backbencher:
The solution is to remove subsidy, allow marketers to control the price, then in return for 'high prices' we get regular supply of quality and clean petrol...and more refineries,more jobs, more investment.

But no, we want cheap fuel.

Well, this is what we paid for....dirty and occasionally adulterated fuel...because we want it cheap. Not standard.

We actually paid good money, billions of naira infact for that dirty fuel!
You don't seem to know what you are talking about!

Please is there anything worse than banana republic?

It's really unfortunate that thing like this is bedeviling us as a nation.

With all the bureaucracy at the seaport

Virtually all agencies in the oil and gas industry in Nigeria today are headed by hausa/fulani men appointed by Buhari based on parochial interest.
Even the agency nmdpra is headed by one stupid hausa man.
Look at the country today, most of the economic policy makers are northerners who are appointed based on parochial interest, that's why we are where we are today!!!

inoki247:
Will FG compensate people wey don buy am already like diz I even doubt dat people wey dey giv N Power 30k people wahala na dem go compensate people....

Buh lik seriously dem need to compensate people wey don buy am already the agency incharge needs to pay for dere cluelessness...

how will you identify those that bought it already?

backbencher:
The solution is to remove subsidy, allow marketers to control the price, then in return for 'high prices' we get regular supply of quality and clean petrol...and more refineries,more jobs, more investment.

But no, we want cheap fuel.

Well, this is what we paid for....dirty and occasionally adulterated fuel...because we want it cheap. Not standard.

The solution is to refine your own oil. This is not rocket science but corruption in NNPC. Nigerians need to stop queuing for petrol and start protesting for their dignity.

tito44:
Foolish man. The only person to slam is the minister for petroluem, who is no other but the lifeless daft lanky herdsman from daura. Niggar is Soo daft and clueless. Anything he touches turns into dust.

no Wonder your mother gave birth to a dust instead of human being. Because he touch her during the civil war.

Brendaniel:
I Still Blame only Buhari because he is in charge of all petroleum matters in Nigeria...

have you ever been a leader? How many people have you ever led? Have you ever been a class monitor before?

DSC7:
Bubu the minister of petroleum should also be probed and slammed for damages. He is too incompetent to head such a vital position not to talk of the figure head president that he is.... ...

These govt are so evil....


Causing unnecessary hardship to Nigerians

why not use the lagoon so that the so called hardship will go away?

asanausana91:
no Wonder your mother gave birth to a dust instead of human being. Because he touch her during the civil war.

Who be this zombie?? Abeg comot from here make I see road.

asanausana91:
have you ever been a leader? How many people have you ever led? Have you ever been a class monitor before?

This one na new zombie recruit

backbencher:
The solution is to remove subsidy, allow marketers to control the price, then in return for 'high prices' we get regular supply of quality and clean petrol...and more refineries,more jobs, more investment.

But no, we want cheap fuel.

Well, this is what we paid for....dirty and occasionally adulterated fuel...because we want it cheap. Not standard.

Can you imagine? And I bet you are the only one saying this, though I'll read further to see who else has a brain.

We want cheap then blame bubu for adulterated. Bunch of jokers. That's what we are.

budaatum:
Electrical Tomatoes

The emboldened is about the only bit of this that got my attention but I notice it caught no one else's.

"Price controls"! It means a product is kept at a price set by government, and in Nigeria, we know it's kept low and very likely beneath the cost at which it can be sold at a profit. Like petrol really. But we can at least claim a reason for petrol with our crude oil and our ineptitude at running refineries. Electric though!?

Imagine it were tomatoes. You invest in land and fertiliser and labour and grow them, and when you get them to the market and government sets the price. I'm absolutely certain if that price is higher than the cost at which you grow your tomatoes, you wouldn't mind much. You'd likely be delighted if it's high enough for you to make a tidy profit. And if you're fortunate and the price set is so high, you'd likely invest in more land and more fertilizer and more labour and grow even more tomatoes. But this is Naija, where the price set by government is more likely to be way below your costs so that after you sell your tomatoes, you would have lost money.

Now think, you lost money on your tomatoes. Are you going to plant tomatoes next season? If you're into the charity business or you're stupid, you just might. But if you're not and have rent and school fees for your kids to pay and you want to eat and pay the interest on a loan I very much doubt you'd be stupid enough to throw your money away growing unprofitable tomatoes!

Well, that's the case with electricity in Nigeria I'm afraid. You generate it, transport it along unreliable transmission wires, lose a large chunk of it to illegal use and theft and what you do get paid for does not cover the cost of producing it. Now tell, would you plant electricity next season? I very much doubt it unless you're into the charity business or you're stupid of course, but somehow I just can't imagine you'd be either.

So, what's the solution you might wonder. Increase the price of electricity of course. But come on people, increase the price of electricity so electricity planters can earn more money and plant more and sell more? Surely you must be cursing me by now, or haven't you noticed you'd have to pay more for my electric if you want it?

Ok, perhaps you're all nice civilised folks and don't want to curse me so let's try a different way of looking at this. Imagine Buhari removes the price control so I can sell my electricity at a market determined price like I currently sell my tomatoes no doubt at a profit high enough for me to want to plant more next year. Are you cursing me yet? I'm sure you would be if it was the subsidy on petrol I were talking about removing. Hell no! You'd likely stone me if you could get your hands on me!

Well, that's what this piece is saying where it says "The private sector is given little incentive to invest.” After all, I'm in the electric planting business for the money and the profit and not because I love you all as Adam Smith would say, so why give you light if you aren't paying me for the priviledge! And you wanna complain you're in darkness?!

When you pay me enough to cover my planting of tomatoes after paying for the land and the fertilizer and the labour and the interest on a loan and cover what I lose to theft and illegal harvesting, and still make a tidy profit to reinvest, I will plant 12000megawatts of tomatoes and I will sell 12000megawatts of tomatoes and even more megawatts of tomatoes than you can eat even because you would be incentivizing me to invest what you pay me in more land and more fertiliser and more labour to plant more tomatoes so I will have more tomatoes to sell you and make more money. But if you want cheap electric, keep your price controls and don't incentivize me but don't expect me to waste my time labouring in the sun just so you can have light because, like you, I ain't that stupid nor into the charity business!

Anyone cursing me yet, because I am telling you, we are too cheap!

By the way, they are complaining about fuel price rises in America and in UK. Some blame Biden, but I'm very certain it is bubu's fault that petrol price is rising all over the world.

ono:
America never had it so bad guys! Oil price going from less than $30 to over $90 in less than a year under senile old Joe!

You can argue this is good news for Naija, but guys, this is insane for ordinary peace loving Americans!

May God help us all.

Before you start slamming people, it is always better to ask the expert what transpired, nobody would deliberately make such mistake on a cargo that might be worth some millions of dollars.

Anyway one of my Oga in the Lord who happened to be an expert has giving me a clue of what could have transpired.

*First there could be a possibility of loading the wrong cargo meant for another country, nobody is above errors .
*Methanol is not on the template as part of the quality checks carried out. That is understandable why it scale through.
*Other investigations would unravel what happened

So I asked my Oga in the Lord what is the possible way out, since we can't afford the logistic cost, which technically we can afford but would be a waste of money.
* Oga in the Lord said we can blend the return cargo perhaps in a refinery close bye, which I see as dilution to make the effect of the methanol negligible.


#Moral of the story , surround yourself with people smarter than you and always have a listening ear...

quentin06:


We need functional refineries, we can't be exporting crude for thieves like you to refine and sell back to us, is it not your brothers that imported adulterated fuel to us, were they not paid to import good fuel?

Well, i am not involved in importing fuel so calling me an importer or thief makes no sense.

Dont work for NNPC either

Plus if you want functional refineries then let tge refineries and marketers sell at a profit so that they can make enough money to upgrade, maintain refineries and expand refining capacity

sulaak:


The solution is to refine your own oil. This is not rocket science but corruption in NNPC. Nigerians need to stop queuing for petrol and start protesting for their dignity.

Well duh, but at the end of the day it has to be done profitably

Not at half price and then paid subsidy that don't cover the resulting losses

This is a simple matter. Fuel coming in ought to be checked for meeting standards before allowed entry. This shows how porous our system is.
I don't Leke analysing the problem of the country because it can lead to depression and high blood pressure.
I decide to enjoy my life and do my own thing with whatever comes.
I give business hints on how to make money on my YouTube channel at Olugbenga Adetitun YouTube Channel.
How can one make money from this fuel scarcity? That will be my next video coming out today.

backbencher:


Well duh, but at the end of the day it has to be done profitably

Not at half price and then paid subsidy that don't cover the resulting losses

It is better to subsidise production(Refining) rather than consumption(imported fuel) to ensure energy security and support local industrialisation.

Subsidizing production will open opportunities for innovation, R & D, efficient management and investment.

Every country subsidises industrial development, the British automobile industry would have probably collapsed without the government handout and support.

Overtime efficient management and favourable environmental conditions and government support encouraged foreign investors like Tata Motors, BMW, Toyota and many more to invest in the subsidies British automobile industry transforming it into the success story of today, that employed 1.7 million people and export more than 2 million automobiles.

sulaak:


It is better to subsidise production(Refining) rather than consumption(imported fuel) to ensure energy security and support local industrialisation.

Subsidizing production will open opportunities for innovation, R & D, efficient management and investment.

Every country subsidises industrial development, the British automobile industry would have probably collapsed without the government handout and support.

Overtime efficient management and favourable environmental conditions and government support encouraged foreign investors like Tata Motors, BMW, Toyota and many more to invest in the subsidies British automobile industry transforming it into the success story of today, that employed 1.7 million people and export more than 2 million automobiles.

Yes, but subsides in other countries are paid directly by the taxpayers

In Nigeria, subsides come from crude oil revenue, the same source of most of our everyday spending. This means we don't have enough money to cover the difference between cost of refining fuel and the goverment set prices forcing us to take loan after loan to keep our head above water. And forcing us to periodically cut subsides cost to save money, which is why we can't pay 40 naira for fuel.

If you want subsides then by all means tax each and everyone in this country. Our tax to gdp ratio is 8% . The countries you mention that subsidse have tax to gdp ratios from 30% upward.

Im sorry, but Nigeria has never been able to afford subsides based on the fact that we don't fund them from tax, but from oil.

backbencher:


Well, i am not involved in importing fuel so calling me an importer or thief makes no sense.

Dont work for NNPC either

Plus if you want functional refineries then let tge refineries and marketers sell at a profit so that they can make enough money to upgrade, maintain refineries and expand refining capacity

FYI the local refineries sell at a margin when he they were working, our country produces crude, so don't expect us to pay same rate as those countries that don't have crude.
Your argument that fuel can only be avaible when it is exorbitant is exploitative and flawed.
It is the same logic used by the power sector, what has it accomplished,? nothing.

quentin06:


FYI the local refineries sell at a margin when he they were working, our country produces crude, so don't expect us to pay same rate as those countries that don't have crude.
Your argument that fuel can only be avaible when it is exorbitant is exploitative and flawed.
It is the same logic used by the power sector, what has it accomplished,? nothing.

1. All countries that produce crude pay for fuel more than we do. Except angola, algeria and Venezuela

2. Refining fuel is a business. It costs money. You want a subsidy, then vote in a government that would raise our tax to gdp ratio from 8% to 35 and more so that we can pay for subsidy.

3. How we run subsidy is we pay for fuel at a cost below the refining cost and we pay money called subsidy to.cover the cost, money which comes from crude oil revenue, which is unstable because thanks to our high populaion and the fluctuations in price is never enough which is why we take loans


4. If you were running a business would you tolerate goverment setting your prices to a point where you lose money and paying you a subsidy thay does not cover your loss? Obviously not. So why support similar for the oil industry. Something which by 2010 meant we had no refinereis because we skipped paying maintence costs to reduce subsidy costs.

You want cheap fuel, then either pay the tax to fund it, or stop complainig when pdp and apc goverments take loans. Because unexpected rises in production cost mea ns subsidy costs also rise

sulaak:

Subsidizing production will open opportunities for innovation, R & D, efficient management and investment.

This is not true! You will never pay what I want for my tomatoes with subsidy!

You will beg me saying its for the good of the people, I should please be sympathetic, and since I would not be able to sell at all if I do not agree to be paid subsidy, I would have to accept your subsidy or close down my business, then one incompetent individual will come to you and sell even below the subsidy price because they will flood the market with adulterated fake tomatoes and poison those you subsidize.

On the other hand, if I can take my tomatoes to the market and sell at the price my customers pay, I will make huge plenty profit and my greed to make even more plenty huge profit is what will make me "open opportunities for innovation, R & D, efficient management and investment".

sulaak:

Every country subsidises industrial development, the British automobile industry would have probably collapsed without the government handout and support.

Overtime efficient management and favourable environmental conditions and government support encouraged foreign investors like Tata Motors, BMW, Toyota and many more to invest in the subsidies British automobile industry transforming it into the success story of today, that employed 1.7 million people and export more than 2 million automobiles.

Note how you've mentioned subsidies to manufacturers and not to consumers. Please check how much UK consumers pay on tax and let me know what you find.

Now, if government subsidies my tomato business, which they must only do if I have shown the desirable competence, then will I add my own money plus loan from the bank and use the money to "open opportunities for innovation, R & D, efficient management and investment" because I will make more profit in buying more land and employing more people and growing a lot more tomatoes just because I am greedy to make plenty huge profit. But if government subsidizes for consumers, you will just eat and poo the subsidy in fear it will one day end.

quentin06:


FYI the local refineries sell at a margin when he they were working, our country produces crude, so don't expect us to pay same rate as those countries that don't have crude.
Your argument that fuel can only be avaible when it is exorbitant is exploitative and flawed.
It is the same logic used by the power sector, what has it accomplished,? nothing.

UK has crude, and refineries. Go check how much subsidy is on their petrol and inform us here please. I've posted some fakenews below for you to contest that Abu's money is not subsidizing Abu.

FUEL DUTY – 2011 TO 2022

UK fuel duty is currently 57.95 pence per litre for petrol and diesel. Vehicle fuels with a lower emissions impact are taxed at lower duty rates; these include liquefied petroleum gas (LPG), compressed natural gas (CNG) and electricity.

Other than fuel duty, the forecourt price of a litre of fuel also includes the product cost (around 30p per litre), Value Added Tax (in the region of 20-25p per litre depending on price) and the retailers margin (often only 5p per litre or less).
https://www.nextgreencar.com/car-tax/fuel-duty/

backbencher:


1. All countries that produce crude pay for fuel more than we do. Except angola, algeria and Venezuela

2. Refining fuel is a business. It costs money. You want a subsidy, then vote in a government that would raise our tax to gdp ratio from 8% to 35 and more so that we can pay for subsidy.

3. How we run subsidy is we pay for fuel at a cost below the refining cost and we pay money called subsidy to.cover the cost, money which comes from crude oil revenue, which is unstable because thanks to our high populaion and the fluctuations in price is never enough which is why we take loans


4. If you were running a business would you tolerate goverment setting your prices to a point where you lose money and paying you a subsidy thay does not cover your loss? Obviously not. So why support similar for the oil industry. Something which by 2010 meant we had no refinereis because we skipped paying maintence costs to reduce subsidy costs.

You want cheap fuel, then either pay the tax to fund it, or stop complainig when pdp and apc goverments take loans. Because unexpected rises in production cost mea ns subsidy costs also rise

Govt can run a refinery, it must not be a single individual.

budaatum:


UK has crude, and refineries. Go check how much subsidy is on their petrol and inform us here please. I've posted some fakenews below for you to contest that Abu's money is not subsidizing Abu.

When ur talking about countries don't mention UK, they re scam artists, shabi brexit don expose them?

budaatum:


This is not true! You will never pay what I want for my tomatoes with subsidy!

You will beg me saying its for the good of the people, I should please be sympathetic, and since I would not be able to sell at all if I do not agree to be paid subsidy, I would have to accept your subsidy or close down my business, then one incompetent individual will come to you and sell even below the subsidy price because they will flood the market with adulterated fake tomatoes and poison those you subsidize.

On the other hand, if I can take my tomatoes to the market and sell at the price my customers pay, I will make huge plenty profit and my greed to make even more plenty huge profit is what will make me "open opportunities for innovation, R & D, efficient management and investment".

I can't believe you are quoting 300 years Adam Smith in 2022.

There is no country practising 100% capitalism.

All Western and East Asian countries subsidise their local industry for job creation, security, politics and development reasons. In fact, South Korea took international loans and guarantee to fund the development of the four major Cheobols.

However, the policies of President Park Chung Hee spurred rapid industrialisation by promoting large businesses, following his seizure of power in 1961. The First Five Year Economic Plan[3] by the government set industrial policy toward new investment, and chaebols were to be guaranteed loans from the banking sector. The chaebol played a key role in developing new industries, markets, and export production, helping make South Korea one of the Four Asian Tigers.

USA:

As Washington debates spending $52 billion to start regaining America's former role as a leading semiconductor manufacturer, experts say the public and private cost over the next two decades may exceed 10 times that much — and some worry such spending may still not achieve the goal.

On Friday, the House passed the measure to appropriate the $52 billion in subsidies over five years, largely for grants to catalyze private companies’ construction on U.S. soil of semiconductor fabrication factories, which are known as fabs. The Senate passed a similar bill last year. With President Joe Biden supporting the measure, some version of it may soon become law.
https://rollcall.com/2022/02/04/cost-to-rebuild-u-s-semiconductor-manufacturing-will-keep-growing/

Japan:

TOKYO -- The Japanese government has seen an overwhelming surge of interest in subsidies to bring manufacturing back as the coronavirus pandemic highlights the risk of having supply chains concentrated in a single region, particularly China.

The program to promote domestic manufacturing had 220 billion yen ($2.07 billion) earmarked in the supplementary fiscal 2020 budget. In the first round, which ended in June, the government approved 57 projects totaling 57.4 billion yen, or over half the 90 applications.
https://asia.nikkei.com/Economy/Japan-companies-line-up-for-China-exit-subsidies-to-come-home

Back to Nigeria.

Had the government subsidies the operation of the local refineries, they could have supported the partial or full privatisation of the refineries which would improve Nigeria energy security and open up other petrochemical industries.

sulaak:


I can't believe you are quoting 300 years Adam Smith in 2022.

I wonder what you'd have said if I'd quoted 2000 year old Jesus or 1300 year old Mohammed or even much older Plato or Aristotle.

As to the rest of what you wrote, please read me quoting myself of less than one day old. You might want to respond to the bold which was ignored in its original.

budaatum:
Note how you've mentioned subsidies to manufacturers and not to consumers. Please check how much UK consumers pay on tax and let me know what you find.

Now, if government subsidies my tomato business, which they must only do if I have shown the desirable competence, then will I add my own money plus loan from the bank and use the money to "open opportunities for innovation, R & D, efficient management and investment" because I will make more profit in buying more land and employing more people and growing a lot more tomatoes just because I am greedy to make plenty huge profit. But if government subsidizes for consumers, you will just eat and poo the subsidy in fear it will one day end.