₦airaland Forum

Quakertellicus1:
And thus the elephant in the room....inefficient supply of dollars due to reliance on selling resources. (Not just oil....agric and mining too)....whose prices we do not control.

In my opinion.....we need to go through some years of hardship...while we spend more on transport, education and power....with the aim of becoming a manufacturing society....which means a more stable source of forex.

Quakertellicus1:
And thus the elephant in the room....inefficient supply of dollars due to reliance on selling resources. (Not just oil....agric and mining too)....whose prices we do not control.

In my opinion.....we need to go through some years of hardship...while we spend more on transport, education and power....with the aim of becoming a manufacturing society....which means a more stable source of forex.

hausameat:
May and your family go through this hardship continuesly because of the incompetence of the dumbest dunce Buhari. Amen.

keemi:
Wat a waste of front page. Useless post if u ask me

A7:
Your minimum wage buddies are 0.5(reoccuring)% of the total population(1 million max). The combined Fg and states civil servants are at maximum 1.85% of the populace(fg:90,000 36 states: 3,240,000)

What will happen to the rest 98% of the populace?.

Do you know how much this subsidy of a scam is fleecing us of our common wealth? Do you know that Buhari inherited N600bn of subsidy debt from your hero?

OrlandoOwoh:
Could tell us what you think is wrong with the policy, not asking why it's kicked against under GEJ but being supported under PMB?

BabaAlaji:
‪#‎OCCUPYINGMINDS‬: ‪#‎NIGERDELTAMILITANTS‬...Every time a Crude Flow Station is Destroyed by Militants in the Niger Delta, The Environment is Damaged; Our Land is Polluted and Our Communities are subjected to more hardships...Let the Bombing Continue, who will lose?...The Government of PMB is dragging the Nigerian Economy away from Crude Oil; Lagos State has Joined the League of Oil Producing States and the Northern Part of Nigeria whose Reserves have been cynically suppressed over the years will begin production within the next months to two years. With time, We from the Niger Delta would have destroyed our Lands so much that future generation will curse us their Fathers and Mothers for killing their dreams. Let the Stupidity Continue my People...Don't stop the blowing up of pipelines.
Everyone of us thinks that a Blown Pipeline is an attack on PMB and His Government of Change...Insanity on display I must say. Kano and Lagos are Leading the way in Tomatoes Paste Production and Tomatoes don dey scarce shebi? The Northern Landmass alone is about 4 times the entire Landmass of the SS and the SE; Agriculture will revolutionize the North within the next decade...We from the Niger Delta will use our Oil to soak Garri and we think we are punishing Nigeria? Think Again, but Kontinu.
I have been reliably informed, that the More Pipeline we blow-up, the more the Resolve of this President to get the Nigerian Economy off oil...The More the Presidency blocks loopholes; The More the desire for alternative Revenue; The More the Nigerian People get pissed off by our Stupidity. The Future is Lost to the Greedy, Selfish Demons of Today. Blow Pipelines if you can, Nigeria is moving on. We have a President who is capable of making the hard decisions and willing to firmly sustain those hard choices. Blow Pipelines abeg. Let Nigeria Suffer and Let our land be wasted. Kontinu killing your own future by your own hands.
WEEP NOT FOR THE NIGER DELTA!!!
OUR ENEMIES ARE WITHIN!!!

koboko69:
So far, the the only reason so far given by the wailing wailers for not supporting the removal of subsidy is simply because "Tinubu" and "Fashola" were against it when Jonathan removed it. Most of these people were also amongst those who protested against the removal back then. But as it is today, its a game of looking for any opportunity to attack Buhari.

mynd44 and lalasticlala

plaetton:
Dear Sir,
It's either you have ZERO idea what fuel SUBSIDY is, or, you skipped elementary 6 arithmetic, or, you are a very disingenuous SAI BABA-ist.

Let me first of all say that I support SUBSIDY removal. I supported it during the Abacha years, I supported it during the Jonathan years, and I still support it, but for Genuine economic reasons, not for silly, upsidedown kindergarten logic that you have insulted us with here.

Fuel SUBSIDY, under any disguise, is simply equivalent to gathering several trillion Naira every year, and then setting it on fire to burn, burn and burn.
No better description.

Like I said , elementary 6 math skills are all that is required to understand the logic of fuel SUBSIDY, something that Buhari claimed not to understand, and obviously didn't understand till now.

Fuel SUBSIDY is simply the difference, the negative difference between cost price( international cost price) of petroleum products, and , the government stipulated pump price that drivers pay at the fuel stations.

For example, if the cost and landing( bridging) cost of petrol is N140/l,but the government stipulated pump price is fixed at N86/l, it then means that whoever is making fuel available is losing the sum of N140(cost)- N86( selling price) = N54/l

Obviously, no one would do a business where they are losing a whopping N54 per litre.

So, the government, as part of social contract with the people, steps in to pay the difference of N54 in order to ensure that fuel is available at all times.

Are you following?

Now, since the price of petroleum products depends primarily on the international price of crude oil as well as our currency exchange rate, simple elementary school arithmetic should tell us that the SUBSIDY the government pays per litre grows and widens as either the price of crude oil rises, or, the value of our currency falls.

Now listen carefully.
When the price of crude rises, as it did during the GEJ era, the SUBSIDY, the difference between cost price and pump price ballooned to an astronomical level, to the point where the government of the day had no choice than to break its social contract with the people by adjusting the pump price upwards to NARROW the very wide SUBSIDY gap.
Are you following?
It is usually a hard and politically charged decision for any government, but this was common sense Economics.
The political pressure sooo great for the government that they eventually settled for just half of what they wanted.

Once again, economic prudence was sacrificed for political expediency.

And the money continued to burn, burn and burn.

But then,
A curious thing started happening last year.
The price of crude began to crash, crash and crash.
By simple elementary school arithmetic, it also meant that the fuel SUBSIDY gap began to NARROW, narrow and narrow , until it not only became ZERO, but actually went positive.

That's right.
In fact, as of last month or so, it was widely and repeatedly reported in the Nigerian media, and simple arithmetic concurs, that the federal government was making a whopping Profit of N10 or so per litre of petrol sold in Nigeria.

You get my drift sir?
Higher crude price = more SUBSIDY payments
Lower crude price = less or ZERO SUBSIDY payments.

Therefore your own arithmetic is null and void , simply because it failed to comply with the simple, immutable laws of elementary arithmetic.

Now, to the issue of the moment.

In as much as I support the removal of fuel SUBSIDY, the recent upward revision of the pump price of petrol to N145 is NOT, and I repeat, is NOT a SUBSIDY removal.

There was NOOooo SUBSIDY to be removed as of yesterday.

What the government did, which I still support, is that it raised the pump price of petrol for two main reasons:

1. To generate much much and desperately needed revenue to fund it's budget.
Bingo!!!
Does anyone still remember that the government has been hopping from place to place desperately looking for funds to finance it's budget ?

2. To liberalise the fuel supply system by making it attractive to private sector dealers and importers.

Killing these Two birds with one stone would ensure the steady and competive supply of petrol , as well providing badly needed additional funds for the government.

The only problem I have is the FRAUD of calling it fuel SUBSIDY removal, which it is definitely NOT.

Standing5:
Gej wasn't trusted by even governors (APC n PDP). They preferred to share excess fund as it was being looted via phony federal expenses like BH war and so the masses were right to feel the same way and reject subsidy removal which put more money in the hands of the federal govt.
The Jonathan govt didn't show sign of blocking leakages at federal level but wanted to throw more money at the corrupt system, Buhari govt on the other hand showed its readiness to block leakages before going ahead to throw more money at a less corupt system.
The difference is clear.

SonOfEl:
Spot on! Thank you jare

koboko69:
Subsidy Removal under Jonathan;

Jonathans government announced the total removal of subsidy on Jan 1 2012.

The Facts;

1. Oil sold at 113 usd per barrel as at Dec 31st 2011

2. The exchane rate as at Dec 2011 was 1 usd to N 162.3

3. Jonathan's Predecessor actually dropped PMS price from N75 to N65 and was able to sustain subsidy whilst handling the amnesty program for repentant millitants till his early dismiss.

4. A more bouyant foreign reserve and growing ecomomy.

The government's major basis of total removal of subsidy was sighted as massive corruption. Rather than deal with the monster, the incompetence of the government was shifted to the masses. Many Nigerians were not ready to make the government have more money to loot, as subsidy was still sustainable at that time.

After the Occupy Nigieria protests, the price of PMS was revised to N97 per littre, with the promise of urban busses, building and rehabilitation of refineries e.t.c. It is interesting to note that the only partially successful programme after the subsidy removal was SURE-P because some Nigeirans benefitted from it without the "u must know someone" clause. Till the exit of Jonathan's government, we had no functional refineries, neither were new ones built.

Please note, Boko Haram was more like rag tag millitant as at the time of subsidy removal but later grew to a sophisticated, machine guns, tanks rolling millitant. So BH as an excuse is not tenable.

Subsidy removal under President Buhari.

1. Oil price selling below 40usd per barrel

2. Exchange rate of N197-N199 to a dollar and N320 to a dollar in the parallel market.

3. An ailing economy, with limited FOREX, and dwindling reserves.

The major reason for the total removal of subsidy by the current government is because of scarcity of Forex and an ailing economy. NNPC could not sustain solely importing petroleum products, and there is not enough Forex to give major oil marketers to handle the importation of petroleum products. It should also be noted that the present government have been able to tackle corruption to a fault in the oil industry.

The oil Marketters have now been given the liberty to source forex from other sources to import fuel which is the major reason for the high price hike.

The current government have made moves which will see the price of PMS drop in the nearest future. For the first time in years we have the Warri, Kaduna, and Port Harcourt refineries working together but some misguided youths amd miscreants in the name of avengers have decided to keep sabotaging the efforts of the present government.
There are also moves on ground to build more refineries.

In my opinion, the deregulation of the lower stream sector is right on track at this time and I stand with Buhari on this.

For now i see no reason why this government should not be supported, as they still have more than 2 years to deliver. Should the government not meet up to expectations before next elections, then Nigerians can't take their anger to the polls.

God Bless Nigeria.

989900:
For the title of your article, you've done justice.
And it seems GEJ sympathizers have forgotten that subsidy payments going from N300b to over N2 trillion was why sane people got mad, and at the end of the day, subsidy was actually partially removed.

Subsidies are actually a good gesture, governments naturally subsidize the populace in one form or the other, but for the bastardization of the good gesture, we all basically agree subsidy must go, but at the right time: when we no longer depend on imported fuel, or have greatly reduced our dependence on imported fuel.

That said, on the overall, after almost a year in power, I'm not going to make excuses for Buhari's government's inability to tackle pipeline and oil installations vandalism, and cross-border smuggling, nor am I going to make excuses for its inability to have the old refineries working or modular refineries chipping in their bits. The APC won the election in March 2015, enough time for preparations.

As it is now, what we have is a cosmetic solution to a fundamental problem: if we do not get refineries (old and new) doing their thing, should oil prices sell for around $70/barrel, or the Naira continues to free fall, then pump prices will go north, or reversal to paying subsidies.

Our only 'get-away' is to find a way to make the Naira stronger, and drastically eliminate importation of refined fuel.

plaetton:
My dear friend, there are much better reasons to support the recent increase in pump price than making moot references to GEJ.

Must this government and its supporters always use GEJ to validate their wishy washy policies ?

Saying that the GEJ government made more dollars, therefore they should have been able to afford a trillion Naira fuel SUBSIDY makes zero sense.

Fuel SUBSIDY is a stuupid waste of Nigeria's money, irrespective of how much the government earned.

Fuel SUBSIDY removal didn't start with GEJ. It has been with us since the Abacha days.
Anyway you look at it , it is has always been a waste.

GEJ, like those before him, wanted to remove SUBSIDY for genuine , sound economic reasons that are now too obvious to the current Administration. Simple.

I repeat, as of two days ago, there was ZERO fuel SUBSIDY.

No SUBSIDY was removed.

The government simply imposed a 68% tax on the pump price of petrol.

A tax by any other name is still a tax.


I want to import PMS.....Can I source forex from the CBN. ..


I assumed, naira is officaly devaluated for PMS importantion only......

koboko69:
So far, the the only reason so far given by the wailing wailers for not supporting the removal of subsidy is simply because "Tinubu" and "Fashola" were against it when Jonathan removed it. Most of these people were also amongst those who protested against the removal back then. But as it is today, its a game of looking for any opportunity to attack Buhari.

mynd44 and lalasticlala

plaetton:
My dear friend, there are much better reasons to support the recent increase in pump price than making moot references to GEJ.

Must this government and its supporters always use GEJ to validate their wishy washy policies ?

Saying that the GEJ government made more dollars, therefore they should have been able to afford a trillion Naira fuel SUBSIDY makes zero sense.

Fuel SUBSIDY is a stuupid waste of Nigeria's money, irrespective of how much the government earned.

Fuel SUBSIDY removal didn't start with GEJ. It has been with us since the Abacha days.
Anyway you look at it , it is has always been a waste.

GEJ, like those before him, wanted to remove SUBSIDY for genuine , sound economic reasons that are now too obvious to the current Administration. Simple.

I repeat, as of two days ago, there was ZERO fuel SUBSIDY.

No SUBSIDY was removed.

The government simply imposed a 68% tax on the pump price of petrol.

A tax by any other name is still a tax.


I want to import PMS.....Can I source forex from the CBN. ..


I assumed, naira is officaly devaluated for PMS importantion only......

Mezux:
. Please go and subscribe for sense

hazyfm:
Now you have a point. Let's protest for increase in minimum wage not petrol deregulation

Subsidy in Nigeria is a FRAUD

koboko69:
Subsidy Removal under Jonathan;

Jonathans government announced the total removal of subsidy on Jan 1 2012.

The Facts;

1. Oil sold at 113 usd per barrel as at Dec 31st 2011

2. The exchane rate as at Dec 2011 was 1 usd to N 162.3

3. Jonathan's Predecessor actually dropped PMS price from N75 to N65 and was able to sustain subsidy whilst handling the amnesty program for repentant millitants till his early dismiss.

4. A more bouyant foreign reserve and growing ecomomy.

The government's major basis of total removal of subsidy was sighted as massive corruption. Rather than deal with the monster, the incompetence of the government was shifted to the masses. Many Nigerians were not ready to make the government have more money to loot, as subsidy was still sustainable at that time.

After the Occupy Nigieria protests, the price of PMS was revised to N97 per littre, with the promise of urban busses, building and rehabilitation of refineries e.t.c. It is interesting to note that the only partially successful programme after the subsidy removal was SURE-P because some Nigeirans benefitted from it without the "u must know someone" clause. Till the exit of Jonathan's government, we had no functional refineries, neither were new ones built.

Please note, Boko Haram was more like rag tag millitant as at the time of subsidy removal but later grew to a sophisticated, machine guns, tanks rolling millitant. So BH as an excuse is not tenable.

Subsidy removal under President Buhari.

1. Oil price selling below 40usd per barrel

2. Exchange rate of N197-N199 to a dollar and N320 to a dollar in the parallel market.

3. An ailing economy, with limited FOREX, and dwindling reserves.

The major reason for the total removal of subsidy by the current government is because of scarcity of Forex and an ailing economy. NNPC could not sustain solely importing petroleum products, and there is not enough Forex to give major oil marketers to handle the importation of petroleum products. It should also be noted that the present government have been able to tackle corruption to a fault in the oil industry.

The oil Marketters have now been given the liberty to source forex from other sources to import fuel which is the major reason for the high price hike.

The current government have made moves which will see the price of PMS drop in the nearest future. For the first time in years we have the Warri, Kaduna, and Port Harcourt refineries working together but some misguided youths amd miscreants in the name of avengers have decided to keep sabotaging the efforts of the present government.
There are also moves on ground to build more refineries.

In my opinion, the deregulation of the lower stream sector is right on track at this time and I stand with Buhari on this.

For now i see no reason why this government should not be supported, as they still have more than 2 years to deliver. Should the government not meet up to expectations before next elections, then Nigerians can't take their anger to the polls.

God Bless Nigeria.

koboko69:
Subsidy Removal under Jonathan;

Jonathans government announced the total removal of subsidy on Jan 1 2012.

The Facts;

1. Oil sold at 113 usd per barrel as at Dec 31st 2011

2. The exchane rate as at Dec 2011 was 1 usd to N 162.3

3. Jonathan's Predecessor actually dropped PMS price from N75 to N65 and was able to sustain subsidy whilst handling the amnesty program for repentant millitants till his early dismiss.

4. A more bouyant foreign reserve and growing ecomomy.

The government's major basis of total removal of subsidy was sighted as massive corruption. Rather than deal with the monster, the incompetence of the government was shifted to the masses. Many Nigerians were not ready to make the government have more money to loot, as subsidy was still sustainable at that time.

After the Occupy Nigieria protests, the price of PMS was revised to N97 per littre, with the promise of urban busses, building and rehabilitation of refineries e.t.c. It is interesting to note that the only partially successful programme after the subsidy removal was SURE-P because some Nigeirans benefitted from it without the "u must know someone" clause. Till the exit of Jonathan's government, we had no functional refineries, neither were new ones built.

Please note, Boko Haram was more like rag tag millitant as at the time of subsidy removal but later grew to a sophisticated, machine guns, tanks rolling millitant. So BH as an excuse is not tenable.

Subsidy removal under President Buhari.

1. Oil price selling below 40usd per barrel

2. Exchange rate of N197-N199 to a dollar and N320 to a dollar in the parallel market.

3. An ailing economy, with limited FOREX, and dwindling reserves.

The major reason for the total removal of subsidy by the current government is because of scarcity of Forex and an ailing economy. NNPC could not sustain solely importing petroleum products, and there is not enough Forex to give major oil marketers to handle the importation of petroleum products. It should also be noted that the present government have been able to tackle corruption to a fault in the oil industry.

The oil Marketters have now been given the liberty to source forex from other sources to import fuel which is the major reason for the high price hike.

The current government have made moves which will see the price of PMS drop in the nearest future. For the first time in years we have the Warri, Kaduna, and Port Harcourt refineries working together but some misguided youths amd miscreants in the name of avengers have decided to keep sabotaging the efforts of the present government.
There are also moves on ground to build more refineries.

In my opinion, the deregulation of the lower stream sector is right on track at this time and I stand with Buhari on this.

For now i see no reason why this government should not be supported, as they still have more than 2 years to deliver. Should the government not meet up to expectations before next elections, then Nigerians can't take their anger to the polls.

God Bless Nigeria.

koboko69:
Subsidy Removal under Jonathan;

Jonathans government announced the total removal of subsidy on Jan 1 2012.

The Facts;

1. Oil sold at 113 usd per barrel as at Dec 31st 2011

2. The exchane rate as at Dec 2011 was 1 usd to N 162.3

3. Jonathan's Predecessor actually dropped PMS price from N75 to N65 and was able to sustain subsidy whilst handling the amnesty program for repentant millitants till his early dismiss.

4. A more bouyant foreign reserve and growing ecomomy.

The government's major basis of total removal of subsidy was sighted as massive corruption. Rather than deal with the monster, the incompetence of the government was shifted to the masses. Many Nigerians were not ready to make the government have more money to loot, as subsidy was still sustainable at that time.

After the Occupy Nigieria protests, the price of PMS was revised to N97 per littre, with the promise of urban busses, building and rehabilitation of refineries e.t.c. It is interesting to note that the only partially successful programme after the subsidy removal was SURE-P because some Nigeirans benefitted from it without the "u must know someone" clause. Till the exit of Jonathan's government, we had no functional refineries, neither were new ones built.

Please note, Boko Haram was more like rag tag millitant as at the time of subsidy removal but later grew to a sophisticated, machine guns, tanks rolling millitant. So BH as an excuse is not tenable.

Subsidy removal under President Buhari.

1. Oil price selling below 40usd per barrel

2. Exchange rate of N197-N199 to a dollar and N320 to a dollar in the parallel market.

3. An ailing economy, with limited FOREX, and dwindling reserves.

The major reason for the total removal of subsidy by the current government is because of scarcity of Forex and an ailing economy. NNPC could not sustain solely importing petroleum products, and there is not enough Forex to give major oil marketers to handle the importation of petroleum products. It should also be noted that the present government have been able to tackle corruption to a fault in the oil industry.

The oil Marketters have now been given the liberty to source forex from other sources to import fuel which is the major reason for the high price hike.

The current government have made moves which will see the price of PMS drop in the nearest future. For the first time in years we have the Warri, Kaduna, and Port Harcourt refineries working together but some misguided youths amd miscreants in the name of avengers have decided to keep sabotaging the efforts of the present government.
There are also moves on ground to build more refineries.

In my opinion, the deregulation of the lower stream sector is right on track at this time and I stand with Buhari on this.

For now i see no reason why this government should not be supported, as they still have more than 2 years to deliver. Should the government not meet up to expectations before next elections, then Nigerians can't take their anger to the polls.

God Bless Nigeria.