Empredboy:
Guys, i dnt want to talk as an economist dat i am but as a layman so dat we all will understand dis subsidy matter. Yes there is subsidy but the marketers are eating fat on the subsidy loopholes. Let me give u an exampl; this marketers will import fuel, show it to d NNPC for subsidy collection on what they imported, instead of them taking the fuel to nigeria filling stations they will take it back to outside d country either thru d sea or sell to benin rep people. Yet they sell back to this foreigners in d same price they sell in the international market. So they earn money frm naija govt for what they didnt import n sell back to outside country.
If govt removes subsidy n allow d forces of demand n supply to occur as its done in telecommunication then these criminals will be sent away.

gohome:


Answer

[b]The subsidy issue is not shrouded in mystery. You have chosen to be ignorant. The average price of PMS around the world is about 1.1 dollars per liter. That's 220 Naira per liter. Poorer countries pay this. We produce 2.2 million barrels per day, rich countries like Russia US, China, India UK Brazil that produces up to 5 times more oil than we do pay this. Poorer countries like Haiti Angola Gabon also pay this. Even poorer and remote villages in Nigeria, burutu Nembe, mambila pay 200 plus for a liter. So what is the problem with it all gone? I'm 2012, sanusi and Iwealla with Allison went round TV stations explaining the steps to fully deregulate the downstream sector, no one listened. 65 Naira or nothing was the chant. I remember when Sanusi said the best way to put a fire out is to eliminate the source of the fire.

It was shame that GEJ and his ministers did not have the political tenacity to completely do way with this fire. Buhari seems to have it. He will remove it, fuel will sell at 180-220 per liter[/b]

9jatatafo:


I know 3 marketers but there are more. The ones I know are Oanda owned by Wale Tunubu, Capital Oil owned by Ifeanyi Ubah and Con Oil by Femi Otedola

omenka:
Interesting!

I have just a few questions.


1). How much were previous administrations paying for subsidy??


2). How much did Jonathan pay on assumption of duty as the president and in subsequent years as president??


3). What necessitated the geometric increase in the expenditure on subsidy soon after Jonathan took over?? It was about 300billion on the budget but burgeoned to nearly 2trillion at the end of the fiscal year. Was there a corresponding increase in the demand of products to have warranted such increase in "supply"?? Did Nigeria get thirstier for petroleum products??


4). Was there any supplementary budget passed by the NASS to accommodate the increase as stated in #3??


5). There were about 40 importers of products prior to Jonathan's regime. After he took over, the list went over the roof to about 150!! What was the reason behind this??


#waiting.

Cc: gohome.

omenka:
Interesting!

I have just a few questions.


1). How much were previous administrations paying for subsidy??


2). How much did Jonathan pay on assumption of duty as the president and in subsequent years as president??


3). What necessitated the geometric increase in the expenditure on subsidy soon after Jonathan took over?? It was about 300billion on the budget but burgeoned to nearly 2trillion at the end of the fiscal year. Was there a corresponding increase in the demand of products to have warranted such increase in "supply"?? Did Nigeria get thirstier for petroleum products??


4). Was there any supplementary budget passed by the NASS to accommodate the increase as stated in #3??


5). There were about 40 importers of products prior to Jonathan's regime. After he took over, the list went over the roof to about 150!! What was the reason behind this??


#waiting.

Cc: gohome.

9jatatafo:


I know 3 marketers but there are more. The ones I know are Oanda owned by Wale Tunubu, Capital Oil owned by Ifeanyi Ubah and Con Oil by Femi Otedola

Rich4god:
Price of PMS in Venezuela is less dan 50naira per liter.... For those of you thinking its difficult to go below the present 97 naira..Abi no b d same refinery dem dey use refine dia own oil... The problem is our govt and corruption...

gohome:


Answer

[b]The subsidy issue is not shrouded in mystery. You have chosen to be ignorant. The average price of PMS around the world is about 1.1 dollars per liter. That's 220 Naira per liter. Poorer countries pay this. We produce 2.2 million barrels per day, rich countries like Russia US, China, India UK Brazil that produces up to 5 times more oil than we do pay this. Poorer countries like Haiti Angola Gabon also pay this. Even poorer and remote villages in Nigeria, burutu Nembe, mambila pay 200 plus for a liter. So what is the problem with it all gone? I'm 2012, sanusi and Iwealla with Allison went round TV stations explaining the steps to fully deregulate the downstream sector, no one listened. 65 Naira or nothing was the chant. I remember when Sanusi said the best way to put a fire out is to eliminate the source of the fire.

It was shame that GEJ and his ministers did not have the political tenacity to completely do way with this fire. Buhari seems to have it. He will remove it, fuel will sell at 180-220 per liter[/b]

[b]The subsidy issue is not shrouded in mystery. You have chosen to be ignorant. The average price of PMS around the world is about 1.1 dollars per liter. That's 220 Naira per liter. Poorer countries pay this. We produce 2.2 million barrels per day, rich countries like Russia US, China, India UK Brazil that produces up to 5 times more oil than we do pay this. Poorer countries like Haiti Angola Gabon also pay this. Even poorer and remote villages in Nigeria, burutu Nembe, mambila pay 200 plus for a liter. So what is the problem with it all gone? I'm 2012, sanusi and Iwealla with Allison went round TV stations explaining the steps to fully deregulate the downstream sector, no one listened. 65 Naira or nothing was the chant. I remember when Sanusi said the best way to put a fire out is to eliminate the source of the fire.

It was shame that GEJ and his ministers did not have the political tenacity to completely do way with this fire. Buhari seems to have it. He will remove it, fuel will sell at 180-220 per liter[/b]

chamboy:
Why cant nigeria build refineries asap as it would also solve our power issues

kinibigdeal:



Question

Were you able to give this analysis when jonathan government made several attempt to remove it? were you not part of those that protested against it at ojota? Now those that oppose it during is government are trying to remove it! Our politics is all about interest and not about the citizen

gohome:


Answer

[b]The subsidy issue is not shrouded in mystery. You have chosen to be ignorant. The average price of PMS around the world is about 1.1 dollars per liter. That's 220 Naira per liter. Poorer countries pay this. We produce 2.2 million barrels per day, rich countries like Russia US, China, India UK Brazil that produces up to 5 times more oil than we do pay this. Poorer countries like Haiti Angola Gabon also pay this. Even poorer and remote villages in Nigeria, burutu Nembe, mambila pay 200 plus for a liter. So what is the problem with it all gone? I'm 2012, sanusi and Iwealla with Allison went round TV stations explaining the steps to fully deregulate the downstream sector, no one listened. 65 Naira or nothing was the chant. I remember when Sanusi said the best way to put a fire out is to eliminate the source of the fire.

It was shame that GEJ and his ministers did not have the political tenacity to completely do way with this fire. Buhari seems to have it. He will remove it, fuel will sell at 180-220 per liter[/b]

Empredboy:
Guys, i dnt want to talk as an economist dat i am but as a layman so dat we all will understand dis subsidy matter. Yes there is subsidy but the marketers are eating fat on the subsidy loopholes. Let me give u an exampl; this marketers will import fuel, show it to d NNPC for subsidy collection on what they imported, instead of them taking the fuel to nigeria filling stations they will take it back to outside d country either thru d sea or sell to benin rep people. Yet they sell back to this foreigners in d same price they sell in the international market. So they earn money frm naija govt for what they didnt import n sell back to outside country.
If govt removes subsidy n allow d forces of demand n supply to occur as its done in telecommunication then these criminals will be sent away.

gohome:


Answer

[b]The subsidy issue is not shrouded in mystery. You have chosen to be ignorant. The average price of PMS around the world is about 1.1 dollars per liter. That's 220 Naira per liter. Poorer countries pay this. We produce 2.2 million barrels per day, rich countries like Russia US, China, India UK Brazil that produces up to 5 times more oil than we do pay this. Poorer countries like Haiti Angola Gabon also pay this. Even poorer and remote villages in Nigeria, burutu Nembe, mambila pay 200 plus for a liter. So what is the problem with it all gone? I'm 2012, sanusi and Iwealla with Allison went round TV stations explaining the steps to fully deregulate the downstream sector, no one listened. 65 Naira or nothing was the chant. I remember when Sanusi said the best way to put a fire out is to eliminate the source of the fire.

It was shame that GEJ and his ministers did not have the political tenacity to completely do way with this fire. Buhari seems to have it. He will remove it, fuel will sell at 180-220 per liter[/b]

Etruth:
How can you remove what does not exist? Subsidy is a scam. Its just a creation of govt to siphon humongous funds legally. FIX OUR REFINERIES. Simple case.

989900:


Well said.

I posted the below yesterday:


For those asking why we were against subsidy in 2011.

We were against it because;

1. We can't fathom how subsidy payments that never exceeded N200-N300b naira for the past years would suddenly leap to N1.3t (roughly 400-500% increase) within the first year thereabout of President GEJ -- we were shocked. #fraud.

2. We also could not fathom how any half-sane man could be drilling oil in his backyard, with 4 refineries in his backyard (with land and space to build more, and 11 licences issued already to build more), but still imports finished petroleum products. (OBJ and GEJ=culprits).

3. To the common Nigerian man, the only 'direct' benefit he gets from the government is, the so called 'subsidized fuel', which we later discovered to be a farce after all . . . so when you are going to take those extra litres/miles from him, or make him pay extra to get them, he has no choice than to revolt/demonstrate/remonstrate.

4. Unless you are among the 1% of the 1%, every other person on the street knows fuel scarcity goes along with insane inflation.

5. You ask him to make sacrifices while the president feeds on N3m/day and has 10 aircrafts in his fleet, his senators get paid more than their counterparts in the richest country on earth. Yet, they find it hard to pay same minimum wage paid in the poorest countries on earth!
How can we trust people of that ilk?

6. ATEOTD, subsidy was partially removed with promises of palliatives, and prosecution of the defrauders aka 'cabals', what did we get?Nothing, bar further fraud and corruption; from bribery scandals up to the speaker of the house (Cabal Otedola, well played) to mismanagement of the said saved funds from subsidy payments.

How can you trust such people?!!
Same people from the NNPC to the Petroleum ministry, to the CBN, to the Finance ministry, Budgets, both houses, up to the presidency that have no reliable database of how much oil is being drilled/sold per day, nor how much NNPC refines locally, nor how much we do consume/day.

Yomieluv:
If subsidy is true,why is the government afraid to remove it?

And what are the benefits of subsidy removal?

frehage:


Why N180-N220 per liter? I thought I read somewhere that the current subsidy payments is N2.7 or so per liter. That should bring the total amount to N90/liter or so. Where is the N180-N220 coming from?

gohome:


Answer

[b]The subsidy issue is not shrouded in mystery. You have chosen to be ignorant. The average price of PMS around the world is about 1.1 dollars per liter. That's 220 Naira per liter. Poorer countries pay this. We produce 2.2 million barrels per day, rich countries like Russia US, China, India UK Brazil that produces up to 5 times more oil than we do pay this. Poorer countries like Haiti Angola Gabon also pay this. Even poorer and remote villages in Nigeria, burutu Nembe, mambila pay 200 plus for a liter. So what is the problem with it all gone? I'm 2012, sanusi and Iwealla with Allison went round TV stations explaining the steps to fully deregulate the downstream sector, no one listened. 65 Naira or nothing was the chant. I remember when Sanusi said the best way to put a fire out is to eliminate the source of the fire.

It was shame that GEJ and his ministers did not have the political tenacity to completely do way with this fire. Buhari seems to have it. He will remove it, fuel will sell at 180-220 per liter[/b]

Empredboy:
you got it wrong, what make u a leader is an abililty to stand firm in ur belief. When OBJ wanted to deregulate telecommunication, sebi the gove of edo state then NLC president was against it but OBJ still had his way now we all are enjoying GSM. OBJ wanted to deregulate d oil sector we all were ignorantly against it but he tactically fustrated the cabals by increasing the PMS price but yar'dua reduse it thinking he was doing d nation good.

gohome:


Answer

[b]The subsidy issue is not shrouded in mystery. You have chosen to be ignorant. The average price of PMS around the world is about 1.1 dollars per liter. That's 220 Naira per liter. Poorer countries pay this. We produce 2.2 million barrels per day, rich countries like Russia US, China, India UK Brazil that produces up to 5 times more oil than we do pay this. Poorer countries like Haiti Angola Gabon also pay this. Even poorer and remote villages in Nigeria, burutu Nembe, mambila pay 200 plus for a liter. So what is the problem with it all gone? I'm 2012, sanusi and Iwealla with Allison went round TV stations explaining the steps to fully deregulate the downstream sector, no one listened. 65 Naira or nothing was the chant. I remember when Sanusi said the best way to put a fire out is to eliminate the source of the fire.

It was shame that GEJ and his ministers did not have the political tenacity to completely do way with this fire. Buhari seems to have it. He will remove it, fuel will sell at 180-220 per liter[/b]

sparkleboy:
Booked


GEJ should have removed this subsidy on Pms completely then and spent the SURE-p fund on building or repairing new refineries that should have been handed over to private companies to handle and manage.
We wouldn't have been in this mess if such had been done but the wicked cabals that are enjoying the deep corruption in that sector would not allow such.
People like Wale Tinubu, ifeanyi uba, pres obasanjo, otedola, rahamaniyya oil,
These people enjoy the loot from under supplying and been overpaid. If you see the deep corruption that goes on in the Pms supply chain You'll be scared for Nigeria.

Most of them import the cheapest fuel, and over value their oil,
A lot of the so called subsidised oils are refined in the refineries owned by our former leaders and business moguls in Trinidad and tobago, guinea, etc.
a lot of the subsidised fuel ends up in neighbouring African countries such as TOGO, BENIN, GHANA ETC,

SOLUTION
BUHARI SHOULD CANCEL PAYMENT OF SUBSIDY AND REVAMP OUR REFINERIES AND GIVE IT TO A PRIVATE COMPANY TO MANAGE.