₦airaland Forum

Nitah1:
Is for gej debt,not for a fresh subsidies.

SmilingMary:
Will u just shut da hell up.... Is ur brain paining u or u just choose to be this stewpid

theoldpretender:
The N97 price was no longer sustainable by 2013....because the cost of importing one liter of fuel was higher than the cost of selling one liter of fuel. By 2014...it was only in Lagos and Abuja that N97 was in place, everywhere else it was N120 and above.

Also, because of the fact that prices were kept at N97....our government got into debt paying subsidy claims...which Bubu is still struggling to pay.

As for the subsidy we are paying now...it costs N180 to import one liter of fuel. Govt pays NNPC (NOW the sole importer) a subsidy to keep fuel at N145.

And even if ALL our refineries were working at full capacity....remember the last refinery was opened in 1988....30 years ago. Our needs have shot up drastically since then. Hence the importing.

theoldpretender:
Only way an investor is going to come in (good comment by the way) is if subsidy is remooved...meaning that investors can come in, refine fuel and sell at their price...not at government price(which wouldforcethem to sell at a loss).

But subsidy removal means high prices (as high as N250-300). Nigerians won't like that.

Racoon:

https://www.youtube.com/watch?v=6JjR3RHRs1w
Meanwhile hypocrisy and clueless is when Buhari/APC/"Occupy Nigeria Protesters" shouted that "Subsidy is a scam.Subsidy does not exist" And today "..President Muhammadu Buhari says the federal government has set aside N305 billion or $1 billion for fuel subsidy payments in the 2019 budget..."

Buhari/APC/"Occupy Nigeria" hypocrites need to apologize to former president Jonathan and Nigerians for hookwinking them on this subsidy or the dubious "subsidy under-recovery" coinage they choose to call it.

Meanwhile the cost of petrol is still high even with the subsidy issue.

theoldpretender:
1.Bubu made the 'not knowing comment' in the face of the scams that were happening in the sector...scams which probably won't have happened if GEJ had been allowed to remive fuel subsidy in 2012.

2.At the time fuel was increased to N145....landing cost of one liter was N132 . We were selling fuel at N87. Meaning most marketers were selling at a loss. And then there were the debts in subsdiy claims form the GEJ admin (another effect of GEJ being forced to reverse his subsidy removal in 2012). OF COURSE BUBU HAD TO REMOVE SUBSIDY PARTIALLY...or else , most marketers would have gone out of business...or therre would have been permanent scarcity.

3.What happened was partial removal. (At the same time, NNPC was made the sole importer of fuel...and subsides are now paid to NNPC...instead of to marketers as before.). As long as government still sets the price, it isn't subsidy removal. Keep that in mind.

4.We need at least 3 new refienries, in additon to Dangote...to improve domestic refining capacity. And the only way to get there...compel;tely remoive subsidy, allow markterts set their prices the way they want (like in the GSM sector)...and who knows...investors will come and do things like new refineries (since they can now refine and sell at a profit)>

(Which is why Atiku's N90 for fuel plan won't work...it would make things worse...and it means increased subsidy payments).

emmie14:
What then is the possibility of #150 pump price and upgraded refineries?

figment232:
Rubbish talk dont give any excuses for th DULLARD.Buhari is still paying Subsidy and NNPC is not the sole importers of fuel they are rather the Major importers.Why is BUBU paying that N800bn why are the afraid of the strike.Use ur head u hear!

deolu2000:
APC and scam are inseparable. First they claimed subsidy is non existent and that GEJ and co are only stealing the funds, we the gullible went and occupy Nigeria. Finally they came to power and told us that if we allow them increase pump price, that in six months, our refineries will be fully operational and competition among the marketers will drive down the cost of PMS, boom they increased from #97-145. only for them to go about claiming to be paying 10X the value of subsidy to marketers despite all their claims.
my questions are the following,
1. Has our population increased so much? that we now utilize such volume of PMS within the period.
2. What happened to the money they claim they will save so as to get our refineries working, after all it is almost 3yrs now and no refinery is working more than at 25% capacity?
3. if our Budget increased from 4.2tr under GEJ to 8.8tr, please how has this reflected on our lives as ordinary citizens trying to survive on the streets?
someone should please enlighten me

Ogaga87:
[b]So the skewed of Buhathief could not allow him come out open when he took on the protest of the removal then to tell Nigerians that what PDP was doing was right..

Since 2015 till date, this administration could not come with a practical solution to PRE-PAID metre for Nigerians. The current chief of lies who is the representative of the devil in Nigeria, told us that they could not handle anything on that matter as far as it is concern.

Since 2015 till date, ASUU has never benefitted from the agreement they reached with a 6.5 to 8.9 trillion of this current administration..

With the travels the president did when he first assumed office, they could not boast of the level of FDI that came into this country.. See your unemployment rate today...


Can you honestly defend this administration before the Transparency international that this government has done much on fighting corruption with a situation where the hunted will be freed if he or she becomes a member of the ruling party...

I would have written so much on this but I'll save the energy for other post

I want them to give us the true state of what the STANDARD OF LIVING is now as against 2015.. I am fed up but I cant die.. APC is a costly mistake...[/b]

vicdom:

Tweet from Senator Shehu Sani

If you once celebrated Father Mbaka for telling you what you like and now he is now telling you what you don't like, please be courteous and don't insult or attack him. It's natural for people not to agree all the time.

.....If Buhari didn't win in 2015, we would have thought by now that Nigeria would have been like London.

Thank God he won for everyone to know that he can't perform magic.

Buhari said he does not know anything called subsidy. You clapped.
He later paid subsidy. You clapped again.

He said he would never devalue the Naira. You clapped.
He devalued the Naira. You clapped.

He said he will make N1 equals to $1. You clapped.
$1 is officially equal N360. You are still clapping.

He said he will make petrol price to N40, you clapped,
Now petrol price is N145, you clapped and do protest in support.

He said he would turn all presidential jets to national carrier. You clapped.
Today, he and his family are cruising on all presidential jets. You are clapping.

He said he would build one new refinery each year. You clapped.
Its getting to three years, no refinery has been built. You are still clapping.

When he cancelled Military road blocks, you clapped.
When he asked them to go back, you clapped.

When PMB promise to end medical tourism, you clapped.
When he spent months in the UK hospital and allowed local doctors on strike, you clapped.
And as ayam typing now some are still clapping at the fuel station.���

theoldpretender:
I am not excusing the 'dullard'...infact..I regard his subsidy payment as bad economics.

I think he should remove subsidy completely (then I might consider voting for him).

But the reason why he won't is because most Nigerians prefer low fuel prices. And if Bubu really removes subsidy....price of fuel will cost N250 and above ....and there would be protests.

Bubu is paying the N800bn (MOST of which has been paid...it is the last N300bn that govt and marketers are fighting battles over)...because it is leftover from the GEJ era .....which happened because GEJ was forced to cut prices from N140 to N97 IN 2012.

[b]Had GEJ been allowed tokeep prices at N140 BACK in 2012.....there would have been no debt.

[/b]QED.

Redoil:
But my yoruba brothers told us that subsidy is a scam under gej
For those my yoruba brothers bashing me i have forgotten it is buhari ur lord and master who never does wrong

Enemyofpeace:
5 days to Christmas and I have not heard one "Jingle bell Jingle Bell song"

What's Wrong?
The Bell Don Spoil

theoldpretender:
Bros...I amnot defending Bubu or his economic polices (that is another topic on its own)....I am merely showing how we got into the mess of subsidy.

In my opinion, if we had allowed GEJ to keep prices at N140...by now none of this problems would have been happening.

Bubu can avert the problem by stopping subsidy payments, and allowing prices to rise. Problem is....Nigerians like low prices.

(As you can see...my explaining why Bubu is paying for subsidy does not mean I like the policy. Personally...I want all subsidy payments topped...and marketers can set their price....)

figment232:
None had been paid at as when the marketers gave notice of their strike.The just got a promisory note of N236bn ealier this week.The fact remains that the DULLARD is a scam.He rode to power on the claim that subsidy does not exist.Whereas he is now paying it double.

Ogaga87:
I didn't mean to say that you are defending Buha.... If my comment portray such, I'm sorry because your initial post didn't state that..

theoldpretender:
Thank you.

Mind, I opposed GEJ....but on his subsidy removal...I agreed 110% because it made economic sense.

Sadly, most Nigerians did not see that .

Truth be told...Bubu has to remove subsidy and allow prices to be set by marketers. It is a difficult thing to do...but it is the only decision that makes sense. That N300bn can go for other things...like rail.

vicdom:

Tweet from Senator Shehu Sani

If you once celebrated Father Mbaka for telling you what you like and now he is now telling you what you don't like, please be courteous and don't insult or attack him. It's natural for people not to agree all the time.

.....If Buhari didn't win in 2015, we would have thought by now that Nigeria would have been like London.

Thank God he won for everyone to know that he can't perform magic.

Buhari said he does not know anything called subsidy. You clapped.
He later paid subsidy. You clapped again.

He said he would never devalue the Naira. You clapped.
He devalued the Naira. You clapped.

He said he will make N1 equals to $1. You clapped.
$1 is officially equal N360. You are still clapping.

He said he will make petrol price to N40, you clapped,
Now petrol price is N145, you clapped and do protest in support.

He said he would turn all presidential jets to national carrier. You clapped.
Today, he and his family are cruising on all presidential jets. You are clapping.

He said he would build one new refinery each year. You clapped.
Its getting to three years, no refinery has been built. You are still clapping.

When he cancelled Military road blocks, you clapped.
When he asked them to go back, you clapped.

When PMB promise to end medical tourism, you clapped.
When he spent months in the UK hospital and allowed local doctors on strike, you clapped.
And as ayam typing now some are still clapping at the fuel station.���

Kusetic:
Nigeria is a peculiar case in that our fuel consumption is not solely for vehicles but also for individual and commercial power generation seeing as electricity is very poor in our country and fixing that problem is a dream that might never come to pass in our lifetime.

Saving money for our refineries will require a whole lot of things to work together, global oil prices increase, other sectors of our economy pulling their weight in revenue generation and we actually using the funds for the purpose intended.

Your third question is a million dollar question, ideally if the system was sane, we would feel the effects in things like free healthcare, free or improved education, good roads (personally I love good roads, they give peace of mind..lol), constant power etc. At that time you won't care who is in power so far the system works and you reap what you sow into it. But that is a pipedream in our wonderful country.

theoldpretender:
1. Subsidy being a scam dates back to the scams that happened under the GEJ regime..when marketers, who were being forced to sell fuel at prices below what they imported it for...used underhand methods like paying for fuel not imported (and smuggling imported fuel across borders to sell at higher prices). Hence the scam.

2.Yes, Bubu and his guys and most Nigerians owe GEJ an apology (sounds harsh)...but...if GEJ ahd been allowed to increase prices in 2012 to N140...all this debt and scams won't have happened...at least until the landing cost exceeded the import cost (which, hindsight speaking...would have lasted for 4-5 years). But Nigerians don't think long term.

3.Fuel costs are high (even in the USA....it costs N300 at least for one liter of fuel. And the US is now a net oil producer). In Nigeria we face the issue of

a)Importation....we need to import because

b)Insufficent fuel production at home...even at full capacity...we may need to STILL import at least 40million liters of fuel a day (our refineries can only prodcue 30million and that's when they are working well).

4.Only solution...remove fuel subsidy completely. That way, investment flows in for new stuff like refineries (NNPC too wouldfinally be able to earn money and become a big playa like PETRONAS of malaysia!) BUT....fuel willicnrease to N250 and above...and that's what most Nigerians don't want.

theoldpretender:
Well here is what happened

As far back as 2010...govt could see that subsidising fuel would not be sustainable, hence the increase in price in 2012 from 65 to N140.

Nigerians portested....so prices went down to N97. At the time,landing cost was N99.

Landing costs increased, paying subsidy became unsustainable from2013.....and by 2015....landing cost was N132. Fuel was N87.

Bubu did two things

1.Ended importation by marketers,except for NNPC

2.Increased prices.

BUT...we still have subsidy claimsleft over from before the price increase...which Bubu is still paying off.

Also, landing costs are icnreasing.Right now...fuel is at N180 as landing cost. We pay N145 at the pump (N142 in some staitons).

So, subsequently....subsides must be paid...or fuel would cost N200 and more.

As for refineries...it isn't just fixing them...we need at least 4 new ones. Apart from Dangote...to meet domestic needs.

And since one new one costs $9bn (our reserve is $43bn. 4 refineries cost $36bn...spending our reserve would have bad news for our economy)....we have to attract investors. And the only way to do that is...by removing subsidy completely. IE govt stops setting prices, stops paying subsidy...and fuel would shoot up to N200 and above.

theoldpretender:
Not possible...UNLESS...

1.We build four new refineries...plus Dangote

2.We build a host of new refineries...modular refieneries.

3.We remove subsidy....for a few years...prices stay around N250-400...then as more investment flows in, and facilities improve.(AND government allows more players into the downstream sector)...prices would eventually reach N150.

4.Oilprices go up...and knock the value of the naira higher.(more dollars to buffer the naira).

theoldpretender:
Thank you.

Mind, I opposed GEJ....but on his subsidy removal...I agreed 110% because it made economic sense.

Sadly, most Nigerians did not see that .

Truth be told...Bubu has to remove subsidy and allow prices to be set by marketers. It is a difficult thing to do...but it is the only decision that makes sense. That N300bn can go for other things...like rail.

BlackSpanner:
How can a serious government present a budget 6 days to Christmas knowing fully well that the NASS will be shutting down for the year anytime soon.

When they reconvene by January, most of them will be preoccupied with campaigns rather than passing this budget. I'm afraid this budget might be passed by May 2019.

The same people who carried out the occupy Nigeria protest during the GEJ administration telling us that subsidy is a scam now with no shame are voting billions of Naira in the budget. Nigerians indeed deserve something better than this APC scam government.