₦airaland Forum

udemzyudex:
A country that have gas is complaining of gas shortage.

Omo we are not yet serious in this country, there is a deliberate attempt to keep us backward in Nigeria.


Imagine what a constant electricity can do to the economy of this nation.

hush15:
to be fair, they didn't fail in everything. At least when it comes to sharing renewed hope a carton of one 5kg rice, 3 spaghettis, 4 super pack indomie, One sachet of salt and some sachet of tomato paste and weaponizing poverty, one would rate them A1, a huge success at that.

Choiceone1:
Zombies will always lie they spent nothing less than 10billion. Stop lying in public

nairalanda1:
Because any changes to the laws would involve a cost reflective tarrif system and an end to subsidy on power.

APC wants to be elected again so they avoid reality for popularity

nairalanda1:
1.They removed subsidy on petrol because they were in a state of no return by August 2022. IMF was frowning, and debt service was eating 90% of government revenue

2.Truely what a beautiful government...they won't face reality. The cold reality is, we need subsides to go so that we can have investors being incentivised to invest in power. Not doing that for decades is why we are suffering.

Your APC government doesn't want to take sane decisions , they want to take popular but wrong decisions.

helinues:
How is the jargons you wrote correlate with my comments?

Don't pass your boundaries this morning

helinues:
How is the jargons you wrote correlate with my comments??

Don't pass your boundaries this morning

SmartPolician:
Gas shortage here means that gas companies like Seplat have been supplying gas to energy companies that use gas to give us electricity for several years.

However, those energy companies (gencos) don't generate enough money to pay for the gas it is being supplied. Now, the supplier is owed trillions of naira.

As a result, the supplier slashed gas supply by 40 - 50% until everything they are owed is cleared. That means we will be in darkness for a long time unless the government decides to pay up.

Irony1:
The issue here is not about subsidy, but the subsidy model was obsolete. We all know the multiplier effevt of petrol on the economy, any sensible should have probed the previous subsidy regime, get those implicated to refund the money taken and review the subsidy model.

Now that Dangote refinery is online, they could have just subsidized fuel production to a priced cap level.

Making excuses and citing IMF is you being dishonest and ignoring the elephant in the room which is corruption and the high cost of government. Did this government ever reduce cost of governance? No, they still expanded it, a sincere govt will reduce cost of governance to free up funds for government business.

He now did a double whammy by devaluing the naira just to ensure that more money is given to state governors and he would be able to finance his large cabinet. This alone is the hallmark of a leader who doesn't care about its citizens.

Oracleee:
Any time I see how you liter the comment section with your comments and half-baked fact while trying hard to sound impressive, it reminds me of Don Williams lyrics in the song THE ANSWER. it's goes thus, THE FOOL IS NOT THE ONE WITH ALL THE QUESTIONS BUT THE ONE WHO BELIEVE THEY HAVE ALL THE ANSWERS.

sirblend:
Just last week or so NERC/PHCN gave a report of the profit they made..

Why aren't they paying gas suppliers from the profit.

helinues:
And this clueless minister for power is aspiring to be a governor in one state.

As how now

nairalanda1:
OBJ alone.GEJ didnt build anything. Also, the same government kept subsides on power...which hamstrung the power sector from growing even larger under their rule, and did nothing about transmission at all...




APC maintians the same subsides on power, which drive away investors. Power was privatised to attract investors...but first the PDP then the APC maintained price controls and subsides, which drove off the really big hitter sane investors.

You can see the result...a liquidity crisis, no new investment in power stations (though AEDC is building a 350 MW station which should be ready in 2027, but that's not success, we should be building more).


This really isn't a competiton about who built more or what...this is about why Obasanjo, and company could not attract more investment to build powewr capacity to about 32000mw.

You are praising a government that built less than one sixth of what the country needs, while the APC supporters praise a government for cheap electricity which keeps the power sector in financial crisis (and they have no answer to that). At the end, unless a government is bold enough to bring in cost reflective tarrifs...we can end up building 32000 or more MW of power stations, only to see them become scrap because of lack of a cost reflective tarrif.

Noblex2011:
What is wrong with you?

You are indirectly say this useless government should remove the electricity subsidy right?

What have the so call government achieved with the petrol subsidy removal?

Omo.... God should just remove wicked people in this country.

People are really calm and as well suffer in this country

nairalanda1:
Okay..

Which is what we did when we had four refineries from NNPC. Now how did that end? Ah...


Well, we was talking about subsides, not about corruption or high cost of government, but I'll let you in on some secrets

1.Corruption was being fuelled by the subsidy
2. Corruption in Nigeria happens because most income doesn't come from tax revenue...it comes from oil
3.We are also a resource dependent country...which believes in sharing the money. If we were manufacturing dependent...we would have been industrialand free of corruption mostly...because any corruption would harm our bottom line financially
4.And more nigerians paying taxes incentivises people to pay attention to how their money is being spent. But because all our money is oil money, no one cares as much as the minority here.

4. By the way, I never excused or denied corruption exists...so either you are projecting or giving a k9 a bad name in order to deal with the poor thing.

Saying that subsides should go does not automatically mean that you support bad government or support corruption. Or even support APC (which i don't because I don't like tinubu nor did i LIKE buhari).That's a rather wrong idea man.



Well, keeping the naira artifically high for decades was worsening the debt, plus it was wasting money. And fuelling corruption (hello, roundtripping).

nairalanda1:
The world doesn't have to agree with you, my dear Actaeon.


Yes, because at the end it's the only way we can attract the kind of investment needed to pay for much needed improvements. NO subsidy means cost reflective tarrifs, which means profits...which incentivises investors to come in.

Because they know they will see their money back

Lack of cost reflective tarrifs means that no profits ....and losses...which is why many discos owe the banks, owe money for gas and are laying off staff, plus at least three have pulled out.

You cannot make electricity for N200 per kwh and sell it at N61 per kwh, and government is struggling to pay subsidy monies...and expect enough profit ...in the trillions...to pay for improvements.

Ivory coast did it in 1993. Their president was Bedie...who was a corrupt and bigoted politican. SInce then, their power sector has worked well. Heck even the World Bank invested in their sector. Not loans...investment.


Reduced the amount of monies spent on debt repayment, for starters...though we still have to borrow because government is not addressing the root cause.

There is a reason why subsidy went...and why it should have gone in 1993. But you guys kept on saying no, so here we are.



I daresay you call everyone who disagrees with you the W-word. That's sad.

Plus paying subsidy is true pain...it means that as cost of production rises so does subsidycosts...meaning that government has to take money from other parts of the budget to pay for it. It gets to a point where the government borrows money to pay for subsidy...meanwhile improvements are not happening because subsdiy is keeping profits low.

The result is deficits and more debts. Guess who bears the brunt of the burden (hint...it's not tinubu or the rich).


Well, we have been subsidsing power for over 50 years. If it was working, I won't be speaking as i am now. It isn't working...time we tried the free market...as we did for GSM where Obasanjo refused to pass laws that would have forced gsm companies to charge something like fifty kobo for three hours call.

Irony1:
Corruption was never fuelled by subsidy.

The idea behind subsidy was noble, the execution was based on corruptiin where claims cannot be audited before subsidy claims are granted.

nairalanda1:
Okay..

Which is what we did when we had four refineries from NNPC. Now how did that end? Ah...


Well, we was talking about subsides, not about corruption or high cost of government, but I'll let you in on some secrets

1.Corruption was being fuelled by the subsidy
2. Corruption in Nigeria happens because most income doesn't come from tax revenue...it comes from oil
3.We are also a resource dependent country...which believes in sharing the money. If we were manufacturing dependent...we would have been industrialand free of corruption mostly...because any corruption would harm our bottom line financially
4.And more nigerians paying taxes incentivises people to pay attention to how their money is being spent. But because all our money is oil money, no one cares as much as the minority here.

4. By the way, I never excused or denied corruption exists...so either you are projecting or giving a k9 a bad name in order to deal with the poor thing.

Saying that subsides should go does not automatically mean that you support bad government or support corruption. Or even support APC (which i don't because I don't like tinubu nor did i LIKE buhari).That's a rather wrong idea man.



Well, keeping the naira artifically high for decades was worsening the debt, plus it was wasting money. And fuelling corruption (hello, roundtripping).

Irony1:
Corruption was never fuelled by subsidy. The idea behind subsidy was noble, the execution was based on corruptiin where claims cannot be audited before subsidy claims are granted.

nairalanda1:
Smuggling and false subsidy claims and so forth would like to disagree with you there.

Plus the main cause of corruption is being a resource dependent nation. Sane low corruption countries are not resource dependent.


Having said that corruption doesn't fuel subsidy, you now admit it does.

Consumption subsides are great niduses of corruption. Unless you have a absolute robotic system that can track every liter of fuel, there is going to be corruption.

It's better we don't have corruption by being more productive.

Noblex2011:
You even have time self.
He has forgotten how much the evil government spent on these refineries last year.
Promote propaganda but still not working.
Maybe he will also blame subsidy for it 😆

Noblex2011:
You wrote as if you were making these decisions.

What has average Nigerians benefit from the petrol subsidy 😆

and you know how much people are buying the petrol right now? Iran... USA war effects 😆?

Terrible and useless government

This government is very terrible.
I didn't know Tinubu will be worse than Buhari.

I am not a member of any political party like you

You should stop all these indefensible things

I have been how earth for a while but this Tinubu government is the worst I have ever witnessed in this country.
Electricity has never been this terrible before

Irony1:
Can you swear that customs doesn't know who those smugglers are? It is still corruption amd rhe inabikity of agencies to do their jobs

Does Nigeria reallt know our consumption? Can you swear that NNPC for the successor of DPR knows the actual daily consumption of Nigeria?

If truly we know then that is first step to catch smuggling.
Does Nigeria reallt know our consumption? Can you swear that NNPC for the successor of DPR knows the actual daily consumption of Nigeria? Once you notice an unexplained rise in daily consumption, that alone is the trigger, when you narrow it down to who has recorded a sharp increase in subsidy claims, there you have your answer
Does Nigeria reallt know our consumption? Can you swear that NNPC for the successor of DPR knows the actual daily consumption of Nigeria?
People that smuggle tankers across the border connive clearly with customs it is not like they are using cars or bicycles or okada across the border. So spare me the mumbo jumbo of smuggling being fuelled by subsidy.

Irony1:
See let me tell you even now there is still round tripping though in lesser occurence especially when the gaps between official and parallel markets reaches 70 naira mark, so that excuse you gave holds no water

Govt has to do its job of ensuring a corrpt free system. Even now that mist Nigerians are encumbered with taxes has it curbed corruption? The answer is No.

The logic behind the removal of subsidy and you citing the pegging of dollar as a waste mskes no sense. The truth for me is that this govt if they were really sincere would have curbed waste in government and reduced drastically the cost of governance. Removal of subsidy simply punished the poor in Nigeria as this is the only thing they enjoy.

nairalanda1:
.

LOL...not true.

Dude i am in the financial services sector and i know what i am saying, so please this is not your forte to lie about


Most nigerians still don't pay taxes to federal and state governments. That's not going to change in the near future.

Where is your statistics? I would advise you keel queit if you don't have statistical data to back your claim

Subsides, themselves , promote government wasteage. Even when they are restricted to segments of the population. People lie.

Irony1:
LOL...not true.

Dude i am in the financial services sector and i know what i am saying, so please this is not your forte to lie about

Where is your statistics? I would advise you keel queit if you don't have statistical data to back your claim

Subsidies do not promote wastage it is the deliberate lack of systems of checks and balances in subsidy that fuel the wastage. Stop lying to yourself, this game will not work. If we had efficient systems that offer checks and balances we will not ve in this mess.

nairalanda1:
.

Well, Venezuela, LIbya and Iran which ran similar subsides havent been able to stop smuggling of fuel. I doubt the customs and excise of NIgeria runs their borders.

Also, many smuggliers are small scale smuggliers who use routes that customs cannot handle.

Stop making excuses so that you can deceive people petty smugglers will use all these routes. The kind of smuggling that we are talking abiut is done using tankers across the border. Those tankers will never use unknown routes. It is those smugglers and the quantity they smuggle that impacts on the numbers. In Iran even that quanyity they smuggle is in connivance with border patrol and customs.

And then our customs is undermanned and underfunded...but when I suggest they should be better funded, you guys will say they won't do their job well even with that. Sigh.

See that one is just semantics you are playing. These smugglers know themselves and customs know them

Libya was even using their airforce under Ghaddafi to bomb smugglers. DID NOT WORK.

That one is a big lie

It;s only when subsidy went that smuggling reduced . Margin of profit fell too low. Plus government was no longer funding smugglers.

At what cost? The citizens get to suffer, guy how do you reason? You are not making any point. Saudi subsidizes it's fuel for its citizens why are they not into smuggling?



We do now, now that subsidy has gone.


You see the problem with subsidy is that government doesn't control the production cost of fuel. As a result, any attempt to keep subsides and at the same time maintain normal production and profitablity would invairably lead to increases in subsidy spending...which impacts on our budget

That is why even if we knew 'the accurate amount' it still won't make much difference. Nigeria would still be pouring money down a bottomless pit.

Add the fact that oil money accounts for the majority of government spending. If oil prcies fall too low, it means that borrowing may be necessary to pay for subsidy, and borrowing would also be needed to fill in the resultant deficit.

You see the problem.

That's why sane countries subsidise fuel only for means tested poor people. Doing it for everyone means hefty debts

Irony1:
If government doesn't control the cost, why can't the government have strategic reserves of fuel bought at cheap times to be used as a buffer during times like this, or better still reach an agreement with Dangote to cap the price of a predetermined daily quantity of fuel. See anyway you put it the govt messed up big time with subsidy removal.

nairalanda1:
Anyway, that's not the real problem with nigeria...it's resource dependency.



Pwc 2016 put it at 16%
World Bank 2019 put it at 30 percent
Government put it at 44 percent in 2024.
Tax to gdp is 13%

I'm not lying.

Even the tax data is not consistent at all, and at that it doesn't explain your postulations at all


They do. You don't have to agree with me, and I won't weep if you don't agree with me.