Ayo2004:

Oga,we can't pay 300 naira for fuel right now...

Food prices and other products will
rise in price astronomicallyy and the fall in the value of naira will even make it more expensive than it is going to be self.

All these will lead to Nationwide hunger and as we all know, a hungry man is an angry man.Crime rate is already high but if price of fuel increase ehnn,may God help the poor and middle class.Robbery, murder,kidnapping and more will be the order of the day.

Infact,it is safe to say that the country will turn into anarchy,worse than it currently is in.

So how do all our neighbours manage at prices between 300 to 400 naira per liter?

Even countries like Liberia?

Isn't this country a haven for mad people?

Hmmm NNPC zero revenue.

The north just want us to think there's no money while they are there cashing out silently, settling Fulani killer herdsmen , boko boys and so on.

Hmmm....
NNPC Refinery , Zero revenue.
The north always wants to make us feel as if there no money while they are cashing out silently, settling Fulani killer herdsmen, boko boys and so on.....

While the south are there begging for percentage.

I thought Buhari's miscreants and urchins were in a ecstatic mood a few days ago of how NNPC has generated multibillion naira revenue that has never been seen in Nigeria before?
Propaganda and lies cannot develop a country.

Havertz10:
our dependence on fuel is largely caused by the logistics required to deliver products, once fuel price goes up, every product that requires fuel consumption for delivery or manufacturing automatically increases their price

If government can detach fuel price increases from having such a direct effect on consumer product prices, things will get better, options are plenty, I don't understand why those in charge don't think

A suggestion made elsewhere is that some sort of palliative ( I hate that word) be given for a year or so till the positive effects of the subsidy removal kick in

Ayo2004:

Oga,we can't pay 300 naira for fuel right now...

Food prices and other products will
rise in price astronomicallyy and the fall in the value of naira will even make it more expensive than it is going to be self.

All these will lead to Nationwide hunger and as we all know, a hungry man is an angry man.Crime rate is already high but if price of fuel increase ehnn,may God help the poor and middle class.Robbery, murder,kidnapping and more will be the order of the day.

Infact,it is safe to say that the country will turn into anarchy,worse than it currently is in.

An implication of your comment also is that you in essence support goverment making businessmen sell at a very low price so that they cannot make enough of a profit to fund their businesses.

The thing is , for over 30 years we have been selling fuel at a loss. It has led to the destruction of our refinereis because No profit means refinereis cannot work. It has also pushed us into more and more debt. And cost us lots of jobs . Jobs.

At the end of the day, let's be honest. If subsides go. Yes there will be high prices. But it will become more attractive to refine fuel at home meaning more jobs. Goverment saves money which can be used for health and education and even poverty alleviation. And prices will fall by competition. Plus we become a net exporter of refined fuel

You carry aboki. Illiterates full nnpc.

What did you expect?
How will it work.

Just kept wasting south's resources on block heads

Modrov:


We have 20 licenses for private refineries (it was more than that) that haven't been taken up because no one wants to be forced by the subsidy regime and government controlled prices to refine fuel at a loss.

Plus, NNPC refineries are bad for the same reason. Refining at a loss.Because subsidy

But everytime subsidy removal has been proposed ( not the lie lie one Buhari and company have done)...Nigerians cry poverty.

Bro u don't know how subsidy work... Stop giving excuse for this pricing thing, marketer and refineries....
Pppra a subsidiary of nnpc takes care of pricing of petroleum products, if there r refineries, they will sell their products at international price, so even the nnpc price is lower than the refinery price, govt will pay for the differentials.
Refinery wont sell direct to filling station, u need to be a registered petroleum marketer n licenced marketer before they will do business with u. And when u pay, u r paying the price they give u, all u need do is take the receipts and present to the govt, govt pays d differentials to u as subsidy.
This is where the previous issues was, marketers colluded with nnpc officials and collected claims of subsidy for products they never bought.
Refinery will never make loss so far you pay them cash and they give u products.
Lets be clear on this.
The issue why we don't have people investing in refineries is cos the world is going clean with clean energy. Apart from dangote buildng refinery now which other refinery is been built in the last 5yrs anywhere in the world?

Modrov:
The refineries don't work because for years they have been forced to work at a loss....so that Nigerians can get cheap fuel

As for payment....Government does not pay NNPC workers from the profit of their refineries...it is from allocation to NNPC.

i DON'T like Atiku, but there is a good reason why he called for NNPC to be privatised.

Let me create scenarios and explain why your claims are flawed.

Mr B, a Nigerian imports fuel from company A, the company's production cost is #180 per litre, they sell at #200, making a profit of #20 per litre. Mr B spends #20 per litre on logistics bring his total landing cost to #220 per litre. He intends to sell at
#250 per litre.

Now, the nigerian govt subsidises the product to be sold at #150 per litre. The govt checks what mr B imported, the quality and quantity then pays him #100 per litre to cover up his cost.


Mr C a nigerian refines crude oil in nigeria. His production cost is #175 due to proximity of raw materials (crude oil). He sells at #195 to make a profit of #20 per litre. He sells to Mr D, who spends #10 per litre on logistics due to close proximity, his landing cost is #205. He intends to sell at #235

Now, the nigerian govt subsidises the product to be sold at #150 per litre. The govt checks what mr D brought, the quantity and quality then pays him #85 per litre to cover up his cost.

poiZon:

Bro u don't know how subsidy work... Stop giving excuse for this pricing thing, marketer and refineries....
Pppra a subsidiary of nnpc takes care of pricing of petroleum products, if there r refineries, they will sell their products at international price, so even the nnpc price is lower than the refinery price, govt will pay for the differentials.
Refinery wont sell direct to filling station, u need to be a registered petroleum marketer n licenced marketer before they will do business with u. And when u pay, u r paying the price they give u, all u need do is take the receipts and present to the govt, govt pays d differentials to u as subsidy.
This is where the previous issues was, marketers colluded with nnpc officials and collected claims of subsidy for products they never bought.
Refinery will never make loss so far you pay them cash and they give u products.
Lets be clear on this.
The issue why we don't have people investing in refineries is cos the world is going clean with clean energy. Apart from dangote buildng refinery now which other refinery is been built in the last 5yrs anywhere in the world?

No that is not how a subsidy works.

Right now we import fuel above N260 per liter and sell it at N162 per liter.

Subsidy is what goverment pays to cover the resulting loss.

Until 2016, the money went to marketers and NNPC. Since 2017 it has gone to NNPC alone.

That is how it has been since the late 1980s.

Also, to keep prices low, goverment pays transporters a fixed rate of money

Why the collusion happens is that the money is not enough and as a result stealing happens . When there is anything involving free goverment money, there will be stealing ( See NHIS issues and the Buhari favourite responsible who is not in jail because...)

From time to time, the subsidy payments are not enough.

In 2011, fuel cost 99 naira to import but was being sold at N65. Initially GET removed subsidies by raising prices to 140 naira. Protests by Buhari and his gang made GEJ to reduce price to 97 naira meaning subsidy payments went down from at least 34 naira per liter to 2 naira per liter

By 2015, that N99 went up to n132. And we were selling fuel at n87. Meaning we were paying a subsidy of 55naira up from 2 naira in 2012 january5

Buhari raised prices to N145, which ended subsidy till landing costs went up to N180 then he was forced to cut the subsidy by raising prices to N162 now. And making NNPC the sole importer and subsidiser which is why NNPC until last month was reporting losses.

Meanwhile because of rising import prices, goverment was owing marketers because subsidy payments were becoming more and more difficult. That is why Buhari made NNPC the sole importer

Keep in mind that this has been going on since 1988 when ibb cut prices of fuel to below the production price of our refineries. That is when the mess starred and thus starving the refineries of much needed funds. By 1995 the refinerieshad missed their turn around maintenance. And by 2011they were not functioning at all.

Plus why build new refinereis when it would break down due to the fact that subsidy prevents them from making a profit. Unless your name is Dangote and you have the money .

That is why subsidy is a curse and why i am.opposed to it since 2011.

Misplaced priority every now and then

assent:




Even you, the resident APC Zombie can't bring yourself to call Atiku a lair anymore. You now realise that he was actually saying the truth, but you were just ready to throw away the future of your children than accept the truth.

You are still not making any sense as usual. Atiku is a rogue and we won’t allow him to sell NNPC to his fronts and cronies. In fact, he will never be president of Nigeria. Know this and know peace.

Nothing can survive under the
type of thinking of Buhari.. ☹️

❌❌❌

As a Fulani man, he can't even run
Ordinary cow business successfully,
yet we expect him to run Nigeria's
economy successfully . ☹️


We can see why Petroleum industry,
security, agriculture, economy, education,
healthcare, jobs, civil service etc are
all in a mess.

rex21:


Let me create scenarios and explain why your claims are flawed.

Mr B, a Nigerian imports fuel from company A, the company's production cost is #180 per litre, they sell at #200, making a profit of #20 per litre. Mr B spends #20 per litre on logistics bring his total landing cost to #220 per litre. He intends to sell at
#250 per litre.

Now, the nigerian govt subsidises the product to be sold at #150 per litre. The govt checks what mr B imported, the quality and quantity then pays him #100 per litre to cover up his cost.


Mr C a nigerian refines crude oil in nigeria. His production cost is #175 due to proximity of raw materials (crude oil). He sells at #195 to make a profit of #20 per litre. He sells to Mr D, who spends #10 per litre on logistics due to close proximity, his landing cost is #205. He intends to sell at #235

Now, the nigerian govt subsidises the product to be sold at #150 per litre. The govt checks what mr D brought, the quantity and quality then pays him #85 per litre to cover up his cost.

Yes i agree

But

1. Goverment income from crude oil has been falling since 2014 meaning goverment cannot constantly keep up the subsidy payments as is.especially as monies from subsides cone from.crude oil revenues not from taxes like other countries

2. Fuel production costs keep rising. That N180 or N175 production cost today can be N200 or 250 tomorrow.. Because refineries need to be upgraded, workers in refinereis need better salaries, naira has poor value due to us being a resource dependent country , rising crude prices, and so on.

At some point the goverment would either have to stop paying subsidies completely, cut subsidy rates meaning prices of fuel go up or take a loan or go broke in paying rising subsides to keep prices low


Either subsides go and the market controls the price or Nigeria keeps pouring money down a bottomless pit if production costa keep going up.

Lovely news to begin your weekend.

They know we will be sombre before the Lord so will just pray for them for deliverance from the spirit of waste rather than take their government to the cleaners.

Nobody who legitimately works in the public sector of this country and is owed salaries, wages and entitlements in any shape or manner should back down from their legitimate demands in the face of this outrage. This nonsense is enough to send all longsuffering Nigerians into a frenzy and demand the government step down.

This is just reprehensible. And yet we are borrowing humongous sums just to rehabilitate those refineries where NO ONE WORKS. This is the biggest, brazen case of ghost workermanship ever in the annals of this storied country.

69 Billion.... what the heck....

Havertz10:
his track record says otherwise, besides most politicians especially in Nigeria don't have proposals that can be checked, analyzed and weighed

They provide promises that's all, Buhari has his failings but peter obi definitely isn't better

His track record says otherwise??

Are you talking about the same Peter obi from anambra or another one?

It was because of his track record that atiku chose him.

Comparing Peter obi with Buhari is like comparing Messi with bakayoko.

The damned 'refineries' should be shut down with immediate effect! We can't afford to be losing and wasting billions like this.

Modrov:


No that is not how a subsidy works.

Right now we import fuel above N260 per liter and sell it at N162 per liter.

Subsidy is what goverment pays to cover the resulting loss.

Until 2016, the money went to marketers and NNPC. Since 2017 it has gone to NNPC alone.

That is how it has been since the late 1980s.

Also, to keep prices low, goverment pays transporters a fixed rate of money

Why the collusion happens is that the money is not enough and as a result stealing happens . When there is anything involving free goverment money, there will be stealing ( See NHIS issues and the Buhari favourite responsible who is not in jail because...)

From time to time, the subsidy payments are not enough.

In 2011, fuel cost 99 naira to import but was being sold at N65. Initially GET removed subsidies by raising prices to 140 naira. Protests by Buhari and his gang made GEJ to reduce price to 97 naira meaning subsidy payments went down from at least 34 naira per liter to 2 naira per liter

By 2015, that N99 went up to n132. And we were selling fuel at n87. Meaning we were paying a subsidy of 55naira up from 2 naira in 2012 january5

Buhari raised prices to N145, which ended subsidy till landing costs went up to N180 then he was forced to cut the subsidy by raising prices to N162 now. And making NNPC the sole importer and subsidiser which is why NNPC until last month was reporting losses.

Meanwhile because of rising import prices, goverment was owing marketers because subsidy payments were becoming more and more difficult. That is why Buhari made NNPC the sole importer

Keep in mind that this has been going on since 1988 when ibb cut prices of fuel to below the production price of our refineries. That is when the mess starred and thus starving the refineries of much needed funds. By 1995 the refinerieshad missed their turn around maintenance. And by 2011they were not functioning at all.

Plus why build new refinereis when it would break down due to the fact that subsidy prevents them from making a profit. Unless your name is Dangote and you have the money .

That is why subsidy is a curse and why i am.opposed to it since 2011.

So how does paying subsidies affect investor to build a refinery in the country?
Lemme use the nlng model, nnpc was subsidizing cooking gas in Nigeria all the years, thats why gas was cheap. We had nlng plant producing 400thousand metric tonnes, but they sold only 50thousand metric tonnes to Nigeria and exported the rest
Also gas is priced in have dollar,so even the 50thousand sold to nigeria was in dollars. The subsidy differentials was either paid to them or they forgo it as their tax to the govt. Has nlng collapsed?
No.
They have even built another plant that will increase their production.
So u can see it isnt subsidy that is making investors to build refineries, those given the licence to build refineries don't have monies to build.
Dangote that is building refinery, we know how he is getting the money from...
So even if we have 30 refineries in Nigeria, govt fixing price wont affect their business or pricing cos fuel and other petroleum products r priced internationally. The only difference will be in shipping and nimasa tax which will be cut off.
So if a refinery sells itsproduct at 4dolls per barrel, he knows somewhere in india or Niger or California, it is sold at 4dollars per barrel.
U can't buy crudeoil at 67dollars per barrel and sell ur products at a cheap rate cos thereis govt control pricing...
Dangote wont sell fuel at 165 naira even if there is still subsidy.
He can only sell at that price if the oil companies in Nigeria sell crude oil to him at 50nairaper barrel

Modrov:


Yes i agree

But

1. Goverment income from crude oil has been falling since 2014 meaning goverment cannot constantly keep up the subsidy payments as is.especially as monies from subsides cone from.crude oil revenues not from taxes like other countries

2. Fuel production costs keep rising. That N180 or N175 production cost today can be N200 or 250 tomorrow.. Because refineries need to be upgraded, workers in refinereis need better salaries, naira has poor value due to us being a resource dependent country , rising crude prices, and so on.

At some point the goverment would either have to stop paying subsidies completely, cut subsidy rates meaning prices of fuel go up or take a loan or go broke in paying rising subsides to keep prices low


Either subsides go and the market controls the price or Nigeria keeps pouring money down a bottomless pit if production costa keep going up.

The whole issue sits on those in power to create a better way to mitigate the cost of petrol, or to create avenue for better funding for the subsidy. Either way, subsidy is not the problem.

rex21:


The whole issue sits on those in power to create a better way to mitigate the cost of petrol, or to create avenue for better funding for the subsidy. Either way, subsidy is not the problem.

I read one paper recently that suggested a year of palliative to help.with the hardships

Option B is keep subsidy but tax everyone including informal sector workers, herdsmen, farmers and even beggars heavily to fund subsides

Lord knows subsidy removal is a message I hate promoting. But since my eyes got opened in 2011, I think it is a good idea long term.

poiZon:

So how does paying subsidies affect investor to build a refinery in the country?
Lemme use the nlng model, nnpc was subsidizing cooking gas in Nigeria all the years, thats why gas was cheap. We had nlng plant producing 400thousand metric tonnes, but they sold only 50thousand metric tonnes to Nigeria and exported the rest
Also gas is priced in have dollar,so even the 50thousand sold to nigeria was in dollars. The subsidy differentials was either paid to them or they forgo it as their tax to the govt. Has nlng collapsed?
No.
They have even built another plant that will increase their production.
So u can see it isnt subsidy that is making investors to build refineries, those given the licence to build refineries don't have monies to build.
Dangote that is building refinery, we know how he is getting the money from...
So even if we have 30 refineries in Nigeria, govt fixing price wont affect their business or pricing cos fuel and other petroleum products r priced internationally. The only difference will be in shipping and nimasa tax which will be cut off.
So if a refinery sells itsproduct at 4dolls per barrel, he knows somewhere in india or Niger or California, it is sold at 4dollars per barrel.
U can't buy crudeoil at 67dollars per barrel and sell ur products at a cheap rate cos thereis govt control pricing...
Dangote wont sell fuel at 165 naira even if there is still subsidy.
He can only sell at that price if the oil companies in Nigeria sell crude oil to him at 50nairaper barrel

You don't get it.

Good morning. I have tried. If subsidy was soo good why do people like noi support its removal.

Besides the gas we use in this country to cook is lpg not lng.


Finally would you support goverment setting the price of your business for you instead of you? You won't.Yet you support it for the oil industry because you want cheap fuel.

Well it is costing this nation too much to keep fuel cheap.

Final solution?
Privatize or not,
Sell fuel at standard market price
Remove subsidy
Pay a minimum wage of 70k and above
I don't tink we will complain

Blackdisciple:
Hmmm....
NNPC Refinery , Zero revenue.
The north always wants to make us feel as if there no money while they are cashing out silently, settling Fulani killer herdsmen, boko boys and so on.....

While the south are there begging for percentage.

[color=#006600][/color]

Blame the Niger Delta people for all these. It seems the Niger Delta region are good father Christmas who care for everyone. Just imagine the North having these oil wells? As far as an Igbo man is not at the helm of oil management in the country they are OK with it. Let everyone enjoy the spoils of one Nigeria.

Zoogeria is built to fail

Havertz10:
it's not feasibly possible for fuel to be sold at that price

Of course, it’s not. What I am particular about is the character of a person like Buhari making unrealistic goals as such, in an economy seriously tied to the continuous patronage of foreign buyers while there are alternative OPEC countries. He is evil and he said a lot of nasty things he has backtracked on now. That’s a despicable and deceitful character from a self-acclaimed incorruptible quota system dirtbag.

K

Modrov:


I read one paper recently that suggested a year of palliative to help.with the hardships

Option B is keep subsidy but tax everyone including informal sector workers, herdsmen, farmers and even beggars heavily to fund subsides

Lord knows subsidy removal is a message I hate promoting. But since my eyes got opened in 2011, I think it is a good idea long term.

Subsidy removal looks/sounds very promising, but it might also have a devastating effect on our already dwindling economy. PMB tried to remove it and it obviously backfired hence he brought it back. We have to look for ways to make money in this country, ways to save money too. Lets treat Nigeria like an individual, a human. Let us guide our external spending.

rex21:
K
Subsidy removal looks/sounds very promising, but it might also have a devastating effect on our already dwindling economy. PMB tried to remove it and it obviously backfired hence he brought it back. We have to look for ways to make money in this country, ways to save money too. Lets treat Nigeria like an individual, a human. Let us guide our external spending.

Yes Nigeria needs side hustle to survive

The NNPC is now the Northern Nigeria Petroleum Company. The all-Muslim top 20 executives in NNPC makes Nigeria look like an annex of Arab Emirates.

1. Mele Kyari (GMD)
2. Umar Ajiya (Chief Finance Officer/Finance and Accounts)
3. Yusuf Usman (Chief Operating Officer)
4. Farouk Garba Sa’id (Chief Operating Officer, Corporate Services)
5. Mustapha Yakubu (Chief Operating Officer, Refining and Petrochemicals)
6. Hadiza Coomassie (Corporate Secretary/Legal Adviser to the Corporation)
7. Omar Ibrahim (Group General Manager, International Energy Relations)
8. Kallamu Abdullahi (GGM Renewable Energy)
9. Ibrahim Birma (GGM Governance Risk and Compliance)
10. Bala Wunti (GGM NAPIMS)
11. Inuwa Waya (MD NNPC Shipping)
12. Musa Lawan (MD Pipelines And Product Marketing)
13. Mansur Sambo (MD Nigeria Petroleum Development Company)
14. Lawal Sade (MD Duke Oil/NNPC Trading Company)
15. Malami Shehu (MD Port Harcourt Refining Company)
16. Muhammed Abah (MD Warri Refining and Petrochemical Company)
17. Abdulkadir Ahmed (MD Nigeria Gas Marketing Company)
18. Salihu Jamari (MD Nigeria Gas and Power Investment Company Limited)
19. Mohammed Zango (MD NNPC Medical Services)
20. Sarki Auwalu (Director, Department of Petroleum Resources)*

*Only three top positions were allotted to the entire Southern Nigeria.*

*What happened to federal character? What’s the job of the Federal Character Commission? Do we have a National Assembly? What the hell is wrong with the members of National Assembly? Where’s the Senate oversight committee on NNPC? Where are the activists?*

The North produces nothing and contributes zero revenue to the central purse in Abuja. Yet, the North gulps 99 per cent of the revenue*

Nepotism results in bias, unfair treatment, and exclusion of others. Nepotism.

LAMIDO's Confession

*Fulanis with no sea shore are controlling Yoruba seaports and NPA, Fulanis with no single barrel of crude oil are controlling the NNPC. Minority fulanis with a population of less than 10 million are controlling the Yoruba nation that is over 60 million people.

Minority fulanis who occupy the poorest region in Nigeria are the ones controlling the taxes, industries and revenue of Yorubaland.

Minority fulanis control the judiciary, the military, the police , the air force, Civil defense and the immigration while the Yoruba nation is held up like a slave in a plantation.

*Go to Apapa wharf, Tin can Island, NPA, Nigerian Customs all over Yoruba land, the fulanis are ruling supreme.

Any society where the minority rules the majority, it is an apartheid system of government.

Hussein Maitaya

Modrov:


And they all collect the salaries of their refinery workers eh? Most of whom are southerners.

Even if we made NNPC a southern run place , so long as we sell fuel below its production cost there won't be enough profit to run and fix and upgrade refineries

Modrov:


Considering a lot of Southerners and middle belters work at NNPC, including the refinereis, I doubt NNPC is solely a Northern ATM

Are there no Southerners in Ganduje's government?

BeardedMeat:
Are there no Southerners in Ganduje's government?

Are there no Northerners in Ikpeazu goverment?

Besides that, my point is we need to sell petrol at a profit before we see working refineries.

Not your North South fight