@jp Philips.

Informative read. I actually read what you wrote twice. A lot of knowledge if off the top of your head. You suggest some solid solutions. I personally appreciate that. I fervently agree that "there are more misnomers than facts surrounding this subsidy brouhaha".

It really is an indictment of the mentality that saw a mediocrity like GEJ emerge when those arguing in his favour cannot minimally inspect the argument of the good guys (Falana et al) we all know "are living far above average" yet come out consistently to fight for the average man.

Falana reckons the legitimate portion of subsidy is N240 billion. Is it not worth it , instead of blanket removal, fighting to preserve this relatively small amount , much needed for now, and squarely face the hideous fraud and corruption that sees N1.1 trillion stolen? When will any of the GEJ fans have the integrity to question how Falana implies below that , under GEJ, we have ostensibly , without recourse to NASS provisions, overshot the subsidy allowance (N240 billion) by N1.1 trillion !!!!!! Why will it not be easy to conclude that subsidy removal is "wicked" and that those who support it are "wicked" and personally dishonest?

As far as the fed min of fin is concerned only N240billion is needed to subsidize fuel import in a year. Hence that was the figure passed into law by the National Assembly.

There are simply too many good reasons against the blanket subsidy removal GEJ is attempting and I have simply come to view this in terms of how many average Nigerians have now become routinely dishonest and comfortable with corruption to the extent they now speak in defense of putting the cart before the horse while supporting Nigerians lose out on very beneficial subsidy for now (worth around a very affordable N240 billion) simply because the Present Government has no interest in cleaning up the messy aspect of fuel subsidy ,resulting in theft of over N1 trillion, it helped create. 

When they talk , below, of the Politicians who "generate the list of companies approved to import the products" who do fans of the Government's position think they are talking about if not OBJ, Yar Adua and now GEJ? Or is any Nigerian alive today foolish enough not to know that all President focus on controlling the oil sector directly(OBJ was even Petroleum Minister) or through "trusted hands"? Why , if not personally dishonest, and knowing that GEJ cannot be ignorant of events, has not even a single supporter of GEJ wondered aloud the reason so many independent markters came on board under GEJ to the extent that what was spent on subsidy in 11 months of 2011 is a  whopping third of what has been spent in 5 years  And this is the man anyone will trust to utilise so-called savings (likely to be highly devalued as per real monetary worth due to hyper-inflation) from subsidy removal? We dey laff at the macabre dance and self-deciet. Happy new year bro.

http://allafrica.com/stories/201112080618.html

Celebration of the list of companies the Senate released as beneficiaries of fuel subsidy of N3.655 trillion over five years (2006 to 2011), appears to be the result of the investigation. [size=14pt]It taints the companies, some of which could be doing genuine business by the impression that all of them were involved in wrongdoing.

[/size]
The listing also fails to answer fundamental questions about why government spends such money on the importation of fuel and the improprieties that arise from clothing administration of a part of our lives in secrecy.



Fuel importation is a business. There are ground rules for it. If every party kept to those rules things would have been easier to handle. Collaboration between government officials and willing business people, however, has resulted in a muddle that spins off billions of Naira to "beneficiaries" many of whose names never appear on any list. They are the real "beneficiaries" of fuel subsidy.

On a short list of the beneficiaries would be the government officials who paid these hefty sums, [size=18pt]politicians who generate the list of companies approved to import the products and another set of government officials who act with impunity because they know the scores.[/size]

[size=14pt]They are the reasons for the rising cost of subsidy. In only eight months of 2011, Nigeria spent N1.426 trillion on subsidy, more than one-third of five years' expenditure. Why the sharp increase in expenditure, especially in 2011? Why has the number of companies associated with the import grown from three to 38?[/size]


Neither name-calling nor disagreement about the exact figures is helpful. The Petroleum Products Pricing Regulatory Agency, PPPRA that is at the centre of these matters acts with impunity, spending unapproved money on importation of products. The Nigerian National Petroleum Corporation, NNPC, has unbecoming arrogance whenever there are questions are its dealings.

NNPC knows too much about improprieties in the oil industry. The number of people compromised over the years increases daily. When investigations begin, they end abruptly, at the critical moments when solutions are in sight. The secrecy about a construction company mentioned in the fuel subsidy investigation is a first in names that will be concealed. Was the construction company importing fuel? Did it meet the requirements for importation, among them the ownership of a tank farm? How many of the 38 companies meet the requirements, which are not enough to end the abuses that cause the bogus subsidy figures?

Central to the investigation is how the refineries will work. They may not have the capacity to end imports but at least the cost of keeping their idle staff could be saved. However, the committee may discover that there is a link between the perpetual turn-around maintenance of our refineries and the booming import of petroleum products.

[size=18pt]Are we expecting interests that have created a business with an annual worth of trillions of Naira to disappear? Another description for subsidy is the penalty imposed on Nigerians for the inefficiencies in the supply of petroleum products.[/size]

@Gbawe

Looks like fuel subsidy has been removed from today. N143 per litre according to Sahara Reporters.

Very informative and educative posts. Thanks for sharing and Happy New Year!

VoodooDoll:

@Gbawe

Looks like fuel subsidy has been removed from today. N143 per litre according to Sahara Reporters.

Very informative and educative posts. Thanks for sharing and Happy New Year!

Good. It would mean that Okonjo Iweala's deceptive talk that "Government is still consulting" was to lull Nigerians into a false sense of security since they still went ahead with the 1st January 2012 target previously scheduled. Let us now see the real effect on Nigeria. Happy new year to you too.

http://saharareporters.com/news-page/nigeria-announces-removal-petrol-subsidy

Nigeria Announces Removal Of Petrol Subsidy
Posted: January 1, 2012 - 14:44

By SaharaReporters, New York
The Petroleum Products Pricing Regulatory Agency (PPPRA) has finally announced the withdrawal of petroleum subsidy, meaning Nigerians will now pay N141 per litter of gasoline starting from today January 1, 2012.

Full text of press release from the PPPRA
PPPRA Announces Formal Removal of Subsidy on Premium Motor Spirit (PMS)
Following extensive consultation with stakeholders across the nation, the Petroleum Products Pricing Regulatory Agency (PPPRA) wishes to inform all stakeholders of the commencement of formal removal of subsidy on Premium Motor Spirit (PMS), in accordance with the powers conferred on the agency by the law establishing it, in compliance with Section 7 of PPPRA Act, 2004.

By this announcement, the downstream sub-sector of the petroleum industry is hereby deregulated for PMS. Service providers in the sector are now to procure products and sell same in accordance with the indicative benchmark price to be published forthnightly and posted on the PPPRA website.

Petroleum products marketers are to note that no one will be paid subsidy on PMS discharges after 1st January 2012.


Consumers are assured of adequate supply of quality products at prices that are competitive and non-exploitative and so there is no need for anyone to engage in panic buying or product hoarding.
The PPPRA in conjunction with the Department of Petroleum Resources (DPR) will ensure that consumers are not taken advantage of in any form or in any way.

The DPR will ensure that the interest of the consumer in terms of quality of products is guaranteed at all times and in line with international best practice.

In the coming weeks, the PPPRA will engage stakeholders in further consultation to ensure the continuation of this exercise in a hitch-free manner.

Signed:

Reginald Stanley
Executive Secretary, PPPRA.

Gbawe:

Good. It would mean that Okonjo Iweala's deceptive talk that "Government is still consulting" was to lull Nigerians into a false sense of security since they still went ahead with the 1st January 2012 target previously scheduled. Let us now see the real effect on Nigeria. Happy new year to you too.

http://saharareporters.com/news-page/nigeria-announces-removal-petrol-subsidy

Long term impact of fuel subsidy removal should be positive especially since diesel is not subsidized. Expect cost of taxi, bus rides, and okada rides to rise by 100%.

We need to watch Okonjo-Iweala very closely, she have been proven to be a liar and she appears to be implementing policies directed by the IMF. I don't trust that organization (IMF) because I do not believe that their interests are particularly in sync with those of Nigerian citizens.

My own reason for supporting the removal of fuel subsidy is that we are essentially broke, the subsidy was unsustainable, and we simply don't have the funding sources to implement the 2012 budget without the removal of the subsidy. Lets hope some of the savings from subsidy removal are directed towards the support of the Naira so that further devaluation of our currency becomes unnecessary.

ndu_chucks:

Long term impact of fuel subsidy removal should be positive especially since diesel is not subsidized. Expect cost of taxi, bus rides, and okada rides to rise by 100%.

We need to watch Okonjo-Iweala very closely, she have been proven to be a liar and she appears to be implementing policies directed by the IMF. I don't trust that organization (IMF) because I do not believe that their interests are particularly in sync with those of Nigerian citizens.

My own reason for supporting the removal of fuel subsidy is that we are essentially broke,  the subsidy was unsustainable, and we simply don't have the funding sources to implement the 2012 budget without the removal of the subsidy.  Lets hope some of the savings from subsidy removal are directed towards the support of the Naira so that further devaluation of our currency becomes unnecessary.

There is a very big ethical and practical difference between being genuinely broke and being an uncompromising spendthrift who has fallen on hard times yet refuses totally , against the advice of virtually everyone, to reign in profligacy and waste.

Congratulations Nigeria. Now the govt has to focus on power, agriculture and transportation.

BREAKING NEWS:
Olu Famous Blog: "Shut Down Any Filling Station Selling Fuel Above N65"
http://olufamous..com/2012/01/shut-down-any-filling-stations-selling.html

that's messed up.
how can a country use fuel money to subsidize fuel. does that even make sense to anyone?
otherwise, where is the subsidy money coming from?

seems more like a price hike to me.

Poor Gbawe, his posts are now in the colours of the Jamaican flag, with super-sized fonts to match.

Reuters reports that Ghana, which joined the club of oil producers in West Africa last year, has come under increased pressure from the International Monetary Fund to remove the fuel subsidies. The IMF has urged countries across West and Central Africa to cut fuel subsidies, which they say arenot effective in directly aiding the poor, [b] but do promote corruption and smuggling.
The past months have seen governments in Nigeria, Guinea, Cameroon and Chad moving to cut state subsidies on fuel.

i thought so

Beaf:

Poor Gbawe, his posts are now in the colours of the Jamaican flag, with super-sized fonts to match.

Oga, why are you wasting time here when you should be busy getting ready to pack out of Aso Rock? Your anti-people boss , a simpleton like you, will soon be tossed out of a position he has no business occupying save for the wickedness of the likes of OBJ. Abeg watch and see . You will be out on your azz very soon. Those who will show GEJ the door will have no time for a bootlicker like you. Better start collecting application forms to seek asylum in Mexico , Thailand or Venezuela.

I read somewhere about the likely INFLUX OF REFINERIES by a pro removal person and i had to say to myself you kidding me as it demonstrated a total lack of joined up thinking.

efisher - I see that you are eager to look at suggestions on what the amount will be used for, how to police its spending but before you run ahead of yourself how do you propose to deal with the real issue of the consequence of the subsidy removal or is that beyond you.


Gbawe you have raised a lot of good points but need to keep sentiments aside. The issue is too important to allow it to be about whether you like, support, ass lick etc GEJ or not.

I agree with you that the consequences of the subsidy removal are tough. It has indeed brought pains to the masses. I have always likened it to swallowing a bitter pill. That cannot be denied. However, in order to provide some relief, I suggest the following:

1. Reducing cost of governance as many have suggested, Increase taxes on income of the rich and reduce taxes / increase wages for the lower income earners.

2. Roll out a robust government assisted transport service asap pending when rail services go full throttle.

3. Educate the populace on ways by which they can reduce energy consumption and hence reduce spending on fuels.

4. Accelerate infrastructural development esp in the areas of transport (road, rail, etc) and power.

On a larger scale, the govt can stimulate development of the agric sector, etc. Private investors can begin to think of alternatives like biodiesel, solar, wind etc. This has the potential of not only reducing dependence on petroleum derivatives but also creating jobs.

efisher:

I agree with you that the consequences of the subsidy removal are tough. It has indeed brought pains to the masses. I have always likened it to swallowing a bitter pill. That cannot be denied. However, in order to provide some relief, I suggest the following:

1. Reducing cost of governance as many have suggested, Increase taxes on income of the rich and reduce taxes / increase wages for the lower income earners.

2. Roll out a robust government assisted transport service asap pending when rail services go full throttle.

3. Educate the populace on ways by which they can reduce energy consumption and hence reduce spending on fuels.

4. Accelerate infrastructural development esp in the areas of transport (road, rail, etc) and power.

On a larger scale, the govt can stimulate development of the agric sector, etc. Private investors can begin to think of alternatives like biodiesel, solar, wind etc. This has the potential of not only reducing dependence on petroleum derivatives but also creating jobs.

There is nothing new under the economic sun (pardon the awkward pun). what you have just suggested does not even begin to scratch the surface of positive economic initiatives that the GEJ-led Administration can derive from the removal of petroleum subsidies. all I have are 2 questions I wish you can honestly answer for me.
1: What evidence exists that the GEJ-led Administration has done its research thoroughly and instituted sustainable plans and infrastructure protected by law to ensure that the so-called positive measures are implemented thus creating the much needed positive results you speak of. (If they exists was this done after the fact)
2: Historical fact has shown that several $ billion-dollar initiatives by previous administrations have been undermined by instituted corruption - little is done to recover lost billions $ and it seems the Government of the day ignores history's lessons to continue on the same path to failure. strangely the GEJ-led Administration have all been members of government in past administrations. Why has the GEJ-led Administration not learned from past failures.

We definitely need the subsidies removed but does the GEJ-led Administration possess the Political will to follow-through. Evidently it has already shown its hand. we shall all come here 4 years after (God-willing) and complain of the mess that is "Fuel-Subsidy-Removal" till then

What is the benefit of the huge deposits of crude oil to the citizens of Ghana and Nigeria?

Look back at ten years ago.

The subsidy argument was basically the same as now. Back then GEJites were pro subsidy removal. Oppositon, antisubsidy removal. Now, it's the other way round.

Still, here we are. Fuel costs N163 in Nigeria, and over N420 in Ghana. Ghana rarely pays subsidy again.