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Nairaland Forum / Nairaland / General / Politics / Expensive Diesel, Expansive Economic Crisis (15135 Views)
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Re: Expensive Diesel, Expansive Economic Crisis by AlphaTaikun: 10:48am On Jun 28, 2022 |
babaolofin:@babaolofin, 3rd term is not constitutional, and you know that! ![]() OBJ himself said he didn't ask those folks to campaign for 3rd term for him, and this was widely published in the newspapers both online and offline. I thought Dangote Refinery is due to take off in the 3rd quarter of 2022... what is happening to that projection? If Dangote gets onstream in late 2022, that should reduce the pressure on the economy and price of diesel and PMS and APC could have more leverage to win the election... if NOT them APC will have to just take what they get because Nigerians from what I have seen are more interested in the economy and security. All the best. |
Re: Expensive Diesel, Expansive Economic Crisis by Ojuntana: 10:50am On Jun 28, 2022 |
babaolofin:Your theory on obj is correct. Yaradua did the country much damage by reversing so many good things obj did. Funny enough, a lot of people applauded him. I don't necessarily agree with your theory on Tinubu. He's smart no doubt but we seem to underestimate the impact his poor health will have |
Re: Expensive Diesel, Expansive Economic Crisis by lionshare: 11:05am On Jun 28, 2022 |
Seems Dakuku is scheming to be Min of state for Pet in the next admin. |
Re: Expensive Diesel, Expansive Economic Crisis by XshegzzyeeiX: 11:06am On Jun 28, 2022 |
paskal16:Remember to send to your dad too, make your own children fit remember you 4 old age. |
Re: Expensive Diesel, Expansive Economic Crisis by Nobody: 11:15am On Jun 28, 2022 |
Ojuntana: We are losing a lot from subsidy on fuel , which prevents investment in refining (Why refine crude, and earn a profit on diesel and kero, only to lose it to petrol subsidy related losses.). 'Simple.. You want refineries, you have to let them run at a profit. It is that simple...everything from the refinery has to be sold at a profit. Otherwise, it won't make economic sense. |
Re: Expensive Diesel, Expansive Economic Crisis by oooabbeyooo: 11:17am On Jun 28, 2022 |
richiemcgold: To butress your salient point, the government need to remove subsidy and channel over N4t used for subsidizing petrol to increasing power generation and supply. After doing this the government should just sit back and watch inflation reduce drastically to single digit. To crown it all, if the government can support Alhaji Dangote in raising funds to complete his Refinery and Petrochemical company, the there will be unprecedented reduction in the stress on Naira that it will become so strong and inturn further reduce the inflation figure to single digit below 5%. Only a visionary leader and a critical thinker can look this direction. God bless Nigeria! 2 Likes 1 Share |
Re: Expensive Diesel, Expansive Economic Crisis by Nobody: 11:21am On Jun 28, 2022 |
oooabbeyooo: Good point...but Nigerians do not want subsidy to be removed. Trust me on that....call for subsidy removal...and you must be a oppressor. Still subsidy removal means fuel may cost N700-800...at the moment we subsidse fuel for 600 naira per liter. On the other hand, it is really damaging our economy. |
Re: Expensive Diesel, Expansive Economic Crisis by Nobody: 11:25am On Jun 28, 2022 |
AlphaTaikun: It is not constitutional but the National Assembly can amend it. Nnamani, Chukwumerije led the opposition from National Assembly ably supported by Atiku and IBB. El - Rufai and other intelligent radicals were the ones in support of 3rd term because of the projection that crude would rise to $118/ barrel by 2008. As at this period, oil was around $60 or a little above or below. 2. Estimated $60 billion in ECA & other investment & oil price is still increasing. Categorically they told Obasanjo anybody coming as president will spend the money lavishly. 3. They believe ongoing IPP and other key projects would be suspended. This made Obj to make upfront payments on IPP to a level. 4 .Refineries that were sold need government protection from NNPC Labour Union and others to takeoff. At last, they were right. In 2008 oil jumped to $108/barrel, 2013 around $140/barrel, they did not save one (1K) Kobo and they were borrowing. They spent almost half of the money Obj left. The IBOs don't want anybody to do analysis of that government. Refineries and IPP came to zero. We should be thinking about the way forward now. Dangote refinery cannot start work late 2022 or first quarter 2023. They have been postponing commencement since 2018. They may start late 2023 or early 2024 if Tinubu wins. 2 Likes 1 Share |
Re: Expensive Diesel, Expansive Economic Crisis by ArcSEMPECJ(m): 11:26am On Jun 28, 2022 |
Zico5: Oga shift pls, who was singing with Buhari during his campaign days that Jonathan is clueless? That $1 = #50 naira That APC will end Boko Haram , but today they have resurrected Fulani Herdsmen, Unknown gun men in the East, Sunday Igboho in the South West.. ( do you know how many souls APC killed from 2015-2022? ) That free education will be a welcomed policy That price of fuel pump price will be #30 per liter That PDP evils will be washed away and good air will be seen Who was that man dancing along with Oshiomole and Buhari during his campaign days full of lies ![]() Who was that man that said with Goodluck Jonathan, that Electricity will remain darkness? Who was that man that sold APC to the lesser Nigerians ![]() Who was that man that started keeping mute when FULANI Herdsmen invaded even his people ![]() Who was.....who was.....who was...........so many of them... Pls I don't hate TINUBU , but am being plain and transparent to your comment. If you think otherwise, pls go and verify what I wrote ,....they are mere facts... How can you claim TINUBU is now a saint out of APC ![]() Because APC has nothing to offer as a campaign strategy..... If APC really really made this Country better, believe me , nobody will ever have anything to say about JAGABAN.....he will be voted in by all Nigerians .... |
Re: Expensive Diesel, Expansive Economic Crisis by nesphil(m): 11:34am On Jun 28, 2022 |
GEJ actually saved those funds but it was the then opposition Governors (including the likes of Fashola and others in the APC) that took the FG to court and won the case since the constitution didn't support saving of Excess Crude Funds (The constitution position on the excess crude fund is that the fund should be shared). The former Minister of Finance Dr. Ngozi Okonji Iweala have spoken about this several times, how she pleaded with the then Governors that funds in the Excess Crude Account should be saved for rainy days, but out of greed those Governors whom almost all of them are now in APC disagreed. So get your facts right before you start misleading the public. Tianamen1: 2 Likes |
Re: Expensive Diesel, Expansive Economic Crisis by Kwara1stson: 11:36am On Jun 28, 2022 |
Jack005:the yeye boy said they should even reduce civil servant salaries and allowances which can barely take them home. He never mentioned reducing the bogus salaries and allowances of senators, house of reps, govnors and president including removing pensions of politicians. |
Re: Expensive Diesel, Expansive Economic Crisis by Kwara1stson: 11:37am On Jun 28, 2022 |
Tianamen1:your thoughts are very lame and crude. |
Re: Expensive Diesel, Expansive Economic Crisis by Reference(m): 11:39am On Jun 28, 2022 |
Tianamen1: No sir. What Mr. Obasanjo did was just economic cosmetology. Very good as they were, the problems were far deeper than that. The issues were and still are fundamental first and structural overall, so his solutions back then only cleared the first hurdle and thus were not sustainable. For want of time, I will just illustrate; He merely fumigated to kill the pests of debts, but did not cut the grass of financial waste, clear the bushes of an over-bloated public service, leaving a dirty financial environment as a fundamental error, fit for the bugs of debt to shortly reappear. Worse still he did not drain the swamp across the fence meaning the very structural problems afflicting the Nigeria state that makes productivity near impossible thus making public debts almost always inevitable. So fumigating the bushes of public expenditure just made the bugs take cover in the swamp to await a change of government, and the next rains of global financial upheavals and boom we are back to crushing debts. Even if you brought back OBJ today the best he will do will be to fumigate again (if possible) and we will enjoy a better balance sheet for just a season. We have deeper issues that keep this nation in perpetual decline decade on decade which go way deeper than public debt and successive repayment drama. 1 Like |
Re: Expensive Diesel, Expansive Economic Crisis by nkwoemeka(m): 11:44am On Jun 28, 2022 |
clueless and archeyic rulers taking us back to the Stone age courtesy of our gullible youths |
Re: Expensive Diesel, Expansive Economic Crisis by oooabbeyooo: 11:46am On Jun 28, 2022 |
Ojuntana:I believe 2 things will work for HE Tinubu against you opinion on his health. His ability to pick the best brains into his cabinet and his wealth of experience in revenue expansion and long term policy formulation! I have learnt in business that people are the drivers of business success. If a government will succeed it will have a very good cabinet. This really worked for president Obasanjo. He brought the best people, so far in governance, to his cabinet. Ideas like BRT that is now the single sector that contributes the highest revenue to the Lagos State economy, Eko Atlantic City that houses the biggest USA embassy in the world, effective taxation of income in a state,s economy and clear blueprint on transportation system in a state economy as a robust source of revenue generation to the state government are some of the bright ideas we need HE BAT to recreate with this opportunity at the presidency. A man like him can harness more opportunities when he gets to Aso Rock to the surprise of so many people eg increase pension collection to all states of the federation, rejig the maritime industry to harness it's potential, efficiently tax the large income in the Nigeria,s economy to widen the revenue collection, plan an effective national transportation system and commence the implementation, increase power generation, assist completion of Alhaji Dangote,s Refinery, removal of subsidy and reduction in the cost of governance to allow more money in the hands of government to implement strategic project and reduce toxic borrowings, develop productive manpower through dedicated attention to Education at all levels etc. Leading at the Presidential level is more of getting annual budgets right (planning revenue and expenses properly), tracking budget through Federal Executive Council meetings and formulating impactful policies. I believe HE BAT will Excel. President Bihari knows his routine very well but his administration is marred by bad policies and improper budget planning. |
Re: Expensive Diesel, Expansive Economic Crisis by Ojuntana: 11:50am On Jun 28, 2022 |
Subsidywise20:What does subsidy on fuel have to do with diesel and kerosene. Why have the investors who are making humongous profit from setting diesel and kerosene price as high as they want not built refineries and create jobs |
Re: Expensive Diesel, Expansive Economic Crisis by Ojuntana: 11:56am On Jun 28, 2022 |
oooabbeyooo:The govt will not channel any 4trn into power. If money is the only problem our power faces, it would have been solved by now. Highest you take loans. Most of that 4trn will go into our recurrent expenditure while the rest will be looted just like abacha loots have been relooted 1 Like |
Re: Expensive Diesel, Expansive Economic Crisis by Nobody: 11:57am On Jun 28, 2022 |
Ojuntana: That's part of the problem. But even more of a problem, if we build refineries here, they make a profit from diesel and kerosene, then lose money from refining petrol because one liter must cost 40 naira according to apc supporters. But as you say subsidy removal will make the poor suffer. On that we don't agree. |
Re: Expensive Diesel, Expansive Economic Crisis by Ojuntana: 11:59am On Jun 28, 2022 |
nesphil:You're correct. GEJ and NOI then went ahead and floated SWF with FG's share of the funds |
Re: Expensive Diesel, Expansive Economic Crisis by Ojuntana: 12:02pm On Jun 28, 2022 |
Subsidywise20:They don't need to build Greenfield refineries that will refine petrol. They can build only diesel and kerosene refineries |
Re: Expensive Diesel, Expansive Economic Crisis by oooabbeyooo: 12:06pm On Jun 28, 2022 |
nesphil:Excess crude is as a result of bad national budget planning. If the president has proper advice on the Outlook of they year that is being planned, there won't be need for excess crude account. Informed price for crude all through the year and daily production output are key ingredients for a potent national Budget. My opinion is to grow the reserve with money in excess crude account. The country's export is around $40b and as such the reserve should be 6x the export in a country according to the thumb rule in economics. The reserve for the Nigeria,s government should be $240b. We shouldn't be talking about excess crude account, we should be growing our reserve from $39.5b steadily. |
Re: Expensive Diesel, Expansive Economic Crisis by faceland: 12:13pm On Jun 28, 2022 |
Tianamen1: Taxing the rich so Buhari and his family can spend it in Dubai. Let's ignore the billions of DOLLARS they have borrowed and stolen. We should make it unprofitable to own a business in Nigeria, that will solve the problem. With the value of Naira against the dollar, we would also add heavy tax so the middle class can downgrade to poverty. The end consumer (the poor) would be the once to pay for any increase in tax. |
Re: Expensive Diesel, Expansive Economic Crisis by Ojuntana: 12:15pm On Jun 28, 2022 |
oooabbeyooo:1. It is very simplistic to think all a president does is get the right people in govt and then go to sleep. GEJ had a very good cabinet too but we know how he ended. 2. You supporters of Tinubu are very far from reality concerning his impact on Lagos. You claim for him things he had nothing to do with. A good example is Eko Atlantic you just mentioned, and claiming that BRT is the single largest source of revenue for Lagos. This is the same thing you guys did with Buhari that has brought us to the sorry impasse we are. 3. If you think the Lagos model will work on Nigeria, consider that in 2003 when Tinubu wanted to start the new tax law, he faced stiff opposition from the corporate world more than even individuals. Go and find out what I'm telling you. Presently vat is hung up in supreme Court because most northern states don't want the status quo to change. Think about that Back to 1. Go and find out what those who worked with OBJ said about him. He was very hands on. There's no memo that appeared at fec that did not have his input. OBJ became president in his late fifties with good health. He was swift and sharp. If you think all the presidency entails is just gathering people who have diverse interests and mindsets, then you don't understand a thing about the problem facing this country and Africa as a whole. |
Re: Expensive Diesel, Expansive Economic Crisis by oooabbeyooo: 12:15pm On Jun 28, 2022 |
Ojuntana:If it is possible to create money there won't be need in the first place to get loans, especially the type Nigeria get that has led her to debt trap. It is a fact that if power generation is boosted inflation will drop and in boosting power generation, the government needs money. Getting loans while the country is busy subsidizing is unimaginable. We need a leader that is committed to this course! |
Re: Expensive Diesel, Expansive Economic Crisis by AlphaTaikun: 12:22pm On Jun 28, 2022 |
babaolofin:Deep insights from you there @babaolofin. It seems you were in that government at that time to have such insider information. I don't doubt your submission because it is NOT EVERYTHING that you find in the public domain. In fact all the politicians from opposing camps are very close friends and they meet in social clubs to fraternise. ![]() The Dangote Refinery not opening in late 2022 will be dire because of the Russian-Ukraine war, and increase in fuel price worldwide, including the global inflation that is already in full effect and biting hard on citizens of major countries of the world. These video interviews with the American billionaire investor Ray Dalio will give you more insights on what is coming up. The government in Nigeria and the incoming one had better be prepared for the next global recession. A lot of global economic storms will affect Nigeria and Africa as a whole, except for those who are prepared. => https://www.youtube.com/watch?v=B8NEFKQXX7E => https://www.youtube.com/watch?v=0-tLenP5NA4 Cheers. |
Re: Expensive Diesel, Expansive Economic Crisis by Ojuntana: 12:25pm On Jun 28, 2022 |
oooabbeyooo:Power generation is not the (direct) reason we have high inflation. We have high inflation primarily because we're an import dependent economy. Don't also underestimate corruption in our national life. It is corruption that made a country import 60m litres of fuel during lockdown. It is also that corruption that makes our subsidy to balloon to 4trn from just under 1trn 2 years back while Nigerians are reputed to be getting poorer. My pint is even if you generate power, if you still import toothpick and pizza, inflation will still be high. 2 Likes |
Re: Expensive Diesel, Expansive Economic Crisis by nkemjacob2(m): 12:27pm On Jun 28, 2022 |
There comes a man who saw tomorrow and decided to take nigeria from being a consumption nation to production. But BAT paid, sentimental fans want to put us in another years of hardship. pls i beg u. Pls have conscience. |
Re: Expensive Diesel, Expansive Economic Crisis by Nobody: 12:48pm On Jun 28, 2022 |
verygoodbadboi:
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Re: Expensive Diesel, Expansive Economic Crisis by oooabbeyooo: 12:49pm On Jun 28, 2022 |
Ojuntana:1. HE GEJ did not end badly we are all leaving withness at the moment moreso he was not allowed to complete his governance but his economic parameters are better. The country would have ranked better if HE GEJ had returned when he lost elections (barring insecurity). 3. Every leader is faced with oppositions in policy formulation and implementation. HE BAT is not new to that. When he started demarcation of the Ikorodu expressway for dedicated BRT lane, people did more than going to court to stop him but look at it today. He also taxed businesses to fulfil their Civic responsibility, they hated him then and he took all the bad name but the state is better-off today. Even if he faces opposition in taxing the income in the economy, how he will deploy the money into governance will reduce the opposition. Even when a man is hands-on he cannot be better than or do the job of 36 persons in the cabinet. That is how governance is. Getting the best to work for you! More like using people. Even though the work is collaborative: which is responsible for his hands-on, he wouldn't have excelled without their ideas. The wise will adopt this rule and have people better than him in the cabinet to work for him. A lot of the people in Obasanjo,s cabinet are better than him intellectually... Chuckwuemeka chikwelu, Frank Nweke Jnr etc but they all worked for him! In My Opinion, HE BAT will be like president Bihari with better policies and efficient budgets. He may not be jumping around like President Obasanjo but will sure harness opportunities and excel in governance. |
Re: Expensive Diesel, Expansive Economic Crisis by Ojuntana: 1:05pm On Jun 28, 2022 |
oooabbeyooo:Really? GEJ did not end badly? The President Jonathan, the clueless one, badluck Jonathan the buffoon who ran the most corrupt govt and birthed dasukigate and maduekwe? It is generally accepted that any govt that is voted out is a failure. Do you know one of Jonathan's faults and also Buhari's we their inability to entrench discipline in their cabinets and give a strong sense of direction? If Tinubu can't be strong enough to monitor things and give sense of direction to his ministers, he will end as bad as Jonathan or Buhari. Secondly, like I already said, there are some things that can be done at state level with Kyle rancor but will face serious issues at federal. Even TSA has not been fully implemented till now. Ippis is now looking like a bad thing. If you think the presidency is similar in challenges to governor then you haven't grasped the complexity of Nigeria. BAT can do well, but his health challenges will be a major impediment and when shit hits the roof, he'll drop the ball. Look at the opposition to the ikorodu road demarcation you're talking about. Just imagine for example it is the restructuring of federal revenue to reflect production from each state you're talking about to be carried out by an ailing president. How will he defend it? 1 Like |
Re: Expensive Diesel, Expansive Economic Crisis by oooabbeyooo: 1:12pm On Jun 28, 2022 |
Ojuntana:I agree with you but will rather say that inflation is as a result of many bad policies presently been implemented by this government. Running production on diesel could be very expensive and inturn increase prices of goods and services. This will cause inflation. If there is regular power supply to industries, there will be reduction in increase in goods thereby reducing inflation considerably. You will be surprised that in the cost of maintaining a Telecom base station, power takes 65% of the $3,000/month bill for a single base station. At the moment the country has 26,000 base stations. Imagine supplying regular public power to this base stations to replace the diesel power accounting for 65%, as data now is one of the items on the list of consumer price indexes for calculating inflation. The inflation as a result of importation is because the Currency is depreciating against the dollar against which it is sought! To me it is mad for a government to be sourcing for dollar to import 60m ltrs/day of petrol for local consumption. That is too much pressure on your currency for God,s sake! If a Refinery works in the country, it will relief this stress on Naira and inturn reduce the inflation as a result of importation. Quite a number of other factors are responsible for inflation in Nigeria too. Lack of production and inadequate supply is causing inflation, not allowing a flexible forex causes inflation as a result of poor money supply to the economy, debt servicing is another and unnecessary CBN intervention in bailing out government over budget deficit causes inflation. |
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