Shellsploit:
Gas is cheap here in the east...
Even food stuffs.


Let the waling continue!

But Petro sale @ 200 and above

Oliver14:
So what are you saying, should we continue suffering like this??

Well, when we put subsides on petrol, and put price controls on petrol as a result...there wasn't enough profit to fix and upgrade refineries...which led to them eventually breaking down (The sabotage by workers did not help...which happened in essence because they were not getting their salaries from the money made from the refinereis, but from the revenue from crude oil sales).

Today, we spend billions of dollars on importing fuel, and billions of dollars subsiding it...which means no profits, or not enough profits for the refineries and their upgrade...since all the money goes into imports and subsides.

We didn't do the same for the GSM companies, and we let them charge whatever they wanted to charge. As a result,,, they made huge profits which meant that the sector grew into what it is today, and prices eventually came down via competition, and via expansion of the market base.

Price controls may look like they are 'helping the poor' but long term, they harm the poor. And in some instances harm countries.

To be honest, I think we should have some form of price controls, but at the end, you still have to have enough money to pay the producers, the transporters of products, the suppliers, and the taxman, and still have something left over for workers, etc. And one can only do that by making enough of a profit, which price controls does not allow.

Keep in mind that many people , including a lot of poor Nigerians, depend on the profit motive to survive. Eliminate it, and things could get difficult for them

RepoMan007:
You are dead wrong sir.
The case with subsidy of petrol and local refining is very different. If the local refinery was working 100%, price regulation can't stop them from making profits. They simply sell to FG at profit who then sells to the masses at loss or as subsidy. The refinery still makes profit just like their foreign counterpart are currently doing.

What I am saying is that the local refineries are not working because

1.Price controls. For instance, a few years ago..it cost N165 to make one liter of fuel, meanwhile we were paying N145 for it. Keep in mind that costs of production are not static(now it costs over N250 to make that one liter of petrol...yet we sell it at N162)

When you bring in price controls...and we brought in price controls for petrol in the early 1970's and made matters worse by bringing the price under the cost of production in the late 1980's....you end up with losses.

Like our refineries because of cheap fuel...they have been forced to operate at a loss for over 3 decades. Sabotage was happening simply because the worker's salaries was not based on how much profit the refinreries were making..BUT CAME FROM CRUDE OIL REVENUE.

At the end of the day, (and remember NNPC was running at a loss, until they managed to make a profit early this year)....you have no profit to fix and upgrade refineries on a continuous basis.

Subsides are meant to cover the losses made...but because of rising costs of production....they can't.


Before you answer me, suppose you are a baker of speciality bread, and it costs you N500 to make one loaf, which you sell to a wholesaler for N700, who inturn sells to retailers for N900...who sells to the end consumer for N1200.

Government comes in and tells the retailer to sell at N400 per loaf...to help the poor...

That means the retailer won't make enough of a profit to pay the wholesaler and thus the wholesaler won't make enough of a profit to pay you the producer. And you won't make enough of a profit to pay workers, upgrade and fix your bakery equipment, and so forth.

All of you will go out of business


The above is how we have been treating the Petrol and power sector...and why we don't have refineries and have to waste money we don't have importing fuel....and also have no light in essence.

As much as I hate to say this, and I know I am coming across as being insensitive, the fact is, you cannot help the poor by bringing in price controls. You only help the poor by allowing enough profits to be made...which can be invested in jobs, facilites, etc...and crucially taxes...for welfare..

anorexicmuster:


Well, when we put subsides on petrol, and put price controls on petrol as a result...there wasn't enough profit to fix and upgrade refineries...which led to them eventually breaking down (The sabotage by workers did not help...which happened in essence because they were not getting their salaries from the money made from the refinereis, but from the revenue from crude oil sales).

Today, we spend billions of dollars on importing fuel, and billions of dollars subsiding it...which means no profits, or not enough profits for the refineries and their upgrade...since all the money goes into imports and subsides.

We didn't do the same for the GSM companies, and we let them charge whatever they wanted to charge. As a result,,, they made huge profits which meant that the sector grew into what it is today, and prices eventually came down via competition, and via expansion of the market base.

Price controls may look like they are 'helping the poor' but long term, they harm the poor. And in some instances harm countries.

To be honest, I think we should have some form of price controls, but at the end, you still have to have enough money to pay the producers, the transporters of products, the suppliers, and the taxman, and still have something left over for workers, etc. And one can only do that by making enough of a profit, which price controls does not allow.

Keep in mind that many people , including a lot of poor Nigerians, depend on the profit motive to survive. Eliminate it, and things could get difficult for them

If subsidies are removed, then what does the masses get from the govt? Absolute nothing. Corruption won't let the elite deliver dividends of governance to the people so it is better they maintain subsidy.

RepoMan007:


If subsidies are removed, then what does the masses get from the govt? Absolute nothing. Corruption won't let the elite deliver dividends of governance to the people so it is better they maintain subsidy.

Well, the masses get
1,Subsided education at our schools, including government owned universities (that's why government owned unis are not charging fees like Babcock and Covenant and other good private universities, in the millions)

2.Subsidied health care, including NHIS/PHIS (a caesarean in Nigeria costs far less than a CS in say the USA.)

The problem with subsides in Nigeria is that the revenue for subsides comes from crude oil and to some extent loans ...and crude oil prices are never at a level that can sustain us (right now, the price we need crude to be so that it can sustain us is $133).

In other countries, they get revenue for subsides, from taxes. Like Canada, who subsides fuel for example. But Canada has a much higher tax to gdp ratio than Nigeria, and a higher tax rate than Nigeria.

If we need enough revenue for subsides, we would have to tax everyone...including herdsmen, farmers, casual workers, hawkers, transporters, labourers, househelps, touts,beggars etc etc...to raise the money. We over-rely on our revenue from crude because we only tax less than 40% of the taxable population due to 70% of the taxable populaiton being in the informal sector.

So, we have to rely on revenue from crude, which isn't enough because of fluctuating prices, to pay for subsides. At the end we lose more and more money, and end up getting into more and more debt...and taking more and more loans.(and the naira also falls, because limited forex to buffer it).

The govement know what they are doing they are deliberately pushing people into poverties

Who give you peanuts survive will have full control over you doing elections
They will make you to suffer to rigg election

Poverty is weaponized in Nigeria by Nigeria government

anorexicmuster:


Well, the masses get
1,Subsided education at our schools, including government owned universities (that's why government owned unis are not charging fees like Babcock and Covenant and other good private universities, in the millions)

2.Subsidied health care, including NHIS/PHIS (a caesarean in Nigeria costs far less than a CS in say the USA.)

The problem with subsides in Nigeria is that the revenue for subsides comes from crude oil and to some extent loans ...and crude oil prices are never at a level that can sustain us (right now, the price we need crude to be so that it can sustain us is $133).

In other countries, they get revenue for subsides, from taxes. Like Canada, who subsides fuel for example. But Canada has a much higher tax to gdp ratio than Nigeria, and a higher tax rate than Nigeria.

If we need enough revenue for subsides, we would have to tax everyone...including herdsmen, farmers, casual workers, hawkers, transporters, labourers, househelps, touts,beggars etc etc...to raise the money. We over-rely on our revenue from crude because we only tax less than 40% of the taxable population due to 70% of the taxable populaiton being in the informal sector.

So, we have to rely on revenue from crude, which isn't enough because of fluctuating prices, to pay for subsides. At the end we lose more and more money, and end up getting into more and more debt...and taking more and more loans.(and the naira also falls, because limited forex to buffer it).

Nigeria minimum wages is 30k not up to 50$ how do you tax 30% of 30k with 27% Inflations

Don't be stupid because criminal government is bank rolling u to decieve Nigerian

Compare other countries gdp per capital and inflations too

Have u compare inflation, minimum wages justice in those countries stable economy inflation should not be more than 2%
Canada indicted your law and policing system
recently

Nigerians are poor

CocoaOla:


Nigeria minimum wages is 30k not up to 50$ how do you tax 30% of 30k with 27% Inflations

1.Most of us don't earn 30000 a month.

2.Plus, if I recall, the law does not allow for the taxation of people earning below 50000 a month.

3.Anyway, if we don't tax more, we would continue to rely on crude oil revenue, which isn't stable because price fluctuations

Don't be stupid because criminal government is bank rolling u to decieve Nigerian

I really don't appreciate you insulting me. I did not insult you or abuse you. So why should you insult me?
I also don't work for the government, and don't support APC for many reasons.

Compare other countries gdp per capital and inflations too

Have u compare inflation, minimum wages justice in those countries stable economy inflation should not be more than 2%
Canada indicted your law and policing system
recently

Irrelevant really.

The truth is, either we tax more, or at the end of the day, we would have to rely more on oil revenue for our needs. Oil prices have never been at a level that can sustain us, which is why we are in debt.

Government too needs to start diversifying, and also needs to end subsides to allow more and more investment...and by extension revenue...which means more and more taxable income...from companies, and less borrowing.

Nigerians are poor

And we can become richer by some sane economic practices.

[/quote]

Genesiis:
Big loaf of bread I usually buy at the price of 600 is now 800 naira.

This is terrible.

Jesus!! Bread for 600, ha!!

Many people will not travel for christmas this year. Falseprophet1 do you agree?

BigSarah:
Just getting started, Buhari and osinbanjo are taking us somewhere.
I don't know where, but I heard it has to do with a next level

this has little to do with Buhari, though he's part of it but the excesses of this middlemen and traders is a huge worry and concern, it must be curbed

Sonicroyel:
Omo mehn be like Christmas no go Detty this year oh

bag of rice go reach 100k by then

Sonicroyel:


Be like na to dey with you naim be so?

Shey you get your international passport?

treesun:


https://www.vanguardngr.com/2021/10/high-cost-of-food-cooking-gas-south-south-residents-seek-fg-intervention/

Una never see anything yet.Make Una keep calm EFcC will look into the matter ,Buhari is working .Nonsense

High cost of living and things keep rising daily...nawa oh

XXXXTENTACION:
No! Buhari zombies are exempted... Anytime you want to buy something just screenshot your online posts and show them how you have been supporting Buhari online and they will allow you walk away with any goods of your choice....

Hahahahahahah

When you call there attention to it , the Oga will be angry and his Bois , if only we understand that the old men and young men in Nigeria politics is interested in Nigeria money not the good governance.

ThunderFireY0u:
na by force to celebrate December?

Olodo. Lacking in wisdom. Did I mention celebrate? Stop parading your ignorance.

anorexicmuster:


Then at the end of the day you would have massive scarcity of goods and services.

Price controls on everything means no one would be able to make a profit...meaning you take your goods to where you can make a profit...which means outside the country or the black market.

Petrol has been under price controls...which means the profits have not been enough to keep our refinereis in good repair...which is why we have bad refineries, and have had to import fuel.

Profit in business is not for the businessman's pocket...it also helps him or her expand and upgrade his business.

If you brought in price control for things like coke or milo, it would mean that NBC, and Nestle Nigeria won't be able to make profits to pay their suppliers, replace or upgrade manufactuing equipment, and so on. Meaning they go out of business.

Likewise if YOU BRING Price controls on things like phone sellers, so that Iphone 12 can be sold at N20000 to help poor Nigerians get a phone, the phone sellers won't be able to make enough of a profit to pay their suppliers, meaning they go out of business.

Same for market foodstuff...traders selling food items won't make enough money to pay their suppliers and trransporters for service...meaning that they allclose down...or go black market...

There were countries that did what you are proposing. They were called the Soviet Union and East Germany. It worked...until there was no money, then the economies collapsed...with both countries.

Modified

If you are responding to this post, you are free to disagree with me. However, if you abuse me or call me names, or curse me, I will promptly report you to the moderators. There are people who have disagreed with this post without abuse or insult. You too can do the same. Thank you. Let's keep our discussions clean and neat...and point based..

You don't know what you are saying at all,
Even the business men and traders too will benefits massively if there's price controls for all commodities. it cross across all the market chain, right from the manufacturer, distributors, and retailers. Imagine a wholesaler buying tomato from the manufacturer at a regulatory price, then it is transported also at a regulatory price, then the shops which he sells the goods too is rented at a regulatory price, therefore there will be more profit for him whereby even the transporter will still get the tomato at a cheap price for his family, therefore everybody benefits

ThunderFireY0u:
bag of rice go reach 100k by then

I dey tell u .
Gas go con be 1k/kg
Chicken 10k
Meat 800

BigDolph:





Shey you get your international passport?

Just gimme location I go use Benin airways mafo

This govt no like us...

Macobet:
We Southerners are part to blame, over the years we HV sat down and depended on food from the north, it's high time southern states start investing fully into agriculture, if we produce food in large quantities, we might just complement it with food from the north, this oil mentality has crippled us making food so expensive down south

What of herds men That destroys peoples farms

Oliver14:
So what are you saying, should we continue suffering like this??

The only way to reduce the suffering is to produce MORE..

ANYTHING price control..

Of already scarce resources..

And you are in for a lot MORE SUFFER..

Dollar control comes to mind..

NotoriousBiggyS:





You don't know what you are saying at all,
Even the business men and traders too will benefits massively if there's price controls for all commodities. it cross across all the market chain, right from the manufacturer, distributors, and retailers. Imagine a wholesaler buying tomato from the manufacturer at a regulatory price, then it is transported also at a regulatory price, then the shops which he sells the goods too is rented at a regulatory price, therefore there will be more profit for him whereby even the transporter will still get the tomato at a cheap price for his family, therefore everybody benefits

Price control doesn't work..

Especially in this dishonest nation..

You would just open another avenue for people to exploit the masses..

How are we faring with the price control of the DOLLAR?

There's no SUBSTITUTE for PRODUCTION..

CERTAINLY not price CONTROL..

You should have known all these when you were shouting "sai baba, change, 4+4".. Enjoy the Next Level you stupidly voted for.. Nonsense.

cardoctor:


This country has never been this worst before now.

Well said brother.