₦airaland Forum

NINpegrimage:
Father, keep shut if you have no excuse to white wash the kleptomaniacs in government

The way you guys go, anyone who disagrees with you on anything, na tinubu supporter.

I am telling you today, if subsidy comes back, you go feel am for debt.

If it makes you cry, cry harder, son.

nairalanda1:
The way you guys go, anyone who disagrees with you on anything, na tinubu supporter.

I am telling you today, if subsidy comes back, you go feel am for debt.

If it makes you cry, cry harder, son.

So you can't defend the administration your drug trafficking president fought so hard to get ?

DrugPRESIDENT01:
So you can't defend the administration your drug trafficking president fought so hard to get ?

What is there to defend about this corrupt goverment?

They have messed up,.that is clear.

But as regards subsidy removal,.if Na Obi or Atiku wey dey in charge and dem remove subsidy, I go support am.

Subsidy removal has nothing to do with politics.

This shouldn't be rocket science for any sane mind

I like this man, though I am not a fan but he always hit the point in all his write-ups..

ogododo:
Something extraordinary is happening across the world. Governments are losing sleep over the intolerably rising prices of petrol and diesel. They are cutting taxes, subsidizing fuel, capping prices, releasing strategic reserves, relaxing regulations and strong-arming oil companies. Where relief has not yet come, governments are promising it.

A few examples of countries that are doing the exact opposite of Tinubu’s insensate destruction will suffice.

On Friday, October 2, the G7 agreed to release 100 million barrels of diesel and crude oil from emergency reserves to bring prices down. The decision followed pressure from the Trump administration, which had threatened restrictions on American diesel exports if European governments did not release their reserves. Oil prices fell almost immediately after the announcement.


Germany has cut taxes on petrol and diesel by 17 euro cents per liter through December and is discussing a fuel-price cap. Australia halved its petrol and diesel excise, shaving 26.3 Australian cents off every liter. Canada suspended its federal excise tax on gasoline and diesel.

Ireland cut petrol taxes by 27 cents per liter and diesel taxes by 32 cents. Spain proposed relief of up to 30 euro cents per liter. South Korea imposed a fuel-price ceiling. Brazil has subsidized gasoline and cut taxes. Italy leaned on major oil companies to cap petrol and diesel prices. Kenya cut VAT on petroleum products.


President William Ruto personally announced a reduction in diesel price after public protests over rapidly rising energy costs. His government had already spent substantial public funds cushioning fuel prices.

Ghana’s President John Mahama said his government was considering cutting fuel margins and reviewing a new petroleum levy to relieve the pain at the pump after petrol rose about 15% and diesel about 19% in one pricing window. He also raised the possibility of a supply agreement with the Dangote refinery.


My research for this column has documented at least 50 cross-continent national cases of state interventions designed to reduce the cost of petrol or diesel, and that’s not even an exhaustive global count.

In the United States, the Associated Press found this week that about one-third of U.S. states have implemented some form of fuel-tax relief alone. That does not count every regulatory waiver, supply measure or proposed tax holiday.

On September 28, Texas Governor Greg Abbott issued a statewide disaster proclamation because of record diesel prices. He authorized expanded use of cheaper tax-exempt dyed diesel on Texas roads, relaxed weight restrictions and sought federal waivers intended to expand supply and reduce costs. Abbott said record prices threatened agriculture and freight and raised costs for every Texas family.

That same day, Georgia Governor Brian Kemp declared a state of emergency and suspended the state’s motor-fuel excise tax for 30 days. Georgia ordinarily taxes gasoline at 33.3 cents per gallon and diesel at 37.3 cents. Kemp suspended the taxes because, as his office put it, Georgians needed relief from global market volatility.

Now look at the prices. AAA put regular petrol at $3.94 per gallon in Texas and $3.96 in Georgia on October 1. A U.S. gallon is 3.785 liters. That works out to about $1.042 per liter in Texas and $1.046 in Georgia. At roughly ₦1,329 to the dollar, that is about ₦1,385 per liter in Texas and ₦1,391 in Georgia.

Petrol in Nigeria has recently hovered around ₦1,400 to ₦1,430 per liter, although NNPCL stations cut prices this week to about ₦1,360 in Lagos and ₦1,370 in Abuja.

That means petrol costs roughly the same in Nigeria as it does in Texas and Georgia. Yet Texas regards its diesel prices as disastrous enough for a statewide disaster proclamation. Georgia regards its fuel prices as sufficiently intolerable to declare a state of emergency and surrender tax revenue.

Nigeria regards almost the same nominal fuel price as “economic reform” that will yield an illusory El Dorado in an undefined future.

The obscenity of the contrast becomes starker when income enters the picture. The statutory minimum wage in Texas is $7.25 an hour. The same federal rate applies to most workers in Georgia. At 40 hours a week, that is about $1,257 a month. At current petrol prices, a minimum-wage worker earns enough in a month to buy roughly 1,200 liters of petrol.

Nigeria’s national minimum wage is ₦70,000 a month. At ₦1,400 per liter, it buys exactly 50 liters.

A minimum-wage worker in Texas or Georgia can therefore buy roughly 24 times as much petrol as a Nigerian minimum-wage worker, even though the pump prices are almost identical.

And Nigerians endure vastly inferior public transportation, unreliable electricity that forces households and businesses to buy fuel for generators and a road-dependent economy in which virtually every increase in petrol price cascades into food, transportation, rent and other costs.

Yet we have been conditioned to regard a demand for affordable petrol as some primitive Nigerian appetite for undeserved indulgence. I have consistently called this attitude an example of self-annihilating stupidity.

The intellectual conditioning began in earnest under Muhammadu Buhari. Government increasingly spoke of affordable petrol as an economic pathology. By 2020, his administration was arguing that market-determined petrol prices were unavoidable, that cheaper Nigerian petrol encouraged smuggling and that subsidy was unsustainable. The language gradually migrated from government officials into elite public discourse.

Tinubu has elevated this attitude into a governing creed. He announced on May 29, 2023, that “subsidy is gone.” Two years later, he said his economic reforms were “working” and described subsidy removal as necessary to rescue Nigeria from fiscal collapse. His government continues to present the pain generated by the World Bank-dictated “reforms” as a difficult passage toward eventual prosperity that we all know will never come.

Meanwhile, the very premise on which Nigerians have been asked to suffer is coming under increasingly serious scrutiny.

On our September Diaspora Dialogues podcast, oil producer and oil-and-gas businessman Gbenga Olawepo-Hashim broke down the pricing chain and arrived at an unsubsidized pump price of roughly ₦605 per liter. His central argument is devastatingly simple. Nigeria should dedicate crude for domestic refining and price that crude for the Nigerian economy rather than pretend that every barrel consumed in Nigeria has first been exported to Rotterdam and bought back at international opportunity cost.

He included production, refining, distribution and reasonable profit margins in his calculation. The conversation consequently moved from the tired incantation of “subsidy or no subsidy” toward the more useful question of what petrol should actually cost in an oil-producing country.

Professor Izielen Agbon, a U.S.-based petroleum engineer, approached the problem separately at a seminar organized by Femi Falana and reached a remarkably similar range. Using production-cost pricing and accounting for crude production, refining, transportation, margins and Nigeria’s tax regime, he calculated a pump price of roughly ₦435 to ₦687 per liter.

Agbon argues that Nigeria’s central pricing problem is import-parity pricing, which treats domestically produced crude as though its economic value to Nigerians must always equal what it could fetch abroad. He argues that this abandons Nigeria’s comparative advantage as an oil producer and transmits international prices directly into an impoverished domestic economy.

In light of Olawepo-Hashim’s ₦605 calculation or Agbon’s ₦435-₦687 range, government and defenders of the present system now owe Nigerians something better than slogans. Show us the numbers. Demonstrate why petrol produced from Nigerian crude for Nigerians must cost ₦1,400 per liter.

The old argument that affordability necessarily means an unsustainable subsidy is no longer sufficient.

There is an additional irony. NNPCL’s own 2024 audited accounts contain trillions of naira in “under-recovery” and energy-security obligations even after the government announced that subsidy had vanished. Agbon cites ₦8.67 trillion in under-recovery. The accounting terminology has changed, bu the underlying questions have not.

And where is organized labor in all this? To be fair, the NLC and TUC have condemned the latest increases. On September 30, the NLC demanded an immediate petrol-price reduction and described Nigeria as facing a “full-scale survival crisis.”

But statements are not commensurate with the scale of the emergency. If a ₦70,000 minimum wage buys barely 50 liters of petrol and every fuel increase ricochets through food, transportation and household survival, at what point does organized labor organize?

Governments from Washington to Berlin, Ottawa to Canberra and Seoul to Brasília understand that citizens cannot simply be abandoned to whatever price the global oil market produces. Nigeria should not require a special theory of economics to arrive at the same humane conclusion.



https://www.farooqkperogi.com/2026/10/world-fights-costly-petrol-tinubu.html?m=1

nairalanda1:
At the moment, Nigeria cannot afford subsidy.

You can call me tinubu supporter, and bla bla bla, but Nigeria cannot afford subsidy.

We are in massive debt, thanks to years of mismanagement, covid causing revenues to be so low that we litterally had to borrow or else, and subsidy right now is going to worsen our debt

Yes, tinubu is evil, corrupt, etc etc, and yes government should cut costs, and yes, everyone agrees with me APC and tinubu must go, but it still does not change my opinion or the facts on ground.

If una want us to face debt tomorrow that would be triple of what we have, retintroudce subsidy.

We have not paid the tax or done the economy saner climes have done to afford subsidy.

Stop talking nonsense. Did you read the article. The author said what many other countries that are not even oil producing are doing and showing concerns. What is your own president doing. Is he showing any concerns apart from empty promises.
You people are the problem of this country. who told you Nigeria cannot afford subsidy. Did the world subsidy come out first in Nigeria during this Tinubu regime. You defend what you don't know. That's nonsense.

"Yet we have been conditioned to regard a demand for affordable petrol as some primitive Nigerian appetite for undeserved indulgence. I have consistently called this attitude an example of self-annihilating stupidity."Kperoogi

Validated:
You missed the point TOTALLY. Olawepo Hashim analysis indicated NNPCL sells crude extracted at a location in Delta to local refineries at the same price it sells in Rotherdams. While the price in Rotherdam includes logistics of shipping to continental Europe, the delivery to Dangote does not attract the same logistics cost. So, why MUST NNPCL charge same price?
Why has NNPCL been recording under-recoveries amounting to N8.67T when subsidies have been removed?

Please, read yourself again, "Oil is a fungible commodity. The price of a barrel of crude is the same worldwide.".

How can you explain to your son that the price of a tuber of yam in your barn at Oturkpo is same as that same tuber when shippped to Paris? Can you sell the yam at Oturkpo market at the same price it sells in Paris?

Tinubu's and his band of thieves need to be sacked. You extract crude at Forcados and ship to Dangote, how does the blockade of the STRAIT OF HORMUS affect the price? Do you ship it to Uran first before bringing it to Lekki for refining?
Also, why must Petrol refined in Lekki cost the sane as those refined in Amsterdam?

Why are you confusing the price of crude with transportation and logistic cost? In every purchase, they are clearly separated. Petrol gantry prices differ all over the world because of these differences. Yes crude price is the same all over the world because its an international commodity;anything short is offset by the govt of respective countries. Let no ignoramu$ tell us that Nigeria will extract and dictate a different price. If it does, it is doing it at an oppotunity cost which will be paid somewhere, thats subsidy! besides Nigeria doesnt extract; private coy do and give Nigeria its due.
Now, Nigeria today cant even meet crude reqt of local refiners. so what happens to the balance, you ask the selling countries to reduce thier crude prices too? If Nigeria met the reqt, who controls what qty/volume of refined products generated and sold to Nigeria market vs sold internationally by refiners? who controls which local refiner gets what?who ensures that petrol of reduced price is not resold to neighbors at market price?
Why do we like inefficiencies by creating opportunities for fraud? Subsidy is gone and it should be gone!
I think gantry price is expensive too and i think govt. should provide paliative to the masses as a compensation like some countries do, as alluded by Farouk; esp since this is a temporary issue. I dont support crude subsidy.
I am also not a fan of Farouk as he has committed too many errors of judgement here to which he will later apologise. Independent analysis is key.

okosodo:
That is the foool we have as an accidental president

Oh he is a mighty fool compared to the idiots we've ever had at the helm of affairs.

EXPRESSSMAN:
Stop talking nonsense. Did you read the article. The author said what many other countries that are not even oil producing are doing and showing concerns. What is your own president doing. Is he showing any concerns apart from empty promises.
You people are the problem of this country. who told you Nigeria cannot afford subsidy. Did the world subsidy come out first in Nigeria during this Tinubu regime. You defend what you don't know. That's nonsense.

You're talking to a robot.

All that Nairalanda1 knows is subsidy removal and debt.

Nothing else dey eim head.

The main issue I will like to ask Seun is why this thread ID not on the Fromt page6. Seun I hope you understand the gravity of your Website as a Basis to surpress information and news that should be beneficial to Nigerians

Can Seun ask his Mods the reason this thread is not yet on the FP. Sice yesterday this beautiful thread is still hovering between 1 and 2 Pages.

Swun, you have also ignored the faaake Likes generated by the data boiz of the faaake certttifficcate hollldderr. You think sane Nairalanders are not aware what your site is being used for

Weldone Seun

nairalanda1:
The way you guys go, anyone who disagrees with you on anything, na tinubu supporter.

I am telling you today, if subsidy comes back, you go feel am for debt.

If it makes you cry, cry harder, son.

...you know you are telling the opposite...you are a tilumbu supporter..& defender...but you yours through the back door...thinking no one will see the corn...


..be bold in your conviction...you always change to this handle to write lies...

DrugPRESIDENT01:
So you can't defend the administration your drug trafficking president fought so hard to get ?

..that is a pure liar...who lies for apcish...

What Nigeria need in 2027 is not even election but revolution.



Opposition leaders are not blowing enough fire 🔥


Tinubu must not come back no matter what.


The only option they should give him is to resign now or finish his tenure and go.


It becomes more troubling to see some hungry Nigerians supporting this brazen robbery and evil.


8trillion naira under recovery meaning the government of the day that claimed subsidy is gone is still paying subsidy to themselves while suffering Nigerians on top of that.


Some said NNPCL is not supplying enough crude to Dangote refinery, then cut supplies to international market and increase supply to Dangote to stabilize price of local petrol and diesel, but no, he wants to make more money selling crude abroad at international market price while Nigerians are forced to suffer endlessly.


You are selling petrol at the same price Americans and Europeans are buying it in their countries yet you are paying workers peanut and telling them to keep enduring for a stupid better future that will only come in your house funded by corruption.


Normally Nigerians ought to declare anybody supporting Tinubu and his criminal regime a haram