I'm wondering why Nigerians are keeping mute about the removal of fuel subsidy.. Fuel prices are projected to rise to around ₦800 naira a litre cheapest, that's a 300% increase from ₦200, diesel prices to ₦900. It's not just about knowing the numbers, do you guys know the amount of damage this will cause? It's will be catastrophic if they do this.

Removal of fuel subsidy in its entirety isn't bad at all, but not just at this point, not this time, it's like someone pulling the plug of a life support machine on a man who's struggling to breathe. When this subsidy is removed, the government will have excess money, and we know what excess money in the hands of politicians mean, if the little they have for us they still steal, how much more when they have excess?

I'm just trying to make common sense here, we need to put away our tribalism and religious differences and come together and think!

How many poor Nigerians can afford a loaf of bread at ₦600 now let alone when it gets to ₦1000 after the removal of fuel subsidy because prices of things will go up exponentially. In addition to the greed of the middlemen, who will use this as an excuse to inflate, the prices will spiral beyond control. Businesses that cannot cope with the cost of running will close down, workers who are working earning the minimum wage will essentially finish their salaries on just transportation alone.

This is not a doomsday article, this will be our reality if we let this happen.

The IMF said removal of fuel subsidy is a great idea and should be done without hesitation, we know the IMF, they always have sinister plans. They gave the government a loan of 800million dollars to be distributed amongst poor Nigerians, they know quite well this money will be stolen, if it gets to upto even 500,000 poor Nigerians, that would be very good of them, but it wouldn't.

You have 800million dollars to give, why don't you ensure they use this money to revive our refineries? Which will create more jobs, alongside the Dangote refinery waiting for completion. This would dampen the effect of the removal of this subsidy, not only that, it would be perfect for the economy, but no, now this money will even make the govt hurry up with their plans.
No wonder people are trying to flee this country every minute!

And the politicians aren't speaking up about this subsidy and I'm sure you know why.

Can we afford to let this happen to us??

Please seun, lalasticlala mynd44, OAM4J move this to the front page, so our people can be aware

This could be worse than covid and naira scarcity combined.

God will provide for Nigerians. Amen

Because if we keep the subsidy, we would see a rise in debt beyond what Buhari has incurred

Subsidy, roughly speaking, is what is paid to the petroleum sector as compensation for selling below the production cost of petrol.

The problem with subsidy is that government does not control the production cost of petrol. So, when it rises, the cost of subsidy rises, which means that we have to pay an increasing amount of money to cover the increasing loss from the increasing difference between the government set price and the production cost. This eats into the budget, and as a result, government has to take loans to cover the difference.

When the difference gets too much, in the past, government usually reduces subsidy cost by raising fuel prices a bit. As an example, in 2012, fuel was costing N65, landing cost was N99. Government raised prices to N97, meaning subsidy costs went down to N2 per liter from N34 per liter. (The above has been happening since the year 1973, which is why fuel is no longer costing 15 KOBO as it did in 1981!)

At the moment, we have too much debt, not only from covering subsides, but also from low oil prices from 2014-2021, which since oil is our main income source, means we have to take loans.

Throw in the fact that in all our neighbours, fuel is above N300 per liter. And people who are poor to people who are rich make lots of money smuggling fuel over the border. That worsens our subsidy costs. And yes, they should be stopped...the problem is, it isn't just the big takers doing the smuggling, it is also small guys with 50 l jerrycans carrying fuel over the border. Unless we want to build a fence, and staff it with one million armed border force people....

Note that OP, you are right about the negatives of subsidy removal. But the issue is...do we keep on throwing millions of naira daily to keep fuel subsided, and take loans and more loans, or do we remove subsidy, and save more money, and hopefully attract more investment, money and jobs to our petrol sector?

Keep in mind that subsidy is also why we cannot build and maintain refineries. And why refinereis get sabotaged. Ideally, a refinery should make a profit, and use that profit to run itself. Subsidy means that the refineries not only do not run at a profit, but whether they work or not, they get free money from government. And naturally, unscrupulous agents would damage the refineries to keep getting free money.

We are between the devil and deep blue sea. The thing is, subsidy removal could , if done right, lead to a period of prosperity after a period of hardship.


I know Nigerians do not like it. But at the end, if we had taken the subsidy removal road in 1993, by now we could have been a major exporter of high quality fuel to Africa and the world, and NNPC woulda had more than 4 refineries, and there would have been lots of private refineries.

Price controls do not work. Ask the USSR.

Joeev:
I'm wondering why Nigerians are keeping mute about the removal of fuel subsidy.. Fuel prices are projected to rise to around ₦800 naira a litre cheapest, that's a 300% increase from ₦200, diesel prices to ₦900. It's not just about knowing the numbers, do you guys know the amount of damage this will cause? It's will be catastrophic if they do this.

Removal of fuel subsidy in its entirety isn't bad at all, but not just at this point, not this time, it's like someone pulling the plug of a life support machine on a man who's struggling to breathe. When this subsidy is removed, the government will have excess money, and we know what excess money in the hands of politicians mean, if the little they have for us they still steal, how much more when they have excess?

I'm just trying to make common sense here, we need to put away our tribalism and religious differences and come together and think!

How many poor Nigerians can afford a loaf of bread at ₦600 now let alone when it gets to ₦1000 after the removal of fuel subsidy because prices of things will go up exponentially. In addition to the greed of the middlemen, who will use this as an excuse to inflate, the prices will spiral beyond control. Businesses that cannot cope with the cost of running will close down, workers who are working earning the minimum wage will essentially finish their salaries on just transportation alone.

This is not a doomsday article, this will be our reality if we let this happen.

The IMF said removal of fuel subsidy is a great idea and should be done without hesitation, we know the IMF, they always have sinister plans. They gave the government a loan of 800million dollars to be distributed amongst poor Nigerians, they know quite well this money will be stolen, if it gets to upto even 500,000 poor Nigerians, that would be very good of them, but it wouldn't.

You have 800million dollars to give, why don't you ensure they use this money to revive our refineries? Which will create more jobs, alongside the Dangote refinery waiting for completion. This would dampen the effect of the removal of this subsidy, not only that, it would be perfect for the economy, but no, now this money will even make the govt hurry up with their plans.
No wonder people are trying to flee this country every minute!

And the politicians aren't speaking up about this subsidy and I'm sure you know why.

Can we afford to let this happen to us??

Please seun, lalasticlala mynd44, OAM4J move this to the front page, so our people can be aware

That one concern you. As for me and my family we have rubbed Tinubu’s blood on our doors, poverty will pass over us 🙄

Who go talk?

If I say something dem go tell me to Ronu and to not be a bastard.

For every opposing view on the subsidy removal there is a fabricated nonsense on how it's good for the economy and how other countries implement it too. These are views backed by tribalism, nepotism, fascism and kolomentalism.

Bro, I'm just tired! Is it until I walk naked in the street preaching "subsidy removal is bad", is it then that our people will take this serious?

APC closed border, increased fuel price and no single protest became our people voted in messiah and now, 8 years later, he is still cooking our ass.

Make God just provide for us and make we double our hustle too. So when cold water becomes #50 per sachet, we will have money to pay.

nairalanda1:
Because if we keep the subsidy, we would see a rise in debt beyond what Buhari has incurred

Subsidy, roughly speaking, is what is paid to the petroleum sector as compensation for selling below the production cost of petrol.

The problem with subsidy is that government does not control the production cost of petrol. So, when it rises, the cost of subsidy rises, which means that we have to pay an increasing amount of money to cover the increasing loss from the increasing difference between the government set price and the production cost. This eats into the budget, and as a result, government has to take loans to cover the difference.

When the difference gets too much, in the past, government usually reduces subsidy cost by raising fuel prices a bit. As an example, in 2012, fuel was costing N65, landing cost was N99. Government raised prices to N97, meaning subsidy costs went down to N2 per liter from N34 per liter. (The above has been happening since the year 1973, which is why fuel is no longer costing 15 KOBO as it did in 1981!)

At the moment, we have too much debt, not only from covering subsides, but also from low oil prices from 2014-2021, which since oil is our main income source, means we have to take loans.

Throw in the fact that in all our neighbours, fuel is above N300 per liter. And people who are poor to people who are rich make lots of money smuggling fuel over the border. That worsens our subsidy costs. And yes, they should be stopped...the problem is, it isn't just the big takers doing the smuggling, it is also small guys with 50 l jerrycans carrying fuel over the border. Unless we want to build a fence, and staff it with one million armed border force people....

Note that OP, you are right about the negatives of subsidy removal. But the issue is...do we keep on throwing millions of naira daily to keep fuel subsided, and take loans and more loans, or do we remove subsidy, and save more money, and hopefully attract more investment, money and jobs to our petrol sector?

Keep in mind that subsidy is also why we cannot build and maintain refineries. And why refinereis get sabotaged. Ideally, a refinery should make a profit, and use that profit to run itself. Subsidy means that the refineries not only do not run at a profit, but whether they work or not, they get free money from government. And naturally, unscrupulous agents would damage the refineries to keep getting free money.

We are between the devil and deep blue sea. The thing is, subsidy removal could , if done right, lead to a period of prosperity after a period of hardship.


I know Nigerians do not like it. But at the end, if we had taken the subsidy removal road in 1993, by now we could have been a major exporter of high quality fuel to Africa and the world, and NNPC woulda had more than 4 refineries, and there would have been lots of private refineries.

Price controls do not work. Ask the USSR.

This was exactly what they said in 2015.

You'd think by now naija will be the largest exporter of food in Africa.

We shall see the refineries in 4 years time.

Karleb:


This was exactly what they said in 2015.

You'd think by now naija will be the largest exporter of food in Africa.

We shall see the refineries in 4 years time.

1.Yes, and back in 2015, I did not beleive them, because...

2.They said they were removing subsidy, YET....the price was being set by government. That's what shows that subsidy had not gone yet.

3.A true subsidy removal would have left the price setting in the hands of marketers completely, not the government.

Simple.


Modifed

In 2015,petrol production cost was N132, government price was N87. Subsidy was being paid to covert the difference. In 2015, Buhari lied that he removed subsidy...by raising the price to N145.

yES, Subsidy went..............until the production cost rose above N145. A year later it was N165 per liter, yet petrol was still costing N145 then. Welcome back subsidy.

The trick has been used for over 4-5 decades.

If we can survive when the Govt seize our hard earned from us shey na diz one we no go survive...


With all the wickedness Buhari don show us from Locking border, banning international transaction, seizing our currency abg wetin wan kill us again..

Most comments here are the voices of defeated people who can take anything just to stay alive

Thanksful:
Most comments here are the voices of defeated people who can take anything just to stay alive

You are selling bread at N1200 a loaf. Would you agree to sell that same loaf at N300 instead, at the request of the government, to 'help the poor'?

They have lied to them they will give them palliative and they tell poor Nigerians only people with big SUVs are enjoying subsidy 😅😅😅

Pms will be free for APC members.

SalamRushdie:
They have lied to them they will give them palliative and they tell poor Nigerians only people with big SUVs are enjoying subsidy 😅😅😅

The palliative that will disappear with Buhari's government.

nairalanda1:
Because if we keep the subsidy, we would see a rise in debt beyond what Buhari has incurred

Subsidy, roughly speaking, is what is paid to the petroleum sector as compensation for selling below the production cost of petrol.

The problem with subsidy is that government does not control the production cost of petrol. So, when it rises, the cost of subsidy rises, which means that we have to pay an increasing amount of money to cover the increasing loss from the increasing difference between the government set price and the production cost. This eats into the budget, and as a result, government has to take loans to cover the difference.

When the difference gets too much, in the past, government usually reduces subsidy cost by raising fuel prices a bit. As an example, in 2012, fuel was costing N65, landing cost was N99. Government raised prices to N97, meaning subsidy costs went down to N2 per liter from N34 per liter. (The above has been happening since the year 1973, which is why fuel is no longer costing 15 KOBO as it did in 1981!)

At the moment, we have too much debt, not only from covering subsides, but also from low oil prices from 2014-2021, which since oil is our main income source, means we have to take loans.

Throw in the fact that in all our neighbours, fuel is above N300 per liter. And people who are poor to people who are rich make lots of money smuggling fuel over the border. That worsens our subsidy costs. And yes, they should be stopped...the problem is, it isn't just the big takers doing the smuggling, it is also small guys with 50 l jerrycans carrying fuel over the border. Unless we want to build a fence, and staff it with one million armed border force people....

Note that OP, you are right about the negatives of subsidy removal. But the issue is...do we keep on throwing millions of naira daily to keep fuel subsided, and take loans and more loans, or do we remove subsidy, and save more money, and hopefully attract more investment, money and jobs to our petrol sector?

Keep in mind that subsidy is also why we cannot build and maintain refineries. And why refinereis get sabotaged. Ideally, a refinery should make a profit, and use that profit to run itself. Subsidy means that the refineries not only do not run at a profit, but whether they work or not, they get free money from government. And naturally, unscrupulous agents would damage the refineries to keep getting free money.

We are between the devil and deep blue sea. The thing is, subsidy removal could , if done right, lead to a period of prosperity after a period of hardship.


I know Nigerians do not like it. But at the end, if we had taken the subsidy removal road in 1993, by now we could have been a major exporter of high quality fuel to Africa and the world, and NNPC woulda had more than 4 refineries, and there would have been lots of private refineries.

Price controls do not work. Ask the USSR.

What are you saying sir? This is just a simple mathematics.
Let them print to he publicdetails dated back to 10years of how much they have spent on subsidy for both landing and procuring, let us reduce cost of governance to the bearest minimum and use the proceed to fund repair of our existing refineries or adopt a good method of refurbishing local refineries in the creeks.
Lastly let authotities tell us how many consumption of petrol we are making locally. I definitely know that petrol is not disappearing to our Gens and cans so petrol stations and NNPCL should have a record of petrol going out and coming in.
Regards.
Think about all this no con they tell us all sort of grammar when you definitely know the poverty in Nigeria is inflicted by politicians.

I ask myself was there even a subsidy in Nigeria at all?

Adeoye11:


What are you saying sir? This is just a simple mathematics.
Let them print to he publicdetails dated back to 10years of how much they have spent on subsidy for both landing and procuring, let us reduce cost of governance to the bearest minimum and use the proceed to fund repair of our existing refineries or adopt a good method of refurbishing local refineries in the creeks.
Lastly let authotities tell us how many consumption of petrol we are making locally. I definitely know that petrol is not disappearing to our Gens and cans so petrol stations and NNPCL should have a record of petrol going out and coming in.
Regards.
Think about all this no con they tell us all sort of grammar when you definitely know the poverty in Nigeria is inflicted by politicians.

Sorry, but all you have said here won't make much of a difference.

The problem is, the Nigerian government cannot control or determine the cost of producing petrol. And once the cost of producing petrol is rising higher than the government set price, the subsidy cost will also rise.

Now, would you sell your products, assuming you were a business owner, to people below what it cost you to produce? We have done that for five decades, and wrecked 4 refineries in the process.

By Jupiter's beard, there are times when I wish we could subsidize fuel to even as low as N10 per liter. But the thing is, the sector needs to make a profit selling petrol so that we can have lots of refineries, and support infrastructure, without spending a dime of government money.

nairalanda1:


Sorry, but all you have said here won't make much of a difference.

The problem is, the Nigerian government cannot control or determine the cost of producing petrol. And once the cost of producing petrol is rising higher than the government set price, the subsidy cost will also rise.

Now, would you sell your products, assuming you were a business owner, to people below what it cost you to produce? We have done that for five decades, and wrecked 4 refineries in the process.

By Jupiter's beard, there are times when I wish we could subsidize fuel to even as low as N10 per liter. But the thing is, the sector needs to make a profit selling petrol so that we can have lots of refineries, and support infrastructure, without spending a dime of government money.

Stop talking like a politician.

What gives you the impression that subsidy is the reason we don't have a single working refinery till date?

What gives you the assurance that this crop of corrupt politicians and mismanagers will build refineries if they stop paying subsidy?

Please stop talking like you are in a political science class. Touch the grass!

I don't give a hoot about poor masses
They don't care too about you



They lesson in all these is to double your hustle
Don't have a free time, work your arse off


Make money

Create opportunities in these
Take the opportunity and makes money in the season

In less than 3 weeks of cash crunch I made 5mil no cap

I'm 5m richer than I was in Feb, so you see

May Allah bless the fruits of your hand

When are they removing it ?

tensazangetsu20:
God will provide for Nigerians. Amen

Tensa, you never run leave this country?

lastkingsman:


Tensa, you never run leave this country?

We just finished an election where all major candidates agreed that subsidy must go. So, why should we be talking about what everybody has agreed upon? Batists, Atikulates and obidients all agreed with their candidates that subsidy must be removed immediately they are sworn in if they win. So, irrespective of the winner, we must all support subsidy removal because it is simply inevitable.

The above notwithstanding, I personally think subsidy should only be removed when Dangote refinery comes on stream. Removing subsidy while still importing refined petroleum products will not help the local currency and economy. What we need to push our economy right now is to save forex used for importation and channel it into more productive use.

Nothing will happen people would adjust

Karleb:
Who go talk?

If I say something dem go tell me to Ronu and to not be a bastard.

For every opposing view on the subsidy removal there is a fabricated nonsense on how it's good for the economy and how other countries implement it too. These are views backed by tribalism, nepotism, fascism and kolomentalism.

Bro, I'm just tired! Is it until I walk naked in the street preaching "subsidy removal is bad", is it then that our people will take this serious?

APC closed border, increased fuel price and no single protest became our people voted in messiah and now, 8 years later, he is still cooking our ass.

Make God just provide for us and make we double our hustle too. So when cold water becomes #50 per sachet, we will have money to pay.

Peter OBI also planned to remove subsidy

seunmsg:
We just finished an election where all major candidates agreed that subsidy must go. So, why should we be talking about what everybody has agreed upon? Batists, Atikulates and obidients all agreed with their candidates that subsidy must be removed immediately they are sworn in if they win. So, irrespective of the winner, we must all support subsidy removal because it is simply inevitable.

The above notwithstanding, I personally think subsidy should only be removed when Dangote refinery comes on stream. Removing subsidy while still importing refined petroleum products will not help the local currency and economy. What we need to push our economy right now is to save forex used for importation and channel it into more productive use.

Ko le,
We will just bombard the internet with videos of their candidates supporting subsidy removal.

But Tinubu should increase minimum wage by 300percent

Basic123:

Ko le,
We will just bombard the internet with videos of their candidates supporting subsidy removal.

But Tinubu should increase minimum wage by 300percent

Can state and local governments afford to pay a 300% increase in minimum wage?

Karleb:


Stop talking like a politician.

So, you want lies, or you want the truth?

What gives you the impression that subsidy is the reason we don't have a single working refinery till date?

The fact that subsidy regimen means that the sector cannot make the kind of profit it should be making to build and maintain suitable refineries, AND the fact that subsidy regimen means that instead of refineries being reliant on money they make, they rely on free government money

And you know what that means (massive corruption and sabotage to get more 'contract money' to fix the sabotage)

There is a reason why MTN workers are not sabotaging their antennas and other installations. If they did that, their profit would fall. An NNPC worker can get away with sabotage, because government would still release money regardless...

What gives you the assurance that this crop of corrupt politicians and mismanagers will build refineries if they stop paying subsidy?

Removal of subsidy means more profits, which means that refining petrol at home becomes more profitable, which leads to increased investment in refineries...and they may all be built by private money like Dangote. And...here is the miracle...they won't be using government money for the new refineries.

Like the GSM sector...MTN and co were allowed to charge as high as they liked....and they made humongous profits at our expense...which were reinvested in building and setting up antenna, laying lots of wires...so that we could now call our Auntie Vera in the village without stress, and have home internet. Cost to government....zero.

Please stop talking like you are in a political science class. Touch the grass!

I have since 2012 touched the grass, and been convinced that subsidy must go....after nearly 20 years of being like you and supporting subsidy.

Everyone agrees that subsidy is bad and must go!
However what has been created to ensure that the humongous consequences of the removal doesn't adversely affect Nigerians because it will!
See...people are yet to understand the gravity of what will happen after the removal!
Its not about blowing grammar or quoting statistics by paid economists and politicians who are affluent enough to run to another country if pandemonium occurs!
I actually thought by now that the FG through the minister of petroleum should have concluded the repair of the PH refinery and also ensure the modular refineries that have been built across the country is currently functioning!
This administration had 8 uninterrupted years to either build or repair the existing refineries and subsidy would have been removed without no one taking notice!
But the ineffectual FG headed by the outgoing PMB thought the best way to ameliorate the sufferings of Nigeria post subsidy removal is the distribution of a paltry 5k to 10 million selected nigerians for 6 months while leaving the rest to face the harsh conditions that will come after the removal!
Welldone Mr President....
SMH

Basic123:

Peter OBI also planned to remove subsidy

I would be against even if it were Jesus.

Karleb:


I would be against even if it were Jesus.

I support Tinubu and I against it too.
Unless he will increase salary by 300 percent and control inflation to 50percent

One of my female friends is a seamstress and she is killing it with IG ads whilst she powers her whole setup with Generator, i told her she may have to revise her prices soon because NNPC with it's incomptency ought to start stating official prices starting from now not when it would turn to a full blown crisis on our faces.