bushdoc9919:
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..

what have the govt done with the money from the previous reduction in fuel subsidy, who is deceiving who, were are the buses, were are the investment, were are the benefits from the subsidy reinvestment fund.

bushdoc9919:
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..

SUREP bus takes u to work everyday I guess...otherwise,u won't be vomitting the unexpected...

chronique:
Long over due. Subsidy breeds corruption and it has to stop. 100% in support of it.

You go school? No offense please because its like many Nigerians don't think.

If the salaries of these political office holders are cut low and they stop stealing our money, there will always be more than enough to use as subsidy if there is anything like that.

Please can you explain what led us into fuel subsidy in the first place.World over people pay taxes and they fill the impact but ours is an exception. Bro ,have you seat down to evaluate the consequencies of devalution of naira,tax increament ,VAT increament,fuel subsidy removal ,kerosene subsidy removal and PHCN tarrif increament in a country where social infrastructures are comatose.Think about the consequencies,think about the number of cottage companies that will fold up,think about unemployement,think about reduction in peoples purchasing power which will directly affect patronage, think about insecurity and increase in crime rate.Think about PRICES of goods and services going up INFLATION.PRICES OF COMMODITIES IN THE MARKET no dey look face wether you support fuel subsidy removal or not we will CHOP from the same market.

Whynotthetruth:


First there's no free food even in Freetown...All country world over tax themselves more than us here eg Uk...Nigerians are use to free food hence they scream once they here taxation...infrastructure is money, how do government make money? taxation and co...our oil is just jara... have you taken time to study the austerity measures of government to cushion the effect of our income from crude oil export...where do you have issues? are you against taxation on luxury goods? or what?

Jonathan MUST GO !!!!!


THIEVES EVERYWHERE, I SEE THEM OCCUPY ASO ROCK AND STIL DECLARING TO CONTINUE !


SAY NO TO CLUELESS GOONS !

Collynzo9:

No need for unnecessarily long posts.
Are you are telling me that those we import petroleum products from will be selling to us at an even higher price despite the drop in the price of crude oil?
It doesn't sound one bit sensible to be honest.

world economics don't sound sensible. They will be selling higher so as not to make losses. You dont have an option than to buy because you don't have the facility to refine because you need it direly . You don't have an option than to sell your crud produced also because you need to generate income. You see the problem nigeria is facing. We have to sell crude at a lower price , and import higher simply because we don't have maximum means to refine here. So many countries produce crude , if you not selling the will buy from others. And if you are not buying their refined products their own citizens will buy. The refined product is one that has got better usage.

Gordieshegz:



SUREP bus takes u to work everyday I guess...otherwise,u won't be vomitting the unexpected...

And what I will say in response is that the fuel subsidy money must be used to improve power supply.....and thus spur us on the road to industries, and lessened dependence on oil.

Because the real issue is....we are too dependent on oil

Yomieluv:
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.

an even with the oil boom years ago what have we benefited? Nigerians been complaining since 1960. Hope u are aware that some ppl are living fat on this subsidy payments yet the prices are not the same every where in the country and the ppl aren't benefitting from, even on the kerosene subsidy payments. Who are those gulping the payment? On issue of extending the emergency rule, some northerners are kicking against it and demanding for a change of tactics, why not the same been applied in the petroleum sector? Since the subsidy hasn't trickled down to the average man, then there should be a change pattern and remove it completely, let us face it once and for all.

This man is a thief. There was no subsidy at all. The issue is that imaginary figures for stealing Nigeria was put in place immediately he became President that multiplied subsidy by 10 folds even when PMS was given 50% price increase from 65 to 97 Naira. Only the fools will fall for this bullsht. Subsidy was barely 200 billion when Jonathan became President. Then AGO and DPK were also subsidised.

SME1:
GEJ and his allies have obviously GONE MAD!!! And dat idiot could publicly open his smelling mouth to say d furl subsidy will create jobs for indigenes of other countries. Feeding dogs real meat while d citizen chew bones AGAIN!! Lord Pls let me get my visa ready soon. No hope for dis country anymore!!

Bro, no need for abuses yet...why run away when you seem very ignorant...wait a second, let me explain to you how and why they are right...if they don't remove subsidy, then we keep paying importers and putting pressure on the naira hence we grow other economies and force ours and naira to go down...Also, if we don't remove subsidy then, private sector will not invest in that sector because government is the one regulating prices...can you remember the time of NITEL? and how that sector was deregulated? Finally, so with subsidy we will keep regulating that sector thereby pushing away private sector investment and encouraging importation which kills our economy and creates jobs in those countries we are importing from who have functional refineries....is it clear now..? if you don't understand Nigeria and run to another country... you will still run back more confused cos the problem is not in Nigeria but in you...safe journey

bishopjoe02:


what have the govt done with the money from the previous reduction in fuel subsidy, who is deceiving who, were are the buses, were are the investment, were are the benefits from the subsidy reinvestment fund.

The money from oil....even sans corruption is not enough.

We are not a rich country. We produce as much oil as the UAE....and for 160 million people (the UAE has 8 million).

Our road now lies with using the savings from the fuel subsidy to improve power supply.....and thus follow China and Japan down the road of industries....so that we will have the GDP that will enable us to spend money on the welfare programmes that Nigeria loves....and on subsidies galore.

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
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

Perhaps you weren't following developments in the petroleum sector but the federal government over the years had recovered hundreds of billions of dollars from subsidy thieves. Most of them have been charged to court. Its left for the courts to prosecute them accordingly.

You are right concerning our earning potential in gas. However, we must understand were we are coming from. Previous administration since 1970 failed to lay down the necessary infrastructure for the development of gas. The military government of the 1970s were instrumental to the establishment of NLNG (Nigerian Liquified Natural Gas) but some where along the line, the projects were not given the needed priority. Gas was abandoned because the government then felt that gas was not too important. That was the perception. Now we're paying the price for the neglect.
In today's economic environment, it will cost billions of dollars to build and establish an extensive network of gas pipeline needed for gas development across the country. This is very expensive and way beyond the government to finance alone except through private sector partnership. The major stumbling block to this development is the failure of the National Assembly to pass the PIB Bill.

majekdom2:
world economics don't sound sensible. They will be selling higher so as not to make losses. You dont have an option than to buy because you don't have the facility to refine . You don't have an option than to sell your crud produced also because you need to generate income. You see the problem nigeria is facing. We have o all crude at a lower price , and import higher simply because we don't have maximum means to refine here.

You are just making a very wild assumption.
There are more than one source of buying refined petroleum products, there is now way they will be selling to us at a higher price despite the huge drop in the cost of crude oil, no level of voodoo economics can explain that.
There is now way they are going to make any loss whatsoever, unlike here in Nigeria, the price of Petrol in those countries is determined by market forces, they sell according to how much they buy. Reduction in price only takes effect the moment they exhaust their old stock and buy new stock at a lower price.
No loss whatsoever there.

deucelaw:
What is the guarantee that the total removal would make any difference. No doubt, it is a good move if the priorities and structures are in place to ensure the savings are effectively used. But honestly i doubt that the government has the capacity to use it to Nigeria's benefit. They have failed in simpler things, why should it be different this time. So much mismanagement of public funds and in accountability by the government.

Then stop complaining, get up.,....and get the accountable government you want. You do not have to vote PDP or APC.....for goodness' sake.

Good move!!! I support subsidy removal

www.nairaland.com/1998269/what-economy-implication-oil-price#28075890

Hello, if you followed the link above, the report of fuel subsidy removal would not come as a surprise.

And infact, its not a full removal but about half that was proposed.

You could also see a proposed cut in capital expenditure through cuts in SURE_P.

It's a good development when you identify a problem and acknowledge it and also begin to act to solving the problem(s).

Nigeria must begin to conscientiously develop her areas of comparative advantage to become more productive and less dependent on a mono_product system. It may be interesting to note that this same crude oil for instance contribute only about 21,000 jobs directly and if you factor in Government employees (less than 750,000), you have a paltry 1.8% contribution to employment in Nigeria (Labor force is estimated at 55 million).

Nigeria's area of comparative advantage is land and labour to a good degree and therefore, Government's fiscal policies, focus and drive should be towards sectors that can harness these 2 key factors of production: Agribusiness and Manufacturing. These will create more jobs, reduce unemployment,reduce insecurity, and position Nigeria to a multi_product economy.

Regards.

I have ONE question to ask our incredibly CORRUPT government. What has SURE-P done with the funds that accrued from the partial lifting of fuel subsidy that was done early this year??

The answer is NOTHING!!!!!! Our government is so corrupt that they can not even account for the funds that was received from lifting of subsidy. I still remember the PTF which was setup when the then military government increased fuel prices. I actually saw roads that were built by PTF and my school's labs were renovated by PTF! And to think that this was during the military era which was supposedly corrupt.

I can say that the JONATHAN administration is without doubt THE MOST CORRUPT government Nigeria has ever had!!!

The sad truth is that subsidy should actually be removed but the sadder fact is that even if it is totally removed today, the money saved would enter the pockets of corrupt government officials

Finally where are all the people that are quick to say GEJ till 2019 How come none of them are on this thread??

Whynotthetruth:



Bro, no need for abuses yet...why run away when you seem very ignorant...wait a second, let me explain to you how and why they are right...if they don't remove subsidy, then we keep paying importers and putting pressure on the naira hence we grow other economies and force ours and naira to go down...Also, if we don't remove subsidy then, private sector will not invest in that sector because government is the one regulating prices...can you remember the time of NITEL? and how that sector was deregulated? Finally, so with subsidy we will keep regulating that sector thereby pushing away private sector investment and encouraging importation which kills our economy and creates jobs in those countries we are importing from who have functional refineries....is it clear now..? if you don't understand Nigeria and run to another country... you will still run back more confused cos the problem is not in Nigeria but in you...safe journey

as long as we don't refine our products , the industry will keep having problems

major466:

Perhaps you weren't following developments in the petroleum sector but the federal government over the years had recovered hundreds of billions of dollars from subsidy thieves. Most of them have been charged to court. Its left for the courts to prosecute them accordingly.

You are right concerning our earning potential in gas. However, we must understand were we are coming from. Previous administration since 1970 failed to lay down the necessary infrastructure for the development of gas. The military government of the 1970s were instrumental to the establishment of NLNG (Nigerian Liquified Natural Gas) but some where along the line, the projects were not given the needed priority. Gas was abandoned because the government then felt that gas was not too important. That was the perception. Now we're paying the price for the neglect.
In today's economic environment, it will cost billions of dollars to build and establish an extensive network of gas pipeline needed for gas development across the country. This is very expensive and way beyond the government to finance alone except through private sector partnership. The major stumbling block to this development is the failure of the National Assembly to pass the PIB Bill.

Who has been charged to court? Ifeanyi Uba? Femi Otedola? Obateru Akinrutan?
BTW, where is the billions of dollars regained from the subsidy thieves and why was it not reinvested?

IBROHIM:
I agree with you my brother but why not government build lots of refineries first then when they start producing, we close our boarders to fuel products importation then competition will drive the price down! Whatever we do let's put the masses first! Let's not put the cart before the horse! It's obvious the government only want to task the already suffering masses more! It's a shame!!! Peace!!!

my broda, let take it from this angle, is it only petroleum we have in this country. so why is it that FG is directly involve in the industries. why dont we have ministry of limestone, ministry of charcoal, ministry of iron ore and the likes.

Either FG or state, they have not thing to do with the industry, eithe downstream or upstream, all they need do it have agency to regulate the industry, that all.
my broda, this is why the gaint company in the world the likes of shell, Total, BP, Cnpc, chevron have refuse to build refinery in our country, instead they exploit our crude at chicken change, that our leader are fighting over, and make alot of gain after refining,

we provide job for them indirectly, why our own economy is sinking.
the Government cannot run a business successfully without sentiment.

therefore. what they only need to do is to provide rules and regulation.
then the oil gaint will have faith in our economy and invest building refinery, it will be dificult for them then to transport our crude to their various country and import the refine product back to us.

bushdoc9919:
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..

Removal of fuel subsidy is the best plan we got but unfortunately, the same Nigerians that are clamoring for change will be the same set of people to oppose these move. The question now is Are we ready for development?

Gistdutch:
Please can you explain what led us into fuel subsidy in the first place.World over people pay taxes and they fill the impact but ours is an exception. Bro ,have you seat down to evaluate the consequencies of devalution of naira,tax increament ,VAT increament,fuel subsidy removal ,kerosene subsidy removal and PHCN tarrif increament in a country where social infrastructures are comatose.Think about the consequencies,think about the number of cottage companies that will fold up,think about unemployement,think about reduction in peoples purchasing power which will directly affect patronage, think about insecurity and increase in crime rate.Think about PRICES of goods and services going up INFLATION.PRICES OF COMMODITIES IN THE MARKET no dey look face wether you support fuel subsidy removal or not we will CHOP from the same market.

Bro, you are really confused and unfortunately, I don't have the strength to type all those explanations for you here...but what's social infrastructure to you? All the infrastructure that you enjoy currently, how do government fund them? where do the money come from? what cottage industries will fold ? are you for real...what's the alternative to naira devaluation?...do you pay as much tax as Americans? but you wanna enjoy what they have? why not pay and enjoy same bro?...You just lumped so many issues together here...from economic to political to social and security challenges...I don't know which one to answer you again... But seriously, bro you need to be more enlightened...I don't mean to insult you here plz...but your write up gives me lots of clue about your level of reasoning...get enlightened and be happy for it...its not about shouting match...good day

Collynzo9:

You are just making a very wild assumption.
There are more than one source of buying refined petroleum products, there is now way they will be selling to us at a higher price despite the huge drop in the cost of crude oil, no level of voodoo economics can explain that.
There is now way they are going to make any loss whatsoever, unlike here in Nigeria, the price of Petrol in those countries is determined by market forces, they sell according to how much they buy. Reduction in price only takes effect the moment they exhaust their old stock and buy new stock at a lower price.
No loss whatsoever there.

read thru my earlier quote of you. You still don't understand.which ever source you need to buy for is going to sell perhaps higher .they bought the refined crude they selling to you now at a higher price from you earlier.They cannot sell lower that's the effect of the change. The refined crude we buying is not the one sold last week or last month. Read up on crude and refined products transportation. Now get this clear, your crude is useless except it is refined. You can't put a raw crude to run your vehicle. If you don't buy their products they will sell to their citizens but you have got to sell your own crude to generate income and if you don't sell they will buy from other countries. Bro , the price of fuel didn't change because the government fixes the price and that's why we have this problem now. If we refining there would be competition , and thus we could have a different story.

major466:

Perhaps you weren't following developments in the petroleum sector but the federal government over the years had recovered hundreds of billions of dollars from subsidy thieves. Most of them have been charged to court. Its left for the courts to prosecute them accordingly.

You are right concerning our earning potential in gas. However, we must understand were we are coming from. Previous administration since 1970 failed to lay down the necessary infrastructure for the development of gas. The military government of the 1970s were instrumental to the establishment of NLNG (Nigerian Liquified Natural Gas) but some where along the line, the projects were not given the needed priority. Gas was abandoned because the government then felt that gas was not too important. That was the perception. Now we're paying the price for the neglect.
In today's economic environment, it will cost billions of dollars to build and establish an extensive network of gas pipeline needed for gas development across the country. This is very expensive and way beyond the government to finance alone except through private sector partnership. The major stumbling block to this development is the failure of the National Assembly to pass the PIB Bill.

oh thank God you seethe failure of the PIB . With the IOCs pulling out of projects do you think the industry will not crash. There are better decisions and policies the government can make to better this situation.... Not subsidy.

micolaj:
You know the RIGHT CHOICE, but sentiment and hypocrisy has clouded your reasoning. You are more dangerous than evil itself.I pity those people, who bank on you as an ADVISER.

Are you having mentals? I asked you a question to give a simple answer,. go and examine your mental status.

GogetterMD:

Who has been charged to court? Ifeanyi Uba? Femi Otedola? Obateru Akinrutan?
BTW, where is the billions of dollars regained from the subsidy thieves and why was it not reinvested?

That's why it's important to follow developments going on around the country. Your questions clearly suggest that you are not fully aware of going ons in the energy sector.
I can't tell you whether the people you mentioned are charged to court. You can do the investigation yourself.

jcflex:





my broda, let take it from this angle, is it only petroleum we have in this country. so why is it that FG is directly involve in the industries. why dont we have ministry of limestone, ministry of charcoal, ministry of iron ore and the likes.

Either FG or state, they have not thing to do with the industry, eithe downstream or upstream, all they need do it have agency to regulate the industry, that all.
my broda, this is why the gaint company in the world the likes of shell, Total, BP, Cnpc, chevron have refuse to build refinery in our country, instead they exploit our crude at chicken change, that our leader are fighting over, and make alot of gain after refining,

we provide job for them indirectly, why our own economy is sinking.
the Government cannot run a business successfully without sentiment.

therefore. what they only need to do is to provide rules and regulation.
then the oil gaint will have faith in our economy and invest building refinery, it will be dificult for them then to transport our crude to their various country and import the refine product back to us.

oh very good. Have we have not bothered to ask ourselves why these IOCs are not key players in the downstream.the only IOC that runs filling stations is TOtal. I have not seen shell or chevron, whereas they are key players in this sectors abroad.

majekdom2:
as long as we don't refine our products , the industry will keep having problems

That's the truth...But how do we go from here... First, inasmuch as government is directly regulating the sector via subsidy and others, private investors will never come in...Till we remove subsidy and government allows market mechanism to regulate the sector, refineries from private investors won't come in...Have you researched why all the private companies licensed since over 5years now have refused to build any refinery? take a cursory look at the PIB and you see it is private sector driven...once they remove subsidy and pass that bill, believe me that sector will open up and in the long run, the common man will benefit more... though in the interim, we may scream but it will only be short lived...and we be the better off.......SUBSIDY is taking from the NEEDY to pay the GREEDY...

major466:

Removal of fuel subsidy is the best plan we got but unfortunately, the same Nigerians that are clamoring for change will be the same set of people to oppose these move. The question now is Are we ready for development?

oga , if the salaries of these senators and all can be slashed , if they see these cabals go to jail. I tell you Nigeria will embrace this subsidy removal full time.

majekdom2:
read thru my earlier quote of you. You still don't understand.which ever source you need to buy for is going to sell perhaps higher .they bought the refined crude they selling to you now at a higher price from you earlier.They cannot sell lower that's the effect of the change. The refined crude we buying is not the one sold last week or last month. Read up on crude and refined products transportation. Now get this clear, your crude is useless except it is refined. You can't put a raw crude to run your vehicle. If you don't buy their products they will sell to their citizens but you have got to sell your own crude to generate income and if you don't sell they will buy from other countries. Bro , the price of fuel didn't change because the government fixes the price and that's why we have this problem now. If we refining there would be competition , and thus we could have a different story.

What exactly is your point? Is the crude oil they bought at a higher price supposed to last forever? What have they been selling to their customers then? The drop in Prices of petroleum products in US and other places wouldn't have come to effect if the marketers had not exhausted their previous stock bought at the former price.
By the way, this cut is subsidy is meant to take effect from next year, would we still be buying at a high price by then? Assuming crude oil prices do not suddenly go up.

majekdom2:
oh very good. Have we have not bothered to ask ourselves why these IOCs are not key players in the downstream.the only IOC that runs filling stations is TOtal. I have not seen shell or chevron, whereas they are key players in this sectors abroad.

Bro, whatever sector anyone chooses to play in doesn't matter much...what matters is this; DEREGULATION of that DOWNSTREAM SECTOR... once done...investors will rush in and compete while government regulates their activities to protect the masses...

ehehehehehe ehehehehehe ehehehehehe............................ God will help his children in this country.