Fuel Subsidy Doesnt Benefit Average Nigerian?

Please I have heard this statement over and over that subsidy does not benefit average Nigerians and still I don't understand what it means. Does anyone here know what it means. As much as I know, we buy fuel daily for N65, and the economy is still a reflection of that.

Yes, they are telling a half truth. The fuel subsidy does not benefit ordinary Nigerians because the rich and connected guys cooks up lies in the name of imported petroleum products; and get paid by our idiotic government. There should not be subsidy in the first place, because oil abounds in our land, and refining petroleum is not a difficult task.

But your government made sure our Refineries are dead. They also refused to licence new Refineries to capable hands (you know what they do is to run Nigeria for their individual pockets - like Obj, Abacha, IBB etc). Majority of them built refineries abroad; they also steal more than half of our crude oil through illegal bunkering. So, they prefer selling us refined petroleum products from their private refineries abroad, than allow or build local refineries. In such ways, they will make enough money for themselves. They want to sell back the refined oil back to us in an international market rate, forgetting that the oil is ours in the first place.

Remember Abacha raised fuel prices several times in the name of fuel subsidy. Obasanjo did same more than 5 times. Jonathan wants more money for himself and the easy way is to further squeeze us in the name of fuel subsidy.

Fixing our refinery is not an option because those that donated money for him during the election are the mafia that control fuel import. Creating Jobs or even running a decent economy is not an option for him because he lacks the intelligent to figure out how to create jobs or run an economy. He lacked the gut and sincerity to fight corruption in the country.

All he wants is to navigate his way through by squeezing me and you; and also making enough money for himself, family and friends. Are we to tolerate this? Are we to allow them kill all of us?

Are we not supposed to stand up to them and force them to run our country properly.

As we are talking, they have increased electricity tariff. They have invented a useless costly vehicle licence scheme meant to extort more money from us. They want to get more money from us through fuel price hike in the name of subsidy removal. They care not about the inflation that will result as a consequence. If fuel price goes up, transport prices will jump up and all food prices will follow. Every other commodity price will climb up. This is massive inflation. This will further destroy our niara that is crumbling every day against world currencies.

What this means is that the money we have will loose substantial value and become useless. It means that our life savings in naira (for those that have), will turn to rubbish as a result of loss in value.

Remember Jonathan and Atiku share out dollars during the PDP primaries, meaning they run their life in dollars; meaning they care less about our naira; meaning they can easily convert their very dollars savings and buy off what me and you have. Meaning our salaries will be rubbished.

So it is not just about a common increase in fuel price; it is our life. It is our future.

We should and must resist them. We must present facts against their lies.

We must resist them even with the last drop of our blood.

1. The money spent on fuel subsidy does not go directly to the pocket of average Nigerians.
2. Removing the money spent on imported fuel subsidy will nearly double the price of fuel thereby making life very difficult for the average Nigerian.

Therefore the only way to do anything about it that will benefit average Nigerian is to build refineries (private & government), produce what we consume and we will not have any need for fuel importation or adding any subsidy.

The truth is that what President Jonathan wants to do is called Price Increase not Subsidy Removal
We produce and sell crude oil, and buy refined fuel.

egift:

The truth is that what President Jonathan wants to do is called Price Increase not Subsidy Removal
We produce and sell crude oil, and buy refined fuel.

And that is what they have always done down the ages. And we must resist now, or perish

Remember Jonathan and Atiku share out dollars during the PDP primaries, meaning they run their life in dollars; meaning they care less about our naira; meaning they can easily convert their very dollars savings and buy off what me and you have. Meaning our salaries will be rubbished.
So it is not just about a common increase in fuel price; it is our life. It is our future.

We should and must resist them. We must present facts against their lies.

We must resist them even with the last drop of our blood

  I think black world is cursed! God why?   

Partially but not to the full extent i.e. a small % compared to those who benefit from the importation. As soon as subsidy is removed, this will increase price automatically, if govt allows other players into the market for importation and production, this will drive cost to a drastic minimum.

God bless Nigeria.

pointbeaf should come and explain to us

The short answer is "Yes" but here's the nuanced answer:

It benefits Nigerians because once removed there will be a serious blow to people’s bottom line (inflation); however, most of the benefit of the subsidy is going to a selected few.

The subsidy needs to go but [b]not [/b]before (1) the refineries are working at full capacity, and (2) there adequate structure in place to help the vulnerable cushion the effect of the price hike that is sure to follow.

A definition of the “vulnerable” might be someone that makes less than NGN100k per year. There could be a graduated voucher for people that make less than NGN100k per year.

Wallie:

The short answer is "Yes" but here's the nuanced answer:

It benefits Nigerians because once removed there will be a serious blow to people’s bottom line (inflation); however, most of the benefit of the subsidy is going to a selected few.

The subsidy needs to go but [b]not [/b]before (1) the refineries are working at full capacity, and (2) there adequate structure in place to help the vulnerable cushion the effect of the price hike that is sure to follow.

A definition of the “vulnerable” might be someone that makes less than NGN100k per year. There could be a graduated voucher for people that make less than NGN100k per year.

Spot on.
In fact the very notion of 'fuel subsidy' is reprehensible. How much is fuel produced, and why does it have to be imported? If petrol costs roughly N22 a litre in Libya, why can't we just import from there? Those are the real questions, not just talk of 'subsidy'. Nobody asked for a 'subsidy' in the first instance.

We can go on and on and debate on this issue but it will only fall on deaf ears

Painful but necessary, still needs our refineries up n running.
http://www.channelstv.com/global/news_details.php?nid=30348&cat=Business

Why bothering ourselves of the question of whether the ordinary citizen benefit from the subsidy removal.
The question we should have asked if the the crude oil are being exported free, abi? If we are not deceiving ourselves, what do they use the generated money from the sales of the crude?
He promised publishing the names of those behind the subsidy money, yet weeks later we have not gotten any names? the list is in the press i guess,

yeye dey smell,

We all must stand to our feet since they dont want to learn from the revolutions in Egypt and Libya. If we still dance to their tune, the next generation might have us to blame for what we are going to put them through as a result of our inaction.

The truth is nothing is being subsidized even now. The subsidy is a scam (also called 419)!!. The intention of our government is to always sell petroleum and products to Nigerians at the MAXIMUM price, that's why OBJ kept increasing petrol price everyday.

removal of subsidy will only broaden their stealing acumen!

Jonathan has gradually become a cankerworm amidst cancerous tumour for him to open his mouth for removal of subsidy. a grassroot ijaw man who understands the difference b/w water and crude would not fish in oil-spilled water. but, he is beginning to eat and sell fishes floating on crude surface. the problem with subsidy is our refineries not working. he cannot deny the fact that the interest of the common man has left him. he is parading a ghost of lifeless desire to embezzle. let him step out as a man and not to mask himself behind embryonic shield claiming he is for us.
this is a man almost the masses voted en masse for. a man that united all parties during election. this is to prove the belief and faith everyone bestowed on him. yet, he cherishes the honey-baked talks hoovering in the chambers of the evil helmsmen cascading our nation to into bayou and frozen penury.
what have we done to be poor? is it a national crime?? imagine countries like Angola and Ghana as yardstick for the giant of Africa.
how truly that this ex-lecturer has no idea on the simple economics to job creation!

its mean more hardship for the masses,which is very sad thou, very very sad indeed,politicians are pushing nigerians to their witends.

If the price of unsubsidized Diesel is 140 and you pay 65naira for petrol, are you benefiting from a subsidy? The answer is really left to you to answer.

Before the introduction of GSM into the Nigerian market, Nigerians still had a way of communicating with themselves although Phones have aided communication and it has made it the easiest thing to do now in Nigeria. Federal Government says removal of oil subsidy will later make petroleum products very cheap like Telecommunication but they have forgotten that the lives of Nigerians, one way or the other solely depends on Petrol & its brothers unlike GSM. Increasing its price will impoverish Nigerians and further reduce the little purchasing power Nigerians have left. What an insensitive government we have!

Now, anytime i see our President or hear his name, all i feel is resentment because of his anti-people policies. All in the name of Generating revenue. What an insensitive government!

The truth of the matter is that Nigerians to an extent benefit from some sort of petrol subsidy.
However, much the money expanded on the execise goes straight to the pocket of a faceless cartel.
I for one think that in that short term, deregulation will bring some pain to the very poor, but in the medium and long term,
the benefit will far outweigh, if not wipeout the initial pain.
Just take Ghana for instance, a country far smaller in all measures when than Nigeria, successfully removed fuel subsidy almost ten years ago.
Ghana now channel the money saved from the subsidy into building infrastructures.

EVERYONE LISTEN UP. THERE IS NOTHING LIKE FUEL SUBSIDY, NEVER. IT IS A SLANG USED BY OUR GOVERNMENT TO DIVERT PUBLIC FUNDS INTO THEIR PRIVATE ACCOUNTS. IT HAS BEEN ON FOR AGES, IT DID NOT START TODAY AND THE FEW CABALS THAT DIVERT THE FUNDS INTO THEIR ACCOUNT ARE THE ONES RESPONSIBLE FOR THE SUFFERINGS IN THIS COUNTRY. WE MUST RESIST THEM.

NOW, OUR PRESIDENT IS PART OF IT, INSTEAD OF COMING TO TELL US THE TRUTH, HE SIMPLY SAYS HE WANT TO REMOVE FUEL SUBSIDY SO THAT NIGERIA CAN STOP PAYING THE GREEDY CABALS. BUT IT IS ALL A GAME PLAN, WE NOW END UP PAYING MORE TO THE BENEFIT OF A NEW CABAL.

THE THE GOVERNMENT IS SINCERE ABOUT THIS FUEL ISSUE, I CHALLENGE THEM TO PUBLISH THE DETAILS OF HOW MUCH IT COST TO LAND REFINED FUEL TO APAPA PORT, HOW MUCH IT COST TO CLEAR IT AND DISTRIBUTE AND THEN LEAVE NIGERIANS TO DO THE MATHS. IT IS NOT ENOUGH TO TELL US THAT THE LANDING COST IS ABOVE 140 NAIRA PER LITRE WITHOUT TELL US US THE FACT AND HOW COME THE 140 NAIRA PER LITRE.

THEY HAVE COME WITH NEW NUMBER PLATES, LASU HAS INCREASED SCHOOL FEES TO MINIMUM OF 250,000 FOR THOSE IN LOWER COURSES, AND UP TO 380,000 FOR THOSE IN MEDICINE.

TOLL GATES ARE COMING BACK, LEKKI TOLL IS THERE.

HOW CAN A PEOPLE SURVIVE IN THIS COUNTRY.

NIGERIANS, STAND UP AGAINST ECONOMIC INJUSTICE, STAND UP FOR YOUR RIGHT.


NIGERIA, STAND UP AGAINST THIS EVIL MEN RULING US.

the average nigerian is definitely not benefitting from fuel subsidy compared to the very few petroleum importers and dealers.
Btw, why are so many Nigerians queuing up in front of British, Scandinavian and American embassies to go and live there even illegally if possible despite their fuel not beiung subsidised
Why are there not so many Nigerians queuing up to go to Saudi Arabia, Kuwait, UAE etc where fuel is subsidised
Part of the answer is the earning power of the average resident of these European countries and America such that wage distortions are ,ini,ised between the lowest and highest earners. Removing subsidy (a priviledge) should allow workers and citizens alike address the issue of a realistic wage (a right) for everyone.

sweet9ja:

The truth of the matter is that Nigerians to an extent benefit from some sort of petrol subsidy.
However, much the money expanded on the execise goes straight to the pocket of a faceless cartel.
I for one think that in that short term, deregulation will bring some pain to the very poor, but in the medium and long term,
the benefit will far outweigh, if not wipeout the initial pain.
Just take Ghana for instance, a country far smaller in all measures when than Nigeria, successfully removed fuel subsidy almost ten years ago.
Ghana now channel the money saved from the subsidy into building infrastructures.

Maybe you dont understand the way these wolves think. All they would do is channel the extra revenue into some monkey project (money stealing venture) to explain where the money went but it would just be like Abacha's millions claimed to have been recovered by the Obasanjo government. Imagine our president encouraging us to start eating cassava for bread. what is he eating in his own home? Wicked people

anonimi:

the average nigerian is definitely not benefitting from fuel subsidy compared to the very few petroleum importers and dealers.
Btw, why are so many Nigerians queuing up in front of British, Scandinavian and American embassies to go and live there even illegally if possible despite their fuel not beiung subsidised
Why are there not so many Nigerians queuing up to go to Saudi Arabia, Kuwait, UAE etc where fuel is subsidised
Part of the answer is the earning power of the average resident of these European countries and America such that wage distortions are ,ini,ised between the lowest and highest earners. Removing subsidy (a priviledge) should allow workers and citizens alike address the issue of a realistic wage (a right) for everyone.

You just keep on thinking you are in a civilised country. This is Nigeria where all they do is cook up some rooster and bull story to stash the millions abroad. Thats how they sugar-coated SAP and all it did was land Nigerians into more thrash. Niger just commissioned a new refinery made in less than 3 years. This nonsense government has 3 ill performing refineries that servicing costs more than making a new one in their books. Why not buy fuel from Niger rather than having to ship tons via the high seas and then having to subsidize the price since Nigeria has stooped so low? yeye government. In Iraq just before the US invasion, Saddam was giving free fuel to his country men. We have sweet crude but all that comes of it is bitter fuel in the form of imports. And for your information, the emboldened says people queue to go to the middle east, its just you are not informed. Try Qatar for size. Just make sure you have a good reason in the form of job prospect to go there. Realistic wage right? you are in Nigerian my man. wake up

sweet9ja:

The truth of the matter is that Nigerians to an extent benefit from some sort of petrol subsidy.
However, much the money expanded on the execise goes straight to the pocket of a faceless cartel.
I for one think that in that short term, deregulation will bring some pain to the very poor, but in the medium and long term,
the benefit will far outweigh, if not wipeout the initial pain.
Just take Ghana for instance, a country far smaller in all measures when than Nigeria, successfully removed fuel subsidy almost ten years ago.
Ghana now channel the money saved from the subsidy into building infrastructures.

Which infrastructure dey for Ghana?
I was still in Ghana a few days ago.

The benefits of Fuel subsidy removal would be negative initially on the poor masses but the situationn would improve with time though it would have been better off if the government could concentrate on power and other sources of generating income like Agriculture,mineral deposits e.t.c

ashavic:

The benefits of Fuel subsidy removal would be negative initially on the poor masses but the situation would improve with time though it would have been better off if the government could concentrate on power and other sources of generating income like Agriculture,mineral deposits e.t.c

Brother/Sister,

There is no benefits. All the stories they are telling is are lies. What benefit do you derive from killing all your refineries when your youths lack basic jobs? What benefits do we derive from a government that admitted the existence of a cabal but lacked the gut to stop them. What benefits do we derive in a country called Nigeria as presently constituted and ruled by criminals.

What essence is our life when we cannot attain our full potentials and dreams, not because we are incapable or have not worked hard enough; rather because these criminals refuse to govern us. We should better confront them. I am ready. Are you ready?

AM READY BUT, Will the rest join in or turn their backs when it matters most.The revolution in the Arab world was not pre-planned but it happened coz the people were pushed to the wall.Am afraid that in the case of Nigeria,rather than fight back the people would break the wall and the pushing continue.

that's the problem with our leaders. vote them in and they forget their root. he never told us about removing subsidy during campaign, nw we've voted him in and he thinks this is the right way to repay us. don't worry, it's just a matter of time. let him implement it and he'll knw hw angry people are.

Even if the refineries are working at 100% capacity today, do people really think that will make the price of gas cheaper?

The government is in a bind and they don’t know how to get out of it. If the refineries are working, they will need to be supplied with crude oil that is usually exported. This means that Nigeria will be earning less money from oil export especially if the oil wells are already pumping crude oil at capacity.

Well, that's problematic because Nigeria’s budget is tied directly to the money made from selling crude oil.

Also, at what price will the crude oil be supplied to the refineries - international market rate? How much will petrol be sold for?

Here’s a factoid: if the crude oil is not sold to the refineries at international market rate, that means that the crude oil will be subsidized because Nigeria will be making less money than could have been made if the barrels of crude oil were sold directly at the international market.

As things stand today, you might as well count the private sector out of refineries. There’s no way an investor will invest in a refinery that buys crude oil at a variable price and sells the finished gasoline product at a capped fixed price.

The bottom line is that removal of oil subsidy can only work when there’s a holistic approach to solving all the interdependencies. GEJ needs economists/mathematicians to perform a detailed study of the implications of removing oil subsidy and the necessary steps needed to get the refineries back online with the help of the private sector.

The next step would then be to find money to build the refineries back up and once built, the subsidy can then be “removed” and reallocated to subsidizing crude oil to the refineries because Nigerians can’t afford petrol at international rate. The oil silver lining is that the subsidy to the refineries will probably be less than what’s currently wasted today!

The truth is bitter and nobody is telling GEJ.