Solababa91:
If you really think the reason for removing petrol subsidy is to put our refineries in good shape, then you may not REALLY be a Nigerian. What effect has the money made from kerosene and diesel subsidy removal made on our refineries? None. Please find out the last production date of our best refinery (Kaduna), close to ten years. And to think NNPC workers are still being paid for a non productive venture still beats my imagination. Straight to the fact, our refineries are all outdated. Government should stop deceiving the populace, maintaining them would be disastrous economically. Sell them to private companies that can maintain them. Like they say, government has no business in business.

Well, all in all, if the refineries are privatized, and subsidy is removed so that they make money from the profits they make, not the subsides they get, then I guess we would have running refineries.

The problem with subsidy really is that the source of money from subsidy is from crude oil revenue, which is never stable, and never sufficient.

Subsides also prevent profits being made....especially since the subsidized price is less than the cost of production per liter...subsidy is supposed to cover the difference. That's how we lost our refineries. In the good old days, we subsidized fuel, but kept the price above the cost of production. Then in the late 1980's, the subsidized price went below the cost of production, funding for salaries started coming from government money, and here we are.

I think that subsidy should go, and the refineries should be allowed to sell fuel at a price that guarantees them a profit, as well as the marketers. Yes, we would pay high prices for fuel, but there would be enough profit for maintenance, expansion, salaries, etc etc...and government need not spend money on subventions and subsidies.

Before nko?

Election Things na...

Hmmmmm

Confused people
They have advised them not to because of 2023 election

Fuel subsidy is a big scam

What is there to make the refinery to start working before you can remove the fuel subsidy...if it's to loot money now you politicians know what to do

aribisala0:
Dangote will dash us free petrol?

No he doesn't have to dash anyone free petrol..A large portion of the landing cost of imported petrol is actually administrative and Logistics cost + duties ..With Dangote petrol most of these cost should be gone because he is not incurring them in any way .... You seem to be anti Nigerian

Best decision since this administration took over, even though we know it's because of next year's general election.

SarkinYarki:


No he doesn't have to dash anyone free petrol..A large portion of the landing cost of imported petrol is actually administrative and Logistics cost + duties ..With Dangote petrol most of these cost should be gone because he is not incurring them in any way .... You seem to be anti Nigerian

A large portion? What does that mean? Do you have facts and figures
Are duties imposed on imported fuel? at what rate?
What do you mean by "logistics" so there are no logistics for locally refined petrol?

We cannot assume that all refiners operate with the same efficiency or cost basis. We do not know what Dangote's cost structure will be and we also do not know what his profit margin/Aspiration is.

Without facts and figures you are just speculating and guessing

SarkinYarki:


You seem to be anti Nigerian

You seem to be anti using brain

The fear of protests in dis bubu regime eeeh.

aribisala0:
A large portion? What does that mean? Do you have facts and figures
Are duties imposed on imported fuel? at what rate?
What do you mean by "logistics" so there are no logistics for locally refined petrol?

We cannot assume that all refiners operate with the same efficiency or cost basis. We do not know what Dangote's cost structure will be and we also do not know what his profit margin/Aspiration is.

Without facts and figures you are just speculating and guessing

Both import and export duties are imposed on imported fuel ..you will pay accruing duties at the export country and you will pay here , logistics cost include cost of shipping and cost of pilotage, cost of loading the ships and offloading , admin cost like the brokerage fees you pay to refined products brokers in the originating country...there are many many many cost Dangote won't be incurring so should be removed and make our Petrol cheaper

aribisala0:
You seem to be anti using brain

You that don't even about logistics cost attached to imported petrol is saying this ?

You always support anything that will bring Hardship to NIGERIANs

SarkinYarki:


Both import and export duties are imposed on imported fuel ..you will pay accruing duties at the export country and you will pay here , logistics cost include cost of shipping and cost of pilotage, cost of loading the ships and offloading , admin cost like the brokerage fees you pay to refined products brokers in the originating country...there are many many many cost Dangote won't be incurring so should be removed and make our Petrol cheaper

Facts and figures ? Not random baseless assertions
There is no evidence for this claim on duties
What do you mean bu brokerage fees? Do you have evidence for any of this?

There are costs he won't incur and there are cost he will incur that importers do not have
If you have a clue how these things work. You would know that he is many years away from break even
He borrowed money to build the refinery and is already paying interests despite being BEHIND SCHEDULE/ That is a serious problem for the business

You are just guessing and do not have all the data to make the assertions that you are making

We simply do not know whether there is a cost differential or not without data

This is a very bad idea. Remove the subsidy now. It does not make the country efficient when you are subsidising your main resource to your countrymen.
How many people sell 300 loaves of bread a day and allow their kids to eat 100 loaves daily

Nigerians are mostly emotionally deranged anyway and not removing subsidy does not make Buhari more popular to those who hate him. Not removing subsidy also does not eliminate poverty. The people are inbred self loathers who consume each others to live

Is this a political stunt?

SarkinYarki:


You that don't even about logistics cost attached to imported petrol is saying this ?

You always support anything that will bring Hardship to NIGERIANs

What am I supporting here?
You never use your brain and when challenged you get emotional

What do you mean by logistics .? What exactly How much is that in naira per litre of petrol

Either you know or you don't? How much does this so called logistics add to each litre?

aribisala0:
What am I supporting here?
You never use your brain and when challenged you get emotional

What do you mean by logistics .? What exactly How much is that in naira per litre of petrol

Either you know or you don't? How much does this so called logistics add to each litre?

You can contact the DPR to give you the break down of Landing Cost of Petrol ...it's been almost a decade since I stopped working in the oil industry

backbencher:


Well, all in all, if the refineries are privatized, and subsidy is removed so that they make money from the profits they make, not the subsides they get, then I guess we would have running refineries.

The problem with subsidy really is that the source of money from subsidy is from crude oil revenue, which is never stable, and never sufficient.

Subsides also prevent profits being made....especially since the subsidized price is less than the cost of production per liter...subsidy is supposed to cover the difference. That's how we lost our refineries. In the good old days, we subsidized fuel, but kept the price above the cost of production. Then in the late 1980's, the subsidized price went below the cost of production, funding for salaries started coming from government money, and here we are.

I think that subsidy should go, and the refineries should be allowed to sell fuel at a price that guarantees them a profit, as well as the marketers. Yes, we would pay high prices for fuel, but there would be enough profit for maintenance, expansion, salaries, etc etc...and government need not spend money on subventions and subsidies.

Currently we import petrol and pay for that in dollars. So local prices are influenced by exchange rate which has halved in the last 6 years. The government policies of deficit budgeting and unrestrained borrowing will not help the exchange rate
The impact of the exchange rate on fuel landing costs cannot be overemphasized

SarkinYarki:


You can contact the DPR to give you the break down of Landing Cost of Petrol ...it's been almost a decade since I stopped working in the oil industry

You are bluffing
Your assertions are baseless
To have any meaning they need data which you do not have

Our mumu don do

aribisala0:

Currently we import petrol and pay for that in dollars. So local prices are influenced by exchange rate which has halved in the last 6 years. The government policies of deficit budgeting and unrestrained borrowing will not help the exchange rate
The impact of the exchange rate on fuel landing costs cannot be overemphasized

Yes, that's true, but the borrowing is due to two factors

1.We rely on crude oil...and we use a lot of the revenue from it to subsidize petrol. (Ideally, subsides should be funded by tax revenue, but in Nigeria, we don't earn enough cash from tax. Fowler who was appointed to solve the problem was not a big success, and his successor is just there)

2.The crude oil price is never at a level that can adequately sustain us.


Also, we have a weak currency because it is dependent on how much forex we can get for crude, not how much forex we can get from exporting industrial goods, like in China, Japan, Germany and the USA.

(That's why the governments of Nigeria past and present haven't done well enough. We should not be reliant on crude as we are, but we remain reliant and we believe the myth that what we earn from crude can sustain all of us. Which isn't true)

UNTIL AFTER 2023 GENERAL ELECTIONS THE BOOM APC IN ITS USUAL WAY WOULD BRING SUFFERING AND WAILING TO NIGERIANS UNA NO DEY EVER LEARN

aribisala0:
You are bluffing
Your assertions are baseless
To have any meaning they need data which you do not have

Go to DPR they will furnish you with the current petroleum pricing template , it's has all the cost broken down so you can see ....

backbencher:


Yes, that's true, but the borrowing is due to two factors

1.We rely on crude oil...and we use a lot of the revenue from it to subsidize petrol. (Ideally, subsides should be funded by tax revenue, but in Nigeria, we don't earn enough cash from tax. Fowler who was appointed to solve the problem was not a big success, and his successor is just there)

2.The crude oil price is never at a level that can adequately sustain us.


Also, we have a weak currency because it is dependent on how much forex we can get for crude, not how much forex we can get from exporting industrial goods, like in China, Japan, Germany and the USA.

(That's why the governments of Nigeria past and present haven't done well enough. We should not be reliant on crude as we are, but we remain reliant and we believe the myth that what we earn from crude can sustain all of us. Which isn't true)

The borrowing is a POLITICAL CHOICE it is not based on those factors necessarily but a choice NOT to live within our means
That choice is not mandatory
We could have made other choices like reducing expenditure and cost of governance.
No one forced us to build rail lines to Niger or to spend on refineries that are dead.
If you look at what the borrowed money is being spent on again there are choices
We have not chosen to fix power but to build rail lines which do not have any impact and are also being subsidized
We are at a point where government revenue and spending are totally out of Sync with no effort to reduce spending. Ways and Means borrowing is at an unprecedented level

The evidence for that is there
The exchange rate was stable under Obasanjo and Abacha and those factors were present

Lai Mohammed and his peers are travelling First class, National Assembly buying new cars etc So everything is not revenue
It is also important the spending choices we make which are largely unproductive and wasteful

See how foolish this people are, before they wanted to impose it early, if not the way labour and co took the matter up, they would have done it soon. Thank God they came back to their senses to put things in order before taking such decision. I pity some zombies that come here to defend anything this government are saying without thinking whether they are right or wrong.

The shylock marketers just increased petrol to #170 per liter in Abakaliki, Ebonyi State

aribisala0:

The borrowing is a POLITICAL CHOICE it is not based on those factors necessarily but a choice NOT to live within our means
That choice is not mandatory
We could have made other choices like reducing expenditure and cost of governance.
No one forced us to build rail lines to Niger or to spend on refineries that are dead.
We are at a point where government revenue and spending are totally out of Sync with no effort to reduce dpending. Ways and Means borrowing is at an unprecedented level

The evidence for that is there
The exchange rate was stable under Obasanjo and Abacha and those factors were present

Lai Mohammed and his peers are travelling First class, National Assembly buying new cars etc So everything is not revenue
It is also important the spending choices we make which are largely unproductive and wasteful

Actually all the problems we have now we're there under Obasanjo, Abacha and company

They have been there for a long time.

What we are even experiencing now , we experienced it between 1982 to 2004/5 .

Unstable economy because we rely on resources not production

At the end, we have to get off oil and become industrial. Then we would have cash. We also have to raise our tax to gdp ratio from 6.4%

Why did you postponed the day of liberation? The inferno from the fuel would have consumed all enemies of our existence.

backbencher:


Actually all the problems we have now we're there under Obasanjo, Abacha and company

They have been there for a long time.

What we are even experiencing now , we experienced it between 1982 to 2004/5 .

Unstable economy because we rely on resources not production

At the end, we have to get off oil and become industrial. Then we would have cash. We also have to raise our tax to gdp ratio from 6.4%

No under Obasanjo the GDP grew 4-5 times in size

Do not take my word for it

Check
If that happened two times we would be a top 10 economy


I do not say this to support Obasanjo .Just factual clarification
Yes we need to industrialize .

backbencher:


Actually all the problems we have now we're there under Obasanjo, Abacha and company

They have been there for a long time.

What we are even experiencing now , we experienced it between 1982 to 2004/5 .

Unstable economy because we rely on resources not production

At the end, we have to get off oil and become industrial. Then we would have cash. We also have to raise our tax to gdp ratio from 6.4%

I disagree with the tax to GDP as a random statistic


First what is the GDP per capita


If you have two economies with a GDP of 100 billion

one with 100 million people and the other with 1 million people

The ability to extract tax is limited in the former because the people are less productive and poorer


So Tax to GDP does not exist in a vacuum. We must look at the specifics how do you extract meaningful tax from a Gala hawker

We need to enhance the productivity of our people only then can we tax them effectively

happney65:
These people wont do shiit till after the elections. so make we just dey enjoy am dey go for now.. veekid my brother or wetin you think?

they wouldn't do anything to jeopardize reelection

Better as they heed to Abdulsalami's warning. It would have been more than covid-19 pandemic. The level of poverty already in the country alone is a major concerned.

Better.
Until there's an established refinery like that of Dangote functioning