That's a serious one o

Happiness87:
passingshot, gobe7, demdem, ngeneukwenu, dre11 come and blindly defend your boss



passingshot, yours is worst you always argue foolishly, you have a lot of work to do defending your boss, you better spend more time preparing for Jamb and postume

Why do you people always forget Omenka? I think he is worse than all of the others combined. The guy is certifiably bunkers.

isaajibola:
1- What is subsidy in the first place?
2- I think we shouldn't even be talking about subsidy in this country! We have crude oil, we exporting and we importing! Why can't we be using our crude oil to trade for the refined one? Why are we paying for importing and why is it that the importing price is higher than the exporting price, please elaborate?

3- No crude oil in South Africa and yet they paying less than Nigeria that have crude oil. A litre of PMS in South Africa is 90cent which is N14.80 in Nigeria currency... Are they not paying for subsidy in South Africa? What is called subsidy please?

#I believe subsidy is a scam.

#To the PDP fans; the likes of Barcanista, Temitemi, Mogidi and the likes, people that are replying those guyz don't have time too. If at all you guyz have something to do, you wouldn't be on Nairaland every minutes and seconds all day. I think Barcanista and the likes are just extraordinary fool because, they reasons upside down and they only want bad for this country. Since they don't have anything to do, they tends to sit with their phones and be posting rubbish all day. #IdleHand

Price of a liter of fuel in South Africa is the equivalent of 1.08 U.S. Dollars http://www.globalpetrolprices.com/gasoline_prices/#hl97
Get your facts right, do some research, it's not hard, Google can be your friend if you want it to be. Stop misinforming others. Please Nairalanders learn to do a little Google search before stating anything that can be fact checked. It goes a long way in making everybody more informed.

4. Not sure if there was a bill but that one is only semantics.

5. Finally I think my explanation in no. 2 also answers the no. 5 question.

3. I think my no. 2 answers explains no. 3

2. Again the figures of what Jonathan paid I'm sure can be established with some research. What I like to say about what GEJ paid is that he was carrying his bills plus Yar Adua's bills at the time he made those humongous payments in 2011, the same way Buhari will carry his (GEJ's) when he takes over on 29 May. The interesting thing to note is that Yar Adua didn't inherit any bill from OBJ, or if he did at all, it would be very insignificant. And the reason OBJ left such a small inconsequential bill is because he maintained a balancing act were he gradually increased the price of fuel, without totally removing it entirely, on a regular basis, so as to keep his payment to the marketers manageable. That is really the genesis of this present crisis, that Yar Adua's government did a very poor job of handling fuel subsidy during his time. Not only did he reverse the last increase OBJ did before he handed over, he subsequently did not make any increases of his own during his entire 3 years. Worst still, he wasn't paying the bill presented to him by the marketers, because every time he saw it he would start to shiver. So he let them pile up in his in tray while he attended to his health. The implication was that a massive interest charge was accruing on the outstanding payments over time. It is this bill plus the interest that faced GEJ when he took over. Of course due to political reasons he didn't immediately increase fuel prices to lessen his own bills and in fact made matters worse when his people rushed in to add to the number of oil marketers gorging at the the trough that was the oil subsidy racket. He waited till after the elections and after he had subsequently paid out trillions of naira to cover for Yar Adua's bill plus interest and his (GEJ's) bill before he finally decided to do way with the sham in one fell swoop. The rest as they say, is history.

1. It will be difficult to tell you exactly how much past governments paid but I'm sure the records are available and with some massive research work it can be established. But the point really is that every Head of State since IBB has DIRECTLY paid subsidy. Buhari never paid subsidy DIRECTLY (this explains why he always feigns ignorance about DIRECT subsidy payments because when he was in charge it wasn't the practice. But he's only being smart by half because he was well aware of how the mechanism worked as head of PTF). Buhari didn't pay subsidy DIRECTLY because at the time he was head of state our refineries were still functioning (to an extent) and we had enough to satisfy our needs. But the economic mismanagement of previous years before his administration was already laying the foundation for crisis in our refining capacity even while he was still in charge, just that he didn't know it at the time. Apparently we were having problems sourcing forex to carry out Turn Around Maintenance at the refineries during his time but the problem of the refineries became really apparent during IBB's time when we simply could not produce enough for local consumption. Subsequently IBB started importing petrol. However he was importing petrol at the international price which Nigerians were not used to paying and knowing how completely bunkers Nigerians could get if one tampered with the price of fuel he started paying subsidy to smoothen the price. So IBB was the Head of state who officially started paying subsidy by making up the differential between international price and locally acceptable price. But it doesn't mean we were not enjoying a different kind of subsidy before then. The nature of the subsidy we enjoyed then is the origin of this famous 445,000 barrels per day that was set aside by NNPC for local refinery. Instead of selling this oil to its refineries at international market prices, NNPC sold the crude at cost of production to itself, thus forfeiting the profit that would have gone into government coffers. So in a sense we were already indirectly enjoying subsidy even during Buhari's time without being aware of it.

omenka:
Interesting!

I have just a few questions.


1). How much were previous administrations paying for subsidy??


2). How much did Jonathan pay on assumption of duty as the president and in subsequent years as president??


3). What necessitated the geometric increase in the expenditure on subsidy soon after Jonathan took over?? It was about 300billion on the budget but burgeoned to nearly 2trillion at the end of the fiscal year. Was there a corresponding increase in the demand of products to have warranted such increase in "supply"?? Did Nigeria get thirstier for petroleum products??


4). Was there any supplementary budget passed by the NASS to accommodate the increase as stated in #3??


5). There were about 40 importers of products prior to Jonathan's regime. After he took over, the list went over the roof to about 150!! What was the reason behind this??


#waiting.

Cc: gohome.

Let me hazard a response to your questions on behalf of gohome