₦airaland Forum

CaseSensitive:
There are nuances here that you are not getting. Yes, the US subsidizes but their economy can absorb it easily. Nigeria's economy simply can’t. Bear in mind America borrows in its own currency, but Nigeria borrows in the same US currency being the world trade currency. Common sense would dictate that subsidy dollar means higher borrowing, inflation, and debt service pressure for Nigeria. In 2022, we spent very close to 100% of revenue on debt servicing, that means we were literally borrowing money to pay for subsidy. Where's the common sense in that?

Our subsidies were eating up as much as education, health, and infrastructure budget combined, while fueling smuggling (no pun intended) and corruption. So reducing subsidy isn’t about copying America, it’s about facing our own economic reality.

So what you are saying right now is, we can't pay subsidies right?
But the same government can buy cars of 150 million naira each to 109 senators and counting. We can renovate a VP house for 21 billion. We can do all that, but we can't cut government cost to pay subsidies that will help reduce inflation a little. And we wonder why we are here....😂😂😂
Nigeria is not a country

lionshare:
Represent $31B as a percentage of the U.S. annual budget, then compare $4.5B as a percentage of Nigeria’s budget for better perspective.

The purported $ 4.5B spent on subsidy is a ruse. That’s what the government reported. In reality, it might be less than $500 million.
As at 2021, Nigeria GDP was $440.8 B. So that amount represents 10% of Nigeria GDP in 2021.
Does that sound right to you?
The problem is that there are lot of grifters and kleptomaniacs in the government.
So you really can’t make comparisons since most of the so called subsidies were looted.

lionshare:
Represent $31B as a percentage of the U.S. annual budget, then compare $4.5B as a percentage of Nigeria’s budget for better perspective.

quote]

The purported $ 4.5B spent on subsidy is a ruse. That’s what the government reported. In reality, it might be less than $500 million.
As at 2021, Nigeria GDP was $440.8 B. So that amount represents 10% of Nigeria GDP in 2021.
Does that sound right to you?
The problem is that there are lot of grifters and kleptomaniacs in the government.
So you really can’t make comparisons since most of the so called subsidies were looted.

DiamondsAreFore:
So the richest country on earth with the biggest economy is still subsidising fuel for its citizens even in spite of the likely environmental issues which might arise from it.

Meanwhile over here in Africa, the "giant" of Africa was thumping its hollow chest and belowing with glee after their World Bank stooge of a president ended a fuel subsidy of just $4.5 billion a year in a country with some of the poorest people on earth.

Nigeria will be better building electricity plan and LNG plant instead of subsiding fuel

Jaycee07:
quote]

The purported $ 4.5B spent on subsidy is a ruse. That’s what the government reported. In reality, it might be less than $500 million.
As at 2021, Nigeria GDP was $440.8 B. So that amount represents 10% of Nigeria GDP in 2021.
Does that sound right to you?
The problem is that there are lot of grifters and kleptomaniacs in the government.
So you really can’t make comparisons since most of the so called subsidies were looted.

Nigeria's GDP was $330 billion in 2021, and the $4.5 billion subsidies don't include the $12 billion in fuel imports. Get over it, subsidies are gone.

They have the money, so let them spend it. By the way, subsidy scam isn't like what we experience in Nigeria, so the figures might not be alarming

We kept telling them that most of these advanced countries subsidize their citizens to encourage economic growth but they never agreed.
Subsidy is just about the only benefit the suffering people of this country receive from the rogues in power but they removed it and made more money available for themselves to steal then your have some of the usually suffering and smiling people supporting them on this forum.

Omowale2023:
So what you are saying right now is, we can't pay subsidies right?
But the same government can buy cars of 150 million naira each to 109 senators and counting. We can renovate a VP house for 21 billion. We can do all that, but we can't cut government cost to pay subsidies that will help reduce inflation a little. And we wonder why we are here....😂😂😂
Nigeria is not a country

Again let's use some common sense (just a little) to actually understand stuffs. I'm not justifying corruption or misplaced priority here, only the Nigeria government can justify the purchase of cars and VP house renovation etc. Numbers are not my thing but this is very basic economics + common sense. Lets do some quick maths, 150 million Naira worth of car X 109 units + 21 billion Naira = 37.35 billion Naira, compared to 5.7 Trillion Naira that Nigeria spend on fuel subsidy/year. No matter what Federal government's reasons are, they cannot buy these cars and renovate houses every year or do they? But fuel subsidy (5.7 Trillion, give or take) is a recurring expense and has to be paid every single year.

Do I support cutting government spending? Absolutely where necessary but cutting government spending alone cannot, will not alleviate the strategic damage of servicing subsidy, it doesn't shift a needle. Nigeria simply cannot afford it, it's an economic suicide and THAT is what I'm saying!

NinjaMetahuman:
I know.

Dollar is the biggest American asset. Nothing is back it.

They don't even need to work. They can just print dollars and buy free things from the rest of the world. Because everyone is just working to provide service for America.

We make their currency standard.

Thank you for this .... until the whole world know that they are the one financing American lifestyle... US will not stop bullying everyone

The "Giant of Africa" can't afford a paltry $4.5 billion dollars per annum to subsidize petroleum for its poor citizens?

Dotherightthing:
Ollle

There is no free lunch in life.

Nigerian government does have money for subsidies. How can you be borrowing money to pay subsidy

You mean, the Giant of Africa can't afford a paltry $4.5 billion per annum to make life easier for its citizens?

Wickedlywicked:
You are very right Genius since both countries are on the same level economically. Make una dey use una head even if it’s once annually na🙏
So you think the largest economy in the world would be affected because it spends that amount annually? Please be using that thing once in a while, It’s not there for decoration.

Yet they pressure their puppet African Presidents to remove subsidy to weaken the economy . . .

there is nothing bad in subsidy. Bt Nigerian government would liken it to a curse

lionshare:
Represent $31B as a percentage of the U.S. annual budget, then compare $4.5B as a percentage of Nigeria’s budget for better perspective.

Hope you are including monies embezzled into consideration also

Tinubu crashed an economy from $460 billion to $188 billion because of just $4.5 billion?

I know all the major presidential candidates said they'd remove subsidy but he ought to have reviewed the numbers to know if it was worth it and not just remove it from day 1 without even getting to office. There was budget for it till end of June but because he knew he never won the election, he was impatiently looking for legitimacy

lionshare:
Represent $31B as a percentage of the U.S. annual budget, then compare $4.5B as a percentage of Nigeria’s budget for better perspective.

Every advance country in d world subsidize something that cuts across d population.

Nigeria will get it right one day.

DiamondsAreFore:
So the richest country on earth with the biggest economy is still subsidising fuel for its citizens even in spite of the likely environmental issues which might arise from it.

Meanwhile over here in Africa, the "giant" of Africa was thumping its hollow chest and belowing with glee after their World Bank stooge of a president ended a fuel subsidy of just $4.5 billion a year in a country with some of the poorest people on earth.

How much is fuel there compared to here na... Arindin

lionshare:
Represent $31B as a percentage of the U.S. annual budget, then compare $4.5B as a percentage of Nigeria’s budget for better perspective.

You dey mind them ... People wey no sabi mathematics

SarkinYarki:
Subsidy is subsidy

Eleleya leleyi

Dotherightthing:
Yet it's still more expensive than our unsubsidised fuel

Simple

Dotherightthing:
Ollle

There is no free lunch in life.

Nigerian government does have money for subsidies. How can you be borrowing money to pay subsidy

Make it make Sense

PDPdestroyer:
Better oil dey your head. I don’t know why we have so many ignorant citizens

They are educated illiterate

Savenigeria2023:
Every responsible nation subsidizes something important. Its either energy, agriculture, transport, education, health for the general good of the masses.

The evil we have as government have stolen everything available and taken away every form of available subsidy.

If Nigerians don't fight back, the masses will all die painful but avoidable deaths

You better go work on yourself to stop crying government Everytime

Funkyswagzz:
Like seriously do you have at all or you just want to use it.. why don't you compare the minimum wage

Still majority of them live paycheck to paycheck.una jusike dey decieve una sef

Fearurcreeator:
Still majority of them live paycheck to paycheck.una jusike dey decieve una sef

They live pay check to check but our people go there and make it. Who exactly is deceiving himself

Tunibu you may never end well!

While UK spend around 17 million plus.

UK subsidise almost everything for her people.

China spend trillions for her people on fuel subsidy followed by India.


A poor country like Nigeria is telling you they don't subsidise and you believe that. Incredible.

Abee79:
Yet they pressure their puppet African Presidents to remove subsidy to weaken the economy . . .

You know the drill very well.
China, India,Russia, America Germany, UK etc subsidise fuel for their people. These are world big economies. Control comes in different forms.
Subsidise and tax them.
They will give you textbook explanation. When reality show face, you cannot met up and run to them for loan. That's what they did to tinubu. They hold the man for blokoʻs. If you get sense like them, they will topple your govt and put a puppet they can control.

DiamondsAreFore:
So the richest country on earth with the biggest economy is still subsidising fuel for its citizens even in spite of the likely environmental issues which might arise from it.

Meanwhile over here in Africa, the "giant" of Africa was thumping its hollow chest and belowing with glee after their World Bank stooge of a president ended a fuel subsidy of just $4.5 billion a year in a country with some of the poorest people on earth.

..and upon the removal of fuel subsidy by the federal government they still want to tax Nigerians 5% tax on fuel.. nawaaooo

nairalanda1:
US pays production subsides. Nigeria was doing consumption subsidies

Consumption subsidies are very wasteful and worsen debt. Production subsides help to improve production of refined product and make the sector profitable

.then let Nigeria also do production subsidy

ufotunang:
.then let Nigeria also do production subsidy

Indeed.

Slytiger:
And gas is still so expensive in America. Na waoh. Gas is still costly.

Thats why I bought a Toyota hybrid.

Which gives me low gas mileage.

I honestly don’t get your point. A gallon is roughly 4 liters. If you buy a gallon of gasoline in the US for $4.50, that breaks down to about $1 per liter. Now, if you compare that with the US minimum wage, one hour of work buys around 15 liters of fuel.

But here in Nigeria, it’s a different story entirely. The new minimum wage of ₦70,000 monthly means a worker earns about ₦2333 per day. [/b]With the pump price at over ₦1,000 per liter, a [b]full day’s wage cannot buy you more than 2 liters of fuel. And yet, despite this wicked reality, this government still wants to slap an additional 5% tax on petrol.

At this point, I can’t help but ask: what offense did Nigerians commit against Tinubu that he feels the need to punish us like this? Honestly, I could still manage to understand the subsidy removal, but this fresh tax on fuel? There is absolutely NOTHING anyone can say to justify such madness. It’s as if he simply hates the sight of poor Nigerians driving on the same roads with him.