DannyXpress:
I just have one question

Who is going to repay all these loans back after this man leaves office...?

quentin06:

Subsidy does not exist, its a scam.
There never was subsidy, asked you beloved govt why they can't repair our refineries?
Why are they waiting for one man in Lagos to build his own?
IMF is responsible for our problems, giving loans to an irresponsible govt.

DannyXpress:
I just have one question

Who is going to repay all these loans back after this man leaves office...?

connkg:
@backbencher

The government has given out licenses for private refineries. The PIA is to clean up the supply chain and help regulate the practice.
My opinion is that the issue begins with the deniability of this administration, all the way to not borrowing to drive the economy, when it was early (The VP claimed during his re-election debate that there was no need to borrow, that the country was doing well and had even shut down some Asian rice mills)
I do not agree that the President/ Minister of Petroleum was instructed by Messrs. Kachikwu or Emefiele, as he touted his PTDF experience with Prof. Tam David West.

Not being truthful and actually denying the problem has brought us this far. We can only correct this by truth and competence. Competence still the way to the top, as in, not looking for a technocrat to lord-over with ethnicity and nepotism.

The yet-to-be-fully- implemented minimum wage must be addressed. It is much more effective than SURE-P or N5,000 to the "poorest of the poor" for 6 months. True population numbers must be used to provide succor. We must have the whole truth to deal with this.
Failing here, we fail everywhere.

backbencher:


Ultimately all people see is the potential rise in food prices and other prices ( eg cost of photocopying stuff could rise because your guy running the photocopiers uses petrol generator as power source)

Thats why subsidy removal is a scary proposition to most

backbencher:




Okay, let's back up a bit.

This is not about who is in charge of NNPC, Buhari, South vs North, GEJ, PDP and APC, etc.

At the heart of the subsidy removal argument is the simple thing......in order to make it in business, any business, you have to sell at a profit.


And that goes for petrol selling.


Here is the thing. NNPC brings petrol into this country right now at N282 (in 2015 it was N132, and in 2012 it was N99) per liter.

NNPC and the marketers then sell that fuel at N163 (in 2015 it was N87 and in 2011 it was N65 ) per liter.

To cover that loss, we pay the difference between the landing cost and the cost at the pump. THAT is WHAT is called the subsidy. And the subsidy rises when the cost of producing that crude oil, petrol, etc rises.

Gowon brought in the subsidy in 1973 because in 1973, thanks to the Yom Kippur war, fuel prices were rising because oil prices rose...and stayed high till 1982, when they crashed, and remained low till 2006/7 when they rose again.

The problem with subsidy is that everything...cost of crude oil, cost of refining petrol...rises. And the subsidy rises as well. That's why our subsidy costs rose from N1 trillion in 2019 to N3 trillion now, and why prices have to go up...because we have to reduce subsidy costs from time to time...and why we no longer pay N65 for fuel, or the 15 Kobo we paid in 1981.

Second problem is subsidy money comes from crude oil revenue...the same crude oil revenue we used for our budget. Oil prices have been so fluctuant that we never ever have enough to pay for subsides, so we borrow.

At the end, subsides due to their rising cost and due to poor base of revenue have been difficult for us to maintain. That is why every nnpc boss has advised the leader of this country for nearly 3-4 decades....to stop the subsidy monster. But at the end of the day, people want cheap fuel prices, so governments don;t listen to them

Yes, Nigerians, like you and me, are the ones responsible for the subsidy mess. Our inssitence on cheap fuel is why we do not have refineries, why we are going to spend more than 3 trillion funding subsides, meaning we cannot see the benefit of the rising oil prices, why we cannot even have investment in more refinereis apart from the six going up, and why we get into more and more debt, and why we use dirty fuel insteand of premium fuel.

That's why your arguments really don't matter...I'm sorry to say that, and I do not mean to be rude...but your argument does not matter. You cannot sell fuel at a loss, and expect an industry to be free of corruption and all the mess therein. You cannot oppose government setting the prices your business sets....and then support the same for the petroleum industry.

And that is what I want you to see. It is not about politics, who is appointed, even the whole 'helping the poor....because are we helping the poor with more debt and reduced spending on health and education and so on...because we have to pay subsidy?


Let's remove subsidy. The oil industry will earn the profits needed to fix things, government would save money , and anyway, the value of the naira would go up because we save forex. We've wrecked our economy long enough.

backbencher:
The problem with the subsidy is that the more the difference between the cost of production and the pump price government sets, the more the susbidy rises.


Now that oil prices is nearly $100.....Landing cost is also going to rise to N300 and above. Meanwhile, we are selling the same fuel we spend N300 on to import at N162 PER liter.

Meaning that in one year, landing costs have gone up from N232 to N282.....to N300

At the end, the cost of subsidy is also going to shoot up....meaning we would take money from other sectors to pay for the subsidy, or we take more and more loans.

Which spells bad news for our economy


Subsidy must go. No buts...because as oil prices increases, the cost of subsidsing fuel is going to rise. And we may end up spending more than the N3 trillion earmarked this year.

Innomach:


Why can't the more profit they make as price of crude oil rises be used to subsidize PMS? Why do they need to borrow more. Are we no longer an oil producing nation? You guys speak as if Nigeria looses instead of gaining more when the price of crude rises in international market. Since they prefer importing refined products of petroleum products, let them use the difference they make to subsidize. After all, they only subsidizes PMS. I really don't understand how things work here. We lament when the price is down, lament when the price goes up.

shevchenko:


All his houses and his bank account we are going to confiscate it

lexy2014:


The Federal Government’s total borrowing from the CBN through Ways and Means Advances had ballooned by 2,286 per cent to N15.51tn in six years, according to the central bank data.

theraregem1 okefranci nonpartisan1 buckeyemedia1 Nigerialabalaba shooyie benuejosh blackpanda vedaxcool NGpatriot presidency lovenorth officialgarri seunmsg....am sure u guys understand the implication of this? Can u guys explain where the N15.5t went to? What did buhari/osinbajo do with $15.5t in 6years?

blackpanda:


You are already using the infrastructure the money was spent on. But of course just love to nag for no reason

backbencher:


They are borrowing , in part, because you guys want cheap fuel

In 2020, LANDING cost of fuel, at the height of covid was N120-125 per liter. Now, that landing cost is N282....AND rising.

Meanwhile, fuel pump price has gone up from N124 per liter at covid to N163 now. Guy no talk wetin go vex me,wat has federal government done with the 25 billion dollars they borrowed for turn around maintenance

Government has to pay the difference between N282 and N163 to ensure fuel stays at N163.

And that's where the money that would have built refinereis goes to...subsidy...to keeping the petroluem industry from collapsing.

And as the cost rises, the money will come from other sectors of the budget...so we have to take loans to make up for it.

Ten years ago, we ran through our earnings and our forex reserves to pay for the same subsidy.

See the problem. ?

There is no such thing as cheap fuel.