gohome:


Man, we have no infrastructure.

Remove corruption and use 4 Trillion as budget, you are still flat broke. Double that figure to 8 Trillion, you are still flat broke.

Oga, you need a trillion dollars to have infrastructure for 170 million people

In this case, your security lies in building infrastruture (Military, Agriculture, Education). It does not lie in fueling your generator. You have proven that you did not die the last week. You have proven that when the price was almost doubled from 65 naira to 97 naira, you did not die. Infact you bought more cars. Your poorer neighbours are not dead. Do not mortgage you kids future

gohome:


Again, please be more civil, it will help us all aprreciate your line of thought. If the so cabal are allowed to sell at 1.1 dollar per litre they wont hoard. PMS is not cheap let us deal with it. AGO is deregulated in 90% of the countries, but not scarce, why should it be scarce in Nigeria?

jpphilips:


you make me repeat myself, once you deregulate, you have lost the power to make anybody do anything.
You said they won't hoard? oh! yea! where did all the AGO in the country disappear to last week? wetin concern AGo with unpaid PMS subsidy? are you not seeing them again after the strike?
you seem not to have any idea what is going on.

ohzee:
Subsidy is a fraud. In the days of essential commodity, the same thing happened. Fix prices and you simply create artificial scarcity. It will be tough for Nigerians but NNPC should increase their importation capacity in the short term. Flood the market with products and watch prices come down

If NNPC had the "importation capacity" let me borrow your phrase, why do we need the cabal?
When the cabal is holding us to ransom, why does the NNPC not bail us out? well, you conveniently forgot that NNPC workers are union members too aka Cabals

atlwireles:



Petrol is cheaper than bread in Venezuela, unfortunately they have none available to sell, without your food/fuel ration card. The Gulf states enjoy a massive production volume, extremely low population, so their governments can actually give it away for free, if they choose to. Just Imagine Bayelsa state keeping their 600,000 barrels a day for themselves only. Petrol will be N10 in yenegoa, not the N160 paid by the locals with or without subsidy. Nigeria is not Venezuela neither are we the gulf states.

jpphilips:


you make me repeat myself, once you deregulate, you have lost the power to make anybody do anything.
You said they won't hoard? oh! yea! where did all the AGO in the country disappear to last week? where did Jet A1 disappear to? or you think the planes use PMS too? wetin concern AGo with unpaid PMS subsidy? are you not seeing them again after the strike?
you seem not to have any idea what is going on.
Remove subsidy and witness the annihilation of the middle class.

jpphilips:


If NNPC had the "importation capacity" let me borrow your phrase, why do we need the cabal?
When the cabal is holding us to ransom, why does the NNPC not bail us out? well, you conveniently forgot that NNPC workers are union members too aka Cabals

gohome:


Stop the delusion that a hike in PMS prices will affect anything. It wont. If at all it does hike, it is caused by your delusion. Your delusion will panic the market. Your economy is run by diesel not PMS.

There are no reasons while the hike in PMS would mean hike in anything. What was the hike in prices when we paid 97 Naira? Even if everything hikes, we would not die. Again do you want your kids to be out of school, you want your wife/mother/kids to die in the hospital because you do not have good medicare, but you want to fuel your Gen in a leaking house?


Agriculture is the sure bet to put your subsidy money into. It is the real sector. You employ your people, you feed your people, you produce excess and reserve in time of war, you diversify your economy, you earn exchange rate and put less pressure on your naira and as such values your naira which will in turn reduce price of imported PMS. I can go on and on. Hopefully you get the picture now. Do I need to explain to you how investing in education can help our economy?


With all due respect try I read about economics.

Agriculture is the sure bet to put your subsidy money into. It is the real sector. You employ your people, you feed your people, you produce excess and reserve in time of war, you diversify your economy, you earn exchange rate and put less pressure on your naira and as such values your naira which will in turn reduce price of imported PMS.

ohzee:


AGO prices are high because there is more to gain from importing PMS most marketers don't bother to import AGO because there is no free lunch there.

ohzee:


Actually they can import more. They currently rent tank farms to do so. The problem is that they are unbelievably corrupt. But then maybe the fear of GMB will help. The point is that there should be an alternative to private importers to force down their prices.

holuphisayor:

govt also needs to build more refineries before removing subsidy

jpphilips:


I would have answered you but i have a problem with people who stick their mouth in issues they have no idea of

gohome:


you are also making me repeat myself. Pray tell me why AGO is not scarce in Togo, Chad, USA KENYA etc. You owed the markerters and they showed you pepper. Also pray tell while the annihilation of the middle class has not occured in 90% of the countries. They have devalued your Naira, what it means is that any money you have now (savings) has been reduced by 10 percent. Your expenditures have also been increased by 10%. It means you are actually buying your so called subsidized PMS for 10% extra. Annihilation of the middle class has not occured.

Stop the delusion that government can not regulate a free market. Its a communist mentality.

gohome:


Stop living in the past. GEJ is gone. We are talking about the next budget. It is immaterial what GEJ did not did not do. What is important is the future. I can not get back the money owed by my leaders since 1960 about 41 billion dollar debt. Either can i get back the 18 billion monies our state government collected, or the 3 billion NOI collected. What I can do is learn from the past, think about the future and be look to be Brazil, Turkey, China and eventually U>S>A, Japan, Germany etc.

ohzee:


Nairaland is a forum where people air their views on issues after thinking them through with facts at their disposal. So I am not sticking my mouth anywhere. I believe I have a right to state my opinion freely. I have gone through your posts and they sound very angry. Let us learn from you. Even if we don't agree with you or you with me, we will all improve our knowledge. Thanks

ttmacoy:
Subsidy should be removed before refineries.

Why? Firstly because the goverment cannot afford to continue paying subsidies so invest the huge sums required to develop our refineries. This is evidenced by the fact the government is borrowing to pay salaries at the moment.

ohzee:


Actually they can import more. They currently rent tank farms to do so. The problem is that they are unbelievably corrupt. But then maybe the fear of GMB will help. The point is that there should be an alternative to private importers to force down their prices.

Renting tank farms means they do not have enough storage capacity, who pays the rent for the farms It is still part of the over bloated subsidy, if the market is deregulated, will the rent disappear? NO, but the Nigerian people will have to pay for the inefficiency of NNPC.
You just confirmed that NNPC lacks the capacity to import reason the cabal is doing that JOB.
Storage goes with import, if you cannot store, you cannot import enough, so they refine a little, import a little and leave the rest for the cabal.

ttmacoy:
Subsidy should be removed before refineries.

Why? Firstly because the goverment cannot afford to continue paying subsidies and also invest the huge sums required to develop our refineries. This is evidenced by the fact the government is borrowing to pay salaries at the moment.

Secondly the goverment shouldn't be the only one building all the refiberies we need. This should fall to private investors, but no investor is willing to invest billions of the government dictates how much to sell their product.

Removing subsidy will free up the sector to market forces and in the short to medium term prices will go up ( they are already up anyway) but in the medium to long term with competition and supply it will come down and the money saved from su sides can be better used in more crucial areas.

As with the HPP Report, the NNPC data also did not say what became of the rest of the crude for the period in review.

gohome:


Stop the delusion that a hike in PMS prices will affect anything. It wont. If at all it does hike, it is caused by your delusion. Your delusion will panic the market. Your economy is run by diesel not PMS.

There are no reasons while the hike in PMS would mean hike in anything. What was the hike in prices when we paid 97 Naira? Even if everything hikes, we would not die. Again do you want your kids to be out of school, you want your wife/mother/kids to die in the hospital because you do not have good medicare, but you want to fuel your Gen in a leaking house?


Agriculture is the sure bet to put your subsidy money into. It is the real sector. You employ your people, you feed your people, you produce excess and reserve in time of war, you diversify your economy, you earn exchange rate and put less pressure on your naira and as such values your naira which will in turn reduce price of imported PMS. I can go on and on. Hopefully you get the picture now. Do I need to explain to you how investing in education can help our economy?


With all due respect try I read about economics.

jpphilips:


That is not the right way to learn, you can not learn by first mis informing your audience, I take such matters very personal.
The misinformation of 2012 is why most Nigerians can't even make sense to themselves rather recycling lies sold by the government.

gohome:


Please be more civil.

Stop being scared. It is better we are at the mercy of them and learn how to checkmate capitalism excesses in a free market than still be on thier mercy right now. No country ready to progress will pay subsidy on Imported PMS. Subsidy is not a bad word. It should be done in other places (Transport, Agriculture, Education) Not Imported PMS.

Like someone said, Imported fuel accounts largely for why the Naira is so weak, that hurts your purse 10 times more than removing the present subsidy will. As it is, remove or no remove only those involved in the scheme/scam wins! The only difference will be an accountable leader will have more money to work (Build Infrastructure)

gohome:


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?

Protest in Ojota to reduce your Senators Pay.

jpphilips:




The Nigerian problem requires a Nigerian solution I won't remind you again,, your devalued currency increased your landing cost and interest rates nothing more, I have told you why AGO is scarce instead of proving me wrong, you are telling me it is not scarce in Togo, what kinda reasoning is that?
Prove to me that the cabals did not hoard AGO last week to send a strong message to the govt to pay for PMS subsidy outstanding?

If the Marketers can show the government pepper, what do you think they will show you in a deregulated market, candy?

989900:
Someone posted this yesterday:

"Due to weak regulatory regimes, the downstream sector became an all comers affair. Every Tom, Dick and Harry entered the business. Companies with no verifiable addresses, no tank farms, no vessels, no financial structures, no bank guarantees all became fuel importers. It was a bazaar.

It is only in Nigeria that such bizzare things can happen. Emergency millionaires were made in days. Time and space won't allow me to give you details of the unbelievable things that happened. Every top official of the federal government became an emergency fuel importer or middle man. Importation licenses were hawked openly. All you needed was for the PPPRA to give you a license to import. You could sell it for millions just outside the door.

Now there is a complex web that links the Petroleum Ministry, the DPR, thE Navy, the NPA, NIMASA,PPPRA, DMO, CBN and Commercial Banks in this fraud. Documents like the sovereign debt statements and the sovereign debt notes flew about and our money kept disappearing. From about 30 companies in the scheme, the number shot up to 300. Monthly, billions of Naira were paid out to people who have never had any contact with a Jerry can of fuel in their lives. No verification, no authentication, nothing. Money was being paid with reckless abandon. Dr Okonjo Iweala and Mrs Alison Madueke were all there watching!

It got so bad that some people will arrange with ship owners......take a two day hire of an empty ship, move it to Lagos Port, berth it there. Officials of the PPPRA, Petroleum Ministry, DPR will come there to inspect an empty vessel and certify that the empty vessel carried 10,000 metric tons of petrol, collect their money and walk away. The vessel simply sails away and three weeks later, close to 6 billion Naira will be paid as subsidy when not even a single drop of petrol was brought in."

adanny01:


Corruption should be removed, then subsidy can go, then refineries building.