Beancounter94:


Meanwhile to keep petrol prices cheaper, we have spent, and are spending trillions of naira to keep prices low.

But at some point, you cannot import fuel above N260, sell it at N162, OR REFINE fuel at N188, sell it at N162, and pay a subsidy that does not cover the costs or guarantee a profit...meaning that you cannot have good refinereis, and the ones you have go bad because not enough profit is being made to fix them.

Lord knows I used to think like you do now years ago...until I did my reading and saw how the subsidy regimen is affecting our economy and our petroleum industry. To the point that we are selling subsidsed fuel to other African countries...at our expense.

At the end of the day, it is either we get working refineries in return for a brief period of price increases, so that enough cash can be made to fix years of forced losses....or we keep on accumulating debt in the name of subsidy.

Good even.

you and your government always have useless excuses for incompetence.... Who sell to neighbouring countries at cheaper prices...are they not smugglers? With customs, immigration personnel , police and sometimes soldiers at our boarders, you still come up with this excuses.... You are not different from our leaders....if it is to go after Igbos and Yoruba agitators, all their powers and mighty comes to full force

Beancounter94:


On the other hand, we will get into more economic trobule from spending too much government money on covering for the losses from subsides.

Which would lead to more debt and more economic crisis and more inflation.

Either way, I prefer the subsidy removal. At the end of the day, we would have more refinereis, earn more money, and eventually have lower fuel prices.

And I am no government supporter...seeing as Buhari himself prefers subsidies...he did campaign on the unrealistc price of N40 per liter.

P.S I don';t like advocating for the removal of subsidy, but I have done my reading over the last ten years, and I think it is the only sensible and sane choice we have.

it's neva a sensible and sane choice. It's only what select few in position of authority want for Nigerians.

What does it really cost to build an average functional refinery? Why is it too expensive for Nigeria to build? If Dangote can build such a gigantic refinery, what is stopping the Nigerian govt from borrowing from same China to finance a refinery and subsequently sell it off to private investor for proper utilisation?

If the Nigerian govt can build refineries in the 70s and 80s, why is it a daunting task today?

The argument behind fuel subsidy to me is illogical. Who on earth imports a commodity it naturally has a comparative and absolute advantage to produce, if not Nigeria? How can a country dat has oil in abundance import same oil at a more expensive price from the international market, only to sell to its citizens at a subsidised rate? What logic is in it?

If Niger can build a functional refinery, why can't Nigeria?

If govt can borrow to build rails, bridges and road, why can't that same govt borrow to build small refineries here and dere that will generate revenue for easier repayment?

If you think the basic knowledge of demand and supply will apply in the Nigeria oil sector after complete deregulation then you're yet to understand the entity you call country. The average Nigeria is so money conscious and greed oriented that he will do everything possible to shortchange the system for his own primitive gain.

If you think subsidy removal will solve Nigeria's oil problem then you need to have a rethink.

Beancounter94:


Good.

So if I was the president of Nigeria and you were selling rice at 50000 a 50kg bag which you bought at 35000 a bag. I have the right to set your price at N10000 a bag, so that you lose 25000 per bag sold

Because you too should not make a profit at the expense of Nigerians.

But don't worry. I'll pay you a subsidy that costs 5000 naira per bag sold so that your loss would just be 20000 naira.

yet they keep killing themselves to remain in the oil and gas sector? Tell me one single person that has gone into the oil and gas sector dat came back poor?

Okoroawusa:

You are highly intelligent.

We are now doing what we should have done 30 years ago. Things like subsidy removal and building of infrastructure.

Subsidy removal is a very hard decision to make for any government but it must be made for Nigeria to move forward.

Everybody is highly intelligent to una

franciskaine:
it's neva a sensible and sane choice. It's only what select few in position of authority want for Nigerians.

What does it really cost to build an average functional refinery? Why is it too expensive for Nigeria to build? If Dangote can build such a gigantic refinery, what is stopping the Nigerian govt from borrowing from same China to finance a refinery and subsequently sell it off to private investor for proper utilisation?

If the Nigerian govt can build refineries in the 70s and 80s, why is it a daunting task today?

The argument behind fuel subsidy to me is illogical. Who on earth imports a commodity it naturally has a comparative and absolute advantage to produce, if not Nigeria? How can a country dat has oil in abundance import same oil at a more expensive price from the international market, only to sell to its citizens at a subsidised rate? What logic is in it?

If Niger can build a functional refinery, why can't Nigeria?

If govt can borrow to build rails, bridges and road, why can't that same govt borrow to build small refineries here and dere that will generate revenue for easier repayment?

If you think the basic knowledge of demand and supply will apply in the Nigeria oil sector after complete deregulation then you're yet to understand the entity you call country. The average Nigeria is so money conscious and greed oriented that he will do everything possible to shortchange the system for his own primitive gain.

If you think subsidy removal will solve Nigeria's oil problem then you need to have a rethink.

It is one thing to build a refinery, but to keep it constantly upgraded, well running, well maintained, and well functioning, you have to sell its products at a profit.

Selling the products at a loss, and paying a subsidy that does not cover the loss and does not let you make a profit to keep the refinery in shape is what leads to wrecked refineries.

Niger has a refinery. They also sell fuel at N350 per liter. Enough profit is made to keep it running well. Has been for the last ten years.


You guys should be more realistic. If government put your business on a subsidy, you would be broke in months.

Fourwinds:


Please, since the closure of boarders, how much is a bag of local rice?why has the price not dropped after 3years

What has land border gat to do with PMS subsidy?...

ayenale1:


What has land border gat to do with PMS subsidy?...

now listen and listen carefully...Nigeria is not a place to hope for any drastic reduction in whatever is being discussed... An average Nigerian businessman/woman is very wicked...if forces are allowed to determine prices, I tell you after the businessman/woman had made his/her capital let say five later, he/she will refuse the prices falling ..they will keep exploring the masses if given the chance to the next decade...

Reason well why I spoke about land boarders

Are these so called governors high on something... Pay new minimum wage, majority of them refused, now this. What kind of heartless lots occupy the corridors of power sef

Fourwinds:
now listen and listen carefully...Nigeria is not a place to hope for any drastic reduction in whatever is being discussed... An average Nigerian businessman/woman is very wicked...if forces are allowed to determine prices, I tell you after the businessman/woman had made his/her capital let say five later, he/she will refuse the prices falling ..they will keep exploring the masses if given the chance to the next decade...

Reason well why I spoke about land boarders

You are right...we're all right and entitled to our opinions...

Fourwinds:
you and your government always have useless excuses for incompetence.... Who sell to neighbouring countries at cheaper prices...are they not smugglers? With customs, immigration personnel , police and sometimes soldiers at our boarders, you still come up with this excuses.... You are not different from our leaders....if it is to go after Igbos and Yoruba agitators, all their powers and mighty comes to full force

1.Well, the smuggling happens because 1) fuel costs 162 here, and over 300 naira in all our neighbors. Smuggling is going to happen , unless we build a border wall around Nigeria and man it with CCTV, drones, etc, and shoot all smugglers.

2.Well, the leaders are like you. Your president rejected a suggestion that we remove subsidies recently. The only time when subsides are removed partially is when we start running out of money.

3.If Biafra and Oodua sell subsided fuel., they would get into debt very very quickly. Subsidies are very very expensive, because costs of refining petrol increase, and along with it the cost of subsidizing fuel.

4.By the way, I don't support APC, and never voted for them, nor do i like them.

Fourwinds:
now listen and listen carefully...Nigeria is not a place to hope for any drastic reduction in whatever is being discussed... An average Nigerian businessman/woman is very wicked...if forces are allowed to determine prices, I tell you after the businessman/woman had made his/her capital let say five later, he/she will refuse the prices falling ..they will keep exploring the masses if given the chance to the next decade...

Reason well why I spoke about land boarders

Well, on the other hand, allowing the government to set prices for all businesses would lead to them making huge losses, which would impact on their ability to do things like employ people, and keep their businesses running....which could worsen our economic situation, and make things more infinitely worse.

The fact that you have home internet was made possible by Obasanjo allowing the GSM companies to set prices , not the government. They made enough profits to build our IT sector infrastructure to the level it is today. No need for government to spend a kobo setting up antennae and so on.

Beancounter94:


Well, on the other hand, allowing the government to set prices for all businesses would lead to them making huge losses, which would impact on their ability to do things like employ people, and keep their businesses running....which could worsen our economic situation, and make things more infinitely worse.

The fact that you have home internet was made possible by Obasanjo allowing the GSM companies to set prices , not the government. They made enough profits to build our IT sector infrastructure to the level it is today. No need for government to spend a kobo setting up antennae and so on.

Oga this your home internet was made cheap because of GLO. MTN never wanted the price of call to drop..stop deceiving yourself... We know how the Nigeria market forces work...1minute 3 seconds, MTN will charge you for 2minutes.. It was GLO that said it is possible to go per seconds. We know the history... Stop defending wicked Nigeria market forces...DISCOS and GENCOS have taken over power for about 8years now. They hadly buy transformers for communities with their outrageous charges of electrify bills...the transformer in my community was donated by a politician and they are quick to claim it as their property...

AuroraB:
Nigerians will. You don't know them. Docile mfs

Hahaha

On the other hand, we will get into more economic trobule from spending too much government money on covering for the losses from subsides.

Which would lead to more debt and more economic crisis and more inflation.

Either way, I prefer the subsidy removal. At the end of the day, we would have more refinereis, earn more money, and eventually have lower fuel prices.

And I am no government supporter...seeing as Buhari himself prefers subsidies...he did campaign on the unrealistc price of N40 per liter.

P.S I don';t like advocating for the removal of subsidy, but I have done my reading over the last ten years, and I think it is the only sensible and sane choice we have.

it might be a sensible choice but this is the wrong time for such. Nigeria economy is total down. Insecurity everywhere, high inflation, high rate of unemployment, no stable power supply, farmers can't go to the farm due to security issues leading in shortage of farm produce and increase in price. Then you want to increase the price of fuel? When you know fully well that increase in the price of fuel, automatically lead to increase in everything other thing. Make them try am naw..better protest nai go burst out

This government want to increase fuel pump price again.

When did the governors began to fix price of fuel?, They are only using the governors to cover up.

Subsidy, subsidy Everytime what are they actually subsidizing?
They said there is nothing like subsidy before why now?
The last time they increased price we were told that they have removed the subsidy,
God is watching you all