TsbAfrica:
well I guess your ignorance is not coincidence.

obembet:
President Bola Tinubu has declared that there would no longer be a petroleum subsidy regime as the current 2023 budget he glimpsed does not contain it.

He stated this on May 29 during his inaugural address at the Eagle Square, Abuja.

All though the current 2023 budget has provision for the fuel subsidy till June.


I have a we many both online and offline that condemn this decision

Many people do not understand the politics behind fuel subsidy and its dangers to the development and growth of Nigeria.

The intention of the government to subsidize PMS was simply to make the product affordable for Nigerians and make life easier. So, the average price of petrol in the world can be as high as N590, however, the FG will subsidize the product and fix the price at N185 bringing the total amount of subsidy per liter to N405.

The average consumption of liters of petrol in Nigeria per day is 60 million liters. However, Marketers of the product load as much as 100 million liters and above per day.

This means the Nigerian Government is expected to pay as much as N405 × 100,000,000 (litres) as subsidy per day to the Marketers of the product to keep prices at N185 for instance. This brings the amounts to N40.5 billion daily and about N1.2 trillion monthly. Kindly take note that this amount can either decrease or increase following the prices of petrol at the international market.

So, just try to wrap your head around it and know what Nigeria expends on fuel subsidy alone in a year - obviously some billions of dollars.

Here's the irony of whole arrangement:

1. Petroleum Marketers usually divert larger quantity of the subsidised petrol to neighboring countries to resell at the international market price. So, they make the same amount of money the Nigerian Government has paid on subsidized petrol in the neighboring countries.

2. This makes the product relatively scarce in Nigeria as the leftover becomes lower than the daily consumption in the country. The implication is that petrol stations will be selling fairly higher than the fixed price of N185 (some sell N190, N205, N225, N250, and so on depending on the area. And during peak periods of scarcity, which are also engineered by marketers, Nigerians still buy the same subsidized petrol for as high as 400, 500, and as the case was in the 1st quarter of this year while sleeping in filling stations. Again, marketers make double.

3. Marketers also import above the daily consumption of 60 million litres as seen above and still force the federal government to pay subsidy on the excesses, which are usually part of what they smuggle to neighbouring countries. Again, marketers dupe Nigeria.

4.This entire scenario makes a mess of the good intention of the Nigerian government to make PMS affordable for Nigerians.

5. This scarcity and high cost of the petrol despite subsidy leads to arbitrar increase in the cost of living. Transportation for instance, goes up crazily.

Moves to Remove Subsidy & Reactions

Therefore, successive federal governments having seen the outright abuse of the subsidy policy have always tried to cancel the policy so that market forces can determine the cost of petrol.

More so, the huge amount of money paid into the pockets of Marketers can be channeled to other meaningful venture such as infrastructural development, agriculture, social security, technology, health, etc.

However, whenever the move to remove subsidy is made, the Marketers are quick to shutdown their filling stations and deprive Nigerians access to the already subsidised fuel in their possession. This leads to instant scarcity regime and hardship (like we are already witnessing).

And while the marketers make more money on one hand, they force and instigate Nigerians against the federal government with the hardship created on the other hand.

Then, The innocents who do not understand the politics behind subsidy go on strike, protest, attack the government and force her to continue the subsidy regime.

We pay more for our ignorance at the long run while the marketers are happy; they remain the top billionaires in Africa. Everyone loves them, wish to be like them, and celebrate them.

Whereas the federal government count her losses, takes the insults, bears the bad name and pity uninformed/suffering Nigerians like you and me.

Will you support President Bola Ahmed Tinubu to break this cartel, this subsidy syndicate and give us freedom or you will remain adamant and spread the hate?

Share your opinion and let us learn from you.

[i]Obembet[/i]you have to respond to these question first, from your answer we will know how sincere your question are, what will you have to say about tinubu whom opposed the removal of this subsidy in 2012 at 120 per liter , lead thugs to ojota , occupied it and that was were the down fall of Jonathan govt started, despite his shortcomings this was a man that wished Nigeria and Nigerian well, instead tinubu aligned with a disaster in buhari to wreck Nigeria and left for Niger republic, now you called some people ignorant and wicked marketers, why dint same tinubu support gej to fight and stop the wicked marketers?, was he tunibu lying then, was he just hungry for power, did he just fight gej because he himself was in opposition and was just ready to bring his government down even at the detriment of Nigerian citizens? Today it’s at 600 and you te asking people to support him, if it were president from another tribe will you support him? Karma is really a bitch and does not knock on the door before it comes in.

Nlfpmod
Seun
mynd44
Lalasticlala

lexy2014:


But it still doesn't answer the question....

IHow does his being Igbo or otherwise negate the points he raised?

CondenseMilk:
But you people did an occupy Nigeria protest against thesame subsidy which was removed by Goodluck Jonathan in 2012.

Toosure70:
subsidy was removed without the consent of Nigerians . That was Jonathan mistake, he supposed to educate the masses before the removal

researcherdotcom:

People are misinterpreting the protest of Occupy Nigeria.
The reason behind the protest was that the Jonathan Administration was so corrupt that we couldn't trust him with funds from subsidy removal. Look at her Petroleum Minister alone, she was the most corrupt female politician and minister in the history of Nigeria. Someone buying diamond bra. Ah.
Secondly, if Jonathan being the president also have the strong will like Tinubu and believed in his policy he would have gone ahead but for fear of not loosing election in 2015, he backed out and he eventually loose.
Again, the public knowledge on the scam of oil marketer was low as at that time. Jonathan Administration failed in media orientation of citizens. Labaran Maku disappointed him a lot.
My little submission
Personally, I am in full support of the total removal of fuel subsidy. It's what I buy I sell