nairalanda1:


Good point, but if we kept it, the subsidy costs would rise with cost of production of fuel, (let's even forget about smuggling and corruption)...and eventually it would have reached a point where it ate all our revenue, plus money borrowed.

Then how would we fund our budget?

When we reach that point, poor suffering now would seem like kindergarten stuff.

My point is that the govt choose the easiest path that doesn't affect them and their family because they're still getting the stuff free of charge or with free money.

Cost of production shouldn't matter for what we get from the nature free of charge. And it wasn't like it was being given to Nigerians freely, it was subsidised.
My point is that smuggling and other associated corruption should have been tackled. Are we really that helpless in this country that our only and favourable solution is to run away from our problems. Like govt running away from her responsibilities to the citizens.

Remove this subsidy (petrol), remove that subsidy (kerosine, diesel). Sell that off, sell this off - like in the case of power sector, nitel, Nigeria Airways, etc. Our kids don't even know what treated pipe borne water looks like.
Have you taken time to think about what these wicked leaders are getting from the common purse while serving and after leaving the offices?

These people don't even steal in millions of naira anymore but in billions of naira. Where was that same money coming from even when they were subsidising fuels for the masses? Was it not from the sales of the same crude oil? Removal of subsidies only means more money for them to loot.

Mom007:
Peter Obi should just be thanking God that He didnt win that election, or rather, that he wasn't declared the winner because all this bashing and insults would have been directed to him. Nigerians are very short sighted people who want heaven yet do not want to die. They want a working society but do not want to pay the price. P.O would have still removed fuel subsidy because it is an evil that has been destroying our society for long. We have been paying such a high price for cheap fuel for so long that most people don't know that it was an anomaly. So what if we need to cut back on some excesses? Even in UK, not every tom and dick drives cars. Have a good and efficient public transport network system and leave car ownership and driving for those who can afford it. Nigerians, we go dey alright last last, let's all pay the price for a better tomorrow and learn to hold leaders accountable when funds are not used for what they ought.

What made the fuel price hike to 540 is the devaluation of the naira. It may go up further. I expect the government to control it to about 400 which is reasonable

slimjohn2k5:
Even Gen repairers, spare part sellers

it will be a domino effect,infact I am of the opinion that this subsidy removal will do more harm than good,the impact on all sectors of the economy will surpass the #7trillion that will be realized,this is just a classic case of throwing away the dirty water with the baby,soap and sponge inside,it is sad to note that Nigeria could manage the subsidy with good accountability and zero tolerance to corruption but unfortunately they choose to solve the problem by cutting off subsidy which is the general palliative for all nigerians,that problem they didn't want to confront that made subsidy not to work is still there and it has a new master plan to also make this subsidy removal not to work

gannod:






But the poor have refused to do the right thing as far as elections is concerned. They are in the majority and have refused to use their strength properly.

The same poor that voter APC or which ones?
The same ones typing fuel subsidy is a scam, subsidy will favour me and my family?

Nigeria poor are very stubborn and arrogant. They refused to admit their mistake of voting for buhari despite the 8 years hardship. I don't pity any APC voter at all.

Elections have consequences

Stop telling us this cock and bull stories then he should start probing buharis administration.

mainman7:
Truth is that Tinubu has no alternative other than removing it at soon as possible. The Blame is on Amechi, Ekweremadu(that brought Bill Gates to Buhari to Buy all Nigerian Federal Hospitals, sold to him for Billions already. Tinubu has been Fighting very Boldly and Courageously to UnDo and Reverse all these Satanic Transactions, this is why BGates rushed to Aso Rock few weeks ago to beg him to soft pedal. The Question is: why does he want to Own the Body and Souls of Nigerians?! Nigerians are not Animals to be Owned! If you know half of Battle that Tinubu is currently Fighting for Nigerians, you will shed Tears in Appreciation to CREATOR of Humanity for bringing such a Courageous Leader as Intervention!) and other satanic Greedy Souls like them that Connived with Buhari to Use Nigeria(ns) to endlessly borrow Billions of Dollars and Trillions of Yuan which Buhari audaciously siphoned straight away for Development of Niger Republic his true Country.

Even Great Economists and Professional Financial Analysts from Western World have said it would take a Miracle for any Government that takes over from Buhari to fund Nigeria after Buhari leaves Office, they said Economic Collapse of Nigerian is inevitable with the Unprecedented Wickedness and irredeemable Damage that Buhari and his Cronies did.

Removing the Subsidy at least Saves some Billions (that the theivng Oil Cabals would have also continue to be claiming) for Nigeria use to start the Long Journey to Recovery, from the Unprecedented Wicked Wounds and Monumental Damage which Buhari and his satanic Encouragers like Emefiele, Ekweremadu, Amechi, etc.

Tinubu really Need all the Prayers and Encouragements he can get from us all. Sincerely, if you know the level of Damage that these wicked heartless Anti-Humanity Souls did to Nigeria as a Country, you will know that only GOD ALMIGHTY can Help Tinubu to bring his Vision of making Nigeria great again to Reality.

Please, quickly Download this Video before they remove it from YouTube again. Share on WhatsApp and on all Social Media, this is what all Nigerians should Unite against not the Senseless Tribalism that the those with Ekweremadu wicked heart are using to Divide the Masses. This Video shows when Ekweremadu encouraged Buhari to Cede the Right over all Nigerian Federal Hospitals to Bill gates for Billions of Dollars, which has already been shared. They kept the Masses in the Dark while they sold them out Completely. Try not to Cry from being overshocked by what you discovered today was long done to your Future under Buhari.

https://www.youtube.com/watch?v=gCrO5QTrpbk&pp=ygU3RWt3ZXJlbWFkdSBzb2xkIE5pZ2VyaWEgRmVkZXJhbCBIb3NwaXRhbHMgdG8gQmlsbCBnYXRlYQ%3D%3D
We thank God for Nairaland. Like if you are grateful Today to discover this satanic Secret Deal that they did against your Health. WE MUST ALL JOIN HANDS TO BACK TINUBU UP TO REVERSE IT!

maasoap:

My point is that the govt choose the easiest path that doesn't affect them and their family because they're still getting the stuff free of charge or with free money.

Cost of production shouldn't matter for what we get from the nature free of charge. And it wasn't like it was being given to Nigerians freely, it was subsidised.
My point is that smuggling and other associated corruption should have been tackled. Are we really that helpless in this country that our only and favourable solution is to run away from our problems. Like govt running away from her responsibilities to the citizens.

Remove this subsidy (petrol), remove that subsidy (kerosine, diesel). Sell that off, sell this off - like in the case of power sector, nitel, Nigeria Airways, etc. Our kids don't even know what treated pipe borne water looks like.
Have you taken time to think about these wicked leaders are getting from the common pause while serving and after leaving the offices?

These people don't even steal in millions of naira anymore but in billions of naira. Where was that same money coming from even when they were subsidising fuels for the masses? Was it not from the sales of the same crude oil? Removal of subsidies only means more money for them to loot.

Well, the truth is, we don't have many options right now. This was the easiest option of three bad options.

Another option would have been to tax everyone at high rates of 50% to raise our tax to gdp ratio to pay for the subsides. That would have been harsh, and anyway, won't raise enough money for the thing called subsidy, unless crude prices dip.

The other option would have been to continue with the subsidy. The problem is, we would

- drive away investment, because no one is going to refine fuel here, sell it at a loss, and then get paid a subsidy that does not cover the loss

-in a few years, watch as the cost of maintaining fuel at N195 outstripps our revenue...which makes our budget deficit reach an all time high, and then we run out of money, and IMF refuses to give us another loan.

Am a firm believer in cutting govenrment income. But this year we gave our NA under 200 billion naira, and our Aso Rock 40 billion naira. Subsidy costs for one month this year..from Jan to May, was around 600bn monthly, and we still owe NNPCL money. Cutting costs is good, but it would do nada for subsidy

We could buy time by confiscating all illegally looted money...and WE SHOULD even now, but it would last for a year or two, and then we would be back to square one.

The problem with subsidy, really, is that people want to make money. The people involved in bringing fuel to us ALL want to make money. And that Dangote refinery has to make lots of money because at the end , he is competing with the global stage, not just Nigeria. And if his workers do not get good salaries, they jakpa.

And refining fuel has to make money to work.

At the end, you may call me an oppressor, but it does not change that fact. Trying to pretend that fuel was cheap for 50 years cost us 4 good refineries and thousands of jobs and made us a net importer. Time we ended that charade.

This right here is constructive criticism. I want to believe Mr. President has plans to mitigate the effects of the subsidy removal. I believe this Fuel subsidy case is like that of someone on the battlefield with severe bullet wounds to the leg/thigh. In order to stop infection from spreading, one might need to amputate the leg. Nigeria has gotten to the point that fuel subsidy just have to be removed for us to think of ways to internally subsidize energy. We can't be wasting money continuously subsidizing fuel for neighbouring countries which the fuel is smuggled to and be thinking of how to solve the issue. We just don't have the financial strength to do so.

odimbannamdi:


The problem of Nigeria is not exactly this fuel subsidy. Energy subsidization is quite normal in every forward thinking country. It basically stimulates production and the gains from production will offset the subsidy costs.

Our problem is Government inefficiency.

Why do Nigerian Customs turn a blind eye to the fuel smuggling that goes on at our borders with neighbouring countries?
Why do we pay for fuel that never gets delivered?
Why did we not have the accurate figure of our fuel consumption until now, allowing our fuel consumption to get over-inflated over the years, resulting in more subsidy claims?

The Why questions are endless.

Instead of addressing these inefficiencies first, Mr. President just removed the subsidy, resulting in untold hardships for Nigerians. Our government simply cut off the head because it has a headache. We threw away the bathing water with the baby inside. It is really sad.

MrBroke:
Some are complaining, some are cashing out. It is like that everywhere in the world.

fuel is a general issue, nobody is cashing out here xpt government

millionboi2:
fuel is a general issue, nobody is cashing out here xpt government

That's what you know. I'm business man and i know how much people make even as of this time. So as i said earlier that's what you know

MrBroke:


That's what you know. I'm business man and i know how much people make even as of this time. So as i said earlier that's what you know

stop all this hyping the system also demand much back from them.

Fujiyama:


^^^
Ok...

Is this an error?



^^^
Two points: First, the 'good and efficient public transport system' you speak about...just isn't there. It doesn't exist. And second...the demand for fuel isn't all driven by motorists. The demand for national grid electricity far outstrips the supply...and Nigerians are forced to rely on generators to get by. Lots of informal sector workers (in the auto trades for example) use petrol everyday to work. Your local vulcanizer, welder, painter etc. can confirm this.

Don't swallow the very cynical narrative sold by government and its lackeys - that some 'big men' with 50 car fleets are the only ones 'enjoying' the so called fuel subsidy. The truth is far more complex, as we are all finding out now.



^^^
No, we are not alright.

The insecurity is ramping up again as we speak (it never went away, actually). People are getting more and more desperate - and desperate people eventually get to the point where they feel they have absolutely nothing to lose.

As for leadership accountability...we never learned what it means. If we did we wouldn't be where we are now. The sad thing is...we never will.

Analyze as you may, any government that came into power without removing fuel subsidy would have been a thieving and conniving government and that is my point. What we should now focus on, is to make sure the money saved from the removal is not stolen afresh. Hold them accountable, from president to headmaster of government schools. How much was saved, how was it spent? What is their salaries? Benefits? Do they need so much? These people should no longer get away with stealing our money and that is where the real problem lies. I think I am old enough, traveled enough and have seen enough to not 'swallow narratives' like you so cynically remarked. All the things you mentioned like fighting insecurities, the good roads that did not just happen, etc cost money to implement. You will never have enough money to do important things when you constantly use the money you have to try to keep petroleum prices unrealistically low.

Nigerians paying the same price for fuel as Togolese, Nigeriens Chadians and Cameronians is not a bad thing.
Openings 4 refineries,paying thousands of workers monthly and not producing a single gallon of gasoline is the real failure of government that we were paying for through subsidy.
It has become our culture for a very few to live on the common wealth of all this is what each government is protecting.

Buhari government and NNPC never planned to remove subsidy because when they said Tinunbu goofed no one had anything in place for life after subsidy.

The whole nation is currently trying to adjust to this new reality, the Nigerian culture of making a naira out of a kobo.
It will take time for those who tend to make a fortune out of our misfortune as long as government policies are not made toake money for the government but for the people

noonejustme:


Dey play 😁

Come buy

Mom007:
Analyze as you may, any government that came into power without removing fuel subsidy would have been a thieving and conniving government and that is my point.

^^^
Your naivete about this administration is endearing. Wholesome, even. (I am assuming you are not one of the hagiographers we have on this platform. I haven't looked at your prior posts yet...so I may come back here to edit this...)

'Fuel subsidy' is done and dusted. There's no going back. Unless....

'Fuel subsidy' was low hanging fruit. Its yesterday's news. What we are all waiting to see is how effective this administration will be on the matter of public sector reform. Unfortunately, that isn't a light switch you can flip like 'fuel subsidy'. We are waiting...

Mom007:
What we should now focus on, is to make sure the money saved from the removal is not stolen afresh. Hold them accountable, from president to headmaster of government schools. How much was saved, how was it spent? What is their salaries? Benefits? Do they need so much? These people should no longer get away with stealing our money and that is where the real problem lies.

^^^
At least you agree there is a problem.

In functional democracies, the questions you asked up there are answered by strong institutions: Watchdogs. Regulatory agencies. Civil society groups. Ombudsmans. Taxpayers. Anti-trust commissions. Lawmakers. The legal system. Voters. And so on...

We do not have strong institutions. So...I leave you to tell me what the likely outcomes will be in our case.

Mom007:
I think I am old enough, traveled enough and have seen enough to not 'swallow narratives' like you so cynically remarked.

^^^
But...that's exactly what you did.

You blithely wrote about us 'being alright las las' and learning 'to pay the price for a better tomorrow'. If that isn't swallowing a narrative, hook, line and sinker...then I don't know what is.

Have you thought about what will happen if there is a sudden, major external shock that pushes the price of oil on international markets even higher than it is now? We are all witnesses to the fallout of the Russian invasion of Ukraine. Imagine if another conflict breaks out suddenly and oil supply chains are disrupted as prices skyrocket. Your government will be faced with some hard choices: import refined petroleum products at prices that will make our eyes water....or...re-introduce subsidy in some form. These are the choices we will face because we do not have local refining capacity and the entire country is relying on a private refinery...a private refinery whose opening date is a moving target. Think about that for a second...

Mom007:
All the things you mentioned like fighting insecurities, the good roads that did not just happen, etc cost money to implement. You will never have enough money to do important things when you constantly use the money you have to try to keep petroleum prices unrealistically low.

^^^
The 'argument' about 'fuel subsidy' has been settled. Its yesterday's news. The real issue now is the fallout. How is that being tackled? That is the question that demands an answer.

Mom007:
Analyze as you may, any government that came into power without removing fuel subsidy would have been a thieving and conniving government and that is my point. What we should now focus on, is to make sure the money saved from the removal is not stolen afresh. Hold them accountable, from president to headmaster of government schools. How much was saved, how was it spent? What is their salaries? Benefits? Do they need so much? These people should no longer get away with stealing our money and that is where the real problem lies. I think I am old enough, traveled enough and have seen enough to not 'swallow narratives' like you so cynically remarked. All the things you mentioned like fighting insecurities, the good roads that did not just happen, etc cost money to implement. You will never have enough money to do important things when you constantly use the money you have to try to keep petroleum prices unrealistically low.

^^^
Subsidy is back. It took a while but it is back.

So...we are back to square one.

Mom007:
What we should now focus on, is to make sure the money saved from the removal is not stolen afresh. Hold them accountable, from president to headmaster of government schools. How much was saved, how was it spent? What is their salaries? Benefits? Do they need so much? These people should no longer get away with stealing our money and that is where the real problem lies.

^^^
We are there now...

https://www.nairaland.com/7896914/fg-budgets-5bn-presidential-yacht#126734931

https://www.nairaland.com/7895923/budget-tinubu-spend-6.9bn-vehicles#126720589

So what do you suggest we do now?

Mom007:
Nigerians are very short sighted people who want heaven yet do not want to die. They want a working society but do not want to pay the price.

So what if we need to cut back on some excesses? Even in UK, not every tom and dick drives cars. Have a good and efficient public transport network system and leave car ownership and driving for those who can afford it. Nigerians, we go dey alright last last, let's all pay the price for a better tomorrow and learn to hold leaders accountable when funds are not used for what they ought.

^^^
The discussion clearly has shifted. We had your view above...and we now have your current view below:

Mom007:
The Nigerian state has defied all the laws of economics. They taught us that when there is a low demand, supply improves and prices crash. Not in Nigeria. Despite the fact that demand has dropped to less than one tenth what it used to be, prices are still soaring. Instead of encouraging citizens to embrace agriculture and building refineries, my government still thinks dashing people money is some kind of solution... its sad and unfortunate.