₦airaland Forum

Ymodulus,
I concur wit you absolutely. If SLS actually made that statement, then thumbs up for his action, humility and show of respect. True friendship transcends political position and appointments.

I am not a fan of any of them. However they represent their clan aptly.

@ Fhemmy,
Milestones will enable us measure performance and raise alarm before the projected end date.

Thus if Milestone 1 defaults in February, we can all do the needful by raising alarms. This way GEJ will know all tabs are on his govt. No more business as usual. Someone must start getting punished for these ineptitude. My simple opinion!

I would suggest the news is backed up with monthly milestones for follow up.

Great news. The next step is to aptly monitor and control cost, quality and time. Scope creep must also be forestalled. Thus the pertinence to plan suitably before execution.

shameless twart>>
not fit for a nanny. shior

@ Poster,

In addition to the brilliant exposee of the monumental gibberish in your analysis by previous posters and most especially Deep Sight, please note:

- the amount stated as subsidy per litre was N74 and not N80+
- the N1.3trillion or N1.4trillion was for PMS only without Kerosene

@ Manny4life,
Kindly note the following:

1. The astronomical increase was not due to increase in consumption but corruption and mismanagement.Even SLS confirmed the rot in the monitoring system when he said officers at the port sign falsified documents. Inability to curtail smuggling is another reason given by the govt's economic team which invariably means govt failure. Shocking revelations from people who are expected to protect us all. They lack the will to face their corrupt cronies because the last elections and enrichment exercise was through same means. The touted savings of N1.3trillion is to close their tracks for 2011 after embezzling trillions of Naira to pave way for alleged infrastructural development. Why subsidy savings of a meagre N1.3trillion and not excess crude savings of N4trillion?

2. What happened to the N1.147trillion Naira budgeted for capital development in 2011? Are we to maintain the deceit when such huge sums are not aptly used by people elected into government to guard our interest in its stead rob us black and blue?

3. The N300b subsidy if it exists at all, can not crash the economy. The recurrent expenditure will if not checked. Cost of running government in Nigeria is the highest. If GEJ's team work astutely to save N1trillion Naira from their allocations, Nigerians will have more for infrastructure. Charity begins at home. Also the culture of depleting our foreign reserves (N4trillion must stop). It is pilfering of the highest order. GEJ has been part of the executive with nothing to show for it. Shame shame shame.

Lastly, the poor masses can not afford the multiplier effect of the increase of PMS on all the other sectors. Salaries and wages have not increased. This is the major problem. The FGN has no solution in place other than speculations and blackmail.

Please read the arguments from Deep Sight again and again.

@ KarlMax,
What is being said here is that the govt cooked the N1.3trillion story based on her ineptitude via subsidy. The actual amount for subsidy is within the N300billion range.

The way forward for national development are:

- reduce recurrent expenditure. Add the savings to the budget for Capital expenditure or infrastructure.
- all tiers of government should use suitably their share of the excess crude oil and not subsidy savings which do not exist.
- stop inflation of contracts and ensure projects have specifix scope, cost and are timebound
- deal with corrupt practices.

It is sad that the budgetary allowance for capital expenditure over the years have not yielded any positive impact.

@deep sight,
God bless you. You have summarised my last three articles appropriately on the subsidy subject!

Thanks guys. We must keep the hope alive.

Tru tlk dandoskyyyyy.
Papa Tony. *winks*

I wish Mrs. Iweala and Mallam Sanusi Lamido Sanusi can be asked these questions whilst at AIT.

Subsidy Clarifications and Queries – An Open Letter to the Economic Team

Sequel to my previous articles on the aforementioned subject (https://www.nairaland.com/nigeria?topic=839088.msg9897217#msg9897217 and https://www.nairaland.com/nigeria?topic=841911.msg9922832#msg9922832), I hereby wish continue the discussion. It is outright blackmail for government to say the reason for the subsidy removal is to have more money to expend on Infrastructure without answering basic questions. I will continue to share my views until the government acts appropriately. We have heard insinuations and counter denials from government officials of economic collapse and the Nation being broke. What is pertinent is the primary unit of existence which is the family, which in Nigeria's case is characterised by the poor masses. Kindly clarify the following:


1. Show us the relevant sections of the 2011 Budget where the provision of subsidy is stated. With or without this, I am right to say the government kept spending money as desired from the Federation account and also borrowing as alleged until it reached the unprecedented N1.3trillion. Perhaps to itself and cronies to fund the elections as against subsidies.

2. Publish the breakdown of the N1.3trillion spent on subsidies in 2011. Mrs. Okonkjo Iweala stated that she met N1trillion already spent and she did not deem it fit to investigate the astronomical increase from an estimated N250billion

3. Publish the projects executed with the N1.147trillion budgeted for capital expenditure in 2011. Why mislead the people that the reason for maternal mortality, poor health care and dearth of infrastructure is as a result of subsidy? What happened to the budget allocations for these sectors?

4. What is the difference between the SURE projects and the Capital expenditure projects to be executed by the MDAs? Will this not mar ease of management?

5. Shall we be left to purchase refined PMS at the rate of international crude oil prices? What will happen to Nigerians when the cost of crude oil soars above a permissible price in the international market? Are we to flow with the market forces, hence N141 today and perhaps N300 later? Will the government embezzle gains of increased crude oil prices as previously done under the auspice of more money for infrastructure whilst its populace languish from increased prices?

6. Asking Nigerians to pay N141 per litre for PMS because the neighbouring countries pay more for PMS thereby forestalling smuggling at cheaper prices is ludicrous. Can’t the FGN be more responsible to its citizenry? This affirms that the government cannot tackle corruption neither can it protect its borders. If true, this is shameful and a planned attempt to impoverish Nigerians. The standard of living in these countries is better than ours. Dependencies on PMS are not same as they are in Nigeria. We are producers of crude oil.

7. Is the government aware that there is an opportunity in the constraint in ‘6’ above? What it implies is that if we sell refined crude oil as PMS to these neighbouring countries at competitive price we will make more revenue.

8. Thus why not devote all efforts to ensure the refineries work at optimum maximum level via a PPP model. The government’s equity can be sourced from the gains from excess crude oil. This will effectively reduce unemployment too.

9. Is it impossible to set aside 100,000 barrels (15.9 million litres) daily for local consumption to be refined by a government approved model?

10. Is this government aware that the price of PMS determines the price of every major consumer goods produced for the poor in Nigeria? How will the poor Nigerians survive without a corresponding proportional increase in wages and salaries?

11. Can this government provide the Risk Assessment & Management Plan carried out before the subsidy removal was announced? Statements such as it will result in ‘temporary hardship’ are shallow coming from the crop of members in the Economic team. So far the resultant effect shows the government did not think of the effect aptly but instead developed a misleading plan with emphasis on improving infrastructure from a purported subsidy savings when monies are voted year in year out without effective use. Please note the amount touted as estimated savings will not solve the problem.

12. The solution to infrastructure lies in reducing current expenditure in the budget and transferring the savings to capital expenditure with apt monitoring and control. Do you believe?

13. Does the government believe that PMS can be sold for N65 or less without subsidy? The analysis has been done by renowned experts. Has the government looked at the analysis?

14. Please publish what the N4trillion (provide the actual figure) gained in 2011 from excess crude oil was used for. Instead of using the terms savings on Subsidy removal (which does not exist), why not set up a committee to monitor the use of savings on crude oil. Definitely, some money will go to infrastructure from the savings, more money will go to the three tiers of government for defined purposes etc.

15. Please publish in full, the revenue generated from Crude oil, mineral resources, Agriculture, Taxes and import duties in 2011. The estimated revenue at the time of presenting the budget proposal in 2011 was N3.348trillion. From my calculation, this government definitely made over N8 trillion in 2011. Approved budget for 2011 was N4.485trillion

16. Please publish the state of the foreign reserves and the activities (expenditure and addition) since 2007 ( GEJ was part of the government)

17. I reiterate again, the poor Nigerians cannot afford to bear the consequences associated with the geometrical increase in the cost of PMS because it affects everything. You cannot afford to spend what you do not have.

18. It is wrong to say the effect of selling crude oil at N65 (via subsidy or not) did not reach the masses as said by member s of the Economic team. The hardship experienced in the last one week and subsequent uproar is evident. I would only agree that the supposed subsidy did not get to the masses if the government agree that the monies were truly not used for crude oil but mismanaged and approved by government illegally to their cronies.

19. Lastly we demand plans from this Economic team, proposal and ways to diversify the economy. It is evident that this economy cannot continue to depend on crude oil.

20. A major factor for foreign investment and economic boom is a conducive environment with suitable security of lives and property. The incessant bombings of civilians and violent unrest in the country will mar any economic gain if not adequately managed. The State of Emergency has not succeeded in curtailing this menace. More lives are lost daily. Please act expediently. Nigerians are suffering amidst affluence. Enough is enough.

Concerned Nigerian

@ OP,
Yes it is.

Nigeria needs resuscitation!

@ Layi,

Hmmmm. Thought I should say thanks again for the appreciation through this thread. This event took place over 4 years ago. Levels don change now ooo. All thanks to God! Where art thou?

Part 2 - Subsidy & the State of the Nation – “An Open Letter to Mallam Sanusi Lamido Sanusi”

As a sequel to my previous article which was titled “An open letter to Mallam Sanusi Lamido Sanusi” hereto referred to as part 1, I hereby present the part 2 of my debate on the Subsidy matter and the State of the Nation.

1. Kindly pardon my continuous pestering of your exalted self with queries considering that you are the executive Governor of the Central Bank and neither the Minister of Petroleum, Finance nor information. I chose you because you have been adjudged the ‘most intelligent Nigerian’ which invariably translates to mean you are the most intelligent member of GEJ’s economic team (except you are not a member). Secondly, you have also chosen to be one of the spokesperson for the team. Your voice has also been more audible than that of the Minister of Misinformation (perhaps he finds it difficult to articulately communicate the stories cooked in the chambers. I do not blame him jare. Too technical for his level).

2. Starting off without delays, kindly enlighten the populace the source of the existing subsidy in 2011 prior to removal; and the new source of the proposed subsidy savings touted to be spent by the newly constituted ‘Subsidy Reinvestment Team’. Having read through the 2011 budget proposal (draft) I did not see a provision for subsidy (refer to http://www.budgetoffice.gov.ng/2011_budget/proposal_2011/2011_Appropriation%20Bill.pdf).  The Budget Appropriation Bill proposal which was for a sum of N4.226trillion Naira may have excluded provision for subsidy (please guide me accordingly on the relevant section of the budget where it was captured).  The budget was bumped up by the National Assembly to N4.485trillion Naira, which was eventually signed into law by Mr. President.  At that time, total forecast revenue was N3.348trillion Naira at a benchmark average cost of $75/bbl of crude oil,  which resulted in a N1.136 trillion naira deficit representing 2.96% (as alleged) of the GDP in accordance with the fiscal responsibility Act of 2007 which pegs this at a maximum of 3% (wouldn’t go into the confirmation of this. I believe the percentage is more. The GDP for 2010 which was served as the basis was $186.567billion. Using N150 to a dollar will give a percentage of 4%).

Back to the point, a salient reason as stated by the economic team for the removal of the subsidy was that government has been spending more than planned (though no blue print to confirm the amount planned. If in the budget please refer me to the relevant section and heading) and had resorted to borrowing to augment the huge Fuel subsidy burdens which moved from N300billion in 2007 to N600billion in early 2011 and now N1.3trillion per annum (please confirm the actual figures, as it seems the government denies everything these days following Aunty Ngozi’s denial and rebuttal that the subsidy was to commence April 2011, when the new budget year will commence). Thus it may be apt to say that the executive arm of the government subsidizes the importation of PMS from an account created by the government. This implies that the government makes more revenue than the forecast at budget and the Executive chooses to either subsidize PMS from this coded account or to borrow money from external bodies.

In my opinion, I believe that this coded account is maintained by extra savings above the budgeted benchmark price on the sale of Crude Oil which was transparently in existence during OBJ era. Thus permit me to say that the figures being brandished as subsidy are outrightly false (except the spreadsheet can be published in all dailies)to emotionally blackmail Nigerians to support removal of purported subsidy after the deed of milking us dry has been done from hiking the amount spent and laying claims to the dishonesty of importers/marketers. The consequence in my view is the connivance with the FGN to enable refineries owned by their cronies in Europe and Asia continue business at the masses expense. The forecast that the subsidy removal will attract foreign investment which will translate to new refineries is gibberish. What incentives are there for any organisation to make such huge investments in Nigeria when the organisation can operate from its base in Europe without impediments? Considering our incessant policy summersault, escalating cost of business, adverse political climate, corruption, insecurity, economic tension, corruption etc.

Moving on, if my assumptions are true that the subsidy was maintained from savings on crude oil, I demand the government publish how much was generated within the period and how much has been spent so far. Secondly, if the existing subsidy account has been depleted as we have been made to believe (on removal of the subsidy to forestall borrowing or spending savings) where will the ‘Subsidy reinvestment committee’ get the money to be expended for infrastructure? What intent does Aunty Ngozi have when she said savings on subsidy will be published monthly? Are we being deceived?

If truly the subsidy was allowed for in the appropriation bill of 2011, thus negating my assumptions, we demand to know what investigations and actions were taken at the point when the budgeted sum was expended? What monitoring and control procedures were put in place? Did the government continue spending to the tune of the displeasing N1.3trillion as alleged? A responsible manager will effectively manage funds at his/her disposal to ensure the effective use.

3. To continue, howbeit will the Executive say the Country is broke? The revenue forecast for 2011 as previously mentioned   was N3.348trillion at a benchmark crude oil price of $75. From my calculation, using 250 days of exploration, production & export and furthermore using N150 to a dollar, I observed that the author of the forecast estimated an output of 1.1904million barrels per day.
Secondly, join me as I analyse the corresponding income from crude oil (only) in 2011. The average output recorded per day was 2million barrels. Average market price for crude oil was $100. Using N150 to a dollar, 250 working days in the year, the total revenue will be N7.5trillionNaira.
Thus to calculate the net difference in revenue forecast for crude oil and revenue generated, we shall deduct N3.348trillion from N7.5trillion. This will translate to a balance of N4.152trillion. Where is this savings? How has it been spent? What amount has been moved into our foreign reserve? How much of this amount has been spent on subsidy? How much has been spent on the budget deficit earlier mentioned? How much in addition was realised from taxes and other revenue generating media?  Why do we need to borrow more? What has been happening to our external reserves? What happened to the savings in the Excess crude oil account left by OBJ in 2007? As lay men, we desire answers.
4. We demand a spreadsheet showing how the N1.147trillion earmarked for capital expenditure in the 2011 budget was spent by each of the Ministries, Department and Agencies. There is no significant landmark justifying the amount budgeted. Shall we continue to budget and embezzle these amounts every year without evidence of use? Most of the projects mentioned to be spent by the subsidy committee via a non existent subsidy savings account have previously recurred under capital expenditure in our annual budgets. Who is deceiving who? Please note that Nigerians are not dumb.

5. I reiterate as previously mentioned in Part 1, that subsidy is a wasteful venture used to reward corrupt friends of government (especially in oil and gas), since the government has refused to prosecute anyone despite the weighty allegations.

Nigeria can set aside daily, 100,000 barrels of crude oil (to be sold at cost price as against international price) for local and foreign refining pending when our 4 refineries will be at peak. This way, we will purchase PMS less than N65 without subsidy. It is foolish to subject Nigerians to prevailing international market price whilst the government makes a kill when crude oil prices rise above benchmark. It would have been no big deal if we do not depend on PMS for everything. 

The effect of this astronomical increase in PMS is beyond the assessment of GEJ’s economic team. Other than transportation, all food items have doubled in price. Strands of Ugwu (vegetable) are now sold for N50. Refill for water dispensers now go for N500 as against previous price of N300. I believe you can calculate the inflation rate from these examples.

6. Should the government desire to continue with the existing wasteful inappropriate subsidy model against the suggestion and theories by renowned scholars on this issue as stated in ‘5’ above, astute sanitization of the system will reduce the hard to believe speculated N1.3trillion to a N300billion. WHAT IS IMPERATIVE IS THAT PMS MUST NOT BE SOLD ABOVE N65.

If the government wish to sincerely subsidize any sector, a Public Private Partnership is apposite other than doling cash to merchandized criminals.

7. The recent events emphasis the pertinence to diversify the economy. The time is now. I challenge the economic team to commence the process of devising methods and procedures to diversify our dependency on crude oil. Agriculture should be developed beyond its present state and government’s intervention should go above giving paltry subsidies on fertilizer to subsistence farmers. Our large deposits of mineral resources should be explored. Feasibility studies are imperative. What are the other Countries without crude oil doing to sustain their governments?

8. The palliative measure to cushion the effect on transportation thereby importing 1600 buses is shameful. What percentage is meant for intercity transportation and what percentage is planned for intracity transportation? I watched with dismay today on NTA, Mr. President giving bus keys to established transporters. How will this cushion the cost of transport from Agege to Obalende in Lagos? How will an average of 2 buses per local government be suitable? How sensible is the proposal to subsidize this inadequate mass transit? Wouldn’t this be another avenue to embezzle money? 

9. To achieve economic sanity, with respect to the budget, the recurring expenditure must be cut by 50%. Capital expenditure must be appropriately spent with monthly progress updates of projects published in all national dailies. The Presidency and Legislature must cut recurring expenditure by 50% too. Using you as an example, I have personally been to your kitchen at the CBN quarters during Soludo’s era and I must say I was overwhelmed at the facilities and staff therein.  The luxury is over and above and may not be necessary. I am certain your cute self can’t consume more than normal. NI trillion may be saved from this venture which may further be added to capital expenditure.

The President’s speech last night on reduction of recurrent expenditure is a good step but failed to affirm the specific amount to be saved from recurrent expenditure its intending use. This is the bane. FGN should learn to stop speculating but employ the SMART model (Specific.Measurable.Achievable.Realistic and Timebound) when making policies. I propose all political office holders attend mandatory management courses before assuming office. The dearth of requisite skills is glaring and the level of reasoning is quite abysmal.

10. In conclusion, I propose the FGN listen with rapt attention to the concerns of the populace. A proactive beneficial matrix of the Upstream and Downstream Oil and Gas sectors should be explored to reduce the price of PMS to N65 or less. Review and ascertain ways to also reduce the price of diesel and kerosene.

Award contracts to reputable companies in accordance with transparent due process procedures and procurement policies.

Deal with corruption starting with the beneficiaries of the staggered alleged N1.3trillion. The inability of the government to bring the supposed criminals to book will portray that the government lacked the ability to tackle corruption which will further damage our poor integrity as a nation. There is no guarantee that the government will expend savings in whatever form it may be suitably. The antecedents shall serve as a base.

Education, Food, Housing and Healthcare related projects have direct impacts on the poor masses. Such primary projects should be encouraged. 

The Security threat besieging the nation should be tactically addressed with wisdom, as this threatens our existence as a nation. 

Lastly, the FGN should be careful whilst acting the demands of undeserving World supervising bodies.
Thank you Sir for reading through the lengthy piece. Please pardon my ignorance for any information miss represented. Perhaps if we had a vibrant Ministry of Information, all facts would be available online for all and sundry. I am an Architect by training and not an economist. The facts above are as culled from apposite online media. Please read this article in conjunction with part 1. I look forward to your clarifications on the issues raised. Kindly liaise with the relevant Ministries, Departments and Agencies if need be. God bless you. God bless Nigeria.

For: Chaste Nigeria Initiative
Concerned Nigerian

Thanks for all the kind comments. Will make attempts to publish in the dailies as advised.

@ knowledge4,
The buses from what I heard will be powered by Diesel and not PMS. Nevertheless, the price of diesel is higher than PMS. Savings on efficiency of Diesel powered buses over their PMS counterparts may be insignificant. Thus to run a profitable business, they must charge a competitive fare. Above all, the venture has no impact on the socioeconomic welfare of Nigerians. The quantity ordered confirm there was neither an apposite thought process nor was there planning nor assessment of the usefulness of the venture. Dead on arrival!

Thanks all for the support. We must prevent the next generation from going through the hardship meted to us.

@ Topic,

an attempt to further punish the marketers who were given licences to import PMS despite being unqualified became disloyal by not declaring regular returns. It is this crop of people that the subsidy removal was made for; to enable the big boys control the sector appropriately. They have no technical capacity and requisite wherewithal to import and store fuel. They belong to the crop that import water as fuel OR import adulterated fuel for sale.

GEJ dares not go near the Cabal themselves. Most of us now understand why the GCON award was mandatory as given to the recipient. Naijamoviemagic for real!

I am convinced that GEJ's team is the weakest ever. Is there scarcity of transportation? Intracity, I doubt. And if yes, will an allocation of 2 buses per local government be the solution? Why were those buses not purchased from Innoson, an indigenous manufacturer? How do they intend to recoup the investment in 5 years without commuting at competitive market price? Considering that they took a loan @ 5% interest and the venture is to be managed by a private firm. This confirms that GEJ is shortsighted because this mitigation measure is insignificant. Moreso, these buses must have been purchased months ago if distribution is scheduled for Monday. Thus the townhall meeting was an absolute waste of time.

The FGN has zero management skills. The present day Ministers and economic advisers are the worst ever. I strongly believe someone is paying these goons to mislead GEJ, thereby causing anarchy and an eventual overthrow/impeachment. They are capitalising on his ignorance and inexperience. The dude is not worthy of administering his LGA sef. Shame

AN OPEN LETTER TO MR. SANUSI LAMIDO SANUSI
Good evening Sir.
I read with pain that anyone would hurl insults at you and your preceding generations. This is unbecoming of Nigerians and is contrary to the noble upbringing and sound education we received on the topic ‘respect your elders’ during our formative years. Perhaps Nigerians are changing with the trends. So it is true that a useless father will in no time diminish before his children and will become a subject of ridicule. I am a concerned citizen and poised to write this rejoinder to an article credited to you via e-forums on the pertinence to remove subsidy. My comments are stated below:

1. Your statement that ‘Removing subsidy has costs in terms of nigerians paying more for PMS-which by the way is not the fuel for generators, power plants, production facilities, heavy duty goods transportation trucks and even luxury buses’ is very untrue. Did you carry out a feasibility study? Was there a risk assessment before taking this decision on subsidy removal at the exquisite villa maintained by our national treasure? You most definitely must be kidding. According to Pareto’s theorem, 80% of Nigerians generate their electricity for domestic consumption through generators powered by PMS. 50% of the small scale businesses (which is the order of the day) considering that most of the large scale businesses have packed and relocated to a more conducive environment, run on power generated through PMS. This 80% also go to work via personal owned vehicles, commuter buses and Okada; and they all run on PMS. Tomatoes and related food items are also transported and distributed through commuter buses and station wagons that run on PMS and in some cases transported through lorries/trucks too since the railway system has gone moribund (please visit mile 2 someday. You may or may not be disguised). So tell me, do all the aforementioned belong to the middle class? Is it the hustling security guard that earns N15,000 naira monthly whose transportation cost has risen to N700/day belong to or the police man that now spends N600 to get to his duty post? Since you allude that the middle class shall feel the brunt more, why the nonchalance? Do you hate the middle class whom invariably comprises of the youths? Are you unaware that the cost of running business has increased since we all depend on PMS to do everything? Are you insensitive to observe that many will be laid off as workers will demand employers subsidize transportation to work or increase in wages and salaries which will lead to mass retrenchment? Please be informed that the majority of the youths that besieged the roads yesterday are reflections of the terminal disease called unemployment which government has been unable to postulate any cure for. Please note, that for production and investments to thrive, the citizenry must be well catered for by the government. These are simple economic principles. I remember during my MBA class, that we were taught that motivation is the greatest tool to achieve success in any organisation and polity. Also bear in mind that the people are the most expensive resource in any organisational entity. On this note the entire economic team has failed.

2. To the crux of the matter, we do not support subsidies too. I am sure you are shocked at my comment. In my opinion, from all i have read, the touted subsidy by the FGN is a charade. Why should the government subsidize when we own the crude oil, own refineries and the marketers are locally and readily available? it is an irresponsible act by government. Truth be told, what Nigerians are clamouring for is the reversal of the price of PMS to N65 or less whilst still achieving savings on the astounding amount pilfered in the name of subsidy through the vehicle of corruption. I was very nauseated when you stated at the town hall meeting that importers falsify waybills at the ports and also export the crude oil to neighbouring countries after collecting subsidy with no punitive action by any arm of the government other than to remove subsidy. Isn’t this a shameful statement from a respected scholar like you who ought to protect our collective interest whilst in government? It is very unethical and please learn not to speak in such manner again instead act proactively because it is the duty of the government to tackle the menace other than lament. What in the world happened to a major management principle of ‘monitoring and controlling’? it is very obvious that the cabal is the present day government and the present day government is the cabal. I want you to please avail us the details of how the subsidy spiralled from N300b in 2007 to N1.3tr in 2011. I strongly believe it is based on the reasons previously mentioned and Nigerians should bear the brunt instead of closing in on your friends who the government of the day awarded import licences to, as a reward for the excellent job done during the elections. No wonder the list of importers grew from few major firms to a large number of a mix of all and sundry. Please tell me, is anyone probing the scam since the list was published? From where i sit, i am led to believe that the economic team believes that the era of everybody chop should come to an end, thus full deregulation. Only those who have the wherewithal and meet the standards should import fuel – that is the big boys. Who is fooling who? Who will recover all the billions pilfered by these unqualified agents who ship water to the ports in vessels with claims of PMS? Who will bring to book the importers of adulterated fuel all in a bid to maximize profit? Will the government fold its arms and propose Nigerians pay for the ineptitude of government? What responsibility does this government wish to bear if it outsources all of its responsibility with no option of equity to supposed foreign investors (themselves)? Please let the federal cabals learn from the Transcorp saga.

3. As I earlier mentioned, N65/litre is achievable without giving anybody money as subsidy. The country exports 2.5million Barrels of crude oil daily. Is it impossible to set aside the quantity for local consumption to be given at slightly above cost price as opposed to international price? From the analysis I have read, the local consumption for PMS is embedded in not more than 100,000 barrels. If set aside at a cheaper rate, and refined partly via our below capacity refineries and the other part refined at a government approved refinery abroad, the refined products delivered through the same approved firm to forestall a decline in quality, pending when we make our refineries work, then we will achieve less than N65/litre for PMS. The analysis has been done by renowned elites who have served in government. Please refer to the Abacha model that gave birth to the Petroleum Trust Fund. I am astonished that the economic team keeps blackmailing us with stories of economy collapse solely due to subsidy. It is inappropriate to subject the populace to international market rates when crude oil is our national resource. I have a popular parable: “only a foolish farmer will harvest cassava and sell it all off at the market and ask his household to purchase garri at prevailing market rates whilst amassing wealth to himself under the guise of rehabilitating the farm without consideration that his household can make garri from the produce, reserve some for consumption and also sell same at the main market”.

4. Sir, since the freedom of information bill has been passed, please avail us of details on how the excess crude oil account maintained by OBJ was disbursed and closed? We heard rumours that GEJ was busy sharing the loot on the same night the Abuja bomb blast at the mammy market was let off. So all the billions of dollars have gone into the last do or die elections abi? Secondly, we demand to see how our foreign reserves dropped from $80b to $30b (please correct the figures if wrong)? Thirdly, what has happened to the excess savings that have accrued since GEJ took over in 2010 till date? It is ludicrous for government to say money was borrowed to service subsidy. Why were these basic infrastructure not executed from these savings? Instead, the recurring expenditure to the executive arm of government keeps increasing every year whilst the masses suffer. We have not seen any capital project in the last two years despite the allocation of billions for infrastructure yearly. Despite this negligence and daylight robbery, Nigerians kept quiet. You therefore expect us not to clamp on you for emphasising that it is the subsidy on fuel (which has been corrupted by a corrupt government, which really should not even be in existence if things were properly done) that has marred the provision of infrastructure. It is a shame that Ore-Benin road is still a death pit.

5. Our demands are simple. Provide power, electricity, employment, good roads, education, health care, housing, security etc by deploying the billions allocated for these utilities in the budget into good use and furthermore, by using the excesses from the sale of crude oil. Concurrently, should the FGN wish to continue selling all of crude oil and allow their cohorts import fuel, a transparent and pragmatic system should be put in place to prevent falsification of waybills, importation of poor quality fuel and exportation of subsidized fuel. This will save the FGN about N1tr yearly. However, the apposite way to go is as advised in item ‘3’ above. We also demand that the procurement process for the execution of projects should henceforth be in tandem with global standards. Inflated contracts should be discouraged. Adequate planning should be employed before policies are implemented and executed. This in my opinion is lacking.

6. This government should learn to respect its citizenry. It is shocking that few weeks ago at the town hall meeting one of the Ministers was begging for the citizenry to trust the government; unfortunately some of us thought her plea was sincere and dialogue would bring all parties to a common ground. To our dismay, the suspension of subsidy on January 1 as against the prescheduled April 2012 is complete deceit and shows that the GEJ led government has no respect for its populace. More especially when we were still recovering from the Xmas day massacre. The action was too immature.

7. I have more queries to raise but I have to go now. It is midnight. To interest you, my wife and I leave the house 5.30am daily and return 11pm due to daily traffic from Victoria island through 3rd mainland bridge until we reach home. The generator is also making so much noise right now. Sir, please justify your nomination as purported by one of the foreign tabloids that you are the most intelligent Nigerian (in their dreams). We will discuss the drawbacks of your cashless society plan some other time. Good night Sir and sweet dreams.

Yours faithfully,
Concerned Nigerian

This is what we get when an inexperienced teacher is enthroned to captain a rocky ship! A shapeless peg in a round hole, However, I will not relent in prayers as was done in 1997/8. All shall be well.

I thought the plan as discussed at the Town Hall meeting was to continue with consultations until April 2012. Howbeit this unwarranted gift is given few hours into the new year? No wonder most gas stations were shut earlier in the day.

Coupled with theft and pilfering by attendants at the stations, PMS shall now go for almost N250/litre. Please has anyone observed that a 20 litres keg requires about 32 - 35 litres of petrol to get filled at most gas stations? All shall be well!

Great is thy faithfulness o Lord!

@ Post,

After watching the debate, I wept uncontrollably. There is no way forward except by divine intervention. The Govt's argument is tuned towards recouping more money to enable them spend suitably in accordance with their flamboyance and charade. This has been re-termed as pertinence to provide infrastructure and welfare. Their slogan “breaking the cabal for the benefits of the poor”. I beg to disagree with the government. In my opinion, I believe it is the key cabal heads that made this proposal to devise new methods to siphon our wealth considering that many unknown names have come to share out of their bounty treasure. I shake my head vigorously.

The opposition camps allegedly representing the masses are raising imperative issues on the ripple effect on the poor populace as raised in Voodoodoll's post above. Truth be told, the government does not understand these effects. They have long been exposed to corruption and wasteful living to articulately reason aptly. How do we the populace purchase petroleum products when the hardship sets in? More people will be made poor while few get rich. Who will regulate the prices of petrol from skyrocketing to N1000 as was observed with cement? As Nigerians, of what benefit is crude oil in its bounty to us? Isn't it wise for these goons to discern that the time has come to breakaway from outright dependency on crude oil before talking subsidy? Of what use is Okonjo's position in IMF and World Bank to the common man that makes 80% of the populace? The same cabal that falsify import documents to reflect higher quantity will devise suitable ways to control the market price above the minimum permissible and the only action from the government will be a call to the chairman on the cabal to reduce prices guided by no policy. Like it has been rightly said, if the refineries work and crude oil is still sold at international prices, there will be little or no difference. Thus is it out of place for the government to ascertain our local crude oil consumption within a given period?, sell same at a conducive price above cost price (there is a distinct difference between cost price and international market price) for refining by transparently selected companies wherever they may choose to refine the product, locally or abroad (locally will be beneficial to the economy). Prepare a monitoring and control system to verify the refined products considering that X amount of crude oil must result in a given quantity of refined products. Thereafter, the distribution of the refined products will be monitored for local consumption to forestall siphoning to neighbouring countries. The final cost of PMS may eventually cost less than N65. This is a different and more efficient model from the existing subsidy model. The rest of the crude oil can be sold at international market price coupled with marginal profit obtained from the crude oil set aside for local consumption. This will be a win win situation, except the economists and finance experts in government tell us that our local consumption is over and above a tolerant level and selling slightly above cost price as against international market price will greatly portend huge risks to our GDP because the left over to be sold at prevailing market price will be inadequate to foot our huge mismanaged recurring expenditure. Which I doubt.

Should the subsidy be removed and the projects commence, corruption will erode the benefits. Contract inflation which is the garment of government will not allow the common man enjoy the benefits. For every contract awarded, the cronies in government are huge beneficiaries of kickbacks, more reason some Ministers can not face the question on punishing the cabal because they have been highly compromised.

I foresee a painful consequence of this proposal. None of these guys know how huge it will be. Petrol is a necessity and any positive or negative effect will have a related impact on the lives of the common man. Diversification of our economy is the way to go. Other sectors must begin to contribute to the income of this country. Crude oil should not be the basis for the survival of our nation. The economic team should turn away from their lazy approach to sustainability and put on their thinking cap for more ways to improve the quality of lives.

In conclusion, I will advice the government without further delays to put an end to this cabal nonsense whilst the subsidy is still on by putting together a system that monitors the imported petrol and curtails the ongoing corruption. Thereafter, seek ways to ensure our refineries are working. A public Private partnership may be apposite. Furthermore, consider the option of not selling crude oil for local consumption at international prices. Lastly, the government must diversify the economy for real income. It is absurd that we import rice at the quoted figures we see; it is shocking that we do not have constant electricity; it is amazing that several billions went down the drain during Obj era for improvement of electricity without queries or reasonable actions; it is worrisome that ore-benin road has further degenerated without solution for years and the presidential kitchens are allotted N1bn for food; it is daunting that a satellite got missing in space without inquiry; it is bizarre that all the charlatans in govt screaming removal of subsidy solely because they allege that they want the cabal broken (which is untrue) do not purchase fuel; So help we Lord!

@ Poster,

This post is an unfair assessment of Gov. Raji Fashola.

Four months ago, i was irked at the deplorable state of some major roads in Lagos. Thereafter, one of the government officials informed on TV that the roads will be fixed as soon as the rainy season halts.

To my astonishment, the remedial works were triggered immediately the rains stopped. Examples of such works are:

The dolphin estate U turn by Federal Secretariat; second avenue, ikoyi; alfred rewane road; ongoing works at Ogudu; Ahmadu Bello road by atlantic beach gate; etc

I have made this list based on my own jurisdiction which is at most two local government areas of Lagos. I am certain same gesture is ongoing in other parts of Lagos.

If only the Federal Government can concentrate on few major roads linking the southwest, south east and south south; for example, ore- benin road, east west road to PH; many Nigerians will be thankful and more lives will be saved on a daily basis.

@Topic,

A year gone by and nothing has changed

@ Topic,

Sober reflections. May his soul be in peace. The encomiums poured out affirm that Bawolomo (as we called him) exuded an exemplary quality of life and attributes in his short stay here on earth. I remember the events of his death vividly and the impact it created on NL. Sadly, death separates us all. In death, only our works live, be it good or bad! Well done for the indelible, ineradicable and ineffaceable marks you left.

Time will come, time will go, though we are young, we will grow old. let us live our lives in love, for someday, we will be gone!

Thought I should share a note I once wrote on facebook on how empty the 'Vault' is.

VAULT OF EMPTINESS

Walking through the beautiful gravesides cladded with precious stones and wares I couldn’t help but appreciate the scenery. Wait a second, shouldn’t I be jostled? This is shocking. The grave side has lost its mystery. Yes it has.



It was the burial of an ‘Aunt in Law’ at the prestigious Vault & Gardens Ikoyi, known as the final resting place of the wealthy at completion of their earthly assignment here on earth. It is also rumoured that some well to do purchase and select a suitable place within the purpose built facility as resting place ahead of eventual demise. It was my first time at this well structured and kept grave yard community. The term 'Vault' was of interest. It was more interesting to visit the place in person.



I made it my business to read the names and ages of the deceased as written on the different monuments decorated by each grave in my line of sight. Flowers and pictures in some cases affirm some of the graves were frequently visited by loved ones. Notable was the number of deceased below the age of 40. I was astounded. Howbeit, these men and women alike pass away at such a tender age? The answer was not far fetched. We are mere mortals in a borrowed world running errands for a purpose with a set target and duration, after which we shall be made to give account of our stewardship to Him who sent us.



Hmmmmm. Na so life be? I looked at the cross section of men and women like me that had come to pay our last respect by trailing along a procession led by priests and the very happy undertakers (who’s daily prayer is for availability of dead customers and seem not to be perturbed by the solemnity attached to the ceremony); and all I could see was a turn by turn event, one after the other for the depth of no return – THE GRAVE.      



So this is all life is about? Be born, live and die. Thus the love of ones life above another is absolute emptiness. What gain is there to own the world? What abounds after my non stop toil, accolades, respect, honour, awards, appraisal, good looks, swag, riches, wealth, houses, cars etc? Nothing but emptiness. The dead do not speak. The grave yard is empty. Flesh without a soul is dust.



Irrespective of a man’s sojourn resume on earth, either in affluence or in abject poverty, the end is to be submerged beneath the earth with the soul returned to the Creator for Judgment. No amount of tears, exhortation and celebration matter to the dead. The flesh has lost its usefulness and matters less in what condition it is left to decompose.  Be it in the Vault or the River side or dump yard. The only importance of a man's life lies in the positive legacies imparted on others while fulfilling purpose. This transcends death.

In my opinion, the death of one is the awareness and notice to another. To this end, the most salient activity on earth is to discover and fulfil purpose.  Every other achievement of man is but for a limited time. Every great man that ever walked the face of the earth shall rescind his titles in death.



My lessons learnt is to live in awareness of the One who has sent me. To love my neighbour unconditionally. To let go the past, guilt and regrets. To be grateful for today. Lastly, to worry not over the future.  He is aware of my travails if any; He gave me all I have and own as tools to dutifully fulfil purpose; He knows the appointed time for me to come back home. I implore everyone reading this note to forgive that one person today and set that person free. Someday you will see that person no more and you shall grief.  The dead are no more till we meet again in the presence of our Father. Share that great idea today. Live life in peace. Live a purposeful life. Every other thing is chasing the wind. Ecclesiastes 1.



To conclude this note, please note that the ‘VAULT’ is empty.

‎​​​​=))º°˚˚˚°ºнaĦaнaº°˚˚˚°º‎​=)) @ noggin full of saw dust,

Red meat