backbencher:


That's because in order to get a refinery at home, subsidy on PMS has to go first.

Same problem his predecessor had. Signed an agreement to build 3 refineries with the chinese, which were not built because subsidy was not removed completely.

If subsidy does not go, the refineries cannot operate profitably. Had we removed subsidy in 2012 or 2015 or 1993 we would have had refineries galore.

But everytime subsidy removal has been suggested, people come on the street and cry poverty. People threaten to come on the street and cry poverty. So, subsides remain, and investors keep out.

At the end, someone had to take an unpopular but good decision, but no...

luizpippo:



Clownish excuse.

The subsidy should be removed before they start building the refineries?

How many years has Dangote's refinery been under construction?

Is the ideal thing not to build the refineries and immediately the take off is about to be done, subsidy is removed?

Walkee:
I admit I don't know how these things work but aren't we supposed to be benefiting from increased crude oil price? Other oil producers are fairly happy with the current situation

backbencher:


Thanks for finally acknowledging that PDP and GEJ were bad as Buhari and APC are. I'm gratifired. This shows that we the neutrals were right all along PDP and APC are the same. Yes!



Yes, because who wants to invest in something that guarantees no ROI (Subsidy means price controls, means selling at a loss, means getting broke running refinery)

And another reason I'll soon get to...



Dangote is building a refinery cause he can afford to take loans from commercial banks to do so....



Nope, not when we are running into budget deficits paying subsides. Ya think it helps the poor long term? No.

luizpippo:



So you want the subsidy removed and then we have the so-called investors using the next 8 years in building this refineries or they somehow gets into a cash crunch and are gonna take 14years in building it and you think that's wisdom?

No wonder your Buhari banned rice importation when we can't sustain ourselves yet thereby causing prices to skyrocket.

backbencher:
FG Needs To Stop Subsidy Regime -Marketers
To address the continued rise in the prices of refined petroleum products as well as subsidy, oil marketers insisted that it was high time that the government stopped the petrol subsidy regime, as well as fix the country’s refineries.

“This situation has again showed why it is so important for us to get our refineries working and start refining our own crude here in Nigeria,” Gillis-Harry stated.

I will blame Buhari for this...had he removed subsides in 2015, by now we would have had domestic refining in some capacity. He did not, here we are in 2022, exposed to the aftereffects.

I also blame GEJ for not being bold enough to tell them protesters in 2012 to go and sit down, and raised prices to N140. By now, we would have also had refineries

And yes, I blame all of our past leaders...Gowon for bringing in the idea of subsides, and IBB for now removing them in 1993, when it was first suggested, for instance.

Now here we are....keep on paying for subsides , while they keep rising (from N50 some years ago to N400 now) or remove them, and get higher prices.

Anyways, subsidy needs to go.

Nnannapat:
The bulk of the blame goes to Buhari, he failed to build even if it is just 1 new refinery, about 30% of all his borrowings should have been channeled to new refinery construction but corruption and nepotism beclouded his sense of reasoning.
Blaming any of the past leaders is a waste of energy, there is an Igbo adage that says "Oma taa ma gboo" ( He who realised today, is still on time).

Nigeria can get a brand new refinery built and finished in 18-24 months from now if the political will is there.

Any Nigerian that supported subsidy before or still supports it is a fool, Subsidy is a conduit pipe that any government in power uses to corruptly enrich themselves to the detriment of poor Nigerians, Buhari's government own is even worse, our daily consumption of PMS jumped from 30 million in 2015 to almost 90 million litres today. All these because we are paying subsidy on PMS.

Nigerians should brace for impact, cos it is going to be very very tough going forward.

backbencher:


That's because in order to get a refinery at home, subsidy on PMS has to go first.

Same problem his predecessor had. Signed an agreement to build 3 refineries with the chinese, which were not built because subsidy was not removed completely.

If subsidy does not go, the refineries cannot operate profitably. Had we removed subsidy in 2012 or 2015 or 1993 we would have had refineries galore.

But everytime subsidy removal has been suggested, people come on the street and cry poverty. People threaten to come on the street and cry poverty. So, subsides remain, and investors keep out.

At the end, someone had to take an unpopular but good decision, but no...

Kenn55:


What Buhari should have done in the last 7 years is instead of building railways that affects only 1% of the population, he should have built refineries instead. After building brand new refineries, he remove subsidies and sell the refineries to the private sector.

Investors will rush to buy new refineries after subsidy is removed. It would have saved time and solved a lot of problems today. Instead he was chasing vanity projects that wouldn't make much difference.

backbencher:


The problem is

1.Money that could be used for refineries is being spent on subsiding fuel.

2.Subsides are bad for another reason...they cause budget deficits...which lead to more debt. Especially when subsidy costs rise.

Kenn55:


What I'm saying is the money they borrowed for railways would have been used for refineries instead. You can't compare the trickle down effect refining would have done to Nigeria to passengers trains

Management is all about getting your priorities right and channeling your focus to things that would produce better outcomes.

We should borrow money to fund projects that are critical. I'm not saying trains are bad but there are more critical aspects that would produce better results than passenger trains

backbencher:
.

To be frank, politics aside, we need railways.



If we remove subsides, we can have refineries without government spending a dime, on the other hand. Even with higher prices for fuel.

Kenn55:


I didn't say we don't need railways. I said there are more important things to railway at the moment.
It is difficult to remove subsidy in a situation where there are no local refining capacity. Nigerians will suffer big time before things get better.

This is why I suggested that the govt borrow money, build the refineries, remove subsidy after completion and sell it to the private sector. This is common sense. It will make an instant impact without Nigerians having to suffer much. We can use the money saved on subsidies to start building trains. It's all about priorities and timing. If this has been done in the last 7 years, we wouldn't be in this situation.

Are you sure you are not an indirect government apologist? I'm beginning to suspect you.

backbencher:



For the record, here is why I oppose subsidies....and have done so for the last ten years.

Why are oil subsidies bad economics?


Every year, the Nigerian government runs huge budget deficits that could have been avoided if money budgeted for oil subsidies was allocated to other critical projects.

Subsidies should be used to spur investment in activities that raise the productive capacities of an economy (such as education, health, entrepreneurship, and infrastructure). They should be targeted at strategic sectors of the economy. They should not be used to finance non-durable consumption items like petrol.

Oil subsidies are inequitable, as they transfer the national wealth to those who own several cars and add little or no value to the national economy.

In lieu of subsidies, the government should invest massively in public transportation and boost the transport allowances of public-sector workers.

Removing fuel subsidies would also be good for the environment and safety on Nigerian roads. When motorists pay the full economic price for petrol, they will drive less, emit less pollution and reduce the incidence of road accidents.

There should be a clear communication to Nigerians that the removal of fuel subsidies favours the poor, and eliminates one of the several perks that the Nigerian elites undeservedly enjoy.

SAUCE:Fuel subsidies in Nigeria: they’re bad for the economy, but the lifeblood of politicians

I am no government symphatizer, and a lot of people don't like me on this site because I support removing subsides. I have supported removing subsides for ten years, and it is wrong to think I support APC because of my stance, especially since APC hasn't removed subsides


MODIFIED

Two reasons why I support subsidy removal. When in 2012, government tried to remove subsidy, that was when I was introduced to the concept of landing costs and so forth. Add the comments of NOI, SLS and the government 'propaganda' against subsidy that made sense for the first time, and then I woke up , started reading, and started asking questions as to why we should support subsidies.


MODIFED 2

Taking loans won't help much. Remove subsidy and the investment for refineries would come in, and government would save money. But no, we are keeping subsides and about to go into debt for 3 trillion naira doing so..

Kenn55:


I am also in support of removing subsidy like you. However, the difference is that I'm proposing a workable and less painful way to achieve it that will be a win win for the people and government but you seem not to be interested in that option. That is why I'm wondering on whose side you are. Read my initial replies to you again.

FG Needs To Stop Subsidy Regime -Marketers
To address the continued rise in the prices of refined petroleum products as well as subsidy, oil marketers insisted that it was high time that the government stopped the petrol subsidy regime, as well as fix the country’s refineries.

“This situation has again showed why it is so important for us to get our refineries working and start refining our own crude here in Nigeria,” Gillis-Harry stated.

I will blame Buhari for this...had he removed subsides in 2015, by now we would have had domestic refining in some capacity. He did not, here we are in 2022, exposed to the aftereffects.

I also blame GEJ for not being bold enough to tell them protesters in 2012 to go and sit down, and raised prices to N140. By now, we would have also had refineries

And yes, I blame all of our past leaders...Gowon for bringing in the idea of subsides, and IBB for now removing them in 1993, when it was first suggested, for instance.

Now here we are....keep on paying for subsides , while they keep rising (from N50 some years ago to N400 now) or remove them, and get higher prices.

Anyways, subsidy needs to go.

Taking loans again won't work

Removing subsides so that investment would build it, without government needing to take loans, or anything to build the refineries...same way it workd for GSM....would do the trick.

We are already loaned up. Our usual bankers are fed up with us.

And anyway, you did not read my quote......we are getting into big budget deficits paying subsides. It's the reality. and we have to face it. We are getting to the point where states won't get money from the government.

Yes, subsidy has to go. YES...prices would be high. BUT...we would gert refineries, and the value of the naira would improve, plus we would have more money for other things.



And it's sad, and I don't like it, but what else can we do.

Good e'en.

Chukwumawisdom:
You would have been asking them to build refineries first or effect repairs to the existing ones before thinking of removing subsidy.
Aren't you tired of lies and unfounded theories? Or do u still trust our politician with money?

BillionKnights:

You don't have to be scared bro.. because it is amusing how an oil producing country would be suffering when the price of crude oil goes up.. this should mean more money for the country, but somehow, the government will always invent new ways to make us suffer.