francizy:


Tinubu, Liar/Lie Mohammed, Aregbese, Aregberascal, Susworm, Gridlock, Mama piss, etc..

Neyoor:
God forbid

Chiefpriest1:
I am not an economist, but I seriously do not see the connection between removal of fuel subsidy and the rate the naira exchanges against the dollar.

But Dangote has been close to all the governments in power, from military to civilian. Is it that they dont take his advice or what?

Take it or leave it, in the end, any businessman makes decisions that will grow his business and increase his profit margin.

Profit first,patrotism later!

Chiefpriest1:
I am not an economist, but I seriously do not see the connection between removal of fuel subsidy and the rate the naira exchanges against the dollar.

But Dangote has been close to all the governments in power, from military to civilian. Is it that they dont take his advice or what?

Take it or leave it, in the end, any businessman makes decisions that will grow his business and increase his profit margin.

Profit first,patrotism later!

Chiefpriest1:
I am not an economist, but I seriously do not see the connection between removal of fuel subsidy and the rate the naira exchanges against the dollar.

But Dangote has been close to all the governments in power, from military to civilian. Is it that they dont take his advice or what?

Take it or leave it, in the end, any businessman makes decisions that will grow his business and increase his profit margin.

Profit first,patrotism later!

Obviously, Dangote benefits from subsidy ... A man who turned Nigerian graduates into drivers can not be taken seriously on issues bordering on policies that will help ordinary Nigerians. So much for patriotism ... All these rich niggas are out for their pockets only.

bushdoc9919:
Before I comment, permit me to stand in one minute silence for the demise of the Nigerian mind.Most of the comments on front page are so disgusting and bigoted and bear no relevance to the topic.

Now on to the topic.

The fact remains that regardless of whether we keep or remove subsidy....the only way to prevent the free fall of the naira is to export more than we import. Simples.

And Dangote is right when he says we have to plug all the corruption holes.

Chiefpriest1:
I am not an economist, but I seriously do not see the connection between removal of fuel subsidy and the rate the naira exchanges against the dollar.

But Dangote has been close to all the governments in power, from military to civilian. Is it that they dont take his advice or what?

Take it or leave it, in the end, any businessman makes decisions that will grow his business and increase his profit margin.

Profit first,patrotism later!

mickey45:


I might be wrong on this but the single understanding I have of Dangote's statement for now is this;

Subsidy removal might mean the Government now has more money in its coffers, saving the money (say in the Excess crude Account) seems the way to go but being the spend-it-all nation we are (remember Iweala-NGF brouhaha),

The excess money must find its way back into the economy (no thanks to FG revenue allocation to states, FG projects and of course Brazen Looting)

On the other hand, the framework's not there yet for a big surge in real production/manufacturing start ups which means people get encouraged to buy d tiniest of things from outside, and whatever little things there are in the country will have so much money pursuing it and being the consuming nation that we are Like I said earlier,

Our importing tendencies will no doubt get a boost and without a corresponding or better still overriding increase in crude oil sales ( via any or both of volume exports and prices) this consequently increased dollar demand will only act to spike up the cost of getting a Dollar

In a normal setting, businesses only need increase their prices but there is a limit to this owing to competition and Political-cum Government interference as well as CBN's determination to Stifle Real Sector Financing (which is where real job creation and prosperity is)

They (CBN) continually do this (in the name of curbing inflation) by hiking Banks' CRRs (Credit Reserve Ratios) which albeit keeping the %-inflation in check, also reduces the funds available to the real sector.

Like I said, I myself look forward to better enlightenment by the economics Gurus here present

chinae:
What is Dangote saying? I don't know Wat is subsidy too and am not a fan of dully.

Statistics shows that Nigeria spend #2.2billion per day on subsidy ib a country of 170million estimate.
Ask: the country pays more than 10 million for one citizen a day, Hw much fuel i dey use for house? if subsidy only is above a million.

This guy is part of the cauci in d caucus

DMerciful:
U nor go school! 40million litres/day is consumed by 170 million @ N47 subsidy per litre meaning the average Nigerian consumes 40/170 litre per day....where did you get N10million/person?..go school u nor gree

Firefire:



Time shall tell, Nigerians are waiting for the dollar to become one Naira...

btw:

Good morning, how is Osun today? hope your people's salary is fully paid now by Aregbesola ?

The issue with subsidy is that government needs to block all loopholes. If there’s no subsidy, it will affect our foreign exchange, we’ll end up buying a dollar at N500, because there’s no VAT on petroleum products. That’s why the import of petroleum products is taking about 30% of our foreign reserve. We just need to make sure that there’s no siphoning of money. The refining business requires volume. If you don’t have a massive volume, there’s no way you’ll make money. Most of the refineries in Africa are running at a big loss. It’s not possible for government officials to successfully manage oil businesses. It’s good enough if they remove the subsidy, but you can check with neighbouring countries like Senegal. If a poor person in Senegal can afford to pay subsidy, why can’t a poor person in Nigeria afford to pay. I think there must be something for the masses, which should be in terms of power, social insurance, good education system, good roads etc.

“If there’s no subsidy, it will affect our foreign exchange, we’ll end up buying a dollar at N500”

“if they remove the subsidy, but you can check with neighbouring countries like Senegal. If a poor person in Senegal can afford to pay subsidy, why can’t a poor person in Nigeria afford to pay

We are building a refinery and our refinery will make more money if there is subsidy. We have changed the size of the refinery three times because we are looking at the maximum we can do that has ever been done. We started with about 400,000, then we shifted to 500,000. Now, we took it to 650,000 barrels per day. That’s the biggest ever single line thresh of refinery. It’s a huge plant and it comes with a lot of challenges, but at the end of the day, it will save us a substantial amount of money. Presently, about 38% of our foreign exchange goes to petroleum products, so I think that will totally eliminate it and eliminate all the imports. We will also be able to export and we won’t do it all by ourselves. Other refineries will produce. Even if other refineries are not working, we’ll be able to satisfy 100% local demand and we’ll be able to export massively. Five to ten people can make Nigeria a great economy. We have to encourage Nigerians to invest at home.

If you don’t have a massive volume, there’s no way you’ll make money