₦airaland Forum

Humorously speaking, the guy who wrote the article just said he wants to eat tomorrow's bread today

Government told us that subsidies on petrol, kerosene and diesel were the problem. They increased the price of petrol. They removed diesel subsidy in 2003. They removed kerosene subsidy in 2016. They removed petrol subsidy in 2023. Each time the promise was the same. Remove subsidy, save money and build a better Nigeria.

This is the basis of all arguments against subsidy, that somehow we were promised a better Nigeria if subsidy went. True, that was the promise. But those making the promise, and those arguing for subsidy have a fundamental misunderstanding of Nigeria's problem

Nigeria has issues because we are not a productive economy. And to add insult to injury, we depend a lot on consumption and spend a lot on consumption to make consumption cheaper. That is where our problem lies.

As a result, we maintained subsides on petrol for over 5 decades, and virtually wiped out domestic refining in this country, because we essentially deprived the refineries of profit and monies to grow, repair themselves, expand production and so forth, in the name of cheap fuel

And we are still maintaining subsides on electricity which has led to the mess in the sector, and the disgrace.

When it comes to economics, NIgerians, like Tonye and most of the commenters on this site, including the APC data bots who are using subsidy removal to campaign (while their government maintains wasteful subsides on electricity and also on education and health, to disastrous effects)...demonstrate severe ignorance of why a subsidy is damaging to a nation's economy, and why it is necessary for any industry to make a profit while it runs its business.

Subsidies damaged the refining sector by having the government set a price , and then pay a subsidy that was never enough to cover the losses made from selling fuel below the production cost, which hampered the ability of the refineries to work properly as they could not import replacement spare parts, components, and other things needed to operate well. It also provided opportunites for corruption by essentially making it easy to sabotage refineries for cheap government money in the form of subsidy increases. After all, they would pay the subsidy money even if nothing was produced....and it led to the chronic lack of funds that led to the suspension of turn around maintenance on the refineries for 15 solid years...if not longer....which is why they cannot be revived, despite what NNPC tells you.

And the ignorance is even demonstrated in analysing why fuel consumption dropped. It was largely because in a subsidy economy, people buy more and more fuel. Since it is cheap, and that strains the ability of the government to pay subsides. Also, smuggling, and the same corruption, manifesting in the ease of being able to lie about how much fuel is bought and sold under a subsidy regime...because free government money. And since government can't have eyes everywhere, ...


Honestly , what annoys me about the ignorance on this site is that you have people who have university degrees defending a policy that forced government to sell fuel at a loss, then fund the subsidy based on crude oil sales, which are at the moment not even enough to fund our budget, meaning that any rise in subsidy costs would lead to more borrowing. And a fall in oil prices with a subsidy in place would even lead to more borrowing.


Consider our budgets for these years...

2010: Budget : N4 trillion, oil revenue 9.15 trillion, subsidy costs 1.3 trillion
2011: Budget : N4.3 trillion, oil revenue 6.815 trillion naira, subsidy buget : 240 billion, subsidy cost actual 2.7 trillion (see why jonathan wanted to remove subsidy)
2012: Budget : 4 trillion , oil revenue 12.5 trillion, subsidy budget 888 trillion, actual cost, less than that (partial removal of subsidy benefit)

2016: Budget : 6 trillion, oil revenue 2.6 trillion (effect of falling prices ), subsdiy costs 0 (effect of buhari raising oil prices to a level where subsidy was no longer payable, because of low oil revenue and massive borrowing.)

2019: Budget : N8.83 trillion oil revenue, 4.5 trillion, subsidy costs :Budget : 305 bn, actual monies paid 572 billion

2022: Budget: 17.12 trillion, oil revenue : 3trillion, subsidy costs 4 trillion naira.(rising oil prices raised subsidy costs, rising debt incurred when we had to borrow because low oil prices chopped most of the oil revenue. THIS IS WHY SUBSIDY HAD TO GO).

See a pattern? There are issues funding the budget, and massive debt.

It is not me supporting tinubu, I don't support him, it is me showing you that we do not have the monies to fund subsidy right now, even if Atiku wins tomorrow. Yes government, but there is no magic that would bring enough monies to fund subsidy.

helinues:
There are some things I actually don't understand about the opposition. Are they expecting over 4 decades rots in Nigeria to be cleared within 3 years? Are they sincerely expecting that?

Because we can all see what this government has been doing with the resources they have.

That was the same story we heard when Buhari became president. At the end, he did 8 consecutive years and left the country in a much dire strait. We ordinary Nigerians are tired of the numerous excuses, we just want the Nigerian system to work and favor the common man. Is that too much to ask?

April4th:
That was the same story we heard when Buhari became president. At the end, he did 8 consecutive years and left the country in a much dire strait. We ordinary Nigerians are tired of the numerous excuses, we just want the Nigerian system to work and favor the common man. Is that too much to ask?

So you mean you and your family have been languishing under penury since the inception of this government? Na question I asked oo no be fight

Well said!

I suspect a mystery/conspiracy by the elite class, irrespective of political leaning, to always employ fancy words and phrases each time they want to roll out self-serving policy.

svc1:
Has there ever been any administration that has never built roads or structure since 1960?

I wonder wonder why building roads are seen as the only metrics to justify government progress. We are a 3rd world country and our basic needs are still Food, Cloth and Shelter in 2026. Is that not enough metrics to judge poor governance.

They claimed they removed subsidy of petrol but the still spend 10x the amount the last administration spent in 8 years for God knows what.

The only people enjoying the removal of subsidy are the elite class in the society. And still the enjoy subsidy on other things like CBN loan interest rate, import rates, and so on. They only thing the poor masses are suppose to enjoy, you removed subsidy on it and you make their lives even harder than you met them.

NB: Early morning bus transportation hike due to agbero increasing tax on commercial drivers.

Sadly, the gentleman who you responded to, is among the commoners. I wonder how one will feel comfortable to defend a bad policy what he is a victim of

April4th:
That was the same story we heard when Buhari became president. At the end, he did 8 consecutive years and left the country in a much dire strait. We ordinary Nigerians are tired of the numerous excuses, we just want the Nigerian system to work and favor the common man. Is that too much to ask?

APC people don’t understand, Atiku is talking about subsidizing production of fuel not consumption. They have air in their brains, so they will never understand. Let’s vote for Atiku so government can help the masses to survive. A government that imposes 100% subsidy on its citizens is like a father that refuses to help his children, saying that anyone that can survive should survive and anyone that can’t survive should die. That is a very wicked father/goverment.

helinues:
Except if you are expecting the government to be dropping daily food on the masses table.

Apart from money saved from fuel subsidy, the governors can testify to how rich they have been since fuel subsidy payment was stopped.

How about the ongoing projects across the country, where did FG get money from?

What about the money mr president borrowed, what did he use it for

April4th:
You must be very stupid with your statement. I can feed, educate and provide housing for your entire generation. Don’t come a me with your usual bull crap, cos for you to be here full time means you’re actually jobless.

The online billionaires Dem.

So who are the people going through the hunger, are you crying on the bereaved?

Btw, if you are so rich to the extent of feeding me, in which economy are you that buoyant?

Gkay1:
What about the money mr president borrowed, what did he use it for

He must have also been the one that borrowed the debts he has been servicing

helinues:
There are some things I actually don't understand about the opposition. Are they expecting over 4 decades rots in Nigeria to be cleared within 3 years? Are they sincerely expecting that?

Because we can all see what this government has been doing with the resources they have.

I don't know how much people like you are gaining from Tinubu.
Can't you simply be objective for once?
If trillions are saved from fuel subsidy removal. Why borrow in 3 years what no government borrowed in 8 years?
Stop blind hypocrisy.

Opinedecandid:
I don't know how much people like you are gaining from Tinubu.
Can't you simply be objective for once?
If trillions are saved from fuel subsidy removal. Why borrow in 3 years what no government borrowed in 8 years?
Stop blind hypocrisy.

Sebi this government didn't service any debt by the previous government.

Some of you will be horrible as ordinary a class rep

1bunne4lif:
so it's now about how rich the governor's have been and not about the welfare of the common citizen? You're defending rubbish!

his not defending rubbish,he's definitely right on what he's saying.... The question is since the governors have more money.what are they doing with it?... even the local government chairmen need to be question too.

Am not a fan of tinubu ,but I tell u his policy are bond but due to the fantastically corrupt nature of Nigeria nothing is going to work.

helinues:
Except if you are expecting the government to be dropping daily food on the masses table.

Apart from money saved from fuel subsidy, the governors can testify to how rich they have been since fuel subsidy payment was stopped.

How about the ongoing projects across the country, where did FG get money from?

how rich the governor's have being ?
what a pity. they more money the governors get as allocation haven't translated into development in over 85% of the states in the country even at federal levels.
the masses are the ones bearing the heaviest weight of these tough economic policies and rising living costs.
if you like dont tell yourself the truth

Bishopwizzy:
how rich the governor's have being ?
what a pity. they more money the governors get as allocation haven't translated into development in over 85% of the states in the country even at federal levels.
the masses are the ones bearing the heaviest weight of these tough economic policies and rising living costs.
if you like dont tell yourself the truth

Have you questioned the governors before questioning the FG?

helinues:
Except if you are expecting the government to be dropping daily food on the masses table.

Apart from money saved from fuel subsidy, the governors can testify to how rich they have been since fuel subsidy payment was stopped.

How about the ongoing projects across the country, where did FG get money from?

The way you rush to defend Tinubu Government Baffles me, are you paid to do so or it's admiration?

Making more money available to Governors at the expense of the governed it's that what you call strategic?

Massive projects going on all around which country?

Maybe in the West or North, but down South or East. We no See massive projects on going oooooooh
So I wonder where Una Dey get Una Facts from

helinues:
Have you questioned the governors before questioning the FG?

Why should we question the governors now that Tinubu is in power?

Governors are used to carrying out white elephant projects without due Need assessment how d project affects the people directly,, This is not News so why empower them the more

U

1vandragon:
The issue is not the removal of fuel subsidy per se... it is a combination of issues... I will highlight just three...

First off, the reasons why fuel subsidy became supposedly unsustainable in the first place have remained... corruption, greed, incompetence, inefficient systems, multiple taxes, extortion, government manipulation/mismanagement, smuggling etc... they still exist, it is just that there is less noise about it. Those who made it seem subsidy was bad, are still the the ones running the show and making even more money.

Second, floating the naira so quickly after subsidy removal and without proper planning or calculation of the possible negative consequences was disastrous. The masses were still trying to adjust to the sharp rise in pms when the naira was floated. Again, failure to address the inefficiencies in the exchange rate is a problem. The game has changed, but the players remain the same.

Third, there is a gap between policy implementation and expected outcomes for the masses. The mistake bat keeps making is that he thinks removal of pms subsidy is an end in itself... it is not. It is simply a means to an end, and if the end result is not being achieved after 3 long years, then maybe the process needs to be reviewed. Policies must take cognisance of the peculiarities of the socio-economic conditions of the country. You cannot expect Nigerians to pay international rates for pms when the government itself does not pay its workers commensurate international wages.

There must be a balance... and if the government feels so strongly that the citizens must endure hardship today for a better tomorrow, then the political office holders must carry a huge portion of that suffering and inconvenience. Cut political office holders transportation and feeding cost by at least 85% to start with.

Convoys? Not more than 3 cars for governors. Ministers and others just 1 car. President? Reduce the convoy by 60%. Son and wife of the president? A two car convoy...

When the political office holders feel the pinch of the reforms, that is when citizens can bare with them.

My 2 cents...

You are right to a large extent. while BAT and his family cannot be said to be poor, the ostentatious display of wealth by the family especially SEYI & REMI TINUBU when the policy of BAT has brought untold hardship and excruciating pain on the masses throwing more hard-working Nigerian into extreme poverty is a serious concern and lack of sensitivity . Their large entourage is a serious call for concern. WHAT IS TINUBU AND HIS FAMILY SACRIFICES FOR HIS FAMILY POLICY THAT IMPROVERISHED NIGERIANS.
A government that grows richer while its citizens grow poorer is not reforming an economy. It is extracting from its people. It is actually the height of hypocrisy to say masses never benefitted from subsidy. Now that subsidy is gone why are many people been pushed into extreme poverty. May be we should give Atiku a consideration concerning returning fuel subsidy.
Atiku asked the question millions of Nigerians have been asking: where is the money supposedly saved from subsidy removal? He then promised a new subsidy structure that would privilege locally refined petrol, give qualifying Nigerian refineries crude at preferential prices, impose a fixed annual spending ceiling, trace subsidized crude to actual domestic production and punish diversion. His formulation is that “the subsidy will follow the barrel.”

helinues:
Have you questioned the rich governors who are more closer to us before questioning the FG

The penury the citizens have been going through, who should have been more responsible between the FG, the governors and the lawmakers?

This governor line of argument does not add up...

BAT control 32 governors out of 36 states...

BAT controls the lever that gives allocation to states..

U want citizens that have limited power to come against States...with vast resources

Are states and FG not birds of the same feather. ??

Reloadedisraelp:
his not defending rubbish,he's definitely right on what he's saying.... The question is since the governors have more money.what are they doing with it?... even the local government chairmen need to be question too.

Am not a fan of tinubu ,but I tell u his policy are bond but due to the fantastically corrupt nature of Nigeria nothing is going to work.

Exactly my point
Since Tinubu didn't tackle the "Fantastic Corruption" like you mentioned why remove the Subsidy so as to put hardship on the masses

Loonyy:
Exactly my point
Since Tinubu didn't tackle the "Fantastic Corruption" like you mentioned why remove the Subsidy so as to put hardship on the masses

... And u think if the subsidy remains n u are buying things at a cheaper price the greater consequence will not surface in ur everyday activities?

helinues:
Except if you are expecting the government to be dropping daily food on the masses table.

Apart from money saved from fuel subsidy, the governors can testify to how rich they have been since fuel subsidy payment was stopped.

How about the ongoing projects across the country, where did FG get money from?

Governors and government officials has been rich and gain it personal not that they have impacted citizens. Which and which projects, does this government execute project more than other past government, and don't forget some of these projects was awarded and paid for by past administration's.
That fuel subsidy is the only way the Masses are benefiting from Nigerian government, it was removed with a promise of using it to execute capital projects, the capital project we no see. Mind you even with the subsidy being paid all the project that has been done could have because it was included in the budget, so since we are not seeing anything please they should return the subsidy.

Everytime you will hear this rogue, failed and corrupt president tinubu referring us to our governors to ask about the subsidy money. For crying out loud, was it the governors, that removed the fuel subsidy?
Did the failed president tinubu, not rob the mass of the poor and struggling Nigerians of fuel subsidy relief, to pay his fellow thieves the governors, just to entice, attract and solicit their support for his re-election bid and political advantage?
The drug addict in aso-rock, continue to ignorantly insist that with his failed reforms, governors are now able to pay salaries. Salaries of just about 3% of the entire population, what about the remaining 97%, who are either in the informal or private sector, who are feeling the brunt of the excruciating and satanic policies of Tinubu.

Reloadedisraelp:
his not defending rubbish,he's definitely right on what he's saying.... The question is since the governors have more money.what are they doing with it?... even the local government chairmen need to be question too.

Am not a fan of tinubu ,but I tell u his policy are bond but due to the fantastically corrupt nature of Nigeria nothing is going to work.

there's no justification whatsoever to what he said. Leadership is all about accountability, no room for excuses.
Tinubu Is only interested in winning reelection not about the welfare of the average Nigerian. Any serious government will prioritize the citizen's welfare not massaging the egos of some greedy politicians

helinues:
FG is you people's problem not the governors that are more close

See rubbish talk with confident

you know the truth but have chosen to be ignorant. Tinubu is only giving governor's more money just to buy their consciences so as to have an easy ride in the next election.

TonyeBarcanista:
Tamunotonye S S Inioribo
Founder & National Chairman
Citizens Democratic Alliance

Subsidy removal only put money into the gov pockets

While the reverse put money into the masses pocket

1vandragon:
The issue is not the removal of fuel subsidy per se... it is a combination of issues... I will highlight just three...

First off, the reasons why fuel subsidy became supposedly unsustainable in the first place have remained... corruption, greed, incompetence, inefficient systems, multiple taxes, extortion, government manipulation/mismanagement, smuggling etc... they still exist, it is just that there is less noise about it. Those who made it seem subsidy was bad, are still the the ones running the show and making even more money.

Second, floating the naira so quickly after subsidy removal and without proper planning or calculation of the possible negative consequences was disastrous. The masses were still trying to adjust to the sharp rise in pms when the naira was floated. Again, failure to address the inefficiencies in the exchange rate is a problem. The game has changed, but the players remain the same.

Third, there is a gap between policy implementation and expected outcomes for the masses. The mistake bat keeps making is that he thinks removal of pms subsidy is an end in itself... it is not. It is simply a means to an end, and if the end result is not being achieved after 3 long years, then maybe the process needs to be reviewed. Policies must take cognisance of the peculiarities of the socio-economic conditions of the country. You cannot expect Nigerians to pay international rates for pms when the government itself does not pay its workers commensurate international wages.

There must be a balance... and if the government feels so strongly that the citizens must endure hardship today for a better tomorrow, then the political office holders must carry a huge portion of that suffering and inconvenience. Cut political office holders transportation and feeding cost by at least 85% to start with.

Convoys? Not more than 3 cars for governors. Ministers and others just 1 car. President? Reduce the convoy by 60%. Son and wife of the president? A two car convoy...

When the political office holders feel the pinch of the reforms, that is when citizens can bare with them.

My 2 cents...

May God bless you immensely for this, am happy we still have Smart and very intelligent people in this forum

femi4:
Subsidy removal only put money into the gov pockets

While the reverse put money into the masses pocket

The reverse would take money that could have created more jobs in the refining sector, more indirect jobs,created more export revenue from improved domestic refining, and use it to pay the masses money, that would be used to buy fuel, which would eventually become imported fuel, because our refineries are now gone thanks to subsidy robbing them of profits...which would in turn lead to debt that would affect...the same masses.

Nothing is cheap in this world. You do not have to be an APC supporter, or a supporter of any politican to realize that.

NO one can find which project? Did the railway he built follow him to the grave? Did the second niger bridge disappear when he left power?

What of all the projects that when Tinubu commissions them, you guys quickly turnaround to say they are not Tinubu's project but Buhari's project?

FarahAideed:
This is how you people lied Buhari was doing projects across the country and when he left nobody can find the projects , again. You are lying Tinubu is doing project and if I ask you will show me the 30km coastal fraud he awarded his crony

nairalanda1:
The reverse would take money that could have created more jobs in the refining sector, more indirect jobs,created more export revenue from improved domestic refining, and use it to pay the masses money, that would be used to buy fuel, which would eventually become imported fuel, because our refineries are now gone thanks to subsidy robbing them of profits...which would in turn lead to debt that would affect...the same masses.

Nothing is cheap in this world. You do not have to be an APC supporter, or a supporter of any politican to realize that.

Even in abroad, there is subsidy. It doesnt stop creation of jobs. Dont let them scam you

With subsidy removal, Nigeria is still borrowing, no jobs, no hospital built cos the Govs are cashing out

If there is subsidy on cement, you will see how housing will be affordable

In the UK, we have subsidy on gas, electricity, hospital bills etc yet jobs are being created and people can afford much more with little they earn

helinues:
Except if you are expecting the government to be dropping daily food on the masses table.

Apart from money saved from fuel subsidy, the governors can testify to how rich they have been since fuel subsidy payment was stopped.

How about the ongoing projects across the country, where did FG get money from?

One benefits about defending APC is senseless!
Petrol subsidy was financed through loans but a citizen suffering and smiling is defending imaginary money saved.
Every sane person in Nigeria knows that projects are financed with loans.
Governors are now rich according to data boys who don't know that increasing the volume of money destroys the value of money.
APC supporters and there senseless are like 5&6!