ojubi:

Yea, with their 47 percent the oil majors pay us their staff well and finance all the production expensis, including feeding us on daily basis. What is your NNPC doing with their 57 percent?

ojubi:

I ve worked just for 3 years in an oil major as a contract staff and i ve a house of my own in porthacourt and i ve done so very many things i never espected i will do in such a very short time. Even all my colleagues in the office are all doing great economically because of this oil majors, my question is; what is your NNPC doing with their 57 percent? Cos our oil majors are making us proud with their 43 percent.

You got it wrong dude. The expenses including your salary are also shared in the profit/production sharing ratio between the operator and the NNPC. Read about what is called 'Cash Call'

How he died.

Our reporter,Kolade Adeyemi who was with Akogwu,31,up to the last seconds writes:
“We were at Government House when the bombs began to rain.We quickly left to go and find out what was happening.But as we approached the Farm Centre police station,some residents warned us to turn  back.We parked our car while Akogwu got down with his camera to record the unfolding scene.
“Within a few seconds he was out of sight with gun shots renting the air.Soon,some soldiers came around .The gun shots then subsided.I called Akogwu’s two lines which kept ringing but there was no response from him.I then tried to go and locate him only to find him in a pool of blood having been shot on the chest.He died on the spot.

http://www.thenationonlineng.net/2011/index.php/news/34020-boko-haram-scores-feared-dead-in-kano-multiple-explosions.html

May his soul rest in peace

The man escaped since Sunday. NPF is now publishing his photograph on Thursday evening 5 days later. Even if the man dey crawl, he go don reach Somalia by now. Naija policemen need to watch 'the first 48 hours' series regularly

Just found that both the IGP Ringim and the commissioner Biu are due for normal retirement next month anyway. So what have they to lose?

Federal govt has given the IGP 24 hours to produce the escaped suspect or face dire consequence if he fails to meet the deadline. The suspended commissioner of police - zakari biu has also been placed under close arrest together with all police team that went to Abaji.

The minister of police affair -Caleb olubolade announced the measure just now.

Source: AIT News at 8pm

Beaf and gar3th should first agree on definition of terms before arguing. Each of them is correct on what each is supporting but they are not arguing on the same thing hence the disagreement.

Economy and govt revenue are not the same thing

Beaf is right that govt revenue is almost entirely dependent on oil sale but gar3th is talking about the whole economy which is by far larger than the oil sector and govt receipt.

It amuses me when people say Nigeria economy is not diversified. The economy is diversified, what needs to be diversified is the sources of foreign exchange which still remain oil.  

If the economy is not diversified, every Nigerian will be in oil related business. Tell me how many igbo traders in Alaba whose equals that of states are doing oil related biz. Don't tell me they use oil forex to import otherwise how do Igbos successfully trade in countries without oil. Same goes for farmers and cattle rearers in other parts of the country.

Forex earnings is good but that is not the basis for diversified economy. If Nigeria economy is self sufficient (subject to economic limitation), not all Nigerians will be expert in Forex rates fluctuation monitoring as we have today.

see*noevil:

www.nairaland.com/attachments/616300_Nigeria_wealth_624_gif7b5fda46deb77b347d1ac94bbd364b19

Na wa Oh!!! I think the call for resource control must be heard this year and SNC must be held this 2012 . Can you imagine unproductive states such as Oyo , Ogun , Ondo , Borno , Adamawa , Kano and Nassarawa  having MORE GDP than Oil rich areas such as Bayelsa , Abia , Akwa ibom , Imo . Hmmm wonders shall never end in this country . Asari abeg carry on . Fire burn all of them wen no want make we occupy our natural resources by ourselves.

Although much has been made of Nigeria's status as a major exporter of oil, It produces only about 3.3% of the world's supply, and though it is ranked as 15th in production at 2.2 million barrels per day, the top 3 producers Saudi Arabia, Russia, and the United States produce 10.7 Mbbl/d (17%), 9.8 Mbbl/d (15%), and 8.5 Mbbl/d (13%)respectively, collectively accounting for 63.6 Mbbl/d (45%) of the world's total production. To put oil revenues in perspective: at an estimated export rate of 2.2Mbbl/d, with an average sales price of $100 per barrel in 2011, Nigeria's revenue from petroleum is about $80.2 billion. This accounts for less than 14% of official GDP figures (and drops to 10% when the informal economy is included in these calculations). Therefore, though the petroleum sector is important, it remains in fact a small part of the country's overall vibrant and diversified economy.

Agriculture at 42% contributes more to Nigeria's GDP than oil but dont confuse this with foreign exchange earnings

^^^ The man in the picture is not el-rufai definitely. BTW, the story says soldiers not policemen.

Kpmg and afemikhe firms were commissioned by gej in may 2010 immediately after yaradua's death to do the forensic audit. Why should it take the govt 2 years to study and take action on the report?

When are we going to have investigation into the sources of funding of Neighbour to Neighbour (N2N) that has been spending money on gej's behalf since his days as acting presido as if they were the mint? My hunch is that they hold the key to the N1.3trillion saga

That FACT #9 in the Pastor's analysis in the OP is wrong. Nnpc pays full international price for the 450,000 barrels allocated for local consumption. It does not get them free (since 2005). The revenue from this goes to govt and jv partners while govt has to inturn reimburse nnpc for the full international price it had earlier paid as part of the refined products cost.

@ebiye, oil export revenue does not constitute 92% of govt total earnings. It may constitute 92% of the govt foreign exchange earnings. By your calculation, non-oil contributes N0.5trillion. In 2011 alone, Customs and federal inland revenue service generated almost N3trillion.

Golf is very very cheap to play in Abuja on the only course available i.e. IBB

For a starter, you only need

Registration fee : N1m (used to be N500,000)
Annual membership fee : N75,000
Golf kit : around N500,000

Then you are good to go

I routinely scored double birdies and never a bogey but like @omar22, all on wii nintendo  

With all that money, I can put 4 VW Golf3 on d road and become taxi fleet owner.


PS:moderator, this was posted at 2:16pm, what moved it?

Nlc president had stated as early as last Monday that pengassan will not shut down oil installations except as a last resort because it takes long time to recommission such after shut down.

As for militants occupying oil platforms. That na joke. Even in their heydays, they did not occupy oil platforms. Sabotaging oil pipelines in the bush or doing hit and run on platform (guerilla war fashion) is not the same as occupying it. They will be summarily dislodged from there by the military. Stop dressing them in a borrowed robe.


PostScript: I thought they said militants have been disarmed? Or what then is the objective of the on-going multi billion Naira amnesty program? Another subsidy cabal?

Golf is very very cheap to play in Abuja on the only course available i.e. IBB

For a starter, you only need

Registration fee : N1m (used to be N500,000)
Annual membership fee : N75,000
Golf kit : around N500,000

Then you are good to go

I routinely scored double birdies and never a bogey but like @omar22, all on wii nintendo  

With all that money, I can put 4 VW Golf3 on d road and become taxi fleet owner.

domack99:

Quote
Executive arm N1.8tr With N1.6tr personnel cost can you image, are these executive arm up to 400 people, nigeria is in trouble.

Executive arm is not just elected officials alone, it comprises the whole public service and civil service of the federation. What he is saying is that significant reduction in personnel cost can only be achieved by either reduction in salaries or retrenchment.

iykak47:

Truly sentiment and reasoning are not good friends.who determines illegality(black market injunction} in this case you,NLC/TUC or the judiciary? when workers are sacked for their disobedience to court order, would you provide jobs for them?
If NLC/TUC can not obey court order, then what example are they setting? Believe it or not by Nigerian law the proposed strike is now illegal untill a higher court set the rulling aside. Am protesting in my own little way over boko hara killings not fuel protest because only the living buys cheap fuel. God bless Nigeria.

Instead of protesting against BH, why not go to a sharia court to obtain perpetual injunction against boko Haram killings ala fed govt way

C me o:

Nah, SLS made enough submission on the subsidy palaver in this email posted here. He gave a more technical details. Don't let us be hypocrites, SLS made enough explanation to make it understandable. Just take your pen and calculate and do the technical analysis as he explained them you would understand better

when I read the first two replies to the OP criticizing Sanusi, I knew the usual NL bandwagon effect will take over. Thanks for being different.

One poster suggested N30 removal to be invested in construction of rails from west to east both in the north and in the south within two years as well as govt guaranteeing refiners 'full market price' for local production. His contribution was hailed as new Marshall plan. I laughed.

Let us interrogate this suggestion. At the fabled N1.3tr saving at full removal of N75 subsidy, N30 is just 40% removal which turn the savings to N520bn out of which FG share will be about N260bn of that. Yet we expect FG to construct over 2,000km new rail line as well as buy new rail coaches out of this?

I know in order to sell subsidy removal, govt itself overhyped what can be achieved. We should admit that regardless of our oil resources and even corruption, Nigeria is a poor country whose current resources cannot cater for its needs.

As for guaranteeing full market price, refiners require no such guarantee. Full market price is currently being paid to refineries whether local or foreign by the marketers/importers. That is why we have subsidy. Even nnpc buys crude for its local refineries at international price and claim subsidy later. Other factors are responsible for investors not locating their refineries in Nigeria not because of subsidy afterall they are still the ones supplying us from abroad.

Given that increase in the prices of other things in Nigeria is usually out of proportion with the percentage increase in the fuel price, it is better for the govt to avoid phased removal if it is just over two years otherwise the sum of the price increases on all the occasions will be by far higher than if removed once though painful

The minister was supposed to spare with ubani on face-off on channels yesternight. He dodged and surfaced this morning to debate with himself.

@beaf, I may be wrong but the impression I got from your first post in naming the locations of other resources is that it is the coastal region's resource - crude oil - that is subsidised.

Let us be clear, what is subsidised is fuel not crude-oil. Cocoa farmer cannot complain that his resource is being wasted if government decides to subsidise chocolate.

There is locational cost comparative advantage in production of anything. International oil price is not the cost of production. It is arbitrarily fixed and highly premiumed.

Gold necklace is cheaper in south africa (I have no exprience with ghana) than in nigeria. Does it mean that raw gold is subsidised in south africa yet there is international price for raw gold.

When government remove or reduce tariff on a product, it is a form of subsidy. In the history of this nation, there had been periods of such for cement (not limestone), iron rods (not iron ore), textiles (not cotton).

Since all government revenue goes into a pool, we can argue that it is non-crude oil money that is being used to subsidise fuel afterall before GEJ, subsidy was less than N300b per year and that was less than duties collected from lagos ports alone how much more companies and personal taxes. So if we are talking of subsidy, then it means your region resource is being fully paid for at international prices while woods farmers in ondo state get local price. afterall wood is cheaper in ondo than in japan to where it can be exported for processing.

As was reported, Ghana remove subsidy last december while kenya removed just yesterday. both countries are not major players in crude oil export yet they were subsidising fuel

In summary, fuel (not crude oil) subsidy is more political than economical decision. If the govt has the political will to carry deregulation (not just subsidy removal) of the oil sector through. all well and good but dont regionalise the argument

^^^ That was the question the minister should have asked ubani if he had not chickened out. He would at least have insisted on a good answer instead of the thrash about govt being the initiator of the spiral inflation.

But is NLC to blame for not curtailing civil servants' corruption in govt? What has the employer (govt in this case) done? What are the options opened to a civil servant that refuse to carry out instructions 'from the above'? Resign? Only a fool fights with his bread and butter.

Quote from Ima Eyez

My frend! Polygamy & Polyandry have direct effects on the society, Economically and otherwise. Comparing the above with the issue on ground is "false analogy"   since homosexuality only has an indirect effect, Like every other normal practices. Ya'll need to drop dat argument.

@ Ima Eyez. Educate us on direct effect of polygamy & polyandry. Overpopulation?, immorality? What about homosexuality? underpopulation or no population?

If human beings stop reproducing, what happen to human race? What happen to economic development where you have declining population?

Even you writing here, sure you are not a product of same sex marriage. Mind you what the Senate bill criminalises is same sex marriage not homosexuality itself. Homosexuality had always been a criminal offence under penal code even during colonial rule

Since the Prof is largely based in western countries nowadays, he can start by forcing the legislators of those countries that made laws against polygamy and polyandry back to school. Afterall how many wives I decide to have is a private matter.

[b]My questions to beaf and the fictitious writers he profusely quoted

1. The so-called 'SURE' Board, under what law will it operate? If it is not set-up by the Act of parliament, no fund can be appropriated for it and it cannot spend. So the President will still need the National assembly support contrary to what his aides said. There cannot be any appropriation for it in 2012 again because all revenue expected have been budgeted.

2.Where is the money going to come from?  Since no specific mention was made of subsidy savings in the budget, then it means all the revenue expected has already been factored in and all budgeted expenditure also stated which is even higher than the expected revenue (thus the deficit). So where is the money to be spent by the SURE? Fuel subsidy expenditure has simply been removed from the budget, so subsidy has been removed effectively next year except the legislature insert it and thus jerk up the deficit.
Note that the extra pump price to be paid by the public is not payable to goverment but to the marketers.

3. In 2004/2006, when Nigeria debts were partly forgiven, better document was prepared and purportedly endorsed by the creditor-nations and world bank on how the debt relief fund will be used for the masses. Where is the fund today? Or is Nigeria still not suppossed to be benefiting from not servicing the debt anymore?[/b]

wesley80:

Capital budget up by %15, budget deficit put at about 2.5% of GDP, Duty on rice to increase to between %35-%50 beginning from March next year so effectively no more waivers or concessions for rice importation. All import duty on power equipments to be suspended next year.
Oil production target at 2.4m barrells per day and benchmarked at a price of $70 a barrel with the naira projected to go for 155naira to $1. Inflation rate expected to rise by 9.5%.

At bolded, only 15%? With or without removal of fuel subsidy?

[b]Why are people still peddling nonsensical and puerile argument of refinery not being profitable in Nigeria except subsidy is removed. How does subsidy affect refinery at all talkless of its profitability? The current imported fuel, are they not being refined somewhere? Are those refineries not making profit on fuel sold to Nigeria or are they red-cross?

Refineries recover their full cost and profit in the current situation of subsidised fuel. It does not matter whether public and government share the payment of the pump price. Subsidy is not the reason why refineries are not established or profitable in nigeria.

Regarding the saving of N1.3 trillion expected from subisdy removal. Nigerians will not see any positive impact or any infrastructure development. The federal govt share of the expected savings will be like N0.5 trillion, the rest goes to states and local govts. The 2011 capital budget is about N1.2 trillion. Tell me what  improvement you have noticed in infrastructure that extra half of that will now be expected to take us to eldorado.[/b]

rolchi:


He further stated that the state has paid the November salary of its workforce without the payment of the October federal allocation by the Federal Government to any state in the federation, adding that all the states of the federation rejected the October allocation because of illegal deductions made by President Goodluck Jonathan through the creation of Sovereign Wealth Fund (SWF).


Source: http://www.thisdaylive.com/articles/aregbesola-i-don-t-need-federal-allocation-to-pay-workers/103799/

Is the Governor sure of this because teachers in Osun (who are my tenants) said they started getting July 2011 yes July salary just last week except teachers are not part of the workforce he is talking about.

I tend to believe the teachers because they are not in the same location and dont even know each other yet they claimed the same thing.

It is a pity but naptu2 is very right. The court cannot be as sentimental as we are here. It is not the duty of the court to fish for evidence to prosecute. He was charged with sending threat messages to some VIPs and that is felony. Boko Haram is not yet declared illegal organisation in Nigeria (baaaad but that is the position), so belonging to it cannot earn you imprisonment just by that fact alone except you are caught doing some illegal things for which you will be charged.

A-ZeD:

and what stops them from charging N500/litre? The cement "cabal" does that

we are actually on the same page. Some dudes gave the impression that subsidy is just a dash being given to marketer which when removed, will punish the marketer and my postition is that it has no negative financial implication to the marketer.

As for what will stop them from charging high. Simple. Nothing. We have seen the case in aviation fuel. Nigeria is about the only country (not sure) where airlines charge 'fuel surcharge' that is almost equal to the base airfare itself. Cement is deregulated and is being sold at sellers' determined price.

Infact after deregulation, govt has no say in pricing except to appeal to marketers' conscience. Currently under subsidised regime, at least pppra gives template which show the highest landing cost allowed and all marketers must fall in line sometimes by importing lower grade of fuel.

Beaf:

Dude, I do not reply sweeping statements which are made without backing or proof.

What backing do you need? copy of the invoice or payment voucher?

If total fuel cost (refining cost + shipping+ other costs+margin) = let say N120 and public pays only N65 while govt pays the balance as subsidy. Do you require rocket science that if government remove its subsidy, somebody has to pay the shortfall and that is the consumer.

And to the marketer, what difference does it make to him whether the full price is fully paid by the public or partly paid by the public and partly by the government?

So long as we are still importing, the fuel importers must pay the full cost at the at the refinery and must recover their full cost

Removal of the subsidy increases the price payable by the public not that it will reduce the cost or profit of the marketer. period.

Ok, so GEJ wants to stop NNPC paying demurrage on ships in Singapore. Why should that be painful to you if you are not confused?
And why should GEJ explain to Nigerians why that practice is in place, did he start it? No, but he's gonna put an end to that corrupt loophole, so why the crocodile tears, bruv? Who you fooling?

[b]@ beaf, regarding the bolded, No, GEJ is not going to stop nnpc from paying demurrage, he is going to stop government from being responsible for reimbursing the nnpc for the demurrage while you and I bear the full cost and pay.

I always laugh when people talk of the 'fuel cabal' as being the victim of fuel subsidy removal. No it will make no dent on Otedolas, oando tinubus, offors and so on. It is business as usual so long as we continue to import fuel. Infact it is better for them, instead of having to wait and bribe PPPRA to collect the subsidised portion of the full price which they have been charging and will continue to charge, public pays the full price at the fuel stations. Full cash quickly come in  and they pay less interest to banks unlike before when the subsidised portion is tied down in pppra.

What dent has full deregulation of diesel and aviation fuel made on oil importers? Infact they prefer importing those ones.

It is the public that will now have to pay the full price that will notice the difference.[/b]