President Bola Tinubu has declared that there would no longer be a petroleum subsidy regime as the current 2023 budget he glimpsed does not contain it.

He stated this on May 29 during his inaugural address at the Eagle Square, Abuja.

All though the current 2023 budget has provision for the fuel subsidy till June.


I have a we many both online and offline that condemn this decision

Many people do not understand the politics behind fuel subsidy and its dangers to the development and growth of Nigeria.

The intention of the government to subsidize PMS was simply to make the product affordable for Nigerians and make life easier. So, the average price of petrol in the world can be as high as N590, however, the FG will subsidize the product and fix the price at N185 bringing the total amount of subsidy per liter to N405.

The average consumption of liters of petrol in Nigeria per day is 60 million liters. However, Marketers of the product load as much as 100 million liters and above per day.

This means the Nigerian Government is expected to pay as much as N405 × 100,000,000 (litres) as subsidy per day to the Marketers of the product to keep prices at N185 for instance. This brings the amounts to N40.5 billion daily and about N1.2 trillion monthly. Kindly take note that this amount can either decrease or increase following the prices of petrol at the international market.

So, just try to wrap your head around it and know what Nigeria expends on fuel subsidy alone in a year - obviously some billions of dollars.

Here's the irony of whole arrangement:

1. Petroleum Marketers usually divert larger quantity of the subsidised petrol to neighboring countries to resell at the international market price. So, they make the same amount of money the Nigerian Government has paid on subsidized petrol in the neighboring countries.

2. This makes the product relatively scarce in Nigeria as the leftover becomes lower than the daily consumption in the country. The implication is that petrol stations will be selling fairly higher than the fixed price of N185 (some sell N190, N205, N225, N250, and so on depending on the area. And during peak periods of scarcity, which are also engineered by marketers, Nigerians still buy the same subsidized petrol for as high as 400, 500, and as the case was in the 1st quarter of this year while sleeping in filling stations. Again, marketers make double.

3. Marketers also import above the daily consumption of 60 million litres as seen above and still force the federal government to pay subsidy on the excesses, which are usually part of what they smuggle to neighbouring countries. Again, marketers dupe Nigeria.

4.This entire scenario makes a mess of the good intention of the Nigerian government to make PMS affordable for Nigerians.

5. This scarcity and high cost of the petrol despite subsidy leads to arbitrar increase in the cost of living. Transportation for instance, goes up crazily.

Moves to Remove Subsidy & Reactions

Therefore, successive federal governments having seen the outright abuse of the subsidy policy have always tried to cancel the policy so that market forces can determine the cost of petrol.

More so, the huge amount of money paid into the pockets of Marketers can be channeled to other meaningful venture such as infrastructural development, agriculture, social security, technology, health, etc.

However, whenever the move to remove subsidy is made, the Marketers are quick to shutdown their filling stations and deprive Nigerians access to the already subsidised fuel in their possession. This leads to instant scarcity regime and hardship (like we are already witnessing).

And while the marketers make more money on one hand, they force and instigate Nigerians against the federal government with the hardship created on the other hand.

Then, The innocents who do not understand the politics behind subsidy go on strike, protest, attack the government and force her to continue the subsidy regime.

We pay more for our ignorance at the long run while the marketers are happy; they remain the top billionaires in Africa. Everyone loves them, wish to be like them, and celebrate them.

Whereas the federal government count her losses, takes the insults, bears the bad name and pity uninformed/suffering Nigerians like you and me.

Will you support President Bola Ahmed Tinubu to break this cartel, this subsidy syndicate and give us freedom or you will remain adamant and spread the hate?

Share your opinion and let us learn from you.

Obembet

Nlfpmod
Seun
mynd44
Lalasticlala

But you people did an occupy Nigeria protest against thesame subsidy which was removed by Goodluck Jonathan in 2012.

CondenseMilk:
But you people did an occupy Nigeria protest against thesame subsidy which was removed by Goodluck Jonathan in 2012.

did you know how to use a phone in 1979? No so why are you living in the past ? We are talking about the present you are asking irrelevant questions.. ronu!

TsbAfrica:
did you know how to use a phone in 1979? No so why are you living in the past ? We are talking about the present you are asking irrelevant questions.. ronu!

It's not irrelevant. The same tinubu that occupied nigeria in 2012 because of subsidy is now fighting the marketers for the same subsidy.
I support this move by tinubu to remove subsidy but the way it's done is not proper.
I keep telling people that tinubu might be a good president.

CondenseMilk:
But you people did an occupy Nigeria protest against thesame subsidy which was removed by Goodluck Jonathan in 2012.

Anybody that is not bold enough to take some certain decision is not good to be leader.


That's where Jonathan weak

obembet:


Anybody that is not bold enough to take some certain decision is not good to be leader.


That's where Jonathan weak

You submission here clearly shows your article is purely copy & paste

A good leader should be able to listen to plight of the masses he govern. In the year 2012 when Jonathan tried to remove subsidy, we all know how powerful men in this country challenged him and the then opposition are ready to burn the country down, should he continue & thru burnt the country, would you still have a country called Nigeria? In the western world, politicians step down just because of small issues, even when nobody asks them to do so. If Jonathan wants to rig himself into power, he will easily remove Jega and replace him with someone who can do his bidding, but he chooses to follow the path of peace, which you regarded as a sign of a weakling

You raised some good points as regards marketers diverting the subsidized fuel to neighboring countries for resale at high prices when the Nigerian government bears the cost of subsidy, and if that's so, then I see no reason why we should keep subsidizing

TsbAfrica:
did you know how to use a phone in 1979? No so why are you living in the past ? We are talking about the present you are asking irrelevant questions.. ronu!

You called it irrelevant questions!

You see eh! this is karma that is playing out on Buhari and Tinubu, I just pitied Nigerians that you guys successfully decieved.

If Nigerians had endured the N140/litre in 2012 with N60/$1 on FX by now we would all have been smiling,

11yrs later is when you people realized that subsidy was dangerous to the economy with N800/$1 FX.

What a shame !

obembet:


Anybody that is not bold enough to take some certain decision is not good to be leader.


That's where Jonathan weak

Did you witnessed the protest in 2012 on subsidy?

Did you know that the protest lasted for about 3months?

You just have simply forgotten 11yrs ago in Nigeria

CondenseMilk:



Did you witnessed the protest in 2012 on subsidy?

Did you know that the protest lasted for about 3months?

You just have simply forgotten 11yrs ago in Nigeria

Sure, am aware of everything dear.. but it take a leadership decisions to take some certain steps which u know..

The intention of the government to subsidize PMS was simply to make the product affordable for Nigerians and make life easier.

So now they dont care about making life easier for the masses?

Because these guys in govt are not buying fuel, they are not buying recharge cards even food are free, infact they enjoy entertainment allowance, travelling allowance, newspaper allowance and even health benefits, as rich as Tinubu throughout his stay in that sit his medical expenses will paid 100% by Nigerians

They cant subsidize for us but we Nigerians are subsidizing for them to live expensive lifestyles abi

Tell them to let go all those allowances as part of their sacrifice watch how they will protest

Stop the corruption in subsidy not the subsidy

CondenseMilk:


You called it irrelevant questions!

You see eh! this is karma that is playing out on Buhari and Tinubu, I just pitied Nigerians that you guys successfully decieved.

If Nigerians had endured the N140/litre in 2012 with N60/$1 on FX by now we would all have been smiling,

11yrs later is when you people realized that subsidy was dangerous to the economy with N800/$1 FX.

What a shame !

are you Igbo? Don't answer ... I know already becasue you are commenting from a perspective warped by hate

izombie:
It's not irrelevant. The same tinubu that occupied nigeria in 2012 because of subsidy is now fighting the marketers for the same subsidy.
I support this move by tinubu to remove subsidy but the way it's done is not proper.
I keep telling people that tinubu might be a good president.

well it's called life people change thier alignment and so let's deal with what is on ground now ! Nigerians always like it easy for them personally regardless of who else suffers, that is why the previous government was justifiable by people like femi adesina

izombie:
It's not irrelevant. The same tinubu that occupied nigeria in 2012 because of subsidy is now fighting the marketers for the same subsidy.
I support this move by tinubu to remove subsidy but the way it's done is not proper.
I keep telling people that tinubu might be a good president.

subsidy was removed without the consent of Nigerians . That was Jonathan mistake, he supposed to educate the masses before the removal

TsbAfrica:
are you Igbo? Don't answer ... I know already becasue you are commenting from a perspective warped by hate

Is it only the Igbos that will buy PMS at 450?

Is it only the Igbos that will buy food at higher prices?

Is it only the Igbos that will trek under the sun simply because they cannot afford transport fair?


You just wasted your parents money in school !

Nlfpmod

Following The Update

U don't get it,are we talking about retaliations here right now

CondenseMilk:
But you people did an occupy Nigeria protest against thesame subsidy which was removed by Goodluck Jonathan in 2012.

CondenseMilk:




Is it only the Igbos that will buy PMS at 450?

Is it only the Igbos that will buy food at higher prices?

Is it only the Igbos that will trek under the sun simply because they cannot afford transport fair?


You just wasted your parents money in school !

your point flew over my head as I am sure mine did yours.

Seun n his Igbo mod will not move this to frontpage they have been paid by Ipob/ Obidaftis from moving anything positive about APC to the frontpage

obembet:
[b]President
Obembet

Nlfpmod
Seun
mynd44
Lalasticlala

NNPCL stated not so long ago that we spend around 400bn monthly. Where did you get the trillions from? 🤔

Where were you in 2012?

I can tell you where Tinubu was.

I'm sorry but you and your bandwagon of psycophants have no moral grounds to criticize anyone who doesn't buy into this.

You're selling us a plan you and your principal thwarted when things were better.

Subsidy has to go, and you lots have to apologize to Nigerians for wasting their progress with your stupid games in the face of truth and reality!

izombie:
It's not irrelevant. The same tinubu that occupied nigeria in 2012 because of subsidy is now fighting the marketers for the same subsidy.
I support this move by tinubu to remove subsidy but the way it's done is not proper.
I keep telling people that tinubu might be a good president.

buhari in 2015 said there was nothing like subsidy, and it was a scam , only for him to come on board and paid triple subsidy, apc re hypocrites and scammers believe them at ur peril.

You highlighted the following:

3. Marketers also import above the daily consumption of 60 million litres as seen above and still force the federal government to pay subsidy on the excesses, which are usually part of what they smuggle to neighbouring countries. Again, marketers dupe Nigeria.

Are you aware that since the 90s, the government has always given this excuse as justifcation for increasing price of petroleum products and that if price is increased (subsidy removed) it will make our fuel unaffordable in neighboring countries?

If "removing" subsidy or increasing price of petrol is the automatic solution to smuggling of the product to neighboring countries, why hasn't it worked all this while and 30years on we still having this same conversation?

If you say marketers import above daily consumption needs, who is paying for doing that? Is the nnpc not aware of that? Does the nnpc just allow marketers to import whatever quantity they feel like importing and then it pays them? Which supplier in the world supplies goods at his or her own discretion without an order telling the supplier exactly what to supply?

How do marketers "force" the FG to pay for excess petrol they import? Are they now more powerful than the government?

I thought NNPCL has been the one exclusively importing fuel? What is this new story blaming marketers?

Can you give a detailed explanation how these marketers are able to smuggle petroleum products to other countries?

OAFMods:
Seun n his Igbo mod will not move this to frontpage they have been paid by Ipob/ Obidaftis from moving anything positive about APC to the frontpage

What is positive about this topic?

Toosure70:
subsidy was removed without the consent of Nigerians . That was Jonathan mistake, he supposed to educate the masses before the removal

Which consent was obtained by Tinubu to remove subsidy now?

TsbAfrica:
are you Igbo? Don't answer ... I know already becasue you are commenting from a perspective warped by hate

How does his being Igbo or otherwise negate the points he raised?

lexy2014:


How does his being Igbo or otherwise negate the points he raised?

you know perfectly well what I mean ... Mind you I have no hatred for the Igbo people, quite frankly they are the most industrious people in Nigeria and in Africa I must say. But there are few elements that have taken it upon thier selves to hate with senseless passion, anything that has to do with other tribes mostly Yorubas ... It is a wrong way to live becasue it keeps you vulnerable and isolated... Frankly i believe it's a trait of small minds. So my question was not to generalize but to pinpoint an observation that is fast becoming a character flaw.

All dis story story no jig ooo....At least after six month we should be feeling d inpact i guess of d so called subsidy removal abi

The devil has a way of mixing truth with lies to deceive his prey, yes, what you said about marketers and subsidy is truth, but you didn't tell them that APC government has barred marketers from bringing in PMS, allowing only nnpc to be importing PMS to Nigeria via crude swap, you also didn't tell Nigerians that APC had removed subsidy completely under buhari, and that the landing cost using crude swap is defrayed by the foreign refineries in exchange for keeping other derivatives apart from petrol, diesel and kerosene,
Nairalanders if you had listened to news since the beginning of this week, you'll notice that marketers have been demanding to be given licence to import fuel, citing that it will engender competition and crash the price of fuel, now if you have ever been duped by faudsters, you'll notice that they first thing they do is to use misdirection, eg; subsidy, instead of fuel price hike, what this means is that APC government has been operating a monopoly, where nnpc, the government cashcow is the only organization licenced to bring in fuel, determining and running the price at whatever rate depending on the greed of the president, this was what prompted them to push for dangote refinery, because he offered them a better swap deal, so dangote will not bring down the price of fuel, just as he couldn't bring down the price of cement, the reason why the marketers are complaining about this monopoly is because, the marketers knew that what just happened is fuel price hike, not subsidy removal.

TsbAfrica:
you know perfectly well what I mean ... Mind you I have no hatred for the Igbo people, quite frankly they are the most industrious people in Nigeria and in Africa I must say. But there are few elements that have taken it upon thier selves to hate with senseless passion, anything that has to do with other tribes mostly Yorubas ... It is a wrong way to live becasue it keeps you vulnerable and isolated... Frankly i believe it's a trait of small minds. So my question was not to generalize but to pinpoint an observation that is fast becoming a character flaw.

I have absolutely no idea what you mean hence my question...How does his being Igbo or otherwise negate the points he raised?

Mind you I have no hatred for the Igbo people, quite frankly they are the most industrious people in Nigeria and in Africa I must say. But there are few elements that have taken it upon thier selves to hate with senseless passion



I can't put my finger on what you are saying here, or it's relation to the topic of subsidy removal, every tribe has "few element that hate with senseless passion" including your own tribe and the ibo tribe, it's what I call, symptoms of low intelligence, but what we want to know the relationship between subsidy removal, the ibo tribe, and the suffering this supposed removal has wrecked on Nigerians

lexy2014:


I have absolutely no idea what you mean hence my question...How does his being Igbo or otherwise negate the points he raised?

well I guess your ignorance is not coincidence.

Tinubu supporters easily forget or maybe they remember but shame won't let them admit the truth publicly.
Goodluck tried this but they wanted to cut off GEJ head, now tinubu has done it, all of them are jubilating and applauding him all over the place. Even when they are suffering, they will still be living in denial
Anything that will make me to see the truth and not speak,, God forbid it. Always speak the truth, no matter who is involved, it will set you free and make you live longer