₦airaland Forum

Today I am in a very good mood after listening to God's words as preached by my great Pastor who happens to be a wonderful Yoruba man.


For those that don't usually attend Church on Sundays and on special weekly activities, please try and be attending because the word of God is life, it rekindles your spirit and awakens the giant in you and propels you to greatness if you back it up with actions and faith.


Now back to the topic; how Tinubu should have handled the fuel subsidy removal for a better Nigeria.



Being a diehard Obidient and an Apostle of God-sent leader to rescue Nigeria from leadership quagmire, Mr Peter Obi, I want to give out just a single tip out of the many of how Tinubu should have handled the removal of fuel subsidy and Nigeria wouldn't have been in a disaster it is in today as a nation.


Before I reveal this tip, sometimes I wonder if Tinubu does not have smart thinking economic experts that should have guided him or was it that Tinubu refused to listen to good counsels just to feel like Jagaban that his followers call him that always mislead him by making his head swell.



Removing fuel subsidy at one go wasn't so smart but removing the whole fuel subsidy at once and taking the money saved from the removal of fuel subsidy to share with state Governors was a very terrible mistake from Tinubu. I suspect he did it to win state Governors to his side ahead of a second tenure contest.


If this method was wrong, how then should Tinubu have done it?


Tinubu should have removed the subsidy and then take out 30% and share with the crooked state Governors and used the remaining 70% to remit into our foreign reserve which would have helped Nigerian Naira currency to gain value agains the dollar and other foreign currencies, with this, inflation would have stayed low and petrol price per liter would have remained around 750 Naira per liter.


How you may ask?


If Tinubu had used the money saved from fuel subsidy removal to build up our foreign reserve, Naira would have gained value and stayed at $1 = NGN680 at most, and with this exchange rate, petrol pump price per liter in Nigeria will be around NGN750 to NGN800 at most.


With this, inflation would have remained low in Nigeria and Nigeria's economy wouldn't have been this damaged.




He can still make a u-turn, if you are close to him, share this idea with him.


I am sharing this information because of my love for God and because of the poor Nigerian masses

I don't know what God is doing in this wrong assumption.

franchasng:
Today I am a good mood after listening to God's words as preached by my great Pastor who happens to be a wonderful Yoruba man.


For those that don't usually attend Church on Sundays and on special weekly activities, please try and be attending because the word of God is life, it rekindles your spirit and awakens the giant in you and propels you to greatness if you back it up with actions and faith.


Now back to the topic; how Tinubu should have handled the fuel subsidy removal for a better Nigeria.



Being a diehard Obidient and an Apostle of God-sent leader to rescue Nigeria from leadership quagmire, Mr Peter Obi, I want to give out just a single tip out of the many of how Tinubu should have handled the removal of fuel subsidy and Nigeria wouldn't have been in a disaster it is in today as a nation.


Before I reveal this tip, sometimes I wonder if Tinubu does not have smart thinking economic experts that should have guided him or was it that Tinubu refused to listen to good counsels just to feel like Jagaban that his followers call him that always mislead him by making his head swell.



Removing fuel subsidy at one go wasn't so smart but removing the whole fuel subsidy at once and taking the money saved from the removal of fuel subsidy to share with state Governors was a very terrible mistake from Tinubu. I suspect he did it to win state Governors to his side ahead of a second tenure contest.


If this method was wrong, how then should Tinubu have done it?


Tinubu should have removed the subsidy and then take out 30% and share with the crooked state Governors and used the remaining 70% to remit into our foreign reserve which would have helped Nigerian Naira currency to gain value agains the dollar and other foreign currencies, with this, inflation would have stayed low and petrol price per liter would have remained around 750 Naira per liter.


How you may ask?


If Tinubu had used the money saved from fuel subsidy removal to build up our foreign reserve, Naira would have gained value and stayed at $1 = NGN680 at most, and with this exchange rate, petrol pump price per liter in Nigeria will be around NGN750 to NGN800 at most.


With this, inflation would have remained low in Nigeria and Nigeria's economy wouldn't have been this damaged.




He can still make a u-turn, if you are close to him, share this idea with him.


I am sharing this information because of my love for God and because of the poor Nigerian masses

@OP.

Lol. This is why we ask some of you to think before you rush to post your ignorant opinions publicly.

Tinubu can withhold allocation to Governors, head of an independent tier of Nigerian Government, how?

At the end of the day, everyone should stick to their area of expertise. Your recommendation may sound innovative—and perhaps even brilliant—to you, but it is not exactly new.

In fact, it is similar to what previous administrations did to manage the rising cost of fuel subsidies. If you recall, Jonathan increased fuel prices, just as Buhari later did. Essentially, both administrations raised prices and shifted part of the subsidy burden to consumers. This approach continued under PBAT, and subsidy payments did not completely stop until around the end of 2024.

You should also look at Argentina. They experimented with a similar approach to what you are proposing. However, Nigeria's macroeconomic fundamentals today are in a much better position than they were when these reforms began.

thesolutions:
I don't know what God is doing in this wrong assumption.

Indeed. Ignorant and uninformed assumption also. The President cannot commandeer allocation meant for other tiers of Government because such is illegal and unconstitutional.

You really need serious prayers.
One important prayer point should be that God grants you the grace to acquire knowledge and the capacity to understand it....

It's something you obviously lack.....

Let me just start by telling you that
1. Tinubu never removed fuel subsidy, He simply announced what had already been done.
Buhari administration had pegged May as the last month they will pay.
We didn't have the money, we were taking loans to pay the subsidy, Tinubu was entering the office on the 29th of may, if he was to continue paying that would mean, the first thing he would have done was to take a loan, (something the likes of you would have wailed about). There was no money to pay subsidy from June.

2. That brings me to number 2.
When you children keep talking about money saved from subsidy.
What exactly do you mean by that?
It is available in the public domain records that show we were borrowing to pay subsidy, we even had to use future produce of crude oil to get loan. Meaning we took money for crude that we had not even produced just to pay for subsidy, which means that crude we produced would not bring us money because we already took the money to pay for subsidy....

So when you are talking about money saved, I ask again, WHAT MONEY?
The one we didn't have?

What we have done here is that the government is aggressively repaying our debts, growing the external reserves and pumping the rest of our income to the governors and local government who are closer to the grass root.
If your village is having an issue hold our local government accountable, he has collected money. So also your state governor.

3. One has to have serious mental issue to suggest anything outside completely removing subsidy.

Only the way and manner he said it with an air of arrogance and not an atom of empathy is enough to cause all these ripples in the economy

Everybody just began scrambling and struggling from that minute

franchasng:
Today I am a good mood after listening to God's words as preached by my great Pastor who happens to be a wonderful Yoruba man.


For those that don't usually attend Church on Sundays and on special weekly activities, please try and be attending because the word of God is life, it rekindles your spirit and awakens the giant in you and propels you to greatness if you back it up with actions and faith.


Now back to the topic; how Tinubu should have handled the fuel subsidy removal for a better Nigeria.



Being a diehard Obidient and an Apostle of God-sent leader to rescue Nigeria from leadership quagmire, Mr Peter Obi, I want to give out just a single tip out of the many of how Tinubu should have handled the removal of fuel subsidy and Nigeria wouldn't have been in a disaster it is in today as a nation.


Before I reveal this tip, sometimes I wonder if Tinubu does not have smart thinking economic experts that should have guided him or was it that Tinubu refused to listen to good counsels just to feel like Jagaban that his followers call him that always mislead him by making his head swell.



Removing fuel subsidy at one go wasn't so smart but removing the whole fuel subsidy at once and taking the money saved from the removal of fuel subsidy to share with state Governors was a very terrible mistake from Tinubu. I suspect he did it to win state Governors to his side ahead of a second tenure contest.


If this method was wrong, how then should Tinubu have done it?


Tinubu should have removed the subsidy and then take out 30% and share with the crooked state Governors and used the remaining 70% to remit into our foreign reserve which would have helped Nigerian Naira currency to gain value agains the dollar and other foreign currencies, with this, inflation would have stayed low and petrol price per liter would have remained around 750 Naira per liter.


How you may ask?


If Tinubu had used the money saved from fuel subsidy removal to build up our foreign reserve, Naira would have gained value and stayed at $1 = NGN680 at most, and with this exchange rate, petrol pump price per liter in Nigeria will be around NGN750 to NGN800 at most.


With this, inflation would have remained low in Nigeria and Nigeria's economy wouldn't have been this damaged.




He can still make a u-turn, if you are close to him, share this idea with him.


I am sharing this information because of my love for God and because of the poor Nigerian masses

Stop thinking like a primary school pupil and get educated in the governance of your country.

Nigeria is a Federation with 3 tiers of government that is FG, State government and LG.

Consequently, each tiers of government is constitutionally entitled to a percentage of the revenue generated.

Your proposal is exactly what Okonjo Iweala adviced the Jonathan government to do during his tenure and was vehemently resisted by the state governor where it ended at the SC in favour of the State governor.

Let’s be clear about how this works.

Removing the fuel subsidy just means there is more money sitting in the FAAC account to be shared among the federal, state, and local governments.

The President has no choice here—the law forces that money to be shared. He didn't just strip the subsidy to give a cash handout to governors. I think this misconceptions has to be addressed

Imagine people who have no basic understanding of how governance works and how systems run want us to trust their political judgement to vote obi who has even confessed himself he needs to get into govt first before knowing what the problems are......how can you claim you can fix what you don't even understand.....noh be 419 be dat.

WizardOfNG:
@OP.

Lol. This is why we ask some of you to think before you rush to post your ignorant opinions publicly.

Tinubu can withhold allocation to Governors, head of an independent tier of Nigerian Government, how?

But Tinubu can unilaterally suspend democratic institutions, a democratically elected governor, and House of Assembly members, actions many consider to be in outright violation of the Constitution of the Federal Republic of Nigeria, just to appease his minister who is at loggerheads with the governor.

So citing the Constitution as the reason Tinubu cannot withhold allocations to the different tiers of government does not hold water.

The Tinubu administration has repeatedly acted in ways that raise constitutional concerns. As an example, for almost two years now, Osun state local government allocation have been withheld by the Tinubu administration in gross violation of the constitution of the federal republic of nigeria and valid court orders

You cannot selectively invoke the Constitution when it is convenient and disregard it when it is politically expedient.

Tinubu should have removed the subsidy and then take out 30% and share with the crooked state Governors and used the remaining 70% to remit into our foreign reserve which would have helped Nigerian Naira currency to gain value agains the dollar and other foreign currencies, with this, inflation would have stayed low and petrol price per liter would have remained around 750 Naira per liter.

This is how you know a trader from an economist.

Subsidy removal was meant to curb wasting of scarce FX to import fuel into the country.

What was saved was FX outflow .

The govt does not make any money from fuel sales as it is fully in the hands of market forces .

Does Dangote and the independent fuel importers remit money from sale of fuel to the FG coffers?

NNPC reserves 400,000 barrels from daily production for the domestic market which is sold to Dangote or used in crude-petrol swap deals, with foreign based refineries. That model does not generate any cash for the govt other than marginal profit to NNPC which is still shared using current FAAC formula.

The gains from subsidy removal are not from the current pump price but savings from not subsidizing the cost of imported fuel that is sourced from FX.

You guys are confidently ignorant and that's not a compliment.

franchasng:
Today I am in a very good mood after listening to God's words as preached by my great Pastor who happens to be a wonderful Yoruba man.


For those that don't usually attend Church on Sundays and on special weekly activities, please try and be attending because the word of God is life, it rekindles your spirit and awakens the giant in you and propels you to greatness if you back it up with actions and faith.


Now back to the topic; how Tinubu should have handled the fuel subsidy removal for a better Nigeria.



Being a diehard Obidient and an Apostle of God-sent leader to rescue Nigeria from leadership quagmire, Mr Peter Obi, I want to give out just a single tip out of the many of how Tinubu should have handled the removal of fuel subsidy and Nigeria wouldn't have been in a disaster it is in today as a nation.


Before I reveal this tip, sometimes I wonder if Tinubu does not have smart thinking economic experts that should have guided him or was it that Tinubu refused to listen to good counsels just to feel like Jagaban that his followers call him that always mislead him by making his head swell.



Removing fuel subsidy at one go wasn't so smart but removing the whole fuel subsidy at once and taking the money saved from the removal of fuel subsidy to share with state Governors was a very terrible mistake from Tinubu. I suspect he did it to win state Governors to his side ahead of a second tenure contest.


If this method was wrong, how then should Tinubu have done it?


Tinubu should have removed the subsidy and then take out 30% and share with the crooked state Governors and used the remaining 70% to remit into our foreign reserve which would have helped Nigerian Naira currency to gain value agains the dollar and other foreign currencies, with this, inflation would have stayed low and petrol price per liter would have remained around 750 Naira per liter.


How you may ask?


If Tinubu had used the money saved from fuel subsidy removal to build up our foreign reserve, Naira would have gained value and stayed at $1 = NGN680 at most, and with this exchange rate, petrol pump price per liter in Nigeria will be around NGN750 to NGN800 at most.


With this, inflation would have remained low in Nigeria and Nigeria's economy wouldn't have been this damaged.




He can still make a u-turn, if you are close to him, share this idea with him.


I am sharing this information because of my love for God and because of the poor Nigerian masses

Bro , tinubu met foreign resrve at $3b , today it's 50b so I don't understand what you are saying about taking some percentage to increase foreign reserve, he has done that already.

The problem i have with you Obidients is you guys never want to acknowledge any solution as long as it didn't come from obi or your movement.

franchasng:
Today I am in a very good mood after listening to God's words as preached by my great Pastor who happens to be a wonderful Yoruba man.


For those that don't usually attend Church on Sundays and on special weekly activities, please try and be attending because the word of God is life, it rekindles your spirit and awakens the giant in you and propels you to greatness if you back it up with actions and faith.


Now back to the topic; how Tinubu should have handled the fuel subsidy removal for a better Nigeria.



Being a diehard Obidient and an Apostle of God-sent leader to rescue Nigeria from leadership quagmire, Mr Peter Obi, I want to give out just a single tip out of the many of how Tinubu should have handled the removal of fuel subsidy and Nigeria wouldn't have been in a disaster it is in today as a nation.


Before I reveal this tip, sometimes I wonder if Tinubu does not have smart thinking economic experts that should have guided him or was it that Tinubu refused to listen to good counsels just to feel like Jagaban that his followers call him that always mislead him by making his head swell.



Removing fuel subsidy at one go wasn't so smart but removing the whole fuel subsidy at once and taking the money saved from the removal of fuel subsidy to share with state Governors was a very terrible mistake from Tinubu. I suspect he did it to win state Governors to his side ahead of a second tenure contest.


If this method was wrong, how then should Tinubu have done it?


Tinubu should have removed the subsidy and then take out 30% and share with the crooked state Governors and used the remaining 70% to remit into our foreign reserve which would have helped Nigerian Naira currency to gain value agains the dollar and other foreign currencies, with this, inflation would have stayed low and petrol price per liter would have remained around 750 Naira per liter.


How you may ask?


If Tinubu had used the money saved from fuel subsidy removal to build up our foreign reserve, Naira would have gained value and stayed at $1 = NGN680 at most, and with this exchange rate, petrol pump price per liter in Nigeria will be around NGN750 to NGN800 at most.


With this, inflation would have remained low in Nigeria and Nigeria's economy wouldn't have been this damaged.




He can still make a u-turn, if you are close to him, share this idea with him.


I am sharing this information because of my love for God and because of the poor Nigerian masses

What a revelation, tinubu met foreign reserves at 33 billion usd and brought it down to 5 billion usd that is why. oh, it is 50 billion usd now, i thought it is 5 billlion usd.

Talk is cheap, and any nuissssancee can provide "solutions", the devil is in the details.

The real savings came from not wasting FX on importing fuel and then subsidizing it at a huge loss in a domestic market.

The saved FX can now go into other meaningful infrastructural projects like roads, power and whatnot.

The savings in FX are not meant to promote importation but to stimulate local production by providing necessary infrastructure like power and roads that can drive investment and growth.

The OP is thinking like a trader who deals in imported scrap and so his focus is on maintaining cheap FX window and cheap fuel.

This is not in anyway sustainable and it's even a miracle that we got away with this wasteful controlled market system that was introduced by the military to boost their popularity among the populace.

Was there fuel subsidy before the civil war? But you will agree our economy was booming. And at that same period, Nigeria was still importing a vast majority of our domestic fuel needs since the three govt owned refineries were yet not built. Shell and Mobil had modular refinery plants in PH and Warri and these were not even meeting close to domestic demand and the pricing was not subsidized in anyway until Murtala nationalized our economy and took over the oil wells. Oil companies back then paid only royalties and tax from the oil they drilled. So Nigeria was even earning lower than it was getting until Murtala nationalized the oil.

As per FX, our trade deficit is what is driving the naira down. When you import more than you export, and your currency was not traded internationally due to the pegging that was done under the military to hide the deficit. The military had to come up with decrees on contraband items and there was even an import and export license that ensured only a very few could access FX to import certain products.

Tinubu's reforms are set to achieve two things :

1. Total elimination of subsidies so as to see to investment in the downstream sector. Currently Nigeria's downstream sector is limited to refining for energy solvents and fertilizers. Now investors want to invest in other derivative products that we already depend so much on importation. Items like industrial solvents, paints and resins , lubricants , brake and hydraulic fluids , etc.

With a subsidy regime in place and an economy tending to service importation at the detriment of local production that would have seen to both needed employment, tax revenue and even exports, there is no reason to keep the wasteful subsidy in place a day longer.

2. Tinubu's FX reforms have made the naira now an internationally traded currency . Prior to this, Nigerian niara could only be traded within it's sovereign borders.

The govt preferred politics over economics on the naira as Nigerians who are used to imported products automatically see a fallen naira as a threat to their purchasing power.
Meanwhile countries like Japan and China have been accused by the US of artificially deflating the true value of their currencies to get an edge in the export market. A cheaper Yuan, makes Chinese goods much cheaper than a US made product.

Now imagine you have a large family of ten dependants and every morning you give each member of your family money to purchase food from restaurant.

Will this not be considered wasteful and the best option is to buy food in bulk and have each of your dependants assigned to cooking the food ?

As I said the OP is a trader and has no business dabbling into things far above his understanding and comprehension.

DomPerignon:
Tinubu should have removed the subsidy and then take out 30% and share with the crooked state Governors and used the remaining 70% to remit into our foreign reserve which would have helped Nigerian Naira currency to gain value agains the dollar and other foreign currencies, with this, inflation would have stayed low and petrol price per liter would have remained around 750 Naira per liter.

This is how you know a trader from an economist.

Subsidy removal was meant to curb wasting of scarce FX to import fuel into the country.

What was saved was FX outflow .

The govt does not make any money from fuel sales as it is fully in the hands of market forces .

Does Dangote and the independent fuel importers remit money from sale of fuel to the FG coffers?

NNPC reserves 400,000 barrels from daily production for the domestic market which is sold to Dangote or used in crude-petrol swap deals, with foreign based refineries. That model does not generate any cash for the govt other than marginal profit to NNPC which is still shared using current FAAC formula.

The gains from subsidy removal are not from the current pump price but savings from not subsidizing the cost of imported fuel that is sourced from FX.

You guys are confidently ignorant and that's not a compliment.

They are all glorified traders bro. Critical thinking, always suspect. Everything is hustling, selling and building abandoned Village mansion.

What I expect the FG to do is to cut spending by reducing the civil service which has now become more of a welfare scheme than a driver of govt policies.

By cutting down, I mean elimination of most executive positions in the civil service.

Too many agencies around that do practically nothing of value and they have too many executives on their board of directors

A situation were the people now pay to maintain a bureaucracy that was meant to serve them is not acceptable.

There needs to also be total scrapping of some govt MDAs. Some do next to nothing and are net negative drain on resources. What exactly does the National Mathematics Centre do?
Another example is FIIRO that is meant to provide engineering solutions but so far is only in the news for the wrong reasons that latest being an appointed director being exposed for parading a fake doctoral degree and this is supposed to be the leading centre for engineering solutions. Universities must all be fully autonomous and should cater for only those who are interested in learning and betting themselves. The scenario where our universities are now killing fields and filled to the brim with gangsters, fraudsters and prostitutes should never be allowed to continue . Only in Nigeria will you hear of thugs murdering students on campus grounds Govt can use the money saved in managing those unrated universities for scholarship grants. States can offer free bursary to their indigenes but the FG must cut that shit now as it isn't in any way helping as the highest rated school in Nigeria (OAU) is not even in the top global 1,000 universities.

The focus should be on decentralisation and more states bearing the burden of governance. The FG should limit itself to diplomatic activities, securing our territorial and maritime borders and commissioning of infrastructure that will boost connectivity between states.

The problem lies with the 1999 constitution which is a remake of Ironsi's Zik handed down Unification and centralisation decrees.

WizardOfNG:
They are all glorified traders bro. Critical thinking, always suspect. Everything is hustling, selling and building abandoned Village mansion.

They are short sighted .

Trading does not require long term planning so they will not be able to understand how wrong it was for obi to take their collective wealth that was meant to provide critical infrastructure and divert it into his Fidelis bank venture and Panama account and use the rest to build a brewery.

Imagine him thinking the money saved from Subsidy is coming from his pocket not knowing it is from money saved from importing fuel and then subsidizing it.

WizardOfNG:
@OP.

Lol. This is why we ask some of you to think before you rush to post your ignorant opinions publicly.

Tinubu can withhold allocation to Governors, head of an independent tier of Nigerian Government, how?

How does the Foreign Reserve get improved then?

chinchum:
What a revelation, tinubu met foreign reserves at 33 billion usd and brought it down to 5 billion usd that is why. oh, it is 50 billion usd now, i thought it is 5 billlion usd.

Talk is cheap, and any nuissssancee can provide "solutions", the devil is in the details.

You do know that the CBN has a portal on their website were you can see daily FX reserve numbers.

You do know that right?

DomPerignon:
Tinubu should have removed the subsidy and then take out 30% and share with the crooked state Governors and used the remaining 70% to remit into our foreign reserve which would have helped Nigerian Naira currency to gain value agains the dollar and other foreign currencies, with this, inflation would have stayed low and petrol price per liter would have remained around 750 Naira per liter.

This is how you know a trader from an economist.

Subsidy removal was meant to curb wasting of scarce FX to import fuel into the country.

What was saved was FX outflow .

The govt does not make any money from fuel sales as it is fully in the hands of market forces .

Does Dangote and the independent fuel importers remit money from sale of fuel to the FG coffers?

NNPC reserves 400,000 barrels from daily production for the domestic market which is sold to Dangote or used in crude-petrol swap deals, with foreign based refineries. That model does not generate any cash for the govt other than marginal profit to NNPC which is still shared using current FAAC formula.

The gains from subsidy removal are not from the current pump price but savings from not subsidizing the cost of imported fuel that is sourced from FX.

You guys are confidently ignorant and that's not a compliment.

I decided to reply you just because most of you are so ignorant and still prideful in your ignorance..



What was fuel subsidy? What is subsidy?



Let me explain it to you in a layman language.



If petrol cost in international market is $2 per litter, to reduce the load on Nigerians, government decides to subsidize it with $1 so that marketers will sell the petrol at $1 in Nigeria. Nigerian government then pay the remaining $1 to petrol importers. That was how the subsidy was done.


When government removed subsidy, they stopped paying petrol importers the $1 meaning Nigerian government saved $1 multiplied by the total number of liters imported into Nigeria annually.


What Tinubu should have done is remove $0.7 and store up in our foreign reserve to build up the value of Naira and share $0.3 with State Governors.



So saying federal government didn't make any money from fuel subsidy removal is ignorance at its peak.



Tinubu instead of looking for ways to build up naira value went and devalued Naira after unifying Forex.


Many of you supporting him are ignorant and just being intentional blind.

ThreadManDennis:
How does the Foreign Reserve get improved then?

By declaring: "I increase Nigeria's foreign reserve followed by a chant of: on your mandate we shall stand, Bola on your mandate, Bola on your mandate we shall stand" and the reserve will automatically increase by $50billion

ThreadManDennis:
How does the Foreign Reserve get improved then?

How do you even have a foreign reserve in the first place ?

The number 1 driver of our FX is crude and gas exports followed closely by agricultural products .

Yes the north is the second largest driver of our foreign reserves.

The only way to improve foreign reserves that our naira is pegged to is to increase exports and/or reduce dependance on imports.

That import based racket is one of the major cause of FX drain and also why we have no industrial capacity today which leads to joblessness and unemployment among the population.

We need to bring back the industries we had in the 70s and early 80s which Alex Ekweme as head of Shagari's Economic Team destroyed by liberalising the import market in a bid to bring down the industrial capacity of the SW .

Ekweme is the architect of all this rubbish import based economy because his liberalisation of the economy to allow imports destroyed many local companies and saw to many foreign companies shutting down.

DomPerignon:
How do you even have a foreign reserve in the first place ?

The number 1 driver of our FX is crude and gas exports followed closely by agricultural products .

Yes the north is the second largest driver of our foreign reserves.

The only way to improve foreign reserves that our naira is pegged to is to increase exports and/or reduce dependance on imports.

That import based racket is one of the major cause of FX drain and also why we have no industrial capacity today which leads to joblessness and unemployment among the population.

We need to bring back the industries we had in the 70s and early 80s which Alex Ekweme as head of Shagari's Economic Team destroyed by liberalising the import market in a bid to bring down the industrial capacity of the SW .

Ekweme is the architect of all this rubbish import based economy because his liberalisation of the economy to allow imports destroyed many local companies and saw to many foreign companies shutting down.

Now tell us how removal of petrol subsidy helped Nigeria to reduce imports that depletes our FX?


They will just open mouth waaah!!



Subsidy removal did not reduce our fuel import.


What could have reduced our FX consumption is making our national refineries to work optimally to stop fuel importation into Nigeria.


Boosting our agro sector by clamping down seriously on insecurity, checkmating Fulani herdsmen menace that stopped Middlebelt farmers from engaging in full scale farming and discouraging youths from investing and going into farming.


By improving our healthcare and banning all government officials from traveling abroad for medical tourism starting with the President and his family members to live by example.


Improving our tertiary education and also looking for ways to ban political office holders children from traveling abroad to study.

WizardOfNG:
They are all glorified traders bro. Critical thinking, always suspect. Everything is hustling, selling and building abandoned Village mansion.

The guy has abandoned his thread but am sure he ll come back at the middle of the night to drop long irrelevant post that doesn't correlate with his initial topic

See him mouth blaming Alex Ekwueme and claiming he wanted to bring down Southwest industrial whatever lafmaooo, these guys from SW are really something else lolz



Almighty Europe, Japan, America and co cannot even compete with Chinese manufacturing capacity and cost, na Nigeria with no steady electricity want to become an industrial hub to challenge China and the rest of the Asian Tigers? Honestly una delusion de shame me.


Nigeria cannot catch up with whatever industrialization right now.


Highest we can do is focus on processing our agro products, maximizing our agro sector through mechanization so that we can start producing more agro products and raw materials and clamping down on crude oil theft to boost our crude oil production capacity, and investing in solid mineral mining to harness our solid minerals scattered all over Nigeria and investing in gas processing to harness our natural gas reserve in Southeast being allowed to waste away just because other tribes controlling Nigerian government don't want Southeast to become the headquarters of gas production in Nigeria.



Una go de alright last last

ThreadManDennis:
How does the Foreign Reserve get improved then?

Foreign reserve increase can never come at the expense of States and local governments having money to run their affairs.

All Nigerians live in a State or a local Government of Nigeria. The tiers of Nigerian governance is Federal, State and local Government.

Any revenue of Nigeria must be disbursed to all tiers per the sharing formula. It is as simple as that.

The best way to increase per capita income, foreign reserve, GDP output and other socio-economically positive indices is through aggressive focus to move Nigeria away from being a mono-economy lazily focused on our oil and gas endowment alone.

We have to develop so many other sectors that can make us wealthy and secure. We must invest in creating the best-educated and trained human resources in Africa if possible.

Massively upscale our capacity to produce more goods the world wants. Refine our agriculture, since we have verdant land and good climate, to produce food produce the world will buy from us daily and profitably.

Improve the travel and tourism sector capacity to be a serious contributor to the Nigerian economy. Etc, etc, etc.

Literally a thousand things we can be doing to grow Nigeria's capacity to to make far more money, lift many out of poverty and conquer the biggest problems facing our nation.

What is fundamentally untenable is for the FG to arbitrarily commandeer revenue due to States and Local Governments under any excuse at all.

Ttalk:
The guy has abandoned his thread but am sure he ll come back at the middle of the night to drop long irrelevant post that doesn't correlate with his initial topic

Lol. They never think before they rush to talk. Tinubu should sit, Emperor-like, depriving States of their constitutionally assured allocation to run their affairs?

Na wa for these guys. Next minute they will tell they and their fake messiah Obi have the solution for improving Nigeria.

franchasng:
I decided to reply you just because most of you are so ignorant and still prideful in your ignorance..



What was fuel subsidy? What is subsidy?



Let me explain it to you in a layman language.



If petrol cost in international market is $2 per litter, to reduce the load on Nigerians, government decides to subsidize it with $1 so that marketers will sell the petrol at $1 in Nigeria. Nigerian government then pay the remaining $1 to petrol importers. That was how the subsidy was done.


When government removed subsidy, they stopped paying petrol importers the $1 meaning Nigerian government saved $1 multiplied by the total number of liters imported into Nigeria annually.


What Tinubu should have done is remove $0.7 and store up in our foreign reserve to build up the value of Naira and share $0.3 with State Governors.



So saying federal government didn't make any money from fuel subsidy removal is ignorance at its peak.



Tinubu instead of looking for ways to build up naira value went and devalued Naira after unifying Forex.


Many of you supporting him are ignorant and just being intentional blind.

Ignoramus , Amaechi as Chairman of the Nigeria's govt forum took the GEJ govt to court over the Sovereign wealth fund which was been funded by excess crude surplus.

The GEJ govt was operating an accounting to pay in the excess amount gained from crude prices that was way ahead the set budget benchmark of $75. Crude had exceeded this amount and was selling at above $100.

Amaechi and his fellow governors took GEJ to court stating the excess crude account was illegal and that the FG must share the excess proceeds to all 36 states and 774 local govts which the governors controlled their purse. The court agreed with the Governors forum and the Excess crude account was declared illegal and all monies in it was shared and the account closed.

The governors will later challenge the cost claim of maintaining the fuel subsidy regime and there were congressional inquiries investigating the actual cost of subsidies from where it was discovered that marketers had connived with NNPC and ministry of petroleum staff to inflate the actual volume of crude they claimed to have imported. You know this as the subsidy scam.

This is why all governors back then were in full support of removing subsidy.

Now that I have educated you a bit, let's go back to your first statement on govt paying $1 for every fuel imported at $2.

The money came not from your pocket but from crude oil sales. That money was supposed to be shared by FAAC . Note that Nigeria operates a 60:40 joint venture with international oil companies.

The oil companies drill the oil and the govt sells the crude and pays the oil companies 40% from it . The govt is now left with 60% and out of that 60% , 400,000 barrels are reserved for domestic use and allocated to NNPC. Since NNPC refineries were not functioning, NNPC will swap that crude for imported refined products from refineries abroad. Then the govt maintained a subsidy that made it profitable to buy Nigerian subsidized refined products and take it across the border to sell in neighbouring countries that do not have a subsidy regime. This is the first cash out. This saw to more and more scrupulous marketers preferring to smuggle the subsidized fuel that was meant for our local markets to neighbouring countries leading to scarcity and long queues at our filling stations. The govt now had no choice than to engage same marketers to meet the shortfall by importing fuel and still paying them for it fully and with their nice profit on top . The marketers will still carry this subsidized imported fuel and smuggle it to neighbouring countries thereby worsening the scarcity .

At one time the ministry of petroleum and NNPC claimed our daily consumption stood at 50 million litres per day which most sane people disagreed . The govt was actually paying subsidy on 50 Million litres per day and most of it was being snuggled out .

There's no way subsidy can remain and you will not have a major racket going on from the point of importing it to distributing it

So my friend, the era of subsidy is gone for good.

The only thing you should now focus on is seeing to naira appreciation by encouraging and patronising local manufacturers.

WizardOfNG:
Lol. They never think before they rush to talk.

The most dangerous people in the planet are the half baked semi illiterates.

They think they know but they know nothing.

Exousiang01:
You really need serious prayers.
One important prayer point should be that God grants you the grace to acquire knowledge and the capacity to understand it....

It's something you obviously lack.....

Let me just start by telling you that
1. Tinubu never removed fuel subsidy, He simply announced what had already been done.
Buhari administration had pegged May as the last month they will pay.
We didn't have the money, we were taking loans to pay the subsidy, Tinubu was entering the office on the 29th of may, if he was to continue paying that would mean, the first thing he would have done was to take a loan, (something the likes of you would have wailed about). There was no money to pay subsidy from June.

2. That brings me to number 2.
When you children keep talking about money saved from subsidy.
What exactly do you mean by that?
It is available in the public domain records that show we were borrowing to pay subsidy, we even had to use future produce of crude oil to get loan. Meaning we took money for crude that we had not even produced just to pay for subsidy, which means that crude we produced would not bring us money because we already took the money to pay for subsidy....

So when you are talking about money saved, I ask again, WHAT MONEY?
The one we didn't have?

What we have done here is that the government is aggressively repaying our debts, growing the external reserves and pumping the rest of our income to the governors and local government who are closer to the grass root.
If your village is having an issue hold our local government accountable, he has collected money. So also your state governor.

3. One has to have serious mental issue to suggest anything outside completely removing subsidy.

My G, you nail this thing well. 1000 likes for you. Agulu fraudsters and his likes, believe there's money somewhere to be spent on the purchase of rice and beans (they see only that part of the economy).. When they say Obi will reduce the price of PMS, cooking gas etc, I ask them, " where will the money come from". They've not been able to answer this question

DomPerignon:
Ignoramus , Amaechi as Chairman of the Nigeria's govt forum took the GEJ govt to court over the Sovereign wealth fund which was been funded by excess crude surplus.

The GEJ govt was operating an accounting to pay in the excess amount gained from crude prices that was way ahead the set budget benchmark of $75. Crude had exceeded this amount and was selling at above $100.

Amaechi and his fellow governors took GEJ to court stating the excess crude account was illegal and that the FG must share the excess proceeds to all 36 states and 774 local govts which the governors controlled their purse. The court agreed with the Governors forum and the Excess crude account was declared illegal and all monies in it was shared and the account closed.

The governors will later challenge the cost claim of maintaining the fuel subsidy regime and there were congressional inquiries investigating the actual cost of subsidies from where it was discovered that marketers had connived with NNPC and ministry of petroleum staff to inflate the actual volume of crude they claimed to have imported. You know this as the subsidy scam.

This is why all governors back then were in full support of removing subsidy.

Now that I have educated you a bit, let's go back to your first statement on govt paying $1 for every fuel imported at $2.

The money came not from your pocket but from crude oil sales. That money was supposed to be shared by FAAC . Note that Nigeria operates a 60:40 joint venture with international oil companies.

The oil companies drill the oil and the govt sells the crude and pays the oil companies 40% from it . The govt is now left with 60% and out of that 60% , 400,000 barrels are reserved for domestic use and allocated to NNPC. Since NNPC refineries were not functioning, NNPC will swap that crude for imported refined products from refineries abroad. Then the govt maintained a subsidy that made it profitable to buy Nigerian subsidized refined products and take it across the border to sell in neighbouring countries that do not have a subsidy regime. This is the first cash out. This saw to more and more scrupulous marketers preferring to smuggle the subsidized fuel that was meant for our local markets to neighbouring countries leading to scarcity and long queues at our filling stations. The govt now had no choice than to engage same marketers to meet the shortfall by importing fuel and still paying them for it fully and with their nice profit on top . The marketers will still carry this subsidized imported fuel and smuggle it to neighbouring countries thereby worsening the scarcity .

At one time the ministry of petroleum and NNPC claimed our daily consumption stood at 50 million litres per day which most sane people disagreed . The govt was actually paying subsidy on 50 Million litres per day and most of it was being snuggled out .

There's no way subsidy can remain and you will not have a major racket going on from the point of importing it to distributing it

So my friend, the era of subsidy is gone for good.

The only thing you should now focus on is seeing to naira appreciation by encouraging and patronising local manufacturers.

You see how you are just blabbing and deviating from the main topic haven realized that you were wrong in all your initial claims that removal of subsidy helped to build FX based on your ignorance?


I never said Tinubu shouldn't have removed subsidy even though it was not a wise decision entirely because almost all European countries and most developed Asian countries still subsidize their fuel to keep energy cost stable for economic growth and stability



But let's stay on the topic; how Tinubu should have handled fuel subsidy removal for a better Nigeria.


Yes Amaechi took FG under Goodluck to court because they were all ganging up against Goodluck in their desperate effort to sabotage Goodluck in order to bring him down in 2015.



If Tinubu wanted to save 70% of the money saved from fuel subsidy removal, I tell you that he wouldn't have had any objections from the Governors.



Ngozi Okonjo-Iweala a seasoned economists and global economy expert warned Nigerian Governors back then that sharing the money instead of saving it will cost Nigeria a lot. Peter Obi joined Ngozi Okonjo-Iweala and warned that the money should be saved, but the APC criminal Governors refused to listen.




If Tinubu had taken out 70% of the money saved from fuel subsidy removal and saved, it would have helped Nigeria's Naira and economy more than sharing it with state Governors just to make them happy and to make them to be hailing you as the President that made them to get highest monthly allocation.



Tinubu is supposed to be a Motor Park Chairman where he will be hailed daily by the lauts, drivers and conductors and not being in charge of a nation like Nigeria but it's sad that he, Buhari were so fortunate to find themselves in several positions they were never qualified or competent to handle