₦airaland Forum

If subsidy continues, the Greek situation will be nothing compared to where we are by 2015.

33% on subsidy. 70% of the remainder is spent on salaries, yet they say don't sack civil servants.

8 billion dollars sold to petroleum marketers.  Another 8 billion in subsidies. 
Government spent more money paying for subsidy than what they earned from the oil sector.

Sanusi:
Corruption thrives on opportunities you create for people to be corrupt, so let's shut off the opportunities.

Honestly I expected better from him. More figures, more facts, more insights.

Half of the bad loans were to petroleum marketers.

Sanusi is trying to defend his policies that have nothing to do with the mandate of the CBN. Investing in fertilizer factories, etc for development. But his point is that we shoul subsidize domestic production and domestic refining.

SUbsidy is not an ideological issue. You should not subsidize middlemen, rent-seekers, and consumption.

Sanusi: He has been active in civil rights activism too.  Govt is not working for exploitation.

werepeLeri:
Whats the NLC guy saying? Is this the stance of NLC?

* * crickets * *

These people (NLC) are supposed to be fighting for us but they don't know anything we don't know.

Only South Africa and Ivory Coast have working refineries in Africa.

Ms Alison-Madueke is talking and all I hear is blah blah. We need more educated but down-to-earth people.

What's the cost of building the refineries.  I suspect that the cost of building enough refineries to satisfy 100% of our local requirements is very close to the cost of providing the subsidy. Such huge funds are best sourced in self-sustaining private sector

BIGER BOY:
Am I the only one who hates listening to the petroleum minister talk. Shes so fake!

Aunty Ngozi has set the bar very high by providing relevant facts in a very down-to-earth way.

BIGER BOY:
Do we need outside investors to build our refineries? More than 80% of OPEC members build their own refineries (public), so u tell me?

What makes you think the same government responsible for NITEL and NEPA and Ajaokuta can build anything?

The guy talking now doesn't have any facts. Just confusing people.  We need more facts. Dude's trying to present himself as an ordinary Nigerian. He believes he can mobilize people to raise 7 trillion naira. Olisa Agbakoba

ALL WE ARE ASKING FOR IS FOR REFINERIES TO REFINE OUR OIL before the subsidy is removed

If you had the money, would you invest in a refinery selling fuel at less than 50% of the cost of production?

Oh oh. They want to spend the resources on social safety nets.  That's worse than a fuel subsidy.

Even after subsidy, fuel will still be quite cheap relative to most African countries and oil producers.

Barrels per person in Saudi Arabia 9776.  Nigeria 223.

Oil producing countries that charge less than nigeria have much less population than Nigeria.

Borrowing to remove subsidy is bad, and they've been forced to do that.

In Africa, only algeria and libya have lower prices than Nigeria.

Subsidy is why refinery license holders have not had the incentive to build refineries. Not economical.
They believe the huge amount can be used to help poor people in better ways

Fuel subsidy benefits rich people more because they own more cars, generators and other fuel guzzling possessions.

Why cost of subsidy doubled in the last year. 3 reasons:
1) Amount of PMS we consume has increased substantially.
2) Price of oil increased
3) Kerosine subsidy

If GSM sector had not been deregulated, we won't have 80 million phone lines instead of 465,000 lines.

"Landing cost of imported PMS is N123 approx, add cost of distribution N15, comes to N138 appox" NOI

Ngozi Okonjo-Iweala: not an attempt to persuade but an attempt to supply the facts.

1) What is the subsidy?

Channels TV online:: http://channelstv.com/global/live_video.php

This is the best explanation of the subsidy so far. Very straightforward.

Well done.

Still? I thought that practice was dying.