₦airaland Forum

99thEnemy:
It was only partly removed.

Does it mean that Tinubu was telling lies as usual when he said subsidy is gone?

Why should anyone trust whatever the balablu bulaba master strategist of a-looter propaganda politics says?


https://www.youtube.com/watch?v=7WzbBqAWPfI

Aug 29, 2023

Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun made this known at the end of the inaugural Federal Executive Council meeting in Abuja.
Mr. Edun said that the benefit of the subsidy removal will be plough back into various sectors to improve business environment for local and foreign investment.
He added that with the increased revenue from subsidy removal, various palliatives have been made available to cushion its effect on a short, medium and long-term basis.






https://www.youtube.com/watch?v=Bn29b0SkCWU?si=s_-vTlCqSlykI0BX

Ofunaofu:
Report: Current Govt Added More Debt in Two Years Than Nigeria Accumulated in 55 Years

• Decries Nigeria’s debt service-to-revenue ratio

•Urges FG to declare fiscal emergency

A new policy brief has warned that Nigeria’s worsening debt profile and weak revenue generation have pushed the country into a dangerous fiscal position, with the current administration accumulating more debt in two years than Nigeria recorded during its first 55 years after independence.

The report, released by the Alliance for Economic Research and Ethics LTD/GTE, a Nigerian policy think tank, argued that the country’s debt crisis has evolved into a governance and revenue emergency, as debt servicing obligations now exceed the federal government’s retained earnings.
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According to the think tank, Nigeria’s public debt rose sharply from N87.38 trillion in June 2023 to N159.28 trillion by the end of 2025, with President Bola Tinubu’s administration accounting for about N65.9 trillion of the increase within its first two years in office.

The organisation in the brief titled: “Nigeria Is Borrowing to Breathe—and the Clock Is Ticking”, noted that Nigeria accumulated only about N12.06 trillion in debt from independence in 1960 up to 2015, meaning the current administration added more than five times that amount in just 24 months.

The report stated that while previous governments also contributed significantly to the country’s rising debt burden, the speed of accumulation under the current administration had intensified concerns over fiscal sustainability.

“President Bola Tinubu’s administration has added a further N65.9 trillion in just two years. To put that in perspective: it took Nigeria’s first 55 years of independence to accumulate N12 trillion in debt. The current administration has added more than five times that amount in 24 months,” it argued.

It recalled that Nigeria briefly became almost debt-free externally after the administration of former President Olusegun Obasanjo secured an $18 billion Paris Club debt relief package in 2005 and paid $12 billion to extinguish about $30 billion in external obligations.


https://www.thisdaylive.com/2026/05/22/report-current-govt-added-more-debt-in-two-years-than-nigeria-accumulated-in-55-years/

anonimi:
Does it mean that Tinubu was telling lies as usual when he said subsidy is gone?

Why should anyone trust whatever the balablu bulaba master strategist of a-looter propaganda politics says?


https://www.youtube.com/watch?v=7WzbBqAWPfI

Aug 29, 2023

Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun made this known at the end of the inaugural Federal Executive Council meeting in Abuja.
Mr. Edun said that the benefit of the subsidy removal will be plough back into various sectors to improve business environment for local and foreign investment.
He added that with the increased revenue from subsidy removal, various palliatives have been made available to cushion its effect on a short, medium and long-term basis.






https://www.youtube.com/watch?v=Bn29b0SkCWU?si=s_-vTlCqSlykI0BX

The part remaining is being termed intermittent price stabilization interventions.

It is not like subsidizing with cash (explicit subsidy), but rather by lifting some rules, regulations, taxes, etc... that will keep the fuel prices lower than it would have actually been without doing so (implicit subsidy).

The IMF was even calling for the removal of the implicit subsidies since August 2023

Explicit subsidy is completely removed, implicit subsidy remained.

Sheuns:
Until politicians start making the same sacrifices they ask the people to make and honestly channel the funds into developing the state and people before they can be taken seriously or trusted.

Simple...

Political office holders, elected and appointed, must be 'beneficiaries' of thier own policy outcomes.

If the people must go through hardship, those who made the policy should suffer it too.

Imagine bat budgeting over #7b for his transportation in 2026. That is almost #20m per day for his transportation, but he does not want Nigerians to enjoy any subsidy.

He should start by cutting it to #500k per day or #182m per year.

Governors should do same.

Remove feeding budget. Feed with your salary. Budget just #20m per year for state dinners.

Reduce convoys across board. No governor should have more than a 3 car convoy. Ministers, 1 car. Even the COD and IG should not have more than a 3 car convoy.

Let everyone share in the burden and consequences.

It is said that when a fly perches on the scrotum of a violent man, he would realise that their are gentler ways to resolve issues.

99thEnemy:
The part remaining is being termed intermittent price stabilization interventions.

It is not like subsidizing with cash (explicit subsidy), but rather by lifting some rules, regulations, taxes, etc... that will keep the fuel prices lower than it would have actually been without doing so (implicit subsidy).

The IMF was even calling for the removal of the implicit subsidies since August 2023

Explicit subsidy is completely removed, implicit subsidy remained.

How then did NNPC spent over #7T by the government lifting some rules, regulations, taxes, etc? How come Buhari even with the rules, and taxes in place spent #4T on subsidy payments while it was fully explicit in 2022, but Tinubu spent over #7T in just 1 year, on a non existent subsidy that is implicit ?

nairalanda1:
Developed countries also pay very heavy taxes for the pleasure of those subsidies, which go to the poorest of the poor. Even when everyone is benefitting, like free education, the tax eats half the income. As bad as Nigeria is, no government has levied a tax that takes half one's salary or income

Even things like railways that are subsidised, the system is in debt, leading to a disucssion as to how long it can continue (Germany has this problem, UK removed railway subsdies in the 1990's..as a result a train journey in the UK is expensive).

Finally subsides given to industires and businesses are production subsides, not consumption subsides, which is what our fuel subsidy was an example of. (Another example of a consumption subsidy is the SNAP programme,in the USA, which is given to very poor people only..for food and other things).

It seems you dont understand something Nigeria economy is petrol drive economy immediately tinubu announced subsidy is gone what happens next economy was thrown into shambles

Atiku makes sense,
Obi mauls without showcasing meaningful exposition

99thEnemy:
Between the two major opposition presidential candidates, who is right about subsidy?

Atiku or Obi?

Should it be reinstated, or should it remain removed?

Kaybaba5:
It seems you dont understand something Nigeria economy is petrol drive economy immediately tinubu announced subsidy is gone what happens next economy was thrown into shambles

Economy was already in shambles.

Plus,there was no money for subsidy. (It does not mean I am saying that looting is good...there just was no money). And no money left for borrowing.

There literally has not been enough money for subsidy since 1992. It has been funded by partial removals and increasing borrowing since then. That is why government was saying that they should remove subsidy since then.

Tinubu did not remove it because he was a wise and good leader, or taking bold decisions, he removed it because the decades of keeping subsidy had caused our debt to balloon to a level where the government was literally borrowing for almost everything, and servicing a very hefty debt. And thanks to that debt, borrowing has increased in spite of that subsidy removal.

Jakarta:
How then did NNPC spent over #7T by the government lifting some rules, regulations, taxes, etc? How come Buhari even with the rules, and taxes in place spent #4T on subsidy payments while it was fully explicit in 2022, but Tinubu spent over #7T in just 1 year, on a non existent subsidy that is implicit ?

No idea.

This is a really good piece. And I hope talking heads across TV, radio and the online space will elevate the issues raised here.

A subsidy may provide relief, but Nigerians deserve to know how much it would cost, who would benefit, how it would be funded and how the country would prevent the corruption and opacity that characterised the old system.

What's the point of the removal if citizens are not seeing any benefits?

This administration said the removal will free up funds for developments. In 3 years, what's the development? Can it be clearly and independently enumerated without political undertones?

Was it not the same Tinubu and the gang that frustrated Jonathan's subsidy removal. We would have been benefitting the effect by now .

BrickandLace:
keep your hope alive

You are a patient taking a bitter medicine

Tinubu is the only president bold to take hard decisions

Nigeria is broke.

Jonathan ruined Nigeria

I don't have control over the population

My Bold reforms is already yielding results...

99thEnemy:
No idea.

Good, be it implicitly, explicitly, desplicitly, fesplicitly....zesplicitly one thing is certain. The government through NNPC is still spending trillions of naira on petrol subsidy even at the current cost of #1300+ per litre subsidy now have a new name "Energy security cost"

nairalanda1:
Germans also pay nearly half their income as tax, so should Nigeria do the same?

Germany has a diversifed economy, that is industrial, and that exports goods worth trillions of naira annually? Nigeria does not have that kind of economy.

Thus germany has monies for subsidy, Nigeria does not have money for subsidy. Even without corruption.

What part don't you understand, old man? Is telling the truth hard for you? We don't have the money, and the corrupt APC government is making matters worse by not making NIgeria an industrial economy, and fighting corruptoon.

SO, how can I be a tinubu supporter?

LOL.

Nigerians, even though still paying some taxes, have no business paying a dime as tax.

Reason is simple: the govt already sits on all resources from the ground and have mismanaged them grossly. Tell me what will change the fate of taxes in the hands of govt official?

Desyner:
Nigerians, even though still paying some taxes, have no business paying a dime as tax.

Reason is simple: the govt already sits on all resources from the ground and have mismanaged them grossly. Tell me what will change the fate of taxes in the hands of govt official?

LOL.

Here is a very hard truth.

Sane nations, even those with resources, pay tax...

The problem with resources is their prices are volatile, no 1...that means that one year, your revenue would collapse because prices of resource X are too low.

Second, we cannot set the prices of the resources we set. It is set for us by market forces that are international. Ghana once raised the price of its cocoa to get more money for the revenue. Within minutes, it had to reduce it because buyers went to other countries to buy. NIgeria inclusive.

Sane nations raise revenue from taxing the gdp and from also selling industrial goods that are made from what they have...industrial goods that the world needs. This is why your government is bad...they have not made our economy dependent on production (and why you mist vote for Peter Obi, because he is the only one talking seriously about improved productivity).

Nigeria has a very large population that is way beyond the means for the resources to sustain it. By rights, if we want to live a good life, we need something like a budget in the hundreds of trillions of naira. Not the 70 or less trillion naira we call budget.

And if you think Nigerians are paying enough in tax, why is our tax revenue not enough to cover the budget then? Because it isn't

Note that the above does not mean I am denying corruption exists...it does, but even if we got the money stolen back, at best it would yield enough money to last us a few years, and it may not be enough.

Only 40% or less of Nigerians pay income tax. It might even be less, and the revenue is not enough to fund 20% of the budget.


You can abuse me, but these are the cold hard facts.

nairalanda1:
Nigeria has a very large population that is way beyond the means for the resources to sustain it. By rights, if we want to live a good life, we need something like a budget in the hundreds of trillions of naira. Not the 70 or less trillion naira we call budget.

And if you think Nigerians are paying enough in tax, why is our tax revenue not enough to cover the budget then? Because it isn't.

Listen to your self.

N70 Trillion is not the issue. It will never be. The buying power of your money is and the reasons why the buying power is ever dwindling is what i am addressing. You are throwing big grammar and figure at me in a scattergun approach.

The budget you are defending is largely a useless one that doesnt cater for the needs of the people. Lagos-Calabar highway is a solid example.
Why should i pay more taxes to people who will use it for constituency project in the parlour or even sponsor killers?

You are just arguing for argument sake man.

Desyner:
Listen to your self.

N70 Trillion is not the issue. It will never be. The buying power of your money is and the reasons why the buying power is ever dwindling is what i am addressing. You are throwing big grammar and figure at me in a scattergun approach.

The budget you are defending is largely a useless one that doesnt cater for the needs of the people. Lagos-Calabar highway is a solid example.
Why should i pay more taxes to people who will use it for constituency project in the parlour or even sponsor killers?

You are just arguing for argument sake man.

Yeah, that is why I said that sane nations rely on producing industrial goods and exporting them as part of their means of survivial. It attracts forex and investment, and then makes the currency stronger.

Is your government doing that?

And yes, taxes. Call me silly, but taxes. Most of you do not pay attention to your government because you do not pay income tax. If most of you were paying income tax from 2023, tinubu won't be in office, he would have been kicked out since.