President Goodluck Jonathan has proposed to cut fuel subsidies in half in a bid to reduce spending after a retreat in global crude prices.

According to David Mark, the Senate President, the government plans to reduce fuel subsidies next year to N458.6 billion ($2.6 billion) from N971.1 billion , citing a revised 2015 Medium Term Expenditure Framework and Fiscal Strategy Paper submitted by President Jonathan.

The global collapse in oil prices is biting into Nigeria’s income, 70 percent of which comes from crude exports. Finance Minister Ngozi Okonjo-Iweala plans to cut expenditure by 6 percent next year and lower the budgeted benchmark oil price to $73 per barrel, from $77.5 this year.

Kerosene subsidies will also be cut to N156 billion, from N250 billion, according to the proposal.

Source: http://businessdayonline.com/2014/11/president-seeks-to-cut-fuel-subsidies-after-oil-decline/#.VG7T7Ye9KSM

But Diran Fawibe, the chairman and chief operation officer of International Energy Services, said that the move by President Goodluck Jonathan to cut the amount to be spent on subsidy is a step in the right direction.He however fears that the labour unions and civil society groups may not allow Jonathan to implement the policy, especially in an election year.

He urged the president to carry the union members and civil society groups along.

He said there would be no point for the president to move such an idea without being able to carry it out, adding that the cost of fuel subsidy would continue to balloon, since the country has no functional refineries .

The Dangote Refinery which is the most viable one in sight, he said, would not come on stream until 2018.

Spending N458.6 billion on fuel subsidy according to him ,is still a lot of money and it would amount to creating jobs for indigenes of other countries .

Speaking in the same vein , Austin Nweze of Pan Atlantic University said that subsidy would create jobs for other countries at the expense of Nigerians

He said in the short run, the cut may affect the price of fuel, as it would go up temporarily, but in the long run, it would benefit Nigerians.

The government, he said, should remove subsidy completely and encourage the establishment of refineries in the country, adding that such a move would encourage competition in the price of fuel.

He however expressed fears that corruption may pose as an obstacle, as those that are benefitting from the corrupt system may work against the proposal.



Wicked Nigerians. The price of fuel will not go up because crude oil has dropped and refined fuel is about 95 Naira per liter on the international market. Nigerians are just too greedy.

There is nothing breaking about the news. Was expecting this as a new year gift from our generous Mr President, thanks to the ever falling price of crude oil and failure to curb the excesses of the subsidy thieves
What is the impact of the SURE-P funds from the last subsidy cut? What happened to the promise of prosecution of the subsidy thieves? What happened to the promise of renovation of existing refineries and building new ones? Oil theft and bunkering keeps increasing, not the other way around. Natural gas which is supposed to be a major source of income to the nation isn't, cause of the failure to have put a stop to gas flaring. More questions than answers

Fuel queues will start appearing this December, please store fuel safely to avoid the effect of scarcity this December.

Imagine fuel scarcity with useless Naira, the Naira is 176 to Dollar officially and 180 in the black market.

What a black December awaits Nigerians

I voted him in 2011 but in 2015 he just has to go .. Please Jonathan Go

People who ask what the govt is doing about fighting corruption needs to understand that the best and sure way to do so is block all avenues that lead to corruption. Cutting fuel subsidy is a sure way to reduce corruption in that sector, it may hurt in the short run but eventually everything will balance out.
But as has been said the President must have to carry the labour unions and civil society organisations along in the implementation of this policy but I doubt the unions will see reasons for it and it will be 1st Jan 2012 all over again.

GogetterMD:
There is nothing breaking about the news. Was expecting this as a new year gift from our generous Mr President, thanks to the ever falling price of crude oil and failure to curb the excesses of the subsidy thieves

How do you curb the excesses of the subsidy thieves if not by removing the subsidy from which they feed fat?

Political Office holders consume up to 30% of our entire budget. They are the ones to make sacrifices and not us. Don't let them feed you with lies from a compromised press who they have got in their pockets.

They are also increasing VAT and all taxes too so as to impoverish us more

Jona we are not surprised at your doings any longer... Please just don't run the country down before May 29, 2015.

Jaiyeola Andrews in Abuja

Owing to the slump in oil prices, the federal government on Thursday disclosed that it had mapped out measures to increase taxes and other forms of internally generated revenue (IGR) in the country.

The Lagos State Deputy Governor, Mrs. Victoria Adejoke Orelope-Adefulire, stated this when she briefed State House correspondents after the National Economic Council (NEC) meeting held at the Presidential Villa.

The NEC also called for a review of the proposed amendment to the Act on the harmonisation of taxes and levies across the federation.

She added that the measures were announced by the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala.
“It further directed the Federal Ministry of Finance, Federal Inland Revenue Service, Joint Tax Board and the Office of the Attorney-General of the Federation to commence the process of amending the VAT Act with emphasis on a review of the rate.

“Council also considered and approved the attached schedule containing the reviewed list of taxes and levies collectable by the three tiers of government for publication by the Joint Tax Board (JTB).

http://www.thisdaylive.com/articles/oil-price-slump-fg-to-increase-taxes-igr/194681/

Ok

Meaning the price of a litre of fuel will increase? Please he should give Nigerians the surprise package in January as he did two years ago while he will be massively voted out in February 2015.

Fresh fart air. About time this clueless otuoke fisherman is sent back to the creeks.

Thought they've removed it since?

Is this not the GEJ that caused an occupy Nigeria? Is he not the one that paid billions of $$ to cronies in the name of subsidy and increased subsidy 10x? If I did not know GEJ, looking at this picture I will think he suffers from Downs or Edward's syndrome. The word clueless falls short in describing this picture. This was a picture taken on his birthday yesterday, and the picture shows you that the leader of Nigeria is indeed clueless. Is this the person that wants to rule Nigeria beyond 2015 (that is if Nigeria still exists)? His face tells it all. Fellows be wise, desist from voting a retard in power!

-CramJones

Hasn't it been removed already? The FG can do whatever they like on this one. Nigerians will surely cope. It seems the government sees subsidy removal as an achievement that will boost its re-election.

iPray

Make dem do first

thank God

That is why I have been saying this government does not have the ordinary masses at heart all they think about is how to make their own lives better. Thats why i say kudos to the lawmakers calling for his impeachment even if it doesn't go through it will remind him Nigeria is not his private fish farm






JONATHAN's IMPEACHMENT BATTLE - 130 Lawmakers signed impeachment notice
Source: [url=https://www.google.com.ng/search?q=JONATHAN%27s+IMPEACHMENT+BATTLE+-+130+Lawmakers+signed+impeachment+notice&oq=JONATHAN%27s+IMPEACHMENT+BATTLE+-+130+Lawmakers+signed+impeachment+notice&aqs=chrome..69i57&sourceid=chrome&es_sm=0&ie=UTF-8#q=JONATHAN%27s+IMPEACHMENT+BATTLE+-+130+Lawmakers+signed+impeachment+notice+e+reporter+news]http://www.e reporter.com.ng/index.php/national-news/item/1512-jonathan-s-impeachment-battle-130-lawmakers-signed-impeachment-notice[/url]

PRESIDENT JOHNNY:MAKING LIFE HARDER 4 NIGERIANS SINCE 2010




SINCERELY ANYONE WHO VOTES FOR JONATHAN IN 2015 IS SIMPLY AN ENEMY OF NIGERIANS

After 2015 what next?

Was expected

Thing is, we are wasting money on a bottomless pit called Fuel subsidy. It has been subject to a lot of abuse and stealing.

I guess the money saved can now be used for Power, Railways, and education as well as health.

Well Nigerians.....looks like the era of cheap fuel is over. And this is one PDP policy that I won't be criticizing......because, unfortunately, it is the right thing to do.

Modified at 7.58: We must spend the saved money from the removal of fuel subsidy on improving power....so that we can no longer be dependent on oil....and instead...be doing industrial development, industrial development!

And no longer have a dutch diseased economy....the true problem of Nigeria..

Good movement by DR EBELE JONATHAN

Hopefully this will give Nigerians the impetus to rise up once and for all and take what is duly theirs.

profjustine458:
After 2015 what next?

Then 2016..

I stopped caring about what they do

Again.

What do these folks takes us for?

If subsidy is removed,then the government should tell me what we are enjoying as a Nigerian..

I hope we can all unite,leaving all tribal sentiments,and tackle the government on this once,and for all..

An hungry man is a desperate man.