Shameless

DaddyCoool:


Nope. It's just another reality of life - we deal with it, not act like it's never been seen b4

Fuel is sold in Canada for less than $2. Why can't fuel be sold in Nigeria for less than N2?

nairalanda1:


The harsh fact is that almost all our neighbours are paying way above N1000.

Nigeria does not have the cash to keep fuel forever cheap. Make we be honest...this is not about agbado, and even the agbado government is spending trillions to avoid telling themselves the truth.

The painful thing is that if we cut government spending and stop the nasty corruption that is affecting us, the money raised won't be enough to pay for subsides long term. Also, the amount we earn from crude...80% of our earnings...is not enough.

Either we face the truth...or we keep throwing money down a bottomless pit.

We have been told repeatedly since the 1980's...we no wan hear.


To all those that have quoted me over this fuel thing...here is why I talk the way I talk

The fuel subsidy dilema


Also, if you want to call me APC supporter, and all sorts of names , fine. Just know that at the end, we cannot sustain subsidy. It has nothing to do with the party in power, and everything to do with our precarious fiscal situation.

And if you are quoting me to abuse me, just know that I have never abused you, and you can disagree without abusing me, as some have done here.

DMerciful:
Fuel is sold in Canada for less than $2. Why can't fuel be sold in Nigeria for less than N2?

1.Oga, I am not an agbado or obident, or atiku supporter.

2. NIgeria cannot sell fuel at N2 because if we do that, that means we would subsidise fuel to around at least N998 per liter...which means we would be spending 59 billion naira per day...in subsides. On petrol.

I don't need to tell you the kind of deficit it would cause. What we have now under agbado would look like chicken feed. Massive debt, that would in essence make us sell our souls to IMF and World bank. Maybe the souls of our generations yet unborn would be included.

3.Nigeria has a weak currency because we do not do what the countries with strong currencies do. Yes, and this APC government has not made things better.

That is why we cannot buy fuel at N2.

Why can't $1=N1? It was so 40yrs ago!

nairalanda1:


1.Oga, I am not an agbado or obident, or atiku supporter.

2. NIgeria cannot sell fuel at N2 because if we do that, that means we would subsidise fuel to around at least N998 per liter...which means we would be spending 59 billion naira per day...in subsides. On petrol.

I don't need to tell you the kind of deficit it would cause. What we have now under agbado would look like chicken feed. Massive debt, that would in essence make us sell our souls to IMF and World bank. Maybe the souls of our generations yet unborn would be included.

3.Nigeria has a weak currency because we do not do what the countries with strong currencies do. Yes, and this APC government has not made things better.

That is why we cannot buy fuel at N2.

DMerciful:
Why can't $1=N1? It was so 40yrs ago!

Yes, and 40 years ago, most manufacturing was domestic, plus we were earning the kind of dollars we needed to keep naira at N1 to one dollar.

Even then it was bound to fall. BY 1982, the oil price crashed, by 1989, it was N6 to one dollar, by 1993, it was offically N21 on the black market above N70 to one dollar.

It is what happens when a nation's revenue is linked to one currency, and not to a diversifed economy. Like Nigeria, like most subsaharan african countries.

That is why I believe all our leaders were not good. They won't do what the big nations whose currencies are strong do.

Like I said, we need to elect competent leadership that would move Nigeria from consumption to production and gradually strengthen the naira. Fuel should not be more than N20 per litre so whatever is needed to make that possible, we should go that route.

nairalanda1:


Yes, and 40 years ago, most manufacturing was domestic, plus we were earning the kind of dollars we needed to keep naira at N1 to one dollar.

Even then it was bound to fall. BY 1982, the oil price crashed, by 1989, it was N6 to one dollar, by 1993, it was offically N21 on the black market above N70 to one dollar.

It is what happens when a nation's revenue is linked to one currency, and not to a diversifed economy. Like Nigeria, like most subsaharan african countries.

That is why I believe all our leaders were not good. They won't do what the big nations whose currencies are strong do.

DMerciful:
Like I said, we need to elect competent leadership that would move Nigeria from consumption to production and gradually strengthen the naira

That means you want a leader that would raise the tax to gdp ratio, promote industrialization, and remove subsides totally and actually fight corruption, and reform the education system, so that cheating would be severely punished, and the trades would be encouraged.

Most of us don't want that type of leader because it means a generation of even more severe hardship. SO, we prefer to share money and borrow when we need.



.

Fuel should not be more than N20 per litre so whatever is needed to make that possible, we should go that route.

We can't do that now, as the amount of deficit that would cause would be scary.

Unless you want us to

1. Charge every Nigerian a tax that would take half their income

2.Charge the rich at an even higher rate

3. Charge property and council taxes

4.Eliminate the corrupt.

5.Actually diversify the economy.

And even then, the only way you can get a strong currency is by...manufactured goods and servicies.

nairalanda1:
.

1. SO, better apologise to Buhari and tinubu then , their protest in 2012 meant we had massive subsides. Even now, we still have massive subsides.

2.At the end, we have a massive debt, and we lost 4 refineries and until this dangote refinery came up, we lost domestic refining. IN 1988, we refined 400000 barrels in NIgeria. IN 2018, it was down to 6100. Benefits of subsidy

3.We lost billions to smuggling, and billions in investment.

As for me, Buhari and tinubu and their predecessors were wrong to keep subsidies. MIllions more could have been helped with the benefits from removing subsides.






We have always been a poor broke ass nation.

Plus the subsidy had to go, especially since by August 2022, we were using 90% of our revenues to pay debt (This is not a lie.).

If we had kept fuel below N200, we would have totally run out of money. If you think what we are having is bad, think of how it would be with zero cash for nothing

Nigeria is a broke nation because our leaders have not diversifed our economy...especially this current leadership.

Again, if Buhari and tinubu had seen sense in 2012, by now we won't have been in this state.



Because the price controls inherent in subsides means that anyone opening a refinery in Nigeria is going to lose billions of naira with every bit of product sold.

Like now, unless dangote is allowed to sell at a profit, he could lose N300 per liter under tinubu';s subsidy. That is going to make his refinery look like Lucifer's scrapyard in five years.

It's the same thing with power....

At the end, things have to be sold at a profit. If we want subsides, we got to fund them by taxes...massive taxes.

I am not sure you understood anything I wrote.
If you did, you will get the following.
1. There shouldn't be subsidy of imported fuel and yet fuel shouldn't be super expensive because we have large reserves of crude oil and the biggest refinery in the world. We have more than enough crude oil and we can sell petrol for under 100 Naira if we don't have thieves in power.
2. We are not indebted because of subsidy rather we are in debt because we are ruled by thieves. If many useless federal government expenditures are scraped and the FG and NNPC are honest, subsidy will be very sustainable.
3. Removal of subsidy has only led to much more poverty. Industries are parking up at a faster rate than ever before. So yes, it may reduce the governments need for loans but the people are directly paying the price.
4. Lastly, I was against the GEJ government removal of subsidy. All they needed to do was to make our refineries work. How hard can that be for a serious government.

So we should remove subsidy but only after we are capable of producing cheap fuel at home for the Nigerian people. We cannot be subsidizing the lifestyle of senators and the presidency but refuse to do the same for ordinary Nigerians.

tctrills:

I am not sure you understood anything I wrote.
If you did, you will get the following.

I think I did.

1. There shouldn't be subsidy of imported fuel and yet fuel shouldn't be super expensive because we have large reserves of crude oil and the biggest refinery in the world. We have more than enough crude oil and we can sell petrol for under 100 Naira if we don't have thieves in power.

1. Unfortunately the cost of stuff does not respect our earnings. Fuel is expensive, either way

2. Dangote took loans to build that refinery. He also has to pay workers at rates that would prevent them from japa. Then there is the transport cost which is by diesel truck, which is expensive. If NNPC Had not been forced to accept 40 years of subsidy, it might have had a working pipeline system that would have taken off some of the cost issues. And if our railways had been run profitably since independence., we might have had an alternative to the trucks.

3.And that's why we can't sell fuel for below N100. If we did that, the losses would be massive. And the refinery won't make a profit, and would lose money drastically.

I effing effing wish it was not so.

2. We are not indebted because of subsidy rather we are in debt because we are ruled by thieves. If many useless federal government expenditures are scraped and the FG and NNPC are honest, subsidy will be very sustainable.

1. Subsidy is not sustainable because costs of production rise...and I have detailed above why it might rise. That refinery needs to make a profit to cover the rising cost of production. If government keeps paying subsides...problem would arise

2.TO see how subsidy has pushed us into debt, I refer you to the article in the Nigerian Guardian.Reflections on the fuel subsidy regime

3. A common mistake most of you make is that my support for subsidy removal means I am ignorant or denying corruption. It does not mean so.

4.Nigeria is in debt because 80% of our revenue comes from oil. And we produce less than 2 million barells per day. That is not enough for a nation our size...something that Sanusi Lamido Sanusi and Ngozi OKonjo Iweala have pointed out in the past. And it is a big reason why we borrow.

If we want to stop borrowing...we have to diversify our economy, and also become industrial, and export manufactred goods and servicies, and stop sabotaging the power sector by keeping it under subsides, and also improve tax collection. and YES, FIGHT CORRUPTION

(Don't accuse me of defending corruption again ).

3. Removal of subsidy has only led to much more poverty. Industries are parking up at a faster rate than ever before. So yes, it may reduce the governments need for loans but the people are directly paying the price.

On the other hand, keeping subsidy is why we have

1. Lost refining capacity, because it is more profitable to import instead of refining at home.

2.Lost investment in the refining sector

3.Lost lots of jobs as a result

4.Lost billions in smuggled fuel to other countries...like Venezuela does, and even Libya.

5.Gotten into more debt as the deficit widens due to increasing cost of production making subsidy more expensive

I mean we have a lot of countries like the USSR and many other communist countries that were subsidy crazy...and their economies collpased under the strain.

The reason why we are not there is that we subsidisise petrol and power only. We don't do subsides for food, like we used to...until we ran out of cash to do so in 1984.

4. Lastly, I was against the GEJ government removal of subsidy. All they needed to do was to make our refineries work. How hard can that be for a serious government.

If you want a refinery to work, it has to operate at a profit, and that can only happen when subsides are gone.

Keep subsidy, and you have the situation where our refining capacoty went down from 400000 ibarells per day in 1988 to 92000 in 2012, to 6100 in 2019.

The problem is, most of you guys (not you) callme agbado, while you miss my point....that if something has to work, it has to operate at a profit.

Right now it costs N1000 at least , AT LEAST...to refine a liter of fuel. We cannot sell it at N100 and expect there to be no deficit in the budget. Meaning more debt.

nairalanda1:


I think I did.


1. Unfortunately the cost of stuff does not respect our earnings. Fuel is expensive, either way

2. Dangote took loans to build that refinery. He also has to pay workers at rates that would prevent them from japa. Then there is the transport cost which is by diesel truck, which is expensive. If NNPC Had not been forced to accept 40 years of subsidy, it might have had a working pipeline system that would have taken off some of the cost issues. And if our railways had been run profitably since independence., we might have had an alternative to the trucks.

3.And that's why we can't sell fuel for below N100. If we did that, the losses would be massive. And the refinery won't make a profit, and would lose money drastically.

I effing effing wish it was not so.


1. Subsidy is not sustainable because costs of production rise...and I have detailed above why it might rise. That refinery needs to make a profit to cover the rising cost of production. If government keeps paying subsides...problem would arise

2.TO see how subsidy has pushed us into debt, I refer you to the article in the Nigerian Guardian.Reflections on the fuel subsidy regime

3. A common mistake most of you make is that my support for subsidy removal means I am ignorant or denying corruption. It does not mean so.

4.Nigeria is in debt because 80% of our revenue comes from oil. And we produce less than 2 million barells per day. That is not enough for a nation our size...something that Sanusi Lamido Sanusi and Ngozi OKonjo Iweala have pointed out in the past. And it is a big reason why we borrow.

If we want to stop borrowing...we have to diversify our economy, and also become industrial, and export manufactred goods and servicies, and stop sabotaging the power sector by keeping it under subsides, and also improve tax collection. and YES, FIGHT CORRUPTION

(Don't accuse me of defending corruption again ).





On the other hand, keeping subsidy is why we have

1. Lost refining capacity, because it is more profitable to import instead of refining at home.

2.Lost investment in the refining sector

3.Lost lots of jobs as a result

4.Lost billions in smuggled fuel to other countries...like Venezuela does, and even Libya.

5.Gotten into more debt as the deficit widens due to increasing cost of production making subsidy more expensive

I mean we have a lot of countries like the USSR and many other communist countries that were subsidy crazy...and their economies collpased under the strain.

The reason why we are not there is that we subsidisise petrol and power only. We don't do subsides for food, like we used to...until we ran out of cash to do so in 1984.




If you want a refinery to work, it has to operate at a profit, and that can only happen when subsides are gone.

Keep subsidy, and you have the situation where our refining capacoty went down from 400000 ibarells per day in 1988 to 92000 in 2012, to 6100 in 2019.

The problem is, most of you guys (not you) callme agbado, while you miss my point....that if something has to work, it has to operate at a profit.

Right now it costs N1000 at least , AT LEAST...to refine a liter of fuel. We cannot sell it at N100 and expect there to be no deficit in the budget. Meaning more debt.

So you are getting it all wrong. All me need is working refineries. Remember the crude oil is ours. The only expense would be the cost of extraction and refining.
This would mean that we can afford to sell at a very cheap rate.
Same goes for Dangote. We can afford to give him the crude at below market price with the agreement that he will sell cheap fuel.
It's that simple.

Again. I repeat. Subsidy did not push us into debt corruption did.

tctrills:

So you are getting it all wrong. All me need is working refineries. Remember the crude oil is ours. The only expense would be the cost of extraction and refining.
This would mean that we can afford to sell at a very cheap rate.
Same goes for Dangote. We can afford to give him the crude at below market price with the agreement that he will sell cheap fuel.
It's that simple.

The thing is, if you want a working refinery, then every product from that refinery has to be sold at a profit. It does not matter if it means we end up buying fuel at N1200 or N12. It is either sold at a profit, or you bring in subsides that long term cannot be sustained because costs of produiction are rising.

That is why that dangote refinery has to work at a profit, not at subsidy prices or subsidy regime

Niger has had a working refinery for over 10 years...and it works because fuel is sold at a profit.Likewise Ghana, which has 2 refineries, and thus enough working. And both produce crude at home...so nothing like importing crude for the refinery(as seen in Azania/South Africa).

And Niger and Ghana have the same corruption and debt problems we have, plus Niger is poorer than we are self. As can be seen

I'm sorry, but fuel is expensive. It does not respect your wallet. Trying to make it respect our wallet since 1973 is why we have the mess we have now.

Again. I repeat. Subsidy did not push us into debt corruption did.

The thing is, our debt is caused by

1.Subsides, as seen in that Guardian article you have read

However, what many people fail to appreciate is that the current subsidy regime also fuels current inflation through higher budget deficits that are financed through ways and means and other forms of public debts. Most economists are in agreement that budget deficits financed through ways and means are inflationary. Current data shows that 95 per cent of government revenue is spent on payments of interests on government debts. It follows, therefore, that nearly all non-debt recurrent expenditure is financed by debt, including fuel subsidy. This is inflationary

.

2. Corruption

3. (this is the main one)...running a resource dependent economy.

Corden and Neary (1982) have demonstrated how Dutch disease occurs in an economy. According to them, in a country experiencing "boom" in the export of a commodity, the economy can be divided into three sectors: the "booming" export sector, the "lagging' traditional export sector and the non-export sector. [b]The Dutch disease occurs when the traditional export (tradable goods) sector is crowded out by the booming export sector and the non-tradable goods sector. The lagging traditional tradable goods sector may include cocoa, palm produce, cotton, rubber, coal, copper, textiles and some manufactured goods while the booming export sector may be crude oil, coffee, gold, etc. The non-tradable (non-export) goods sector covers all those goods that are produced for domestic consumption only, e.g. staple food items, clothing, building materials, locally-assembled cars. Where crude oil (and gas) is the booming export sector, the non-oil export sector may be crowded out by the oil sector and the non-tradable goods sector of the economy. This can happen when the oil revenue windfall increases domestic demand for non-tradable goods and pushes up domestic prices leading to an appreciation of the real exchange rate which in turn reduces the competitiveness of the non-oil export sector. This will in turn lead to a reduction in non-oil exports in both quantum and value terms. The oil windfall may also lead to movement of the factors of production in the economy. For instance, capital and labor (and land) may shift from the non-oil export sector to the oil sector (in order to maintain or increase reserves and production) and the non-tradable goods sector (to take advantage of the growing domestic demand). This explains why the increase in oil prices and the subsequent oil revenue windfall in many oil-exporting countries have tended to depress their non-oil export sector while at the same time generating a boom in both the oil and the non-tradable goods sectors. With capital and labor shifting from the non-oil export sector to the oil-sector and non-traded goods sector, firms in the non-oil export sector are forced to either close down or reduce their scale of operation. The boom in the oil and non-traded goods sector increases the demand for imported goods. This may not be a problem in the short-term so long as the country has enough foreign exchange to pay for the imports. The depression in the non-oil export sector and the boom in the other two sectors have medium to long term implications for the economy because the oil windfall will not be permanent given the volatility, unpredictability and exhaustibility of crude oil. For instance, if there is a decline in oil prices and oil revenue, the lagging and collapsing non-oil export sector will not be able to compensate for the drop in oil revenue while domestic demand for the non-traded goods and imports remain sticky. Consequently, the country will be forced to borrow from the international financial market to compensate for the decline in oil revenue. Over time, external debts will increase and so will the debt service obligations. Even when oil prices go up later and there is another round of oil windfall, it is difficult to correct the earlier damage or distortions created by the initial or previous oil windfall. In some cases, the oil exporting country may be forced to adopt some form of structural adjustment program (SAP) to correct such distortions or imbalances. Some of these SAPs are painful and may increase the prevalence, depth and severity of poverty

DMerciful:
Shameless

Shameless what? It's not new. All these below are from past and way past

wman:


Mannabbq aka ilovedemmanna aka eriggs aka Nlpolicewoman.

You did this for 8 years. Now it's one year into Tinubu administration and you are still interested doing the same. When will you rest?

Everyone knows him on nairaland

nairalanda1:


The thing is, if you want a working refinery, then every product from that refinery has to be sold at a profit. It does not matter if it means we end up buying fuel at N1200 or N12. It is either sold at a profit, or you bring in subsides that long term cannot be sustained because costs of produiction are rising.

That is why that dangote refinery has to work at a profit, not at subsidy prices or subsidy regime

Niger has had a working refinery for over 10 years...and it works because fuel is sold at a profit.Likewise Ghana, which has 2 refineries, and thus enough working. And both produce crude at home...so nothing like importing crude for the refinery(as seen in Azania/South Africa).

And Niger and Ghana have the same corruption and debt problems we have, plus Niger is poorer than we are self. As can be seen

I'm sorry, but fuel is expensive. It does not respect your wallet. Trying to make it respect our wallet since 1973 is why we have the mess we have now.






The thing is, our debt is caused by

1.Subsides, as seen in that Guardian article you have read

.

2. Corruption

3. (this is the main one)...running a resource dependent economy.

Again, you are wrong. If we have refineries why should we sell petrol at a profit to ourselves. What would be the reason for that?

Feintline:


If i were you, i will kep shut. The more you talk, the more stupid you sound.
You are comparing US to Nigeria .
A nation in darkness selling fuel at 1000.
Is your conscience dead?
Are you cursed to be irresponsible?
Or are you brainless?

U just described mannabbqgrill, aka Nlpolicewoman

tctrills:

Again, you are wrong. If we have refineries why should we sell petrol at a profit to ourselves. What would be the reason for that?

Why should you operate at a profit then if you are running a business?

See how the question can turn around to you?

The thing is, it costs money to keep a refinery running. It costs money to upgrade a refinery. It costs money to pay staff salaries that are at global standard because that refinery is competing on the world market. And most of the components of the refinery are made abroad.

It's not like we are.running a socialist economy. We be capitalists

Things cost money. That is why fuel is expensive

I end it here

nairalanda1:


Why should you operate at a profit then if you are running a business?

See how the question can turn around to you?

The thing is, it costs money to keep a refinery running. It costs money to upgrade a refinery. It costs money to pay staff salaries that are at global standard because that refinery is competing on the world market. And most of the components of the refinery are made abroad.

It's not like we are.running a socialist economy. We be capitalists

Things cost money. That is why fuel is expensive

I end it here

Saudi Arabia, Iran, Russia and mexico all sell fuel at a cheaper price than international price to their citizens and none of them take loans to do this.
Even the most capitalist nations such as the US spend billions of dollars to subsidize for the poor. In the US, we have welfare programs, Obamacare and so many subsidies for the poor.
Capitalism does not mean that you should sell a commodity to your citizens at a price beyond them even when the commodity is gotten from under their soil.
No wise leader profits from the poverty of it's citizens.
I end my case here.

guobe:

For real. Nice one .you can always hala me anytime

If you leave me your number, I sure will contact you. I am yet to meet an Edo based Nairalander.

Many thanks for the quote.

tctrills:

Saudi Arabia, Iran, Russia and mexico all sell fuel at a cheaper price than international price to their citizens and none of them take loans to do this.

1. Saudi Arabia produces 10 million barrels of crude a day. They also have less than 50 million people.

NIgeria produces less than 1.8 million barrels of crude a day, and we have 220 million people to share the revenue from crude amongst us.

As you can see, we are not like Saudi. Saudi can earn enough to have a reserve in the billions of dollars (as at 2014, their reserves were 600 billion dollars.). Nigeria, under the guy called Yaradua...had our reserves reach 60 billion

That is why we cannot be like Saudi.

2.Russia....runs a diversified, industrial, exporting economy...and even then fuel is still a bit expensive there compared to us.(It is N843 for a liter there...).

3.Mexico...sells fuel at N1983 naira. Where is the subsidy? Plus they also produce oyel too at home.

4. USA....runs an industrial, diversified economy, and earns money in the trillions of dollars...plus subsides are NOT FOR EVERYONE...they are for the poorest of the poor. Once your earning improves, subsides end.

Plus USA does production subsides, not consumption subsidies. And they don't sell fuel at the equialent of N100 per liter....despite refining it at home. And they are the largest crude producer in the world by the way.

Even the most capitalist nations such as the US spend billions of dollars to subsidize for the poor. In the US, we have welfare programs, Obamacare and so many subsidies for the poor.

See point no 4

Capitalism does not mean that you should sell a commodity to your citizens at a price beyond them even when the commodity is gotten from under their soil.
I end my case here.

Actually it does. That's why we all can't afford ferraris, or we all cannot afford to build a 20 bedroom house, talkless maintain it.

Things cost money.

nairalanda1:


1. Saudi Arabia produces 10 million barrels of crude a day. They also have less than 50 million people.

NIgeria produces less than 1.8 million barrels of crude a day, and we have 220 million people to share the revenue from crude amongst us.

As you can see, we are not like Saudi. Saudi can earn enough to have a reserve in the billions of dollars (as at 2014, their reserves were 600 billion dollars.). Nigeria, under the guy called Yaradua...had our reserves reach 60 billion

That is why we cannot be like Saudi.

2.Russia....runs a diversified, industrial, exporting economy...and even then fuel is still a bit expensive there compared to us.(It is N843 for a liter there...).

3.Mexico...sells fuel at N1983 naira. Where is the subsidy? Plus they also produce oyel too at home.

4. USA....runs an industrial, diversified economy, and earns money in the trillions of dollars...plus subsides are NOT FOR EVERYONE...they are for the poorest of the poor. Once your earning improves, subsides end.

Plus USA does production subsides, not consumption subsidies. And they don't sell fuel at the equialent of N100 per liter....despite refining it at home. And they are the largest crude producer in the world by the way.




See point no 4


Actually it does. That's why we all can't afford ferraris, or we all cannot afford to build a 20 bedroom house, talkless maintain it.

Things cost money.

First we both agree that being capitalist has nothing against giving subsidy to your government.
Now Mexican fuel is much cheaper that that of the US and that is subsidy.
Lastly the citizens of Nigeria actually need cheap fuel more that the richer Arabians.
Is it not foolish to sell for a profit when your people can fuel their cars.
That's my whole point.

tctrills:

First we both agree that being capitalist has nothing against giving subsidy to your government.
Now Mexican fuel is much cheaper that that of the US and that is subsidy.
Lastly the citizens of Nigeria actually need cheap fuel more that the richer Arabians.
Is it not foolish to sell for a profit when your people can fuel their cars.
That's my whole point.

So you would sell things at a loss, if you are running a business, to help the poor?

Good evening

nairalanda1:


So you would sell things at a loss, if you are running a business, to help the poor?

Good evening

If you read what I wrote, you wouldn't be asking such a question.
The oil is God's free gift. You only need to add cost of drilling and refining that's all the people pay for.
And yes the business of government is to help the poor.
Good evening to you too.

tctrills:

If you read what I wrote, you wouldn't be asking such a question.
The oil is God's free gift. You only need to add cost of drilling and refining that's all the people pay for.
And yes the business of government is to help the poor.
Good evening to you too.

That shows that you would sell things at a loss to help the poor.

It does not work like that in real life...as seen in our petroleum sector.

nairalanda1:


That shows that you would sell things at a loss to help the poor.

It does not work like that in real life...as seen in our petroleum sector.

This shows you don't understand simple maths.
The oil in the ground is free. The only cost is that of drilling and refining.
Again cheaper fuel is better than the economy. And yes it works like that. I have given you countries that subsidizes for their people. I guess that's not real life enough to you. If petrol was much cheaper, the economy would grow at a much faster rate.

tctrills:

This shows you don't understand simple maths.
The oil in the ground is free. The only cost is that of drilling and refining.

Which at the moment adds to about 1000 naira for a liter of fuel

Again cheaper fuel is better than the economy. And yes it works like that. I have given you countries that subsidizes for their people. I guess that's not real life enough to you. If petrol was much cheaper, the economy would grow at a much faster rate.

Selling that fuel that cost N1000 at N100 per liter means we spend N900 per liter in subsidy, which means , assuming that fuel consumption is 60 million liters per day, means we spend 54 billion naira daily subsidising fuel to reach your N100

Which means we spend 19-20 trillion naira in a year for subsidy....meanwhile our budget for this year is 33 trillion naira. So, how are we going to pay for well most of other things?

So, how do we replace the 19 trillion we have spent in a year? LOANS. and more LOANS...AND More debt.

And you are here abusing me that I do not know maths.

Good evening.

nairalanda1:


Which at the moment adds to about 1000 naira for a liter of fuel



Selling that fuel that cost N1000 at N100 per liter means we spend N900 per liter in subsidy, which means , assuming that fuel consumption is 60 million liters per day, means we spend 54 billion naira daily subsidising fuel to reach your N100

Which means we spend 19-20 trillion naira in a year for subsidy....meanwhile our budget for this year is 33 trillion naira. So, how are we going to pay for well most of other things?

So, how do we replace the 19 trillion we have spent in a year? LOANS. and more LOANS...AND More debt.

And you are here abusing me that I do not know maths.

Good evening.

First I am not talking on subsidy so your premise is wrong.
If the oil was imported then it would cost as much but it does not have to be if your refineries are working.
Again you have fallen for the corruption to assum that Nigeria comsumes 60 million liters of oil a day. How many liters were we consuming in 2015. Please do the maths again
Lastly our 3024 budget is about 27 trillion. Spending it on making the life's of Nigerians better is actually the best way to spend it.

tctrills:

First I am not talking on subsidy so your premise is wrong

I see. Well, things do cost money.
.

If the oil was imported then it would cost as much but it does not have to be if your refineries are working.

Just less N130 according to IPMAN.

Again you have fallen for the corruption to assum that Nigeria comsumes 60 million liters of oil a day. How many liters were we consuming in 2015. Please do the maths again

That is the latest value by the experts, not made up. The inflated one is as high as 99 million liters.

As at now, it is 66.8 million liters.

Lastly 19 trillion is about 27 trillion. Spending it on making the life's of Nigerians better is actually the best way to spend it.

[/quote]

So you want us to spend 19 trillion out of our budget of 33 trillion to keep fuel below N100 per liter?

Oga, things cost money.

Please stop arguing, you are making me laugh.

nairalanda1:


I see. Well, things do cost money.
.


Just less N130 according to IPMAN.



That is the latest value by the experts, not made up. The inflated one is as high as 99 million liters.

As at now, it is 66.8 million liters.



So you want us to spend 19 trillion out of our budget of 33 trillion to keep fuel below N100 per liter?

Oga, things cost money.

Please stop arguing, you are making me laugh.

Funny I am equally laughing at you.
I ask you again, how much fuel were we consuming in 2014. It's one thing to be an expert and another to be corrupt. Now do your maths with 2014 figures.

tctrills:

Funny I am equally laughing at you.
I ask you again, how much fuel were we consuming in 2014. It's one thing to be an expert and another to be corrupt. Now do your maths with 2014 figures.

Ah well, how much was fuel consumption in 1985 , old chap?

YoshihideSuga:


I'm curious, what does it mean?

Loading

mcquin:

If you leave me your number, I sure will contact you. I am yet to meet an Edo based Nairalander.

Many thanks for the quote.

I have sent you a mail

emmyclassic:
Average minimum wage per hour in America is $14. So an average American on minimum wage is spending less than half of an hour pay to buy a gallon of patrol, In Nigeria were minimum wage is 30,000 naira one would be spending a whole days pay to buy same 1 litre of petrol. So how does the comparison work oga?

You get time o... Don't you know you are chatting with a zombie?