For one, kikero made a lot of senses

kikero:


1.Refienry one was built under the colonialists, as was refinery 2.

2.Refieneries 3 and 4 (New Port Harcourt plus Kaduna) were started under the oil boom days of the 1970's...when we had the megacash.

3.Also when we started building the refieneries, oil was just one of several things we produced. Oil did not become our sole soruce of income until the Sahgari era.(1982-3).We had the money then.

4.Abacha's loot. The one they shared was $500million. A lot, but in reality not enough. Abacha looted an estimated $4 billion.(and the governments past and present haven't gotten all of it. Bubu got $500million for now)

get your facts right, no refinery in Nigeria was built prior to 1960. Also, smaller countries are building refineries, why can't Nigeria? It has been alleged in foreign media that Nigeria has received over $600b from oil sales since oil was discovered but nothing to show for it.

Homextras:
In 2014 Brent crude was sold for $93 and petrol was sold for N87. In 2015 oil fell to $48 or so, and petrol remained the same.

In 2020 oil is selling for $35/barrel and we are buying petrol for N145 with govt paying subsidy and later N125 without subsidy.

2020 is Buhari regime, 2014 was Gej regime.
Case closed.

The primary reason the numbers you put up there largely dont seem to add up is because you skipped the exchange rate factor. Nigeria imports all its products and exchange rate has more than doubled between 2014 and 2020.

oz4real83:
get your facts right, no refinery in Nigeria was built prior to 1960. Also, smaller countries are building refineries, why can't Nigeria? It has been alleged in foreign media that Nigeria has received over $600b from oil sales since oil was discovered but nothing to show for it.

1.Which smaller countries?? Note that the smaller countries also have populations smaller than Nigeria, and probably produce as much oil as we do so they have the cash.

As an example, Norway has 4 million people, produces 4 times as much crude as we do, and most importantly manufactires components for the petrol industry exploration (eg oil rigs and drills). Naturally, they have the cash to build oil refienreis.

Also, the refienries we built initally in Nigeria were not as big as the Dangote refinery. Warri and old Portharcourt were not mega refienreis. Kaduna and New Port Harcourt are the ones that come close to it.

Finally, we do have something to show for our oil reveneue. We did build a lot of schools, houses, roads , even some electricity infrastructure with our oil money.(Most of our national grid was built in the 1970's....with oil money. As were many of our highways, and even the new capital city of Abuja.

For example, we discovered oil in 1956. At the time we had just one university in Nigeria. Today we have over 50 government owned universities, most of which were built with oil money, especially the ones that came after 1975. (in 1975, we had 9 universites, 5 of which had just been establishjed)

The only reason why we can't do more?? Oil income is not enough for a country with a populaiton as big as hours.Right now we produce 2.4million barrels of crude for a populaiton of 200million people. That's the same amount the United Arab Emirates produces, and they have 12 million people (expats included).That's why the UAE can buy Bentley for its police, while Nigerian police is managing Hilux (not that Hilux is a bad vehicle tho...just sayin).

Corruption is jsut making the matter worse. as is bad leadership.

You will be surprise that transporters will increase transport fare forgetting their was no reduction of transport fares when the price of fuel dropped. Greedy people everywhere.

Kingrefreshed:


It was highly overprice. The news was all over the world even for the past 3 weeks now. Oil price per a barrel almost dropped to 0$ per a barrel but we were still paying N125 per a litre.

Crude oil may have been worth $0, but not the refined products. It cost money to convert that crude in a refinery to useful refined products; it also cost money to ship that produce to Nigeria. At N125, Nigeria still has one of the cheapest petrol price globally.

Moneywirer:



Hope you're being paid for this

People like that pay themselves. Even more than anyone can.

webizone:

People like that pay themselves. Even more than anyone can.

I heard that! ...and FYI I am a salaried worker. I hope to be self employed in the far off future though!

I also don't work for the oil companies, or government.

Also msot of this things I write came from over 9 years of reading and thinking about subsides, especially in the perood 2014-5 when all I did for most of that time was sit in fuel queues. (I refused to buy from the black market as a matter of priniciple...also past bad exepreinces)

StubbornGENIUS:
Yes!This is good for our economy and our Naira as well.It is well....

What do you know about economy? Which Naira do you mean?

Lets see where it goes.

Moneywirer:



Hope you're being paid for this

The truth seems to annoy you. Why should he be paid for simply sharing knowlege?

Moneywirer:



Hope you're being paid for this

The guy is just the fact as it is. The subsidy regime benefits a cabal of few oil contractors and govt officials than the masses. Overpricing, dubious import claims, theft, all associated with such subsidy have been bedrock of lack of transparency in the oil industry.

DEADALIVE:
Our economic analysis is bad....oil appreciates in international trade the citizen is not benefiting...
Reason because government is ready to sell oil to other countries and import everything refined from same oil back to the country thereby claiming subsidy like its our fault....they are the ones that invested in other refineries oversee so they ensure oil must be refined there and brought back here at a huge cost....theives
Let each state refine their oil provided to them by federal government and see if the commodity will not be enough to the point we can start selling to our neighbours...even now self the refined oil never de enough for us still some greedy individual are head bent taking it to neighbouring countries to make huge profit.
This country tire me.

On point. Even refined products are smuggled to neighboring countries because of the price differential.

kikero:


1.Refienry one was built under the colonialists, as was refinery 2.

2.Refieneries 3 and 4 (New Port Harcourt plus Kaduna) were started under the oil boom days of the 1970's...when we had the megacash.

3.Also when we started building the refieneries, oil was just one of several things we produced. Oil did not become our sole soruce of income until the Sahgari era.(1982-3).We had the money then.

4.Abacha's loot. The one they shared was $500million. A lot, but in reality not enough. Abacha looted an estimated $4 billion.(and the governments past and present haven't gotten all of it. Bubu got $500million for now)

Your analysis is correct. No matter how we look at it, subsidy is unsustainble. Massive importation of refined oil products, albeit other products with local capacity for production or substitute, is unsustainble. We cannot afford to become another Venezuela.

It’s petroleum: the prices fluctuate more than my hormones. It means people have gone back to work. Let me prepare my mind for a new contract anytime soon.

obailala:
Crude oil may have been worth $0, but not the refined products. It cost money to convert that crude in a refinery to useful refined products; it also cost money to ship that produce to Nigeria. At N125, Nigeria still has one of the cheapest petrol price globally.

What are you even talking a out. They are running a business!!!!! Just like every other person does. We exchange cash,naira for petrol at the rate which "THEY"gave to gave to us!!!


Ofcourse its going to cost money to get their raw products refined in other to meet the needs of the teaming customers.

Its their responsibilty to do that,thats what their market and product line requires. They do their calculations and figure out how to make profits at the end.

But not to our expense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

oldtruth:


I should have allowed you to keep wallowing in your folly with all your ridiculous blunders but let me drop this for you.

If Nigeria still has people like you, it will be difficult for the country to grow. Maybe it's lack of exposure or education but whatever it is, the country needs less people like you.

Thank you

You just typed rubbish, that guy floored you with analysis, you attacked his personality, if Nigeria had people like him a long time ago, we would have left this feeding bottle mentality we have.

Proudlyngwa:


You just typed rubbish, that guy floored you with analysis, you attacked his personality, if Nigeria had people like him a long time ago, we would have left this feeding bottle mentality we have.

Another fool. What analysis? By comparing Nigeria to Niger? His flops with figures? Check his figures up.

oldtruth:


Another fool. What analysis? By comparing Nigeria to Niger? His flops with figures? Check his figures up.

You are the bigger fool in case you don't know

Why were you initially comparing with Saudi,

Stop embarrassing yourself on social media

kikero:


1.The subsidy is still there...and it is the reason why we are not selling fuel as high as N300 and above.(Benin, Niger and Cameroon sell above n300)

2.Selling fuel at N70 means an incease in subsidy cost...which means more trillions of naira that we don't have goes down the hole...which means more loans.

3.It is when the subsidy is not enough to keep prices at N123 that government increases prices...to a point where it can afford to pay the amount of subsidy that would keep that price low.

4.Truthfully...deregulation is the answer...it meanshigh fuel prices in the meantime...as high as N300...but more investment, more profit for NNPC to build new refinereis, and expand and upgrade exsiting stock, and more jobs..and more investors coming in to build new refinereis.(not just Dangote)...and eventually....low fuel prices as low as N60.

5.iIn Venezuela, fuel is sold at N40. As a result, their fuel industry is broke. Completely broke. No money to fix refienreis, no money to improve stock...and now they have to import fuel. Same thing in Nigeria...and it took us decades to get there...in both countries.

I'm really interested in the Venezuela case

Proudlyngwa:


You are the bigger fool in case you don't know

Why were you initially comparing with Saudi,

Stop embarrassing yourself on social media

He compared Nigeria and Niger and I told him to do such with Saudi or any higher producing country. You sound more daft than him

kikero:


I heard that! ...and FYI I am a salaried worker. I hope to be self employed in the far off future though!

I also don't work for the oil companies, or government.

Also msot of this things I write came from over 9 years of reading and thinking about subsides, especially in the perood 2014-5 when all I did for most of that time was sit in fuel queues. (I refused to buy from the black market as a matter of priniciple...also past bad exepreinces)

You should begin today to pay yourself. You won't regret it.

Kingrefreshed:



What are you even talking a out. They are running a business!!!!! Just like every other person does. We exchange cash,naira for petrol at the rate which "THEY"gave to gave to us!!!


Ofcourse its going to cost money to get their raw products refined in other to meet the needs of the teaming customers.

Its their responsibilty to do that,thats what their market and product line requires. They do their calculations and figure out how to make profits at the end.

But not to our expense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

What do you mean by "not at our expense"? Do you want the petrol bought from overseas to be given to you for free?

The pump price of petrol isn't only a factor of the cost of crude alone; there's also a cost for its refining, handling costs, and logistic costs for transporting it to Nigeria and to your filling stations.

Even if crude is $0 (which isnt even true), that doesnt necessarily mean petrol would be free. Like I said before, even at that N125 mark, it still is one of the cheapest in the world. And no, the govt isnt doing it for a profit at your expense, except of course you want it to be dispensed to you for free (or subsidised).

obailala:
What do you mean by "not at our expense"? Do you want the petrol bought from overseas to be given to you for free?

The pump price of petrol isn't only a factor of the cost of crude alone; there's also a cost for its refining, handling costs, and logistic costs for transporting it to Nigeria and to your filling stations.

Even if crude is $0 (which isnt even true), that doesnt necessarily mean petrol would be free. Like I said before, even at that N125 mark, it still is one of the cheapest in the world. And no, the govt isnt doing it for a profit at your expense, except of course you want it to be dispensed to you for free (or subsidised).

You are provoking me with this your stupid argument. What on earth do you mean with this statement. "Do you want the petrol bought from overseas to be given to you for free?


Which petrol is bought. It is only taken abroad to be refined and then they pay a certain percentage for that and its been shipped back here.

Are you in Nigeria or writing from Antartica??

oldtruth:


He compared Nigeria and Niger and I told him to do such with Saudi or any higher producing country. You sound more daft than him

No, you mentioned Saudi first.
The difference between our production and Saudi which you mentioned is around 7 million barrels difference with our production.

The difference between we and Niger he called is about 2 million barrel or less, now who is being silly.

You guys have a warped mentality that Nigeria is rich, while having no idea on what governance is about

Proudlyngwa:


No, you mentioned Saudi first.
The difference between our production and Saudi which you mentioned is around 7 million barrels difference with our production.

The difference between we and Niger he called is about 2 million barrel or less, now who is being silly.

You guys have a warped mentality that Nigeria is rich, while having no idea on what governance is about

I mentioned Saudi first. No need arguing with you.

Kingrefreshed:



You are provoking me with this your stupid argument. What on earth do you mean with this statement. "Do you want the petrol bought from overseas to be given to you for free?


Which petrol is bought. It is only taken abroad to be refined and then they pay a certain percentage for that and its been shipped back here.

Are you in Nigeria or writing from Antartica??

Smh!... Okay since the word 'bought' is driving you crazy, let's put it aside for now and examine your point in a different way. If Nigeria sends it's crude (which you say is worth $0) abroad to be refined;

(1) Is the service of refining our crude going to be done for free? Are you aware that the service of 'adding value' to a raw material very often exceeds the price of that raw material itself?

(2) The logistics of transporting the crude to the foreign refinery, the bulk storage and handling services, the transportation of the refined produce back to Nigeria, and the distribution of the final products to your filling stations across the country; in your own wisdom, will all that be done without a cost?

Oga, running about calling people stupid doesnt exactly make you look smart; most especially in topics where you have little or no knowledge. You only expose and magnify your emptiness by doing that.

It beats my imagination when people
Defends the government by comparing Nigeria to benin republic or Niger.

Petrol is 300 in Benin Republic and niger
So it has to be 300 in nigeria
Rice is 7k in Benin why not 7k here

Flawed Logic

kikero:

No, it isn't overpriced. Infact, we pay the lowest price for fuel in the whole West African subregion....all our neighbours pay at least N300 per liter of fuel...including countries like Niger where fuel costs N350 per liter.

Infact, it is the subsidy that government is paying that keeps fuel prices at N123.5 for now.

And government want's to hands off oil because over the last 15 years we have paid subsides for fuel to the tune of N15 trillion naira. That's money that could have gone for educaiton, health, etc. And because oil prices are too low for us to keep on paying subsides effectively. We need oil as high as $139 per barrel as our breakeven oil price. It has never been that high for some time.

sentix:
It beats my imagination when people
Defends the government by comparing Nigeria to benin republic or Niger.

Petrol is 300 in Benin Republic and niger
So it has to be 300 in nigeria
Rice is 7k in Benin why not 7k here

Flawed Logic

1.This your argument is the classic example of a strawman argument.

2.One cannot be calling the cost of our petrol 'overpriced' when we pay the cheapest rate for fuel in the west african subregion.

3.Our income over the last 6 years has been falling due to chronically low crude oil prices. This means we cannot earn enough money to subsidze oil. Yet government continues to subsidize oil at great expense to our economy, keeping prices low, but spending money that could have been spent eslewhere.

Infact part of the reason why we have high debt is because we spend a lot of money subsidizing fuel.

Straw argument indeed

1. You refused to address the 2 commodities I mentioned.

2. It's the consumers fault that government can not refine locally despite being in power for 6 years

3. Why is unsubsidied rice not killing benin, yet the cost is double in Nigeria.

kikero:


1.This your argument is the classic example of a strawman argument.

2.One cannot be calling the cost of our petrol 'overpriced' when we pay the cheapest rate for fuel in the west african subregion.

3.Our income over the last 6 years has been falling due to chronically low crude oil prices. This means we cannot earn enough money to subsidze oil. Yet government continues to subsidize oil at great expense to our economy, keeping prices low, but spending money that could have been spent eslewhere.

Infact part of the reason why we have high debt is because we spend a lot of money subsidizing fuel.

Oh