Curvinus:
Pls who owns Nigeria's oil wells? Govt or private investors? Does the government pay subsidy to itself or investors in the oil sector? What is really happening? Why would the govt only be interested in oil and not other sectors like agriculture?

If the govt is handing over the power sector to private people, what are its plans regarding oil? Why do we have the NNPC and not a government backed agric commodity hub?

Why aren't we taxing every taxable individual?

Why should a landlord take N1.5m as rent per annum in the FCT and not pay a dime as tax? Why are the mai shai, the mai suya's and the likes not being taxed?

Finally, how did GEJ get the alleged N2 trillion he spent on his re-election campaign? We better start making these things public if we wish to move forward.

Truckpusher:
Buhari's first acid test,let's see how he satisfies the conscience of his free loading kinsmen.

I'm waiting to see how the APC is going to react to this given their stand on the last subsidy protest that rocked the South West and the North when Jonathan removed some of the subsidy.

Janjawiids like passingshot are now speaking as if they have water in their mouth.

Una never che chomting.

Cc

Peppyluv2

steppin:
And they said GEJ didn't know what he was doing? Smh.
This shows that we were on the right course, but some gullible people were deceived and they kept dancing and protesting against it.
He had Nigeria's best interest at heart, but the people who needed the govt to do everything for them, didn't give him a chance.
Back to one chance.

njays24:
I thought Uranium has been discovered in crossrivers,adamawa and other northern states,let develop it and stop depending totally on crude..

barcanista:
buhari won't even dare to remove the subsidy. Doing so will mark the beginning of the end of his administration. You see my ping?

TheGoodJoe:


We lost money to Subsidies because GEJ is myopic to corruption. We ran Subsidies in the past and did not lose this way. The problem is not the Subsidies but the corruption in the NNPC.

That is why the sanitization of the NNPC should be a priority of Gen. Buhari's administration.

A lot of Oil Producing countries enjoy Subsidies without such losses we faced under GEJ.

ttmacoy:
You also need to understand that the subsidies also prevent development of refineries.

Having subsidies and the government dictating the price of fuel means there is little incentive for private investment in refineries.

Also the government is spending loads of money on subsidies, this money would be better spent on the refineries. But again if they stop the subsidies, will they really spend the money saved on the refineries or will they steal it??

As mentioned above already subsidies is just a cesspit of corruption and stealing.

Truckpusher:
I'm charging that shiit.
I'm in the transit lounge ,ARIK airline deserve some flogging here my flight is 3:30 pm.

Was up?

Omo! If Buhari removes that subsidy , all his sponsors that are marketers who owns the party and at the same time bankrolled his election will double their price to make profit and these MUMUNIGERIANS must pay for their bad choice.

You see why I've been laughing ?

Sweetguy25:


- It depends. Oil wells can belong belong to both government or private investors.
- Subsidy is payment made to importers of petroleum products. Because of our inability to refine our own crude, we have no other option but to import petrol from foreign countries at a higher cost. The final consumers in Nigeria won't be able to afford this imported petrol so the government decided to subsidize the cost to make the pump price of petrol affordable to the "common man".
- The government is interested in oil because the money coming from oil is big, "sweet" and easy. Agriculture cannot bring that kind of money in the next 20 years.



There's a bill called the PIB that seeks to privatize and deregulate the oil sector. It has been in the National Assembly for over five years now with no hope of passage.




It is not as easy as it sounds. Stats show that 60 percent of Nigerians live below a dollar per day. The amount or number of taxable individuals in Nigeria isn't much.
Also, our tax structures in Nigeria aren't really efficient and effective. Besides, the federal government has decided to increase Value Added Tax to a higher percentage, this way almost everybody pays tax.



No idea.



I don't believe that GEJ spent 2 trillion on his campaign. Thats an obvious lie. There are some kind of lies a reasonable person aren't supposed to believe, Just like the missing 20 billion dollars.

Have a nice day.

chuna1985:


I'm trying to understand where ur coming from to no avail, did gej start subsidy? Hasn't it been on for decades now ? Subsidies have been around for many years now, but it keeps increasing as our population increases... In 20 years, our population more than doubled from 88 million to 170 million . We have 4 very old/dying refineries built in 1970s n 1980s

Those countries ur talking about that enjoy subsidies have 20 working refineries n a population of 8 million people (Example is Libya), we are over 20 times more populated Dan dem so it ain't same, our own costs is whey more than theirs.

Check our budgets as i said already, our capital expenditure annually is 400 billion naira for 37 states, but our recurrent is about 3.3 trillion annually...(1.1 being fuel subsidy)......All I'm trying to say is that if we invest 400 billion naira annually even for 1000 years, Nigeria will never grow Cuz our present need is much higher than that.

GEJs fuel subsidy removal hinged on adding adding 1.1 trillion + 400 billion which = 1.5 trillion naira annually ... Investing that amount annually in various important sectors for the next 10 - 20 years will get us somewhere nice.


Its not ideal to form opinions based on hatred n blame game

The International Financial Institutions that you mentioned have undermined the economic stability of nations around the world in more ways than could possibly be expressed in a reddit comment. But in it's most skeletal form this is how they do it:
Their structural adjustment programs (SAPs) lead to a collapse in internal production, skyrocketing prices, abysmal unemployment rates, and rampant poverty. One of the first things the IMF/World Bank does is unify exchange rates by devaluing the national currency leading to the "dollarization of prices". Commodity prices are elevated to their global market levels while no such modification is made to the labor market. So we have MORE EXPENSIVE commodities accompanied by a compression in real wages. The targeted austerity measures and "price and trade liberalization" imposed through neo-liberal globalization decimates domestic economies. Price liberalization leads to hikes in the costs of fuel, water, and electricity which means hikes in the production costs for most staple foods. Local producers cannot keep up with the price hikes in farm inputs (fertilizer etc.) and the influx of cheap SUBSIDIZED foreign grain (thank you trade liberalization) so internal production collapses! The harsh government budget cutbacks leads to plummeting wages (both real and nominal) in the the public sector as well as in private industries where government subsidy is key (sanitation, education, health, transportation, etc.). Perhaps most surprising of all is they have managed to establish corrupt "shadow governments" that act outside the purview of the country's constitutional framework by removing control of economic policy from Central Banks or Ministries of Finance and placing it in the hands of unaccountable private entities acting exclusively in the interests of the creditor nations or corporations.

Here are some more specific examples:
In Somalia the IMF began with a devaluation of the Somalian shilling in 1981 leading to price hikes in fuel, fertilizer and other farm inputs. This as well as land re-appropriation represented a severe blow to the nation's agriculturalist sector while privatization of the pharmaceutical industry undermined the pastoralist sector of Somalia's food production. These policies were the seeds of Somalia's current food crises. As for the dire condition of Somalia's Education system, I'll mention that as a result of IMF prescribed austerity measures "the level of recurrent expenditure on education in 1989 was about $4 per annum per primary school student, down from about $82 in 1982".
In Rwanda the IMF devalued the Rwandan franc leading to similar hikes in staple commodities (in fact between 1989 and 1991, the Rwandan C.P.I. increased from 1 to 19.2). Public health facilities were defunded and there was a 21% increase in malaria related cases in the year following adoption of the SAP.
India saw a 40% increase in the price of chemical fertilizers, 50% increase in the price of rice, and a 60% decrease in the real wages of hand loom workers in the country's textile industry.
I could go on about the similar effects felt by Bangladesh, Peru, Vietnam, Russia, Yugoslavia, essentially every sub-saharan African state (lets not forget that pre-IMF/WB/WTO intervention Africa was a net food-exporter while now it's almost completely reliant on foreign aid) but suffice it to say these organizations "have created a system of modern day colonialism that make the people of the developing world poorer and the multi-national corperations richer and take the power away from all of us."
Most information from "The Globalization of Poverty and the New World Order" by Michel Chossudovsky.

TheGoodJoe:



I am having a big problem getting your point.

The reason why there was a massive jump in funds spent on Subsidies of petroleum products under GEJ is not because of Population. It was because of the corruption in the NNPC.

Stem out the corruption in NNPC and we will have no problem with the Subsidies.

The problem is not the Subsidy but the corrupt individuals giving a free hand to run the country down.

There is no hatred and blame game here. GEJ did nothing to curb the corruption in the NNPC.

Sweetguy25:


How sure are you that the huge cost of subsidy payments are because of corruption?

Sweetguy25:


- It depends. Oil wells can belong belong to both government or private investors.
- Subsidy is payment made to importers of petroleum products. Because of our inability to refine our own crude, we have no other option but to import petrol from foreign countries at a higher cost. The final consumers in Nigeria won't be able to afford this imported petrol so the government decided to subsidize the cost to make the pump price of petrol affordable to the "common man".
- The government is interested in oil because the money coming from oil is big, "sweet" and easy. Agriculture cannot bring that kind of money in the next 20 years.


.

Nigeria produces oil via the oil multinationals for both internal and external consumption. 445,000 barrels per day are allocated to internal consumption and it is to be forwarded to the domestic refineries. This is not part of the country’s OPEC oil quota of over 2.5 million barrels per day.

However, the national refineries have all been sabotaged. [b]Since 2003, this quota is being sold on the international market with the initial understanding that its proceeds will be used to pay for the country’s fuel importation.

Prior to 2003, the 445,000 barrels per day was sold to the NNPC at near production price and if the Nigerian refineries were down it was exported to foreign refineries and the country just paid for the cost of refining. The refined products are thus brought back.

However, in order to make much more money this method was abandoned in the interests of the multinationals and the very rich in Nigeria. All the Nigerian refineries have since been grounded and the government is planning on selling them off cheaply.

The total sale of the 445,000 barrels per day for this year alone amounts to about $14 billion at $90 per barrel. This is more than enough to pay for the importation of all the country’s fuel. Petrol is currently sold at N65 per litre and this price actually covers the cost of importation and still gives a profit to both the government and the oil giants doing the importation.[/b]

TheGoodJoe:



I am having a big problem getting your point.

The reason why there was a massive jump in funds spent on Subsidies of petroleum products under GEJ is not because of Population. It was because of the corruption in the NNPC.

Stem out the corruption in NNPC and we will have no problem with the Subsidies.

The problem is not the Subsidy but the corrupt individuals giving a free hand to run the country down.

There is no hatred and blame game here. GEJ did nothing to curb the corruption in the NNPC.

chuna1985:


There is nothing else left to say, But always remember dese words As long as we keep subsidizing n keep recurrent expenditure @ 70% - 80%, we will keep getting worse. cheers

9jamustchange:
Why won't they rather advise him to make our existing refineries functional and build more refineries for domestic refining. They want him to put the cart before the horse.

gp6liveth:
Subsidy must go. People don't know the good plans Gej have for Nigerians when he remove it. I concur, subsidy must go for we to enjoy the dividend of competition through deregulation. Only those that wants to be fed without looking for who to feed will allow subsidy to stay

gp6liveth:
Subsidy must go. People don't know the good plans Gej have for Nigerians when he remove it. I concur, subsidy must go for we to enjoy the dividend of competition through deregulation. Only those that wants to be fed without looking for who to feed will allow subsidy to stay

TheGoodJoe:


As long as we wage a full war against Corruption on NNPC and Petroleum marketers, we can enjoy Subsidies.

chuna1985:


Built Refineries with which money Bro, An average refinery costs 5 billion dollars and our revenue is quite low. Our total budget is about 22 billion dollars...

A 1,000 megawatt plant is over 6 billion dollars, our total annual budget can only generate 4k megawatt

Do d maths

TheGoodJoe:


We built refineries in this country in the past when Crude Oil sold below its current rate.

GEJ ran a government that sold crude for over $100+ a barrel.

So leave all these no money talk. GEJ and his government had no interest in building refineries and he allowed corruption grow in every part of his government.

chuna1985:



Lack of knowledge which is the major national problem in Nigeria has a very strong grip on you. Since 2012, GEJs government has been building 3 refineries in Lagos, Kogi n Bayelsa, their name us green field refinery initiative . make out time n investigate, Also look for knowledge. ...... D refineries are being built with part of sure P funds

chuna1985:


lol...

Go n check all corruption indexes for the last 10 - 20 years China has always been at the top section as very corrupt nation n yet in that same period they moved to become a very powerful world power n within reach to usurp the united states before 2030