₦airaland Forum

nairalanda1:
Here is how subsidy killed our refineries.

Petrol has a cost price. When the cost price is below the production price, government pays a subsidy to prevent the sector from going down the drain due to losses.

The problem is, subsidy payments do not guarantee the sector makes enough of a profit to fix and upgrade refineries on a consistent basis over the years. Also, from the Nigerian persepctive, we tax too little of our gdp, and most of our earnings comes from oyel...whose prices are not where we want them to be all the time. (right now, if we want to pay subsides AND have working refineries, oil has to cost 150 dollars or more at the international market per barrel).

So, over the years, subsidy costs have risen, and government can't keep up. That means lower money for refineries to conduct upgrades. From 1994, Nigeria was skipping TAM maintenance until the refineries became a wreck, that any recent TAM was just painting a shipwreck and pretending it was a working vessel.

Add corruption, and so forth, here we are in 2026 with four damaged refineries.


Ghana does not subsidze fuel, and has sold fuel at a profit for decades, and as a result, it has working refineries. Same for Niger republic.

this your analysis is best suited for illiterates who don't know about the workings of an economy. Subsidy is not good, but the president can buy yatch, subsidy is not good but the president can sponsor pilgrimage to hajj. Keep your sermons Pls

Enough of all these statistics. Nigerians are groaning in the midst of plenty. What's the point

Imagine, this is a project that some government officials who have never contributed any value to Nigeria wanted to sabotage. Some people just dey too useless.

Mandate1:
this your analysis is best suited for illiterates who don't know about the workings of an economy. Subsidy is not good, but the president can buy yatch, subsidy is not good but the president can sponsor pilgrimage to hajj. Keep your sermons Pls

1.Yatch costs about 5 billion naira. Note that I was angry about the purchase too myself.

2. Hajj costs for last year's hajj were 13.1 billion naira. Again I don;t think government should be supporting pilgrimage, have held that view since I was a teenager.

3. Petrol subsidy costs for the first 5 months of 2023 amounted to 6 trillion naira alone. In 2022, government spent `10 trillion naira on fuel subsidy. Between October 2023-feb 2024, tinubu was spending N800-1000 billion naira monthly to keep fuel at N600-700 at the pump.

Yatch plus hajj money can't pay for even one month of subsidy payments.

See the problem. ?

Estello:
https://applesbite.com/dangote-refinery-reaches-full-650000-bpd-capacity-sets-global-benchmark/

Just wait for it.

Those confirmed enemies of progress will still attack dangote and Tinubu

Tinubu till 2031.

Chief Executive Officer David Bird comes with an impressive business and educational background.

https://thebusinessyear.com/interview/david-bird-oman-2024/

nairalanda1:
1.Yatch costs about 5 billion naira. Note that I was angry about the purchase too myself.

2. Hajj costs for last year's hajj were 13.1 billion naira. Again I don;t think government should be supporting pilgrimage, have held that view since I was a teenager.

3. Petrol subsidy costs for the first 5 months of 2023 amounted to 6 trillion naira alone. In 2022, government spent `10 trillion naira on fuel subsidy. Between October 2023-feb 2024, tinubu was spending N800-1000 billion naira monthly to keep fuel at N600-700 at the pump.

Yatch plus hajj money can't pay for even one month of subsidy payments.

See the problem. ?

You do not need to respond to people who allows emotions to cloud their reasoning.

Below are verifiable facts:

1. The FG did not buy yatch for the president. (they will still argue this without evidence).

2. The Federal Government (FG) mainly provides coordination and support to hajj. The FG does not pay for hajj.

3.Subsidy is gone forever ♾️ (wailing is forever welcome).

4. Nnamdi Kanu is in prison for life.

5. Elections results will not be transmitted real time, it does not even happen in US.

Tinubu till 2031.

IPO in sights.

Must people live according to your taste?
Cut him some slack. If he makes noise, he deserves to.

Gotocourt:
The only original Billionaire wey no dey make noise. I envy your endeavors 🙏🙌

KingGBsky:
Dangote should not be given the full right to sell PMS fuel, diesel and gas to Nigerians because he will monopolize it and finish Nigerians with high prize. Look at what he has done to the cement factory, he monopolized it and made sure the price remained increased above #10,000 in various states. CEO of BUA cement tried to step in and reduce cement to about #3500 nationwide but Dangote fought him to make sure the price remain the same. How do they expect the common man to build a house with this kind of evil business men running the economy as if it belongs to them.

hmm interesting observation but have you actually try to figure out the spending cost and margins in this type of business before drawing a conclusion?

Estello:
https://applesbite.com/dangote-refinery-reaches-full-650000-bpd-capacity-sets-global-benchmark/

This is vision. The same thing Obi lacks but Tinubu seems to have. With due respect Obi is not corrupt agreed but his lack of vision makes him and his fellow cronies of importers pressure pass govt to destroy manufacturing sector of Nigeria..I mean Dangote here achieved what no single refinery in the world has ever done. Vision!!!

Judolisco:
Nigerians are d strongest people on earth... Petrol prices increased from 250 to almost 840 now and everybody is going about their normal business... Congrats to dangote

When petrol was in 250, we're selling the little generated in advance to pay debt, fuel are not easily accessible as some people will rather lock it up and not sell, people are not being paid as at when due and salaries are owned up to 8 months in almost all the states, minimum wage is is about 30K and no infrastructure going on anywhere in the country.

I believe you have sense to compare it to what's going on now.

celestialAgent:
Buhari and Emefiele did this one, no doubt.

It is rather sad how Tinubu has failed to help Nigerians avail the benefit for convenience living.

How did Buhari and Emefiele do it? You obviously don't understand the business and the history. Buhari did absolutely nothing, and Emewerey wanted to kill it. As bad as Tinubu is and by the way, I don't support him, he bailed Dangote out. Alhaji himself said it many times. Go ask what Amosu almost turned the man to. And then ask why Abiodun is almost prostrating for Alhaji now and how the change of framework between Ogun and Dangote is presently.

These things are not secrets, but I don't get it how you people just don't seem to understand anything.

Na waoooo. Buhari and Emeeerey indeed!

A very good one to him, he is one of the most detribalized mallomite I have seen to date. If other people especially politicians invested some of their monies in the country people wont be so hostile to them , but they rather use it to build useless mansions they cant live and and buy cars they wont drive for more than 3 months.

Abbeytoy:
When petrol was in 250, we're selling the little generated in advance to pay debt, fuel are not easily accessible as some people will rather lock it up and not sell, people are not being paid as at when due and salaries are owned up to 8 months in almost all the states, minimum wage is is about 30K and no infrastructure going on anywhere in the country.

I believe you have sense to compare it to what's going on now.

listen, yes I'm sure u also have sense to know that d sudden increase in d price of petroleum affected almost everything.... I said Nigerians are strong because that singular increase can turn a country up side down

MOTIONTECH:
Lets stop praising this nonsense, Nigerians are one of the most traumatized people in the world, with hyper inflation and so many other issues.

No we are the happiest people on earth

celestialAgent:
Buhari and Emefiele did this one, no doubt.

It is rather sad how Tinubu has failed to help Nigerians avail the benefit for convenience living.

Buhari really tried on this PDP licensed private refinery, since he didn’t cancel it like he did with the Lagos metro project in 1984, after his only successful coup against democratic institutions at the local, state and federal levels.

callthefred:
This is vision. The same thing Obi lacks but Tinubu seems to have.

With due respect Obi is not corrupt agreed but his lack of vision makes him and his fellow cronies of importers pressure pass govt to destroy manufacturing sector of Nigeria..I mean Dangote here achieved what no single refinery in the world has ever done. Vision!!!

Why are you confusing balablu town hall propaganda announcements with vision? They are two separate things.

What Tinubu and APC have is propaganda. They have zero vision for Nigeria, except to loot the tax burden on the people.

According to APC propaganda, two NNPC refineries have been working since 2015, and one of them has been exporting fuel since December 2024!

This is the same refinery that some of us were so overjoyed with and supportive of yet Obidients and their commanders of the Orchestra, Like David Hundeyin etal, insisted was a scam that would never produce a drop of PMS.

Never have I seen a nation full of so many who are angry and bitter enemies-within to each other. May God save Nigerians from themselves if such a miracle is possible.

nairalanda1:
When petrol prices were low...we were paying for them with more debt and even more debt.

And the loss of 4 refinereis.

I am not here to defend tinubu. I think that subsidy should have gone since 2012, and with hindsight since 1993. I have been supporting subsidy removal since 2011.

You're an intelligent person. 👌

WizardOfNG:
This is the same refinery that some of us were so overjoyed with and supportive of yet Obidients and their commanders of the Orchestra, Like David Hundeyin etal, insisted was a scam that would never produce a drop of PMS.

Never have I seen a nation full of so many who are angry and bitter enemies-within to each other. May God save Nigerians from themselves if such a miracle is possible.

Cheiii... it's true o....I remember Hundeyin swearing that the refinery was a money-laundering scam perpetuated by the elite, with Dangote merely their front, and that the refinery would not produce a single drop of oil.

nairalanda1:
1.Yatch costs about 5 billion naira. Note that I was angry about the purchase too myself.

2. Hajj costs for last year's hajj were 13.1 billion naira. Again I don;t think government should be supporting pilgrimage, have held that view since I was a teenager.

3. Petrol subsidy costs for the first 5 months of 2023 amounted to 6 trillion naira alone. In 2022, government spent `10 trillion naira on fuel subsidy. Between October 2023-feb 2024, tinubu was spending N800-1000 billion naira monthly to keep fuel at N600-700 at the pump.

Yatch plus hajj money can't pay for even one month of subsidy payments.

See the problem. ?

this is what govt told you. It's always normal to give a black sheep negative name just to nail it. Subsidy on fuel imported or subsidy on fuel drilled from Niger Delta and sold to Dangote? Just the same way they keep telling us subsidy on power even when Nigerian homes do not have power. You're still failing to answer my question. Why is fuel more expensive in Nigeria than USA and UK?

The yatch and pilgrimage aspect is just to let you know the monumental wastage in the system. Why should a govt who claim not to have money for subsidy to make life better for the citizens engage in such jamboree? This is just a little compared to the huge waste. You and I have seen campaign cars on the social media. Are those cars free?

Mandate1:
this is what govt told you. It's always normal to give a black sheep negative name just to nail it. Subsidy on fuel imported or subsidy on fuel drilled from Niger Delta and sold to Dangote? Just the same way they keep telling us subsidy on power even when Nigerian homes do not have power. You're still failing to answer my question. Why is fuel more expensive in Nigeria than USA and UK?

The yatch and pilgrimage aspect is just to let you know the monumental wastage in the system. Why should a govt who claim not to have money for subsidy to make life better for the citizens engage in such jamboree? This is just a little compared to the huge waste. You and I have seen campaign cars on the social media. Are those cars free?

Since you have essentially accused me of lying, I doubt I can continue the discussion with you

And I also indicated in my comment that the yacht is a waste as is pilgrimage, yet you insinuate I support such things.

Since you can't discuss like a reasonable adult, good evening and have a good day

Very welcome news.. big kudos to Dangote

Judolisco:
listen, yes I'm sure u also have sense to know that d sudden increase in d price of petroleum affected almost everything.... I said Nigerians are strong because that singular increase can turn a country up side down

The government did not increase anything; they just withdrew the support they gave.

Let's assume you're working and getting a salary of 30k, but since your brother is the chairman of the company you work for and drives you to the office every day and adds pocket money of 50k monthly, to ease your burden, and suddenly he falls sick and can't afford to give you the 50k or take you to the office again, and you have to depend on your 30k only. Does that mean your brother is a bad person?

God forbid your brother or anyone in your family get sick, and this is just to illustrate.