obailala:
The answer to the question you raised above is very simple if you think about it with an open mind.

In 2012, oil price was around $100, the exchange rate was about N150/$ and landing cost of fuel was around N142.

Today, oil price is around $75, the official exchange rate is double what it was in 2012 at N305/$ and that explains why the landing cost of fuel is now about N205 now (instead of being lower than what it was in 2012 when oil price was higher).

I hope you now have your answer?

The vicious cycle of fuel subsidy payments would persist until Nigeria stops the foolish system of fuel importation using forex.

KratosCorp:
Why 2012? How about 2014 and 2015?

And how did high USD value lead to monopoly and lack of transparency in the system?

How did high USD value lead to payment of subsidies without appropriation?


You really need to examine yourself.

truthstands12:
If a new government comes in 2019, we would be amazed at the level of corruption in this APC govt. That's why they are fighting tooth and nail to remain in power. Let's watch and see. Nigeria must be saved in 2019. Very terrible. Get your PVC. I have mine already.

Reference:


So after 3 years and with the next election looming where are the refineries of this change government. Even if it foundation laying ceremony.... none. Abeg go siddon. You can see that all the local refinery hot air of this government pre 2015 was merely smoke and mirrors. Please, try another angle.

GMBuhari:


You intentionally forgot that Nigeria was plunged into recession and as many as 24 of 36 states owed over 8 months salary , the loans Buhari got could not have been used to build a refinery especially since the price of crude plummeted to $30/Barrel , don't tell me you forgot that


secondly , Buhari may not have built any refineries , but FG approved as much as 38 licences for modular refineries, 13 were immediately approved and 2 or 3 will be completed and inaugurated this December both located Igbo land. so that some people won't come and shout marginalization


http://dailypost.ng/2018/04/25/modular-refineries-fg-grants-38-entrepreneurs-operating-licences/
https://www.premiumtimesng.com/business/business-news/267286-nigeria-approves-13-modular-refineries-baru.html
http://punchng.com/two-modular-refineries-for-inauguration-in-december/
http://punchng.com/modular-refineries-for-delta-rivers-almost-ready-fg/

Carry your bad belle and swerve

1StopRudeness:
Subsidy...??.do we still have this grammar in our Nigerian dictionary...

Shébi they said they've removed it..abi ....Is that not why we are buying fuel at 145/litre??

We have been scammed ooo??

BeeBeeOoh:


https://www.vanguardngr.com/2018/06/fuel-subsidy-hits-n2-4bn-daily/

Quidquopro:
This is quite disturbing.
Almost nothing has changed from the GEJ era.
Things only got worse, generally speaking.

adeniyisamuel59:
If Nigeria government is not paying subsidy, perhaps we would be buying fuel at N250 at pump price.

Wesely01:



I still have PMB video calling Who ever pays fuel subsidy is a thief .

1StopRudeness:


What are u saying...??

The question isn't the function of subsidy....but why is subsidy in the picture again..??...ddnt this government tell us they've stopped paying it...is that not why u are buying fuel for 145 instead of the former 86naira...

And u are talking as if fuel price in this country was naturally at 145...??

adeniyisamuel59:
I am only being sarcastic.

GMBuhari:


You intentionally forgot that Nigeria was plunged into recession and as many as 24 of 36 states owed over 8 months salary , the loans Buhari got could not have been used to build a refinery especially since the price of crude plummeted to $30/Barrel , don't tell me you forgot that


secondly , Buhari may not have built any refineries , but FG approved as much as 38 licences for modular refineries, 13 were immediately approved and 2 or 3 will be completed and inaugurated this December both located Igbo land. so that some people won't come and shout marginalization


http://dailypost.ng/2018/04/25/modular-refineries-fg-grants-38-entrepreneurs-operating-licences/
https://www.premiumtimesng.com/business/business-news/267286-nigeria-approves-13-modular-refineries-baru.html
http://punchng.com/two-modular-refineries-for-inauguration-in-december/
http://punchng.com/modular-refineries-for-delta-rivers-almost-ready-fg/

Carry your bad belle and swerve

fiizznation:
Whether you want to believe it or dismiss it, the truth still remains the truth. Pushing the PMS price to 100plus per litre by Jonathan before the nationwide strike and protests force him to revert the price to 97pl, is and will continue to be the main cause of the N145pl we are buying PMS today.

Jonathan increased the PMS to N97 when he clearly knew that our very fragile socioeconomic framework cant absorb whatever shock that may arise when the government increases the price of PMS at that time. And that world bank puppet(ngonzi iweala) who tried to deceive the legislatures with her paper logic nonsense was at the forefront of deceiving the not very smart Jonathan in increasing the pms price and "partially" removing the subsidy.

And today you all want to blame buhari because PMS is being sold @ 145 when we all know that Jonathan was the initiator. Talk about ignorance at it's zenith!!!

Reference:


I see. But exchange rate was not a factor pre 2015. It was corruption then, now it is exchange rate...

Anyway I have said it. By 2019 everyone will be demystified.

Reference:


Someone is saying exchange rate is the reason. But the nitwits think folks are stupid like them. They have failed to realise the price rise from 80 to 140 is in tandem with the exchange rate rise. For subsidy to skyrocket is what the white man calls 'double jeopardy'. Something is not adding up. And the fact that the 'most transparent' government in history refuses to light up the scenario indicates that nothing wrong is going to be fixed.

At least in the previous regime real transparency led to the discovery of massive graft when the figures claimed were simply unbelievable. Now that the figures are even more shocking, no way to tell what is going on. Tell me if this is a better scenario today than back then.

I keep on telling folks. Corruption is not the problem of Nigeria or any society, it is structure. The right structure with independent, functional institutions is the key where citizens at all levels have a degree of power. Today, the word of Mr. President is bond and law. And today even where he errs, it is impossible for society to recover. How can the destiny of a nation beheld by the wprds,a ts and disposition of one man without question.

Democracy without fail safe is bound to fail. Today Nigeria may be losing billions to waste or thieves. No way to check, no way to redress. We just have to 'believe' all is well. Is this what a human being sacrifices a vote for?......

fiizznation:
Damn I remembered how that man said removing subsidy will save up about $8bn in a year. Funny; I guess we are still enjoying the post subsidy level(147pl) the Jonathan administration promised us.


Kai Jonathan!!! Lol

You will think that Nigerians are smart, but if you look at the things that happened before their very eyes without them even knowing shit, that's when you will know that Nigerians are not that smart.

Reference:


Someone is saying exchange rate is the reason. But the nitwits think folks are stupid like them. They have failed to realise the price rise from 80 to 140 is in tandem with the exchange rate rise. For subsidy to skyrocket is what the white man calls 'double jeopardy'. Something is not adding up. And the fact that the 'most transparent' government in history refuses to light up the scenario indicates that nothing wrong is going to be fixed.

At least in the previous regime real transparency led to the discovery of massive graft when the figures claimed were simply unbelievable. Now that the figures are even more shocking, no way to tell what is going on. Tell me if this is a better scenario today than back then.

I keep on telling folks. Corruption is not the problem of Nigeria or any society, it is structure. The right structure with independent, functional institutions is the key where citizens at all levels have a degree of power. Today, the word of Mr. President is bond and law. And today even where he errs, it is impossible for society to recover. How can the destiny of a nation beheld by the wprds,a ts and disposition of one man without question.

Democracy without fail safe is bound to fail. Today Nigeria may be losing billions to waste or thieves. No way to check, no way to redress. We just have to 'believe' all is well. Is this what a human being sacrifices a vote for?......

KratosCorp:
Why 2012? How about 2014 and 2015?

And how did high USD value lead to monopoly and lack of transparency in the system?

How did high USD value lead to payment of subsidies without appropriation?


You really need to examine yourself.

zombieHUNTER:
Did you know that Falana's request for FOI in the daily running of fuel subsidy in NNPC was rejected...

Baru and his 40 thieves said NNPC is not a public institution...

Do you know that northerners have always headed the NNPC most times even though they don't have any oil in the north... But no southerner has been made the FCT minister ever...

Do you know that Buhari has nothing to offer because he knows nothing about governance and how the economic policies works... He is just a figure head used by Fulani elements to milk the country dry...

The same youths who ought to salvage the country are the ones chanting sai baba like headless chickens because of religious sentiments and ethnic affiliation...

There is no hope for the country.... It's survival of the fittest ...

obailala:
The answer to the question you raised above is very simple if you think about it with an open mind.

In 2012, oil price was around $100, the exchange rate was about N150/$ and landing cost of fuel was around N142.

Today, oil price is around $75, the official exchange rate is double what it was in 2012 at N305/$ and that explains why the landing cost of fuel is now about N205 now (instead of being lower than what it was in 2012 when oil price was higher).

I hope you now have your answer?

The vicious cycle of fuel subsidy payments would persist until Nigeria stops the foolish system of fuel importation using forex.

chloride6:


Stop defending this govt, Mr man.

Crude Revenues have shot up, but the common man is poorer for it.

The FG should have revised the exchange rate since more revenues have been received.

This would decrease the pump price of Petrol.

fiizznation:
Whether you want to believe it or dismiss it, the truth still remains the truth. Pushing the PMS price to 100plus per litre by Jonathan before the nationwide strike and protests force him to revert the price to 97pl, is and will continue to be the main cause of the N145pl we are buying PMS today.

Jonathan increased the PMS to N97 when he clearly knew that our very fragile socioeconomic framework cant absorb whatever shock that may arise when the government increases the price of PMS at that time. And that world bank puppet(ngonzi iweala) who tried to deceive the legislatures with her paper logic nonsense was at the forefront of deceiving the not very smart Jonathan in increasing the pms price and "partially" removing the subsidy.

And today you all want to blame buhari because PMS is being sold @ 145 when we all know that Jonathan was the initiator. Talk about ignorance at it's zenith!!!

AroOkigbo:
Can someone help me ask Buhari if he now believes in subsidy.
#2.4 BILLION DAILY!!

Corruption is really fighting back!!
SUBSIDY AND CORRUPTION

obailala:
...

REgarding the lack of appropriation, if you ask me na who I go ask?... The NNPC has the responsibility of supplying fuel to Nigerians; it buys the fuel at say N205 and sells to Nigerians at N145 (i.e. making a loss). The loss is counted as part of operational cost before its other profits are paid to government. In essence, no physical money is paid to anyone, reason why it's not called 'subsidy', and as no money is paid from the government or NNPC to anyone, that was the explanation given why there was nothing to be appropriated. That's my little understanding of the issue.