics owes you a profound appology

anonimi:
That is impossible for the Aṣiwaju ọmọlúwàbís who said that subsidy is gone two years ago.

It just doesn’t make sense at all for him to say what he does not want to do.

Celestialsword:
by who