Buhari my role model , Fashola my Hero

What ever you say here, the wailers will always find the tiniest reason to wail. Even when they benefit less

The reality be say the juju wey APC do strong die.

Osun, IMO and Edo states na case study

op, it seems you're daft and dumb. nigeria is in serious mess. note = #5 is now useless in nigeria because #5 can not stand alone and purchase something anymorei

Stick to romance

Now the avergae man would spend more from the little he has and the rich man hardly flinches... From 87 to 145 is just killing.
In a country where people spend a sizeable amount of their salaries on fueling their generators for personal use and business..
That money you're even saying would be saved, how do you know it would be used for what its meant for and not embezzled or siphoned from
Hope you sha know that we are in Nigeria

Standing5:
Also it is time to ditch 100w bulb that can be replace by a 40w energy saving bulb.

Why not make it 5w or 10w?

4 years ago it was a corrupt Idea, you never saw the advantages, you crippled Nigeria because Jonathan was in power but not you see nothing wrong with removing subsidy......infact it's the best thing to do..........hypocrite

Almajiri1:
I only blame Jonathan for allowing APC bobo and bully him out. The masses will now teach APC some hard lessons in the next few days.

you mean you are pleased with the way our wealth is being loot under previous administration? Lets put sentiment aside, with all this corruption cases here and there under Jonathan i don't expect a well educated someone like you to come up with this kind of comment even after reading this write up.

https://www.youtube.com/watch?v=4IabKEUtFVo

[size=14pt]Fuel Subsidy Removal; Lai Mohammed States Reasons[/size]

I am always an advocate for subsidy removal since the days of GEJ.

My problem is was it not same people that opposed it in 2012 that is still removing it today?

For this singular reason, I will never vote any party that will be supported by those who occupied Nigeria in 2012. Some may say my vote does not count, but I tell u it will count because I can see people sharing same view with me.

akanniade10:
hmmmmmm after reading this epistle, the only thing I hold is "Lets give the government a chance and make this sacrifice with hope that we will have a new story to tell"

the hope is what I don't want to hear,lets be factual,will the money removed be chaneled to a better use.

menxer:


Why not make it 5w or 10w?

it is hard to get those reduction in real life. Lots of phony marketers out there . . .

advantages in indeed. keep on deceiving yourself. buhari failure in 1983/84 is still repeating itself again.may be you were not born then, please ask your parents to educate you more.

I say a big

Is subsidy removal the same as deregulation? This govt removes subsidy but fixes the product pricing.
What economic calculator did kalichukwu use to arrive at 145 naira? I smell a grand conspiracy by the govt and the oil marketers. If you fix price that simply means you have not deregulated the sector.

Firstly, nice write up. Although I am a supporter of the removal of the subsidy in theory simply because it is unsustainable on the long run. I will strongly support any protest against its removal now.
Secondly, I see that you have built your case on some very faulty assumptions which are:
a) You are assuming that the government would use the money gained from the subsidy to build infrastructure. I don't believe that because, from all indications, this government is yet to show us a consistent plan to develop the nation. Rather than consistency, each element of the govt has consistently contradicted each other which makes it obvious that they really don't have a blueprint for the nation internally

b) Concerning payment of govt debts, am still wondering what they are doing with the stamp duties they have imposed on the nation as well as the monies recovered from various people in the last regime.

c) fuel subsidy did not cause corruption in the downstream sector. Govt officials and their cronies did.. So if the govt is really serious about reducing corruption in the downstream sector, let them allow independent auditors to go through the books of the various agencies in the downstream and allow EFCC to conduct an independent investigation in the agencies. Allow found culpable should be made to face the wrath of the law. BTW what happened to the subsidy trials started under the Jonathan administration?

d) About refineries, no investor in his right mind is going to invest in a refinery in Nigeria until the govt privatizes all its refineries and allows only private bodies to compete in the downstream sector like what happened in the communications industry with the telcos. Unless the govt does that, forget about building refineries because the same cabal that shut down the ones we have will make sure the news don't thrive.

GAZZUZZ:
excellent write up. Meanwhile this is a good time to ditch those V8's and cling on to a 1.3liter.

I love your input Bro, you picked ur comment from area Best known to you..... All na cutting cost

The truth is that many people don't really understand what subsidy is all about. And few people that understand are not given advantage to explain. They prefer to postpone evil days. All stabilised countries have suffered before but Nigerians don't want to sacrifice.

Subsidy was the only steady benefit we were gaining from our oil wealth. OP before you wrote your epistle you should have researched other oil producing countries. Most of them subsidize fuel and still provide basic amenities

You can deceive gullible Nigerians, but not some of us who are exposed

Inasmuch as I feel the bite of the PMS price hike, the way to the promise land is a one-way-single-Lane road, no one should expect to see a U-turn.

I thank God for our present leaders that are courageous enough to make the difficulty decisions for a better Nigeria.

Toks2008, all what you're saying is just merry go round. I'm sure you know when the price of petrol goes up, everything goes up as well.

So, what I'm asking is how will nigerians cope when the price of commodities goes up in the market, when they can not even afford these commodities in the first place?

Subsidy removal or no Subsidy
Provided tins get better,datz d most important tin
God take care of your pple

Toks2008:
Over the years Nigerians have been faced with series controversies surrounding subsidy removal and many Nigerians have frowned against this with great ferocity each time the government of the day makes any move to remove it either totally or partially.

Many opposition bodies have used this to campaign against the government of the day and that was the case during the period of President Goodluck Jonathan and many Nigerians were also made to believe that it was indeed a callous move by previous governments to inflict hardship on Nigerians but just yesterday,we got a very surprising news that the APC led government have decided to finally remove subsidy as Petrol will now sell for a maximum of N145 per liter..

The question on the minds of many is why was there a strong move against this in the past? could it be to lack of proper sensitization of the populace by the previous governments?or was it because the lack of trust in the previous administrations or shall we say we have suddenly realized the true picture of the situation on ground? I guess these are questions we will continue to ask ourselves but this write up will address the reality and advantages of subsidy removal from a very layman's perspective and professionals are welcomed to shed more like and correct any form of misinformation.
[size=13pt]
THE REALITY[/size]

FUEL SUBSIDY:
Understanding the madness called “fuel subsidy” requires a walk down memory lane. However, let me start by saying a country like Nigeria, which is also the largest crude oil exporter in the African continent, imports fuel into the country.YES we know this makes no sense. Unfortunately, it does. Nigeria has four national refineries that are barely functional because of the country’s poor planning and maintenance culture, and even more, our refining plants are aging while the pipelines linking these plants have lacked adequate investments and they are terribly unreliable to support uninterrupted domestic production and sadly enough as determined as the government are in ensuring that these refineries are repaired,some interest groups have taken up the habit of destroying these facilities thus Nigeria is forced to refine its crude oil resources outside its borders and then it imports the refined products, mostly from European suppliers, to satisfy the energy needs of its large population.

WHO BENEFITS MORE FROM FUEL SUBSIDY?
Now lets assume the governments spends an average of N40 to subsidize a litre of petrol that is bought by each Nigerian,it means for every 20 liters you buy, the government helps you to pay N800. But the truth is that the rich benefits more because in a month they buy thousands of liters to power their office,homes,cars and so on while an average citizen with a tight budget might just manage to buy 50litres in one month.
[size=13pt]

Lets ask each other this question;Does it make sense for a government to spend over 1 trillion naira on fuel subsidy yearly to help the rich while lesser amount is marked for other infrastructures that would impact more positively on the average man?

Now lets take a quick look at 7 advantages of subsidy removal:[/size]

1. IT REDUCES CORRUPTION IN THE DOWN STREAM SECTOR:

According to the statement made by the former finance minister and coordinator of subsidy removal, Dr. Ngozi Okonjo Iweala. “ The removal of oil subsidy will drastically reduce corruption in the down stream sector.” Moreso, deregulation will also help to end the waivers enjoyed by powerful “cabals” at the expense of the Nigerian people...this needs no explanation.

2.PROVISION OF BASIC AMENITIES

The Nigerian governments spends over 1 trillion naira on fuel subsidy each year and this has made it extremely difficult to provide other amenities that would impact more directly in the lives of the citizens. However, if half of the money spent oil subsidy is channeled to other sectors of the economy, Nigeria would have been better for it. Consequently, the money saved from subsidies will be used to improve infrastructure, building good roads and bridges, fund agriculture,pay higher salaries,improve education and health sectors.

3.REDUCTION OF GOVERNMENT DEBT

According to the words of the former Central Bank Governor, Malam Sanusi, one of the long term benefit of the withdrawal of the subsidy is the reduction of government debt and at least help direct that debt to the finance of infrastructure that should create jobs and more inclusive growth. However, it is important to note that Nigerian government often borrow to enable it finance this oil subsidy so as to make the petroleum pump price affordable to a few rich Nigerians who operate or control some of the devices which actually consume the petrol.

4. TRANSFORMATION OF THE PETROLEUM SECTOR

A lot has been said of corruption in this nation, and the time is now to effect the change we need. Reformation of the oil sector which is the life wire of the nation could take the lead.

5. INCREASE IN FOREIGN RESERVE AND SAVINGS

With subsidy removal, Nigerian, government will get to keep more of the money raised from sales of its petroleum product and savings made on its foreign earnings, this will uplift the countries foreign reserves and greatly improves our ratings by international agencies.

6. ESTABLISHMENT OF MORE REFINERIES

It is noted that since 2000, government of Nigeria had issued licenses for refineries, but none was been built for these reason. This is not unconnected to the financial and structure imbalance created in the huge sums, of money expended on petroleum subsidy. However, it is obvious that with subsidy removal, Nigerian government can now use the money saved from subsidy to build refineries which will inturn provide enormous opportunities for employments of our jobless youths.


7. MAKES WAY FOR TRANSPARENCY AND COMPETITION IN THE OIL INDUSTRY

When petroleum subsidy which is rife with corruption and unhealthy practices is no longer there, transparency and healthy competition will return to the petroleum industry.


Lets give the government a chance and make this sacrifice with hope that we will have a new story to tell.Yes we may see a sharp increase in the price of commodities and transportation but in a short while, we will see the positive outcome just as we now see in previously deregulated sectors.

Subsidy removal, yes, why price regulation?

I don't believe in this advantages

Lemme commend you fr ur write up. Makes a gud read. But incase u dont know, "government is for the people." With this sed any wise leader or govt knows dt u tink abt d ppls welfare first.

U sed somtin abt benefiting d rich. U cn neva rule dt out in a situation like dis. Even with d removal of subsidy d rich still wont suffer dey ll still remain rich. Govts luk out fr d lower class n on Nigeria from several statistics n available data it has bn opined dt on d average abt 70 percent of Nigerians live below d poverty line.

I dont know y we r always cursed wt clueless leaders obviously. I was listening to kachikwu on channels saying d price of crude ll com dwn in 6 mths time n his proposition is just laughable n evn urs is also laughable because u dont seem to get d issue on ground.

This year's budget still doesnt address d major catalyst fr Nigeria's greatness n dat is power n APC foolishly allocate abt 500 billion fr wat dey hv calld social intervention. Monies dt ll be looted by d so called "Rich." The "rich" dat d Op is saying shd nt benefit frm subsidy ll nw benefit freely n quietly frm dis generous "awoof."

If Nigerians do not protest against dis shameless rape by Buhari n his co-travellers i will conclude dt d citizens of d Nation are cowards are cowards n r incapable of tinkin fr diasef.

A REVOLUTION IS ABOUT TO BEGIN!!

Nikapetrelli:
Subsidy removal or no Subsidy
Provided tins get better,datz d most important tin
God take care of your pple

The most important thing is how will people survive before things get better?

@op
Agreed with most of your points. Disagrees there will be healthy competition. When nnpc and others with political connections can source import exchange at official government rates and others at higher parallel market rates competitive advantages will be to the former. While others will have to sell at higher prices due to their cost of buying.
Eventually other importers will rather buy from nnpc at their low pump prices for resales at maximum government set price or higher instead of importing anything. Which will lead to scarcity and more higher pricing. The only remedy is to deregulate naira, and let market determine exchange rates. So that every importers play on a level playing field for healthy competition. For this is what would have obtained in Jonathan's era subsidy removal, because naira wasn't artificially pegged officially.

confused people and confused government! so the point is this, they want to save a trillion naira? wow thats good money! and what do they want to do with the money? repair roads, pay us more salary, repair the refinaries etc... this looks like an excuse a bad some gives the father when he writes what he needs to go back to school... looking for stupid ways to justify he removal and increament in corruption. but why was it heated during GEJs time, i smell fowl play.

TippyTop:
[size=13pt]Subsidy removal is no longer anti people ba?[/size]

It didn't have advantages when Dr Jonathan wanted to remove it abi? Anyway check what Fayemi said about subsidy removal.



www.nairaland.com/attachments/3707651_fayemionfuelsubsidy_jpeg66cb5952bd6a9d062200828f62a9084b

GEJ govt wud ve had too much money to steal! Imagine what happened to SURE P!

Built2last:
It's not as though Nigerians do not know that fuel subsidy is long over due for removal but certain things have to be in place to cushion the effect.

First the president has to come clean and lead by example.
He has to do the following

Get the 4 refineries optimally running

Sell off 8 of the 11 presidential jets hanging at Abuja airpot and tell us what the money will be used for.

Increase tax on the rich. Like property tax. Own more than one property and pay heavy tax on the rest.

Get our rail ways up and running to ease transportation

Deploys policies that will check inflation.

Increase the minimum wage to atleast 50k

Call labour for negotiation afterwards and make public every deliberation.

The masses will support you.

This English you typed here op will not make sense to Nigerians next week bearing in mind that commodity prices will skyrocket without a corresponding increase in income of the people.

Taxi from Garki to Wuse in abuja that used to be 400 naira is now 800 naira.

A bag of rice I was told went to 25k from 15k yesterday.

A basket of tomato is 27k in Kano state today. That's where it's produced.

For your information, what the government did was price modulation to knock off subsidy payment by government. They have simply told the masses to pay. The petroleum sector was not deregulated. If you deregulate, you don't determine prices and so the government can not fix 145 naira. When you deregulate, you leave pricing to market competitors. Shell, Texaco, Chevron, Asda in UK, many other giants will move in to compete. They fix their prices and the masses can choose what price is most suitable for them. A good example is the telcom sector that was fully deregulated. Did you ever here the government telling MTN, Econet or Gloss how much to fix sim cards or charges on call? Because in a deregulated sector every manufacturer charges
based on the factors and modes of production.

For every cause there is an effect.

Any leader who puts his people first thinks of the immediate impact of his policies on the people and commodity prices.

I am #Built2last and I just want to correct your paradigm @op

Kachikwu already gave us the reason for the removal. Unavailabilty of forex. So all the afore-listed are not within reach for Nigerians obviously. This isnt the change we voted for.

Built2last:

For your information, what the government did was price modulation to knock off subsidy payment by government. They have simply told the masses to pay. The petroleum sector was not deregulated. If you deregulate, you don't determine prices and so the government can not fix 145 naira. When you deregulate, you leave pricing to market competitors. Shell, Texaco, Chevron, Asda in UK, many other giants will move in to compete. They fix their prices and the masses can choose what price is most suitable for them. A good example is the telcom sector that was fully deregulated. Did you ever here the government telling MTN, Econet or Gloss how much to fix sim cards or charges on call? Because in a deregulated sector every manufacturer charges
based on the factors and modes of production.

For every cause there is an effect.

Any leader who puts his people first thinks of the immediate impact of his policies on the people and commodity prices.

I am #Built2last and I just want to correct your paradigm @op

I thank God people still have sense in this forum. I actually cannot count how many times I've had to post that what the govt did is not deregulation. To think this is a govt that's fighting corruption, when we have a con man (fraudster) at the helm of affair.