Ofunaofu:


Where are the over 300 subsidy buses of president Jonathan?

jimyjames:

Are you genuinely happy for innoson or you just made this comment to attract nagetive response towards igbo's?

isaiah4life:
Igbos are frontiers of development.

I'm not an Igbo guy but I just love igbos and their development spirit. Their value make government chase them with investment prospect.

DaveHarry:
I don't know about this subsidy of a thing/scheme whatever.

What is the advantage(s) and disadvantage(s) of fuel subsidy removal sef?

Putindbutt:

End of the day, the engines would still be manufactured in China while the parts of the buses assembled in Nigeria as usual. Nothing new here.

RichDad1:
How’s this possible ? I thought Buhari and APC hate Igbos?

jimyjames:

Are you genuinely happy for innoson or you just made this comment to attract nagetive response towards igbo's?

JaySterling:
Please delete this post

Afonja’s won’t like this nau abeg

They will get heart attack

Abeg I no want make hospital full with patients tomorrow

Delete this post now

RichDad1:
How’s this possible ? I thought Buhari and APC hate Igbos?

backbencher:


How subsidy works.

The petrol industry refines fuel at a cost price A per liter of fuel while government makes it sell fuel at a cost price less than the cost price A called pump price B.

To compensate the industry for its loss of selling fuel at a price below the cost price A, government pays them a subsidy which in theory covers the difference between prices a and b

However the cost price a always rises because of salary increases, increased costs of maintenance, increased transport costs, costs of upgrades to refineries etc.

So the difference between the cost price a and pump price B rises. That means subsidy has to either rise as well to cover the loss, meaning

1.government eventually diverts money from other sectors of the economy to pay for the subsidy

2. Goverment allows price increases in fuel price to a point where they can still pay a subsidy and keep price at pump B below price A or the cost of production A per liter.

3. However cost of production keeps increasing, so the subsidy keeps increasing to keep the price low,and the cycle continues

4 At some point government starts cutting costs by skimping on refineries maintenance meaning refineries break down which means we end up importing

5. Also because subsidising fuel means in principle that the oil industry cannot earn a substantial profit, that means that new refineries cannot be built. And no investors are going to come and build a new refinery a and sell at a loss, which goverment subsides won't cover for them.( And unlike government refineries, private refineries have to source their money)

6. That in a nutshell is how subsidy works and why it should go.

7. Of course the major disadvantage of subsidy removal is a massive increase in food and transport prices.

isaiah4life:
I genuinely made this post to acknowledge what is good. I am not hypothetical in my comment. I mean every word. I am from the north but sincerely love them for what they do and represent.

Make I deviate small. Wait ooo! Who go do giveaway for me na? December don come ooo. I gats buy something oooo yes ! But also praise the government for lifting up innosspn with this contract!

africanman85:
But has this subsidy of a thing not been there since independence? What economic benefits are we going to get from subsidy removal since the same subsidy will be evenly distributed to the masses and not everybody earns from govt. Curious to learn

Grace001:
Even the FG is trying to pity the masses in advance, because the kind of hardship and suffering that will be inflicted on the masses starting from February 2022 won’t be child play.

But it’s nothing to worry about, Nigerians have a coping mechanism to adapt to new level of hardships and suffering. The government know this fact

Brace up… Price of all commodities will skyrocket, because fuel is an important input in the production process, especially in a country like Nigeria where power supply is epileptic.

Eku ipalemo hardship and suffering

moscobabs:
Indeed Buhari hates Igbo

Realhommie:
Innoson can actually make good city buses. I remember back in 2013, boarded a city bus, one of the many which Uduaghan bought to help Deltans with alternative/cheaper transportation,it was an Innoson bus. It was actually my first time hearing of the brand i think. Very nice and modern bus just like the picture in the OP so i have no doubt in his ability to deliver something of good quality.

On the side, my people will flood this thread with so much chest beating oooooo. How it is that they're the smartest, most business savvy tribe in the universe, hehehehehe. I have seen them complain so much of not getting patronage from the government etc, I hope they'll give kudos to the NNPC here.

This is indeed one of the surest ways to grow the economy. Nice one NNPC.

onojaford:
Really interesting to know that Innoson knows how to Do or has always had a genuine desire to DO. Innoson deserves every good it gets. They made plastic chairs successfully. Even motorcycles too. Even spare parts. They've been grinding in good service wayback. Innoson all the way!

Grace001:
Even the FG is trying to pity the masses in advance, because the kind of hardship and suffering that will be inflicted on the masses starting from February 2022 won’t be child play.

But it’s nothing to worry about, Nigerians have a coping mechanism to adapt to new level of hardships and suffering. The government know this fact

Brace up… Price of all commodities will skyrocket, because fuel is an important input in the production process, especially in a country like Nigeria where power supply is epileptic.

Eku ipalemo hardship and suffering