₦airaland Forum

tactius:
Thanks for calling me a shallow guy.

As for me, why didn't GEJ build new refineries when he was in power.....BECAUSE...he was wise enough to realize that funding for new refineries was going to come from private investment..hence subsidy removal.

But you people opposed it, and see the result.

And by the way, I have been supporting subsidy removal since 2011//12.

tactius:
Depot price now N139

And we expect marketers to keep on selling at N145?? Even with subsidy.?

Landing cost now N205

Subsidy has to go. Niger Republic, they pay N397 for fuel. Benin Republic pays N298 per liter. Time we in Nigeria faced the cold reality. We should have allowed GEJ to remove subsidy in 2012...but we refused. Now...we are in the non-sustainable mode. Our debt is growing. Something has to give.

Fourwinds:
please how do you expect the average Nigerians to feed... Have you been accosted by a person begging for something in order to eat... If you have not, I have encountered countless number of such...

The Nigerian government is so rich that it can't distribute it's wealth among it's citizens... So whose fault... Why is there government in the first place... Not that we don't have the raw materials for what is in discuss... By the the way, is Benin Republic and Niger Republic oil producing countries?

tactius:
Funnily enough Benin Republic has oil.

tactius:
The issue is that with oil prices being below what we need it to run a balanced budget, and with the debts we have, I doubt government can build new refineries.

The same issue has been there FOR a long time.(or why didn't GEJ build new refineries despite economy being better under him? Answer...he was hoping that his planned subsidy removal of 2012 would allow investment to flow in that would in essence fund new refineries. Sadly all Nigerians saw was price increase, not long term benefits.).

That is why the first step is allowing marketers set their prices, instead of government setting prices so that the downstream sector can become a profitable sector which would attract investment needed to increase refining capacity.

The truth is , I don't want government building new refineries. Refining fuel is a private business thing...not a government thing.

tactius:
The truth is, NNPC better face facts. Buhari better face facts, and Nigerians better face facts.

Nigeria cannot afford subsidy. Landing cost is N205, we expect depot to sell at N139...and marketers to sell at N145 per liter?

What kind of confusion is this.

Subsidy must go. Yes, we will pay N200-300 for fuel.Yes, the government is composed of evil people who have looted and defrauded Nigerians for ages. Yes, I am an insensitive person , Yes, the World Bank wants to shortchange Nigerians

But how can we run a system that makes the downstream sector run at a loss...and then start crying when sharp practices like smuggling, inflation, etc happen?? Because marketers are businesspeople. They have to make money. Subsidy does not allow them make a profit.

Once subsidy goes, all those evil marketers will make huge profits...but foreign investment will flow in, jobs will flow in, government will save money, and more refineries would be built, and EVENTUALLY...prices will come down.

Let's be real. Cheap fuel is wrecking our economy.

tactius:
They won't do it because under subsidy they would be selling fuel to Nigerians at a loss. They would be refining fuel at a cost of N165 per liter and selling it at N145 ?? Yeah, right!

Dangote is taking the risk because government helped him secure loans to build his refinery. I doubt he would agree to sell fuel below production price once his refinery comes on stream...

Welcome to business. Profits must be made for reinvestment.

tsdarkside:
and how many private businesses in the past did that....??

or do you mean bandits....??

tactius:
The truth is, most Nigerians don't want to pay higher for fuel.

But the thing is, even as early as 1993, subsidizing fuel has been unsustainable. The problem is, the minute you propose complete removal, you are either an imperialist, or you want to make Nigerians suffer.

The truth is, subsidy prevents the downstream sector from making a profit, which is why we don't have cash for new refineries, cash to fix exisiting refinereis, and cash to make things better. And investment is restricted...because who wants to invest under a system where government is controlling prices?

Economics 101...government should not be controlling prices.

The thing is, APC is going to do what governments have done in the past...either funnel more money we don't have to sustain subsidy, or increase prices by N10-20 , which would work for a year...until increased landing costs make it impractical.

Let's be real. Subsidy has to go. Yes...hardship...but the new jobs, profits, savings , investment, infrastructure...worth it.

NotComplaining:
Most of those advocating for subsidy removal are brainless GEJ sycophants from the east. Which economy will foot the bill when gov cancels subsidies? Our dwindling cacophony? Do these facking idiots not realise that other than fuel, every other commodity will adversely increase in cost?

You guys need to give it a break...Your plot is way too obvious.

With high crime rate, can Nigeria afford even 1 naira increase? Do you facking idiots, selfish traitors want people to starve to death??

The gov has to continue paying fuel subsidies even if 1 naira remains in the bank.

Buckubuck:
This guy is just yarning dust. There are countries that have state-owned refineries which are well managed. The idea of private people should only own refineries is capitalist not absolute. Niger has a government owned refinery which is working well. You're just looking the problem from one angle as if subsidy is the problem. The problem not subsidy but no refining capacity for the most populated country in Africa. Let me ask you a question. DSTV is a private company in the digital broadcasting business. They've been around since the early 2000s. Why have we not had more investment in digital broadcasting and why is the cost still high?

ivandragon:
you have tried making your point & you do have some, but like someone said, you are trying to push the whole blame on Nigerians.


first of all, this administration is suffering for its lies & attempts to cover up its own inefficiencies.

second, like you correctly pointed out, fuel is sold at higher prices in countries bordering Nigeria which makes it attractive for smugglers. question is, shouldn't the government secure its borders & make smuggling petroleum products outside Nigeria a treasonable felony rather than shift the blame to Nigerians? your analogy suggests that the higher fuel goes in those countries, the more Nigerians need to pay... that's wrong...


third, one key aspect of of the attempted 2012 subsidy removal was the elimination of charges like bridging cost, equalisation fund & some other unneeded taxes. the effect of this is that a place like Lagos would afford to sell fuel for say N90 pl because it would have less associated cost, but a place like Sokoto would sell for about N250 pl. so the further inland you go, the higher the cost. this is the real reason PMB & the cabals would always want the price set. however, if PMB can remove those unnecessary associated expenses, the price of fuel will drop down south while up north pays more which is simple economics.


fourth is the revamping & building of refineries. I expected PMB to focus on fast tracking the construction of a world class refinery as soon as he assumed office in 2015 or use the excess revenue from the increase in pump price to commence the construction of a refinery. PMB failed to plan ahead believing that the excuse of low oil price will last forever (or atleast until Dangote builds his refinery). do you know that the billions generated from that increase in 2016 remain unaccounted for? at a time , the VP said N1.4tr was saved in a space of 1 year, but where did all that money go to? how come we still borrowed heavily that period?


the bottom line is that before any further PMS increase can come up, PMB needs to look inward & make the needful adjustments before he can push anymore burden on the people.

he after all always felt that at $100 pb of crude, PMS could be sold at less than N97 pl. now that crude is about $70 pb, it is time he walked his talk...

tactius:
They won't do it because under subsidy they would be selling fuel to Nigerians at a loss. They would be refining fuel at a cost of N165 per liter and selling it at N145 ?? Yeah, right!

Dangote is taking the risk because government helped him secure loans to build his refinery. I doubt he would agree to sell fuel below production price once his refinery comes on stream...

Welcome to business. Profits must be made for reinvestment.

tactius:
1. Nigeria pays a subsidy of N70 at least to keep prices at N145.

2. And if Benin and Niger...whose populations are POORER than Nigeria...can pay higher..so can we.

tactius:
The truth is, most Nigerians don't want to pay higher for fuel.

But the thing is, even as early as 1993, subsidizing fuel has been unsustainable. The problem is, the minute you propose complete removal, you are either an imperialist, or you want to make Nigerians suffer.

The truth is, subsidy prevents the downstream sector from making a profit, which is why we don't have cash for new refineries, cash to fix exisiting refinereis, and cash to make things better. And investment is restricted...because who wants to invest under a system where government is controlling prices?

Economics 101...government should not be controlling prices.

The thing is, APC is going to do what governments have done in the past...either funnel more money we don't have to sustain subsidy, or increase prices by N10-20 , which would work for a year...until increased landing costs make it impractical.

Let's be real. Subsidy has to go. Yes...hardship...but the new jobs, profits, savings , investment, infrastructure...worth it.

IamAlexander:
Nigerians brace up for a hike in pump price. Welcome to N250/litre....

Abeg make anybody no complaint o and say how will the masses afford it. The masses that preferred to collect one piece of Ankara and sealed garri with groundnuts and sugar couple with N500 during the elections than vote according to their conscience for a better and sound candidate.

As for me, let them increase it to N500/litre, by God's grace I can conveniently afford it...

Welcome to next level!

tactius:
They won't do it because under subsidy they would be selling fuel to Nigerians at a loss. They would be refining fuel at a cost of N165 per liter and selling it at N145 ?? Yeah, right!

Dangote is taking the risk because government helped him secure loans to build his refinery. I doubt he would agree to sell fuel below production price once his refinery comes on stream...

Welcome to business. Profits must be made for reinvestment.

tactius:
Basically, reality is setting in.

The government cannot afford subsidy anymore. This was evident as far back as 2012...but we Nigerians refused to take a hint...

Time we removed subsidy. The whole thing is encouraging smuggling, and is becoming unfit for purpose.

Subsidy wey them don remove abi which one

It's Easter season jaré! They know what they are doing!!!

tactius:
Depot price now N139

And we expect marketers to keep on selling at N145?? Even with subsidy.?

Landing cost now N205

Subsidy has to go. Niger Republic, they pay N397 for fuel. Benin Republic pays N298 per liter. Time we in Nigeria faced the cold reality. We should have allowed GEJ to remove subsidy in 2012...but we refused. Now...we are in the non-sustainable mode. Our debt is growing. Something has to give.

heydora:
Wetin Madam oby dey talk since...sebi una talk say her mouth dey smell....

Temidayo9:
Technically the problem is not about subsidy, Until we started refining our fuel locally we will always experience this, even if Nigerian Gov remove subsidy now, due to our unstable exchange rate, it will still happen in the long run.

evolved:
If our refineries start working and we're forcing them to sell at 145, then expect a lot of the refineries' officials to find wats of smuggling the fuel to neighbouring countries where they can sell at normal unregulated prices.

So we're back where we started. As things stand now, subsidy has to go, I expect NLC to fight for a higher wage hike soon too.