The removal of subsidy is obviously a result of EFCC and ICPC's inability to resolve the issue of corruption in the downstream and upstream sector of the oil and gas industry.
This is why we always talk about strengthening our institutions and making them independent but since we cannot heed to it and do the right thing, Nigerians will pay for the inefficiencies of these institutions.
When a society doesn't have the right values, they suffer and they don't even realize why they are suffering.

BTW, the manner at which Tinubu removed the subsidy without fixing any refinery is not only stupid, it's callous and wicked. If we had at least one refinery working well, internal price will not be totally controlled by international price and government can easily regulate prices without having to even subsidize it.
Is this hard for APC members understand or they are just plain stupid?

Problem was, the corruption was a result of subsidy.

You bring in price controls...an integral part of subsidy, and copule it up with free money..another ingredient of subsidy, and anarchy and corruption results.

Ghana and Niger republique both have working refineries, as does Chad. They also DO NOT HAVE and HAVE NEVER HAD subsides. As a result, their refineries can make enough profit, and work well to produce and sell fuel. And they don't have 'strong institutions' (Chad is a one man dictatorship show, Niger too has corruption issues, as does Ghana.).

MTN and Airtel work where Nitel failed because they were selling services , telephony and internet, at high prices...and making enough profit to build things and improve services over time.

The thing is, once you make it difficult for someone to make a profit in a business, that person is going to turn to corruption and wayo to make money. Infact the periodic scarcity that used to happen under subsidy was a means by which marketers made enough profit to survive and balance their books. They had no choice....other wise they would have gone broke. Yeah it is nice to sell fuel cheap...but there are things needed for the business to run that don't rely on subsides...and are expensive to boot.

Nigeria should have removed subsides in 1993, when it was suggested strongly that we do. By now, we won;t be having this discussion....but we said no. 30 years later...

P.S

I do not support APC, PDP or LP. My problem with them, and with Nigerian leaders is simple. Nigeria runs a resoruce dependent economy that no longer works, and none of the parties have taken measures to get us off it

I have also backed subsidy removal since 2012, when I simply put, woke up.

nairalanda1:
Problem was, the corruption was a result of subsidy.

You bring in price controls...an integral part of subsidy, and copule it up with free money..another ingredient of subsidy, and anarchy and corruption results.

you really have said nothing new here. And whose job is it to fight the corruption, my job?
There's nothing wrong with subsidizing a commodity, the problem is the bad structure, weak institutions and the total unavailability of reliable database that gives insights to help channel the subsidy efficiently.
Subsidy for certain commodities is a norm is Most parts of the world, the problem is our weak structure.
U.K subsidizes for health, some goods and even tax for low income earners. Don't deprive yourself of basic benefits as a citizen because your government doesn't want to fight corruption.

Ghana and Niger republique both have working refineries, as does Chad. They also DO NOT HAVE and HAVE NEVER HAD subsides. As a result, their refineries can make enough profit, and work well to produce and sell fuel. And they don't have 'strong institutions' (Chad is a one man dictatorship show, Niger too has corruption issues, as does Ghana.).

These countries cannot produce enough crude oil to serve their own country, we can produce enough crude oil to serve our population and even export excess. This is why if we have a working refinery, we can easily regulate prices internally better than Benin and Ghana.
Benin and Ghana still depends on buying crude oil from other countries to refine, which means they will still be heavily dependent on international market forces.

MTN and Airtel work where Nitel failed because they were selling services , telephony and internet, at high prices...and making enough profit to build things and improve services over time.

this does not correlate, I don't get how this is directly related to oil and gas industry and how government subsidizes services.

The thing is, once you make it difficult for someone to make a profit in a business, that person is going to turn to corruption and wayo to make money. Infact the periodic scarcity that used to happen under subsidy was a means by which marketers made enough profit to survive and balance their books. They had no choice....other wise they would have gone broke. Yeah it is nice to sell fuel cheap...but there are things needed for the business to run that don't rely on subsides...and are expensive to boot.

again, there's nothing wrong in subsidizing commodities as a government if you have reliable data to track what you are subsidizing and a corruption commission that is efficient. It all boils down to the bd structure in Nigeria.

Nigeria should have removed subsides in 1993, when it was suggested strongly that we do. By now, we won;t be having this discussion....but we said no. 30 years later...

subsidy is what you are suppose to enjoy as a citizen if EFCC and ICPC were doing their jobs in the downstream and upstream sector. Don't suffer for their inefficiencies.

P.S

I do not support APC, PDP or LP. My problem with them, and with Nigerian leaders is simple. Nigeria runs a resoruce dependent economy that no longer works, and none of the parties have taken measures to get us off it

I have also backed subsidy removal since 2012, when I simply put, woke up.

you didnt comprehend my post. You failed to get the point
The point is not that we should not remove subsidy, the point is why and how we are removing it. Read it again

Workch:
you really have said nothing new here. And whose job is it to fight the corruption, my job?
There's nothing wrong with subsidizing a commodity, the problem is the bad structure, weak institutions and the total unavailability of reliable database that gives insights to help channel the subsidy efficiently.

Even with a reliable database, the problem with subsidy is government can do nothing about the cost of producing one liter of fuel

That cost is not fixed and it rises. As a result whenever it rises, so does the cost of subsidy. That creates issues and problems...especially when subsidy cannot cover the rising cost, therefore we have to spend more money on paying for the petrol

Subsidy for certain commodities is a norm is Most parts of the world, the problem is our weak structure.

LOL...it isn't. And in places where it happens, most countries practice what is called an implicit subsidy..ie removing taxes on the industry,or providing grants to reduce some of the cost burden. It does not mean the industry sells at a loss, or is forced to sell at a loss, which is what we did here, and it wrecked oureconomy

U.K subsidizes for health, some goods and even tax for low income earners. Don't deprive yourself of basic benefits as a citizen because your government doesn't want to fight corruption.

Yes, and if UK tax rate was implemented here, you guys would scream. They charge a high tax, that's why they can pay for the NHS. Even then, it is running at a loss. Conservatives secretly want to privatise the thing.

Plus healthcare is subsidized in Nigeria. If you get on NHIS the subsidy increases self.

These counties cannot produce as much crude oil to serve their own country, we can produce enough crude oil to serve our population and thats why if we have a working refinery, we can easily regulate prices better than Benin and Ghana.

Nigeria has a high population , that our crude oil production cannot sustain. We produce less than the UAE, and have ten times, if not more than the UAE's piopulation.

We better accept that cold fact.

Benin and Ghana still depends on buying crude oil from other countries to refine, which means they will still be heavily dependent on international market forces.

Ghana has crude oil deposits, which it exploits. As does Niger, and Chad. Even Benin discovered some crude. Want to try again?

this doednr correlate, I don't get how this is directly related to oil and gas industry and how government subsidizes services.

again, there's nothing wrong in subsidizing commodities as a government if you have reliable data to track what you are subsidizing and a corruption commission that is efficient. It all boils down to the bd structure in Nigeria.

I put it there because anytime I oppose you subsidy supporters, you start calling me APC supporter. Something I was backing before there was an apc self.

subsidy is what you are suppose to enjoy as a citizen if EFCC and ICPC were doing their jobs in the downstream and upstream sector. Don't suffer for their inefficiencies.

Good, then let us raise the tax rate and tax the 70% not taxed so that we can earn enough cash to pay for the darn thing.

you didnt comprehend my post. You failed to get the point
The point is not that we should not remove subsidy. Read it again

So why did you say that subsidy is what you are supposed to enjoy as a citizen? You want the subsidy, abeg. No need to pretend.

CodeTemplar:


Daft argument of an addicted removal beneficiary.

With comments like this, it is obvious he isn't interested in a discussion.

CodeTemplar:
I exposed your foolishness by rephrasing your stupid comment and it pained you. Lol.

And with comments like this, he isn't really interested in having a discussion.

Can't talk that, though.

CodeTemplar:
says a fool
.

That wasn't edited, was it.?

nairalanda1:


Even with a reliable database, the problem with subsidy is government can do nothing about the cost of producing one liter of fuel

That cost is not fixed and it rises. As a result whenever it rises, so does the cost of subsidy. That creates issues and problems...especially when subsidy cannot cover the rising cost, therefore we have to spend more money on paying for the petrol



LOL...it isn't. And in places where it happens, most countries practice what is called an implicit subsidy..ie removing taxes on the industry,or providing grants to reduce some of the cost burden. It does not mean the industry sells at a loss, or is forced to sell at a loss, which is what we did here, and it wrecked oureconomy





Yes, and if UK tax rate was implemented here, you guys would scream. They charge a high tax, that's why they can pay for the NHS. Even then, it is running at a loss. Conservatives secretly want to privatise the thing.

Plus healthcare is subsidized in Nigeria. If you get on NHIS the subsidy increases self.




Nigeria has a high population , that our crude oil production cannot sustain. We produce less than the UAE, and have ten times, if not more than the UAE's piopulation.

We better accept that cold fact.




Ghana has crude oil deposits, which it exploits. As does Niger, and Chad. Even Benin discovered some crude. Want to try again?




I put it there because anytime I oppose you subsidy supporters, you start calling me APC supporter. Something I was backing before there was an apc self.



Good, then let us raise the tax rate and tax the 70% not taxed so that we can earn enough cash to pay for the darn thing.



So why did you say that subsidy is what you are supposed to enjoy as a citizen? You want the subsidy, abeg. No need to pretend.

gosh, you still don't get it.
Subsidy is your benefit as a citizen. It happens in many parts of the world.

It should not be your problem how government go about it, government is transferring the cost of fighting the corruption in the oil sector to you. It's not rocket sicnece 🙄

Cost of production will be lower if government fixed refineries, it should not be your problem.

Workch:
gosh, you still don't get it.
Subsidy is your right.
It should not be your problem how government go about it, government is transferring the cost of fighting thr corruption to you. It's not rocket sicnece 🙄

Well, if it was, would you then accept subsides on your businesses for example?

The problem with subsidy is they cost a lot of money. And they are difficult to maintain. At the end, government and people cannot do anything about the cost of production.

You can have subsides in the petrrol sector by doing things like not charging heavy taxes on the petrol sector, or offering grants for them to set up businesses...but they have to have running refineries.

You can't do subsidy by forcing them to sell at a loss, and paying a subsidy that comes from our budget, and, as the cost rises, creates things like deficits in the budget, which have to be filled by more and more loans. We did that for 50 years, and it made things worse.

The thing called refinery, it costs money to run. And as a result, it has to make a profit to run. Can't do that with a subsidy.

CodeTemplar:
it was. Fool.

Ah, one can't discuss that.

CodeTemplar:
has anyone been jailed or arrested for subsidy fraud?

Better deactivate this one too like other user accounts. Kasssandra, subsidywise, backbencher ... Lol.

Hmm, is he enjoying the ice-cream?

nairalanda1:


Well, if it was, would you then accept subsides on your businesses for example?

The problem with subsidy is they cost a lot of money. And they are difficult to maintain. At the end, government and people cannot do anything about the cost of production.

You can have subsides in the petrrol sector by doing things like not charging heavy taxes on the petrol sector, or offering grants for them to set up businesses...but they have to have running refineries.

You can't do subsidy by forcing them to sell at a loss, and paying a subsidy that comes from our budget, and, as the cost rises, creates things like deficits in the budget, which have to be filled by more and more loans. We did that for 50 years, and it made things worse.

The thing called refinery, it costs money to run. And as a result, it has to make a profit to run. Can't do that with a subsidy.

Subsidy is not a private business. It's government.
Almost all governments of the world do subsidies on many goods and services, private business don't do subsidies. It's not very hard to get it you have travelled out ot understand policies in most countries.

In Nigeria today, the government now doesn't pay subsidy on anything, they are depriving you the benefits of being a citizen because they cannot do their job of fighting corruption.

Fule subsidy is not selling at lost if you do it well, it has economic benefits that helps to cushion inflation and meltdown. Nigeria is not just doing it well

Workch:
Subsidy is not a private business. It's government.

Well, it is paid for by tax rates that are heavy, not from oil revenue (unless you are Libya whose oil revenue is enough for its 10 milluon people...and they produce more than we do)

Almost of government of the world do subsidy, private business don't do subsidies. It's not very hard to get it you have travelled out ot understand policies in most countries.

Erm, refining petrol in most countries is a private business. Has been, and has always been. Dangote is just following what most do.

In Nigeria today, the government now doesn't pay subsidy on anything, they are depriving you the benefits of being a citizen because they cannot do their job of fighting corruption.

Education and health are subsidsed, as are the roads (no tolls).

@topic and OP, I stressed those points too before the demonic removal but the deamon you engaging in a convo, used many user accounts to support a blind removal of subsidy.

Today, no one has been jailed for subsidy fraud, consumption only dropped a meagre 28-35%, corruption won't allow Nigerians believe in N8k palliative.

UK and US have huge welfare schemes for individuals and industries but told us scrapping ours was the best choice and one uncle Yekini accepted the bullshit wholeheartedly. EFCC are only after Yahooboys and not the alleged massive fraudsters in subsidy. Even with suspension of the chairman.

CodeTemplar:
deamon you engaging in a convo,

Thanks, angel.

nairalanda1:


Well, it is paid for by tax rates that are heavy, not from oil revenue (unless you are Libya whose oil revenue is enough for its 10 milluon people...and they produce more than we do)

they can pay for it if they are not stealing taxpayers money. Do you know how much Nigeria realizes from tax?
It still should not be our problem if they are accountable for the tax they collect. It's not your problem that government won't fight corruption and do their job.

Erm, refining petrol in most countries is a private business. Has been, and has always been. Dangote is just following what most do.

it is what subsidy is all about, government subsidizes private goods and services. Are you thick or I am not explaining well?

Education and health are subsidsed, as are the roads (no tolls).

health and education is not subsidized in Nigeria for a common citizen. Are you sure that you know how government subsidy works or you are an APC member in disguise?

Workch:
they can pay for it if they are not stealing taxpayers money. Do you know how much Nigeria realizes from tax?
It still should not be how problem if they are accountable for the tax they collect. It's not your problem that government won't fight corruption and do their job.

I don't deny they steal, but our tax to gdp ratio is too low for us to earn enough in taxes,plus 70% of Nigerians are not taxed because informal sector.

Our tax to gdp is 10% . Ghana is at 24% Ghana is also getting bailed out by the IMF...because they so broke.

The stealing is bad because they steal from a small treasury.

it is what subsidy is all about, government subsidizes private gods and services. Are you thick or I am not explaining well?

I hear you, and I am pointing out that the problem with subsidy is the rising cost of production means rising subsidy costs year in and out.

At some point it creates a deficit in our budget, which means we cannot sustain it. And then we have to borrow.

health and education is not subsidized in Nigeria for a common citizen. Are you sure that you know how government subsidy works or you are an APC member in disguise?

In government institutions? THEY ARE....that's why your fees in government unis are not up to 2-3 million naira per annum, and why you were able to graduate without debt.

Health is subsidised in government hospitals. Then NHIS adds a layer of more subsides if you sign up or your workplace signs you up...and it is accepted in private hospitals too. Has been since 2005 self.

Bubu also signed a law that makes NHIS compulsory for all(yet to be implemented, as he signed it just before he left office).

This has been my opinion from time immemorial. Even had the same argument on a Twitter thread last night.

Government removing subsidy from one of the most important commodities in the market is nothing short of them throwing in the towel in the fight against corruption in the sector.

Just as the op said, if we had strong institutions with the right heads at the top, the falsification of figures would have been minimal and at a manageable level, so much so the solution wouldn't have been outright removal of subsidy. But in the case we have on our hands, we see what is being claimed by the marketers and "verified" by the authorities for onward payment by the government is probably 5 times more than what is actually being brought into the country.

People submit mere papers and cash out in millions of dollars. It is the government's responsibility to locate and plug the points of leakages that exist in the system.

Something tells me subsidy in petrol will still be back in time to come, but at that point the government would have had a very good idea how much we actually consume on the average. It'll be such that once subsidy is reintroduced, anything more than the average figures they've gotten over the years would signal a red flag and actions would be taken to immediately locate the problem and fix it, and by fixing it, it is my hope that a couple of person would become tenants in Kirikiri Max pen.

omenka:
This has been my opinion from time immemorial. Even had the same argument on a Twitter thread last night.

Government removing subsidy from one of the most important commodities in the market is nothing short of them throwing in the towel in the fight against corruption in the sector.

Just as the op said, if we had strong institutions with the right heads at the top, the falsification of figures would have been minimal and at a manageable level, so much so the solution wouldn't have been outright removal of subsidy. But in the case we have on our hands, we see what is being claimed by the marketers and "verified" by the authorities for onward payment by the government is probably 5 times more than what is actually being brought into the country.

People submit mere papers and cash out in millions of dollars. It is the government's responsibility to locate and plug the points of leakages that exist in the system.

Something tells me subsidy in petrol will still be back in time to come, but at that point the government would have had a very good idea how much we actually consume on the average. It'll be such that once subsidy is reintroduced, anything more than the average figures they've gotten over the years would signal a red flag and actions would be taken to immediately locate the problem and fix it, and by fixing it, it is my hope that a couple of person would become tenants in Kirikiri Max pen.

There is nothing wrong with subsidy, except for the constant rise in the cost of production

At the end of the day, the cost rises, and rises, and Nigeria has to take more and more and more money from oyel revenue and replace it with loans.

Also, as for corruption, is there the same kind of corruption in telecoms, and many other sectors? They aren't subsidised, that's why

Finally, our neigh bours have working refineries, Niger and Chad have crude oil deposits and they don't have subsides. They can make a profit....and things run well.

If Government could control the cost of production, which it can't, subsidy as we do it would work.

New dimensions of wailing

nairalanda1:


There is nothing wrong with subsidy, except for the constant rise in the cost of production

At the end of the day, the cost rises, and rises, and Nigeria has to take more and more and more money from oyel revenue and replace it with loans.

Also, as for corruption, is there the same kind of corruption in telecoms, and many other sectors? They aren't subsidised, that's why

Finally, our neigh bours have working refineries, Niger and Chad have crude oil deposits and they don't have subsides. They can make a profit....and things run well.

If Government could control the cost of production, which it can't, subsidy as we do it would work.

I beg to disagree with you, there's everything wrong with subsidy as is being done in the petroleum sector. Cost of production isn't the culprit here, it if falsification of figures that's the monster.

Shadowy marketers claim to bring in products whereas even a drop of water wouldn't grace the shores of this country from them. Evidence of the humongous corruption that exists in th subsidy regime abounds in the last Senate Inquiry in the wake of the last subsidy removal protests under Jonathan.

We have over bloated figures of what we consume and the government appears helpless in verifying what the figures actually are. Nothing consumes more fuel than the cars we have on our roads. I'm not sure I. The last years the cars have tripled, but the cost of subsidy has more than been increasing rapidly over the same period, nevermind the fact we have more fuel efficient cars on the roads.

You can't compare what obtains in th telecoms sector with that of petroleum. We know the telcos are strictly driven by modern age technologies. Just about everything can be tracked to the very last second or kilobyte. Same can not be said of the other. Our Sims are nothing but meters that can easily be read or tracked. It would be comparatively alot more difficult falsifying claims in such a sector in an event subsidy is introduced into the system. It isn't entirely because they've been deregulated.

Lastly, no one doubts the importance of having significant local refining capability. But I'm the interim, we don't have that which is why the removal of subsidy feels so painful. But I feel if the government can nip corruption in the sector in the bud, we might not even have to remove the subsidy at all.

nairalanda1:


There is nothing wrong with subsidy, except for the constant rise in the cost of production

At the end of the day, the cost rises, and rises, and Nigeria has to take more and more and more money from oyel revenue and replace it with loans.

Also, as for corruption, is there the same kind of corruption in telecoms, and many other sectors? They aren't subsidised, that's why

Finally, our neigh bours have working refineries, Niger and Chad have crude oil deposits and they don't have subsides. They can make a profit....and things run well.

If Government could control the cost of production, which it can't, subsidy as we do it would work.

The average petrol price in America is about the same as in 2006. the price has only fluctuated throughout the years. I know this, and a Google search can confirm this.

In 2006, a litre of petrol cost N75. Why is it now over N500? Not because of increases in the price of a barrel of crude or any other associated cost but simply because the Naira keeps losing value.

Are Nigerians suffering as a result of the removal of subsidies? YES

In a normal country with a normal economy, removing subsidies will lead to an appreciation in the value of the local currency (Naira). This is a result of the general public losing purchasing power.

Is the Naira gaining strength? NO

Because Nigeria is an unequal country, if appropriate taxes are not applied to reduce the demand for imported goods, the Naira will keep falling until an event like a massive war which affects oil production occurs.

My suggestions are not to pit the rich against the poor or to argue the merits and demerits of Capitalism as you understand it. I am only giving the most logical solution I can think of.

Your views and ideas have brought unnecessary pain and anguish to Nigerians, yet you fail to listen to a voice of reason.

You compare the energy market to the telecoms industry. In Econ 101, we are taught that in the short term, prices are sticky. This implies that prices take some time to adjust to other economic changes. However, food and energy prices react extremely quickly to economic changes, so most countries keep two measures of Inflation: a broad measure and a core measure that excludes the price of food and energy.

It is absolutely ridiculous to compare the oil industry to others because the energy sector affects all other sectors of the economy.

nuff said.

Interesting and educative debate on this thread. We need more of this.

nairalanda1:


I don't deny they steal, but our tax to gdp ratio is too low for us to earn enough in taxes,plus 70% of Nigerians are not taxed because informal sector.

in 2022, Nigeria generated N10 trillion from tax according to FIRS, that's about the same amount we use in subsidizing fuel. Now if we then consider revenue from other agencies like customs that he reported 1 trillion naira. Imagine setting up a system that reduces tax leakages to the nearest minimum. They can do it but they don't want to do it.
I know you will argue that we cannot use all our tax to pay fuel subsidy, yes we can if we know the actual amount we are subsidizing for which I bet is way lower than 800billion monthly. NNPC and their cronies inflate that figure while Firs and customs deflates tax figures. The problem is our structure.

According to NBS, Nigeria generated 22trillion from crude oil revenue, this can run the country if well spent. This country is not rocket science to run if we put the right structure in place.
Nigeria can pay for subsidy if We do it right.

How is it suppose to make me suffer if government cannot deal with its revenue leakages?

Our tax to gdp is 10% . Ghana is at 24% Ghana is also getting bailed out by the IMF...because they so broke.

The stealing is bad because they steal from a small treasury.




I hear you, and I am pointing out that the problem with subsidy is the rising cost of production means rising subsidy costs year in and out.

At some point it creates a deficit in our budget, which means we cannot sustain it. And then we have to borrow.





In government institutions? THEY ARE....that's why your fees in government unis are not up to 2-3 million naira per annum, and why you were able to graduate without debt.

Health is subsidised in government hospitals. Then NHIS adds a layer of more subsides if you sign up or your workplace signs you up...and it is accepted in private hospitals too. Has been since 2005 self.

Bubu also signed a law that makes NHIS compulsory for all(yet to be implemented, as he signed it just before he left office).

Tax to GDP ratio doesn't make any meaning here.
The reason also has to do with the bad structure, the government doesn't want to galvanize the tax system to prompt efficiency and leakages. Must the citizens suffer for it?

Leave NHIS dude, you don't know how things work. If every Nigerian registers for NHIS, our hospitals don't have the facilities to take the volume. You are doing insurance for inefficiency. Insurance is different from susbisdy, are you thick?

You have to accept that Nigerian government is irresponsible and are trying to shift their cost of irresponsibility to her citizens.

Tianamen1:


The average petrol price in America is about the same as in 2006. the price has only fluctuated throughout the years. I know this, and a Google search can confirm this.

In 2006, a litre of petrol cost N75. Why is it now over N500? Not because of increases in the price of a barrel of crude or any other associated cost but simply because the Naira keeps losing value.

Are Nigerians suffering as a result of the removal of subsidies? YES

In a normal country with a normal economy, removing subsidies will lead to an appreciation in the value of the local currency (Naira). This is a result of the general public losing purchasing power.

Is the Naira gaining strength? NO

Because Nigeria is an unequal country, if appropriate taxes are not applied to reduce the demand for imported goods, the Naira will keep falling until an event like a massive war which affects oil production occurs.

My suggestions are not to pit the rich against the poor or to argue the merits and demerits of Capitalism as you understand it. I am only giving the most logical solution I can think of.

Your views and ideas have brought unnecessary pain and anguish to Nigerians, yet you fail to listen to a voice of reason.

You compare the energy market to the telecoms industry. In Econ 101, we are taught that in the short term, prices are sticky. This implies that prices take some time to adjust to other economic changes. However, food and energy prices react extremely quickly to economic changes, so most countries keep two measures of Inflation: a broad measure and a core measure that excludes the price of food and energy.

It is absolutely ridiculous to compare the oil industry to others because the energy sector affects all other sectors of the economy.

nuff said.

Noted

So long as the cost of production keeps rising, so do subsidy costs.

And so long as we pay for subsidy from oil money alone...not from tax revenue, that is a problem

At the end, the deficit resulting eats our revenue, and then eats the borrowed money

And when that happens, the poor suffering would be excessively terrible.

For me, it is a choice between a rock and a hard place. I would that Nigeria chose neither, but at the end, it is what it is.

And yes, corruption and looting is a symptom. The Soviet and other communist countries tried what we did with subsidy...by subsidsing everything. Not only did it lead to corruption, scarcities and abuse, it even led to a massive black market.

I argue that we should not cut the profit motive in helping the poor. It ends up not benefiting anyone, the poor especially.

nairalanda1:


Noted

So long as the cost of production keeps rising, so do subsidy costs.

And so long as we pay for subsidy from oil money alone...not from tax revenue, that is a problem

At the end, the deficit resulting eats our revenue, and then eats the borrowed money

And when that happens, the poor suffering would be excessively terrible.

For me, it is a choice between a rock and a hard place. I would that Nigeria chose neither, but at the end, it is what it is.

And yes, corruption and looting is a symptom. The Soviet and other communist countries tried what we did with subsidy...by subsidsing everything. Not only did it lead to corruption, scarcities and abuse, it even led to a massive black market.

I argue that we should not cut the profit motive in helping the poor. It ends up not benefiting anyone, the poor especially.

you did not even read what I wrote