₦airaland Forum

nairalanda1:
I remember you were opposing subsidy removal, and you probably think it was a disaster.

Well, government NOT removing subsidy for decades, until the rising debt resulting forced tinubu to remove it (alongside lenders refusing to borrow money to fill the budget deficit)....is why dangote is the only game player in town

If subsidy had gone in 2012, when you and your fellow nigerians were protesting , by now we would have had a lot of refineries up and running. The refusal to remove subsidy then left people like Dangote as the only one whom banks and lenders were willing to lend money to build his refinery (before you shout government...Dangote spent 20 billion dollars on the refinery, only 3 billion came from CBN and government)...because if Dangote defaults, they pay themselves back from his other businesses.

No one is going to invest in a refinery where there are price controls.Because the purpose of investing is to make money, not to do charity for people. Everything that goes into making a refinery work is imported, plus workers must be paid very very well . But you guys kept on crying for subsidy anytime government wanted to remove it. That wrecked the NNPC refineries because they were being forced to run at a loss in the name of subsidy. That is why they cannot work today.

Or to put it this way, subsidy prevents refineries from making enough profit.

Next time, not every government decision is oppressive. Some are, not all.

malali:

Nice try, but you're missing the plot badly.Subsidy didn't "protect" anything, it was a corrupt scam that killed NNPC refineries through looting and forced losses for decades.
Delaying removal didn't attract investors; it scared them away and created this Dangote monopoly.Dangote isn't a free-market hero. He's the only one because of his connections, special deals, and government muscle.
One man still controls prices and gives Nigerians tiny drops after global oil crashes. That's not competition, that's capture.

Real solution: Open the market fully. Let serious importers compete and force everyone to drop prices daily. No sacred cow, no monopoly pricing.Your "wait for subsidy removal" story is clueless. It wrecked us then, and we're still paying for it.

We might have moved from frying pan to fire. This is just Episode 1 season 1. We all know Dangote's style.

malali:
Alhaji Aliko Dangote, Africa’s wealthiest man, recently called for the complete removal of fuel subsidies in Nigeria, suggesting it would accurately reflect petrol consumption and ease currency pressures. While these points might resonate with financial analysts, they ignore the harsh realities faced by everyday Nigerians. This push for subsidy removal must be scrutinized, as it risks deepening the already overwhelming hardships many citizens endure.

1. Economic Strain on the Vulnerable: Ending fuel subsidies will lead to skyrocketing fuel prices. For the average Nigerian, this translates into higher costs for transportation, food, and essential goods. The inflationary ripple effect could exacerbate poverty levels, pushing many families further into financial despair.

2. Lack of Safety Nets: With no robust measures to support the unemployed or ensure food security, the government’s fiscal policies risk becoming draconian. Such policies would disproportionately affect the weak and vulnerable, turning what could be an economic reform into a silent genocide against the very fabric of society.

3. Disconnect from Reality: Dangote’s perspective seems detached from the struggles faced by millions of Nigerians. Having lived a life of affluence, it’s easy to advocate for policies that overlook the daily challenges of average citizens. A billionaire suggesting such measures lacks an understanding of the profound impact on the common man.

4. Job Losses and Economic Instability: The removal of subsidies without alternative job creation plans would devastate local businesses and increase unemployment rates. This negligence could lead to greater social unrest, as people struggle to survive in a collapsing economic landscape.

5. Maxim of Leadership: As the saying goes, “A strong man fights for the weak, while a bully fights the weak.” If the government continues to pander to international financial institutions like the World Bank and IMF at the expense of its citizens, it risks becoming a bully, neglecting the very people it was elected to protect.

Rather than hastily removing fuel subsidies, the government must adopt a more nuanced approach that addresses the root causes of Nigeria’s economic challenges. Prioritizing job creation, food security, and social welfare will demonstrate true leadership—one that champions the weak rather than exploits them. It is vital to resist policies that serve only the interests of the wealthy while disregarding the suffering of the majority.

Malali

lawani:
If you built a refinery when government refinery was working you can or may incur shortages depending on many factors but if you built a refinery during subsidy you can't incur any shortage. That must be understood. Government or the marketers would just buy from you as they were buying from the international market and if your own is more expensive then they won't or why should they?

To subsidise fuel to N197, the government would need to take half of the money in the budget to pay for the subsidy.

Probably more, because cost of production and maintenance has no respect for whatever price government sets.

And how would the government replace the money ? More loans. Or salaries, wages, and pensions will not get paid for most people.

Also, stop all this oil rich nation things. We produce 1.3 million barrels for over 230 million people. If we had only ten million people, it would make a lot of sense to sell fuel even at N40 because money dey boku...but we are not an oil rich naiton because our oil revenue

, even if there was no stealing and waste, is still not enough, and if ya think it is, na magical thinking you dey do

If we want to be rich, we should use our raw materials to make manufactured goods for export.

Thats how oil rich nations like the USA and Norway actually became rich. If oil runs out tomorrow, dem go still stand, unlike Saudi that is oil rich and makes nothing of global value.

nairalanda1:
The only thing preventing refineries from being built was subsidy, also the thing that wrecked NNPC refineries was subsidy too.

You cannot refine fuel at a certain cost, and then have government force you to sell it below the production cost, and pay you a subsidy that does not even cover your resultant losses.

Not when refineries need imported components and stuff.

Subsidy should have gone decades ago. The last chance we had was in 2012. You guys did not listen.

lawani:
Government can't force you to sell at any price and neither should they force anybody to buy from you. You should pay all relevant tax and government can then impose a tariff on importers

nairalanda1:
So, why did you then oppose subsidy removal before. Your words below betray you...



RIght, if subsidy had gone in 2012, or even in 1993, dangote won't have been the only refinery.

Accept it, you made your bed in the name of tired platitudes about how subsidy removal would harm nigerians, which was the government's position from 1973 till 2023, when the resultant debt made it unsustainable, now you got to lie in it.

Next time, think about why certain decisions are made. If subsidy had gone in 2012, or even in 1993, we would have had a competitive fuel market.

MarkNsukkaBread:
Na lie you dey talk, it's not possible.

You know absolutely NOTHING about running a business, it's very obvious

donself9:
Cost of production is subjective to inner factor, than external factor, what to i mean
for instance, if Nigeria owns it refinery & we can sufficient supply crude local ... Cost of production will be minimal and prices of fuel won't be dictated by int"l price, meaning pump price will be lower than what int'l benchmark dictate

your questions are highly irrelevant, solutions i proffer have nothing to do with " subsidy"

you & who is WE, unde GEJ we recorded 2m barrels, if we are doing less today it only means the Govt & minister of petroleum are highly incompetent.

The question is do we have capacity to maximize above 1.3m or not ??

I hate this excuse of we are 230m, indian & chain are over 1 billion check there ratings. Qhich oil indian get to there population infact they rank top oil consumers in the word

1 billion to 230m Nigerians, nd you think you have excuse ..

Ogbeni mechonu jare ! No revenue is ever enough thats why we always clamour we " diversify" Nigeria is blessed with other resources buh govt is fixated crude .. If we dont have enough money it is still the fault of those at elms of affair, t

What is the govt you can die for, doing that depict we are on state of productivity emergency

You guyz have being on oil wil dry for how many decades now, even though i believe in diversified economy, i also strongly believe in using your highiest potential to get what you need.

malali:

You are quoting me out of context......I stated subsidy removal will cause hardship,if not done correctly.....clearly as we can see the vices in Nigeria today !!
I stated subsidy removal would cause undue hardship and recommended
"Rather than hastily removing fuel subsidies, the government must adopt a more nuanced approach that addresses the root causes of Nigeria’s economic challenges. Prioritizing job creation, food security, and social welfare will demonstrate true leadership,one that champions the weak rather than exploits them. It is vital to resist policies that serve only the interests of the wealthy while disregarding the suffering of the majority."

We might have problems, but we know a petrol monopoly when we see one, this price regulation left to One man in the whole country....Is the definition of "Monopoly"

Open the market fully. Let serious importers flood in and compete. Force Dangote to earn every litre on price and efficiency. No more one-man pricing power.

marlow1962:
Nigerians celebrating #75 slash in petrol, when the same Nigerians actually bought the same petrol for 75-85 naira.

Lol very funny

nairalanda1:
Dangote is not a shylock...he is the result of you nigerians refusing to support subsidy removal before 2023.

GEJDHERO:
If he is not a SHYLOCK tell me why he has reducued the fuel price by just N75 after crude oil price has fallen below $80.

nairalanda1:
If you Nigerians had allowed subsidy removal before 2023, by now you would have had more refineries, and dangote won't be dictating the price.

NO one go refine fuel when a subsidy is in place, because banks won't lend you money for refinery building. Dangote was an exception because he had other lucrative businesses that he could use as collateral.

lawani:
You can refine fuel when subsidy is in place. There is demand for the fuel. The only occasion you can't refine fuel is when government is refining fuel and does not want profit. There is a difference.

Government can not leave a refinery in Nigeria and go outside to buy unless the local refinery is selling too high

Then the opportunity was there but the vision was lacking. There are many entities that can build refineries in the country and many have done so already. Only that Dangote's is the biggest. I believe he built the biggest because when you scale your expenses will drop.

Politicstoday:
With the US-Iran deal signed & the Strait of Hormuz reopening, global crude prices WILL fall. Dangote Refinery has no excuse — gantry price should drop to ≈₦900/litre.

Nigerians deserve pump prices of ₦950–₦1,050/litre. NOT ₦1,300+.

The Hormuz crisis inflated prices. The crisis is ending. The savings must flow to the people. 🇳🇬

#NigeriaFuelPrice #HormuzDeal #DangoteRefinery #PMS

Politicstoday:
https://punchng.com/dangote-refinery-slashes-petrol-gantry-price-by-n75-litre

MarkNsukkaBread:
petrol price was around N750 just before the war started so he is correct

Politicstoday:
With the US-Iran deal signed & the Strait of Hormuz reopening, global crude prices WILL fall. Dangote Refinery has no excuse — gantry price should drop to ≈₦900/litre.

Nigerians deserve pump prices of ₦950–₦1,050/litre. NOT ₦1,300+.

The Hormuz crisis inflated prices. The crisis is ending. The savings must flow to the people. 🇳🇬

#NigeriaFuelPrice #HormuzDeal #DangoteRefinery #PMS

Rhymesy:
Transportation fee will still be costly. Shey na Naija we dey. Nothing goes up and come down again

marlow1962:
Nigerians celebrating #75 slash in petrol, when the same Nigerians actually bought the same petrol for 75-85 naira.

Lol very funny

nairalanda1:
If you Nigerians had allowed subsidy removal before 2023, by now you would have had more refineries, and dangote won't be dictating the price.

NO one go refine fuel when a subsidy is in place, because banks won't lend you money for refinery building. Dangote was an exception because he had other lucrative businesses that he could use as collateral.

nairalanda1:
Dangote is not a shylock...he is the result of you nigerians refusing to support subsidy removal before 2023.

GEJDHERO:
You were amongst those that fought against subsidy removal.... I bet u re an AGBADONIAN.