₦airaland Forum

The truth about subsidy removal is either bitter to them or they are ignorant of its economic implications.

LegendHero:
We are not borrowing more. Stop saying false things online.

Mind you, even that naira/dollar subsidy then, it’s not like we had the money then, we are also borrowing to pay those subsidy.

We don use almost 5 years of our crude to borrow money in advance. Defending naira alone was costing $11bn in 7month alone.

At some point, if we retain subsidy, it will get to a point that Nigeria economy will collapse patapata. For now we are still saying inflation is high, by that time, you won’t even see money to buy data to complain.

Mabuggi88:
It's better he had left the fuel subsidy intact. It would stop borrowing but we are borrowing more now. The money saved from subsidy has been claimed to be given to the governors who relooted it. The sufferings and hardship occasioned by subsidy removal are too much compared to the pains payment of subsidy was bringing to Nigeria because since the removal of fuel subsidy all economic indices remains the same and even worse in some quarters, so it was better he allowed subsidy remains. Someone who knows the economy better would have reposition things and still remove the subsidy without much effects on the citizens and the economy

You made valid points.

LegendHero:
Foreign reserve usually move and fluctuates. It’s a normal thing because CBN pay obligations and it will never be static. What you have to look is the gross/net as at now and when Asiwaju took government and it has risen.

You did not depreciate your exchange rate in the real sense, you just took out the defense and let it find its level. Any defense at that point is just to maintain any focal shock and it’s not like you’re burning your reserve to keep current at over 70% arbitrage.

Are you telling me naira true value was N400 and Tinubu just took it to N1500 on purpose? How much are you burning to defend it at N400?

We have been asking what the true value of the naira is and none of you emergency APC economists can answer. Are you aware that even most economists and even the CBN believe the naira to be undervalued presently?
You also seem to have intentionally forgot that in 2024 the naira fell to 1800 to $1. What fundamentals made it rise and stabilise at N1500?
Even your budget benchmark fell from N800 to N1500 in a single cycle.
Stop deceiving yourself. The naira was depreciated and now is being stabilised to N1500 to give fiscal buffers to the govt that's underperforming in revenue.

raumdeuter:
Seems you struggle with Maths. $12bn per year is no $12bn every 6months, That was how you were arguing about every quarter when you saw 6months. Is 6month = 1 quarter?

Are you saying you didnt know we were borrowing to fund budget? And you are in this Nigeria

https://www.nairaland.com/6376205/buhari-borrow-finance-budget-because

Take this one alone
https://www.vanguardngr.com/2022/10/well-borrow-sell-national-assets-to-fund-n10-78trn-2023-budget-deficit-buhari/

How much in Dollars is 10trillion in 2022 ?

Stop kidding yourself man
When has Nigeria not borrowed to fund the budget? Nigeria has been having deficit budget for ages
Even Tinubu is still borrowing to fund the budget. He recently submitted a borrowing request of $21bn to NASS

At $12bn per year implies Buhari borrowed $96bn in 8 years to defend the naira alone minus other borrowings. I ask again APC man. Where in this universe is Buhari borrowing $12bn every year from?

Kukutente23:
We have been asking what the true value of the naira is and none of you emergency APC economists can answer. Are you aware that even most economists and even the CBN believe the naira to be undervalued presently?
You also seem to have intentionally forgot that in 2024 the naira fell to 1800 to $1. What fundamentals made it rise and stabilise at N1500?
Even your budget benchmark fell from N800 to N1500 in a single cycle.
Stop deceiving yourself. The naira was depreciated and now is being stabilised to N1500 to give fiscal buffers to the govt that's underperforming in revenue.

Economic predictions are never absolute. Which school you go? Just because economists or even the CBN say the naira is undervalued doesn’t mean it must be that value.

You keep changing goalpost every reply. When we treat one, you divert to another coz you’re just trying to talk like you self know something.

The 2023/2024 period was marked by back-to-back CBN reforms every few months. The naira was fluctuating because the system was still trying to find its level and adjust to the new policy direction. Are you going to argue against Naira stability in 2025?

I no even get your argument. Are you saying the naira is overvalued, or that the government devalued it? Those are two different things. You can’t hold both positions unless you're mixing up timelines or referring to different markets.

Kukutente23:
Stop kidding yourself man
When has Nigeria not borrowed to fund the budget? Nigeria has been having deficit budget for ages
Even Tinubu is still borrowing to fund the budget. He recently submitted a borrowing request of $21bn to NASS

At $12bn per year implies Buhari borrowed $96bn in 8 years to defend the naira alone minus other borrowings. I ask again APC man. Where in this universe is Buhari borrowing $12bn every year from?

When you argue, don’t just throwww words around, please argue like someone with knowledge of the economy.

—2023 budget, revenue was 10.49trn, and deficit was 11.34trn. That’s over 100% of your expected revenue.

—In 2025 budget, revenue is 41.8trn, and deceit is 13trillion. We’ve brought the deficit down drastically. That’s 31%.

Which one is better?

If you won’t praise Tinubu, at least don’t turn logic on its head.

LegendHero:
Economic predictions are never absolute. Which school you go? Just because economists or even the CBN say the naira is undervalued doesn’t mean it must be that value.

You keep changing goalpost every reply. When we treat one, you divert to another coz you’re just trying to talk like you self know something.

The 2023/2024 period was marked by back-to-back CBN reforms every few months. The naira was fluctuating because the system was still trying to find its level and adjust to the new policy direction. Are you going to argue against Naira stability in 2025?

I no even get your argument. Are you saying the naira is overvalued, or that the government devalued it? Those are two different things. You can’t hold both positions unless you're mixing up timelines or referring to different markets.

Economic predictions are never absolute. Where did you learn your own economics from?
The simple question since you said Tinubu let the naira find its value is what is the true value since the same value you claim Tinubu found for the naira is being described as undervalued by economists. If you don't know the difference between undervalue and overvalue go back to your economics school
So which CBN reforms stabilised the naira to 1500 from 1800? Why did CBN accuse speculators of being responsible for the naira's free fall and even hounded Binance? Today you are telling a different story that the system was finding its level. So the economists are wrong when they say the naira is undervalued since you with your PhD in economics is telling us that it is now stable.
Why has the CBN been pumping dollars into the parallel market and why is the CBN defending the naira with $2.2bn in february if the naira has found it value according to you? There are many things you simply do not understand. You're just blowing hot air everywhere

Terrorism inciting violence and massacre. Someone who made Nigeria ungovernable, how can he govern well?
Life is a seed.

Anything to pin the poor masses down is easy for wicked men. Security and corruption is their food let them eat it. He will also die someday - very sooon

tutudesz:
Honestly Tinubu is a brave man for removing it immediately, I wish he will take suçh decisions on security and corruption too regardless of political opinions.

LegendHero:
When you argue, don’t just throwww words around, please argue like someone with knowledge of the economy.

—2023 budget, revenue was 10.49trn, and deficit was 11.34trn. That’s over 100% of your expected revenue.

—In 2025 budget, revenue is 41.8trn, and deceit is 13trillion. We’ve brought the deficit down drastically. That’s 31%.

Which one is better?

If you won’t praise Tinubu, at least don’t turn logic on its head.

It seems you have a problem with English. So are you running a deficit or a surplus budget in 2025?
Did you bring down the deficit according to you by improving on your revenue base or by devaluation of over 300%? You need to pay better attention man. The figures you posted above, do they reflect an improvement in revenue or the devaluation from 400 to 1500 in budget benchmark?
Are you even aware that the 2024 budget is still running as we speak?

Actually, God used the president to solve that subsidy issue once and for all, and take the NGN to its true value. I am forever grateful for his bold steps.

If he hadn’t done so immediately, he would never have been able to do it. It was of him to do so immediately before getting to work with the people in the system who don’t want rhings to be better

LegendHero:
Most president will do that kind of strong changes in the second term in office for fear of backlash or electoral loss.

But Jagaban is too strong and resolute and baba no fear any baga.

you always defend your daddy buh when Jonathan dey plan to remove subsidy that time nah tinubu organize protest against it what is he doing now just call him and tell him say power no be forever nah God get tomorrow

tutudesz:
Honestly Tinubu is a brave man for removing it immediately, I wish he will take suçh decisions on security and corruption too regardless of political opinions.

The audacity to swiftly fight corruption and insecurity is still in the offing.

EmperorIsaac:
True....but he can end banditry!

.
The issue of insecurity in this country is deeper than we think. I just pray God will deliver us. Even the state police, as good an idea it is, can be hijacked by some of our politicians to carry out heinous acts. It is well with us o.

tutudesz:
Honestly Tinubu is a brave man for removing it immediately, I wish he will take suçh decisions on security and corruption too regardless of political opinions.

brave man ko brave woman nii

Kukutente23:
Economic predictions are never absolute. Where did you learn your own economics from

Now go on Google and type whether economic predictions are absolute. Then come back here to tell me what you see.

I won’t bother to respond to your other texts coz we just keep going round in circles. You don’t have a clear grasp of the discussion so you’re arguing just to feel like you are contributing too.

tutudesz:
Honestly Tinubu is a brave man for removing it immediately, I wish he will take suçh decisions on security and corruption too regardless of political opinions.

Some of you forget that Tinubu has been around for just two years. And in that 2 years electricity supply has improved tremendously.

If Buhari has done this in two years, imagine what he would have achieved in 8 years. It means even the General WAS SCARED of what people will say while an ORDINARY BRAVE CIVILIAN took a great decision he should have taken

Entitlement mentality. Co-owner.

columbus007:
Another one, Lolz 😂, he removed fuel subsidy with his braveness, alright, that's interesting, the fuel we Co own. Make una no worry.

tutudesz:
Honestly Tinubu is a brave man for removing it immediately, I wish he will take suçh decisions on security and corruption too regardless of political opinions.

Abeg, All these market yarns.....!!!!!.
Bravery for cluelessness.....?
Then what is Trump......?
Bigger than King Kong + Godzilla together.....?
As long as they know the insecurity in that land and only focus on oil , yes, oil.....
Let the pipes dry and see shege

Kukutente23:
It seems you have a problem with English. So are you running a deficit or a surplus budget in 2025?
Did you bring down the deficit according to you by improving on your revenue base or by devaluation of over 300%? You need to pay better attention man. The figures you posted above, do they reflect an improvement in revenue or the devaluation from 400 to 1500 in budget benchmark?
Are you even aware that the 2024 budget is still running as we speak?

No, you are the one that don’t understand numbers.

If you have a company, what you want to look out for is your revenue, spending need, and deficit. That’s shows if you are in good standing or not. Most countries have budget deficit, USA own is almost >$1trillion for 2025 but you check that relative to their actual revenue and that’s at 20% approx of revenue:

Based on that metrics I shared, we are in good standing for that 2025 budget compared to 2023 budget.

You can’t handpick when to use the 400/1500 naira rate to your advantage. The main crux is that as at 2025 budget estimate, our deficit dropped drastically compared to 2023.

In 2023, deficit is over 100%.
In 2025, deficit dropped to 30%.

If we continue on this trajectory, by 2027, we can run our budget with little or no deficit coz at that point revenue would be enough to cater for our overall yearly spending.

Are you learning?

Ofunaofu:
And Tinubu made history of being the most thoughtless decision ever made by a president, plugging the entire nation and it's citizens into extreme hardships, strive, rising transportation cost, inflation and crashing naira.

And it is termed bravery.... Wicked and evil leaders taking the country backwards

LegendHero:
Most president will do that kind of strong changes in the second term in office for fear of backlash or electoral loss.

But Jagaban is too strong and resolute and baba no fear any baga.

Oga I know Nigerians have short memory, but some of us can still remember what happened 2 years ago. Tinubu removed subsidy because it was the sentiment at the time.

Also because foreign organizations like Fitch and co already predicted that he will not act on subsidy removal due to his lack of popularity, and he needed to prove them wrong, which is why he declared it on his inaugural speech.

CorrectionFLuid:
Oga I know Nigerians have short memory, but some of us can still remember what happened 2 years ago. Tinubu removed subsidy because it was the sentiment at the time.

Also because foreign organizations like Fitch and co already predicted that he will not act on subsidy removal due to his lack of popularity, and he needed to prove them wrong, which is why he declared it on his inaugural speech.

You actually have short memory.

Subsidy removal have always been the sentiment since 1999. But the problem is that previous presidents don’t have that courage to fully remove subsidy.

Below is 2001 News where Obasanjo was saying he will remove subsidy totally, but Baba no get courage to do it.

Jonathan, Buhari also did try to remove subsidy bit by bit but they quickly backtracked coz they don’t want to face the onslaught from Nigerians.

Yar’Adua is the only one different and that could be because he did not spend much time as president.

Every election cycle since 2003, politicians have always campaigned about removing subsidy.

You funny. Wetin concern Tinubu with Fitch or wetin you call am? Na today organization dey talk about Naija?

LegendHero:
You actually have short memory.

Subsidy removal have always been the sentiment since 1999. But the problem is that previous presidents don’t have that courage to fully remove subsidy.

Below is 2001 News where Obasanjo was saying he will remove subsidy totally, but Baba no get courage to do it.

Jonathan, Buhari also did try to remove subsidy bit by bit but they quickly backtracked coz they don’t want to face the onslaught from Nigerians.

Yar’Adua is the only one different and that could be because he did not spend much time as president.

Every election cycle since 2003, politicians have always campaigned about removing subsidy.

You funny. Wetin concern Tinubu with Fitch or wetin you call am? Na today organization dey talk about Naija?

If it was the sentiment then as you said, why was the 2012 protest against subsidy removal a success?

Like I said, mass popularity is needed when policies such as this is to be implemented. Tinubu lacked the popularity, and these foreign organizations expressed their views. So, Tinubu had to make a point. However rash and thoughtless that point is.

And what better time to make that point than in his inaugration; removing fuel and forex subsidies. Right in the face of those foreign organizations, and the masses who supposedly don't like him.

Actually Electricity has not improved. They are only robbing Peter to pay Paul.
The Bands A people have drastically reduced usage and what they are not using is now available to others that have also cut down usage. Many areas hardly see Electricity now because the Discos no longer need to provide for everyone. They simply cash out from Band A users.
It's the deceptive nature of this government that bother me the most.

7upnigeria:
Some of you forget that Tinubu has been around for just two years. And in that 2 years electricity supply has improved tremendously.

If Buhari has done this in two years, imagine what he would have achieved in 8 years. It means even the General WAS SCARED of what people will say while an ORDINARY BRAVE CIVILIAN took a great decision he should have taken

This administration has really destroyed this economy. I wonder of we can ever truly recover from all these. I am not sure they understand the economic implications for Nigeria and Nigerians. The future really looks bleak. I just pray we don't end up in civil war. The poverty is seriously fueling insecurity.

Alsenora:
The truth about subsidy removal is either bitter to them or they are ignorant of its economic implications.

CorrectionFLuid:
If it was the sentiment then as you said, why was the 2012 protest against subsidy removal a success?

It is simply because Jonathan cannot bear the heat and the opposition then are better coordinated and have the mainstream media to their bidding.

When Tinubu removed susbsidy, he did a wonderful PR and he already swallowed the NLC/TUC in his pocket somehow. To say it, Tinubu is a stronger president and an astute politician.

Just see how he pocketed all opposition governors and senators. How do you rebel against such man if he remove subsidy?

Like I said, mass popularity is needed when policies such as this is to be implemented. Tinubu lacked the popularity, and these foreign organizations expressed their views. So, Tinubu had to make a point. However rash and thoughtless that point is.

I agree in terms of popularity among online folks, Tinubu might not have it. But in politics, popularity transcend twitter/Nairaland. You must have the opposition and Labour union in your pocket. Those are the only people can heat up the polity in the true sense and Tinubu is a lord over them.

Again stop mentioning foreign organization, those one have been making noise since 1993, they no get level. Shey na them go strike ni abi na them go vote against Tinubu?

And what better time to make that point than in his inaugration; removing fuel and forex subsidies. Right in the face of those foreign organizations, and the masses who supposedly don't like him.

Him removing it on his first day shows courage and determination. If it’s that easy, why OBJ, Jonathan, Buhari no remove subsidy on first day? Shey foreign organization no get internet to watch those ones on their first day or what?

Below is Tony Blair telling Buhari to remove subsidy in 2015, if baba no answer am, who be fitch abi wetin you call them?