Misconceptions On Fuel Subsidy By Femi Falana

Femi Falana- Photo credit: New York Times
By Femi Falana

It is common knowledge that Nigeria is the sixth largest producer of crude oil in the Organization of Petroleum Exporting Countries (OPEC).

But ours is the only country in the OPEC that depends on imported petroleum products to meet her domestic requirements. As the four refineries owned by the Federal Government have not been properly maintained, they are unable to operate at their total refining capacity of 445,000 barrels per day.
 
Since the fourth refinery, the Port Harcourt refinery was built in 1981, successive governments in Nigeria have, for some inexplicable reasons, failed to construct new refineries. Those who were given refinery licences under the Olusegun Obasanjo Administration have refused to invest in
refineries as it is more lucrative to engage in the importation of petroleum products.
 
In the last two years a barrel of crude oil which is extracted for less than $10 has been sold in the
international market for prices ranging from $100 to $180. Since the cost of producion is by far less that the price of the commodity the issue of subsidy does not arise. It is however conceded that the Federal Government has been subsiding corruption and inefficiency arising from official negligence to maintain the existing refineries and build new ones to meet domestic needs and generate substantial revenue from exporting petroleum products.

No doubt government can no longer justify the huge expenditure on fuel import. But instead of confronting the fuel cartel and some unpatriotic public officials duping the country through fraudulent claims, round tripping and smuggling of subsidised petroleum products to neighbouring countries government has decided to inflict more excruciating economic pains on hapless Nigerians by withdrawing subsidy from PMS.

It is pertinent to note that government has since withdrawn subsidy from diesel. The claim that kerosene is still subsidised ought to be investigated as the product is sold in the market between N95 and N200 per litre instead of the official rate of N50. Since the local refineries produce the bulk of kerosene supplied to consumers to what extent is the product subsidised? Why has the NNPC refused to colour kerosene to prevent the product from being sold to commercial airlines and the masses at the same rate in the market?

Budgeting for Imported Fuel Imports
 
In 2006, 2007, 2008, 2009 and 2010 the Federal Government spent N261 billion, N278 billion, N630 billion, N421 billion and N673 billion respectively for the importation of petroleum products.In 2011, N240 billion was appropriated for fuel susidy by the National Assembly.But in contravention of the Appropriation Act 2011 the NNPC caused with the Federal Ministry Finance  to release the sum of N1.3 trillion for the importation of fuel products by August 31, 2011.Thus, from 2006-2011 Nigeria spent a total sum of
N3.6 trillion on fuel import!

A cursory glace at the above figures shows monumental fraud which cannot be justified. For instance, N673 billion was spent in 2010 but the figure has risen to N1.3 trillion in 2011. From the information at my disposal, the PPPRA has colluded with NNPC to settle vouchers for arrears of petroleum products purportedly supplied in 2009!

It is such fraudulent claims that have balloned the 2011 fuel
subsidy.The NNPC and PPPRA, Central Bank and the Federal Ministry of Finance should justify these figures. This has become necessary as the auditors engaged by the Government have failed to detect fraud with respect to the over N3.6 trillion wasted on fuel imports in the last five years. Yet the auditors have been collecting billions of Naira annually for failing to verify and detect the monumental fraud perpetrated by the “oil cartel”.
 
By virtue of Section 7 of the Petoleum Products Pricing Regulatory Agency (PPPRA) the PPPRA is empowered to "prevent collusion and restrictive trade practices harmful to the sector and regulate the supply and distribution of petroleum products" but the NNPC has usurped the powers of the PPPRA. Specifically, with the  illegal directive of the NNPC, the PPPRA is made to honour unverified vouchers from importers of petroleum products. Right now, a huge sum of money is being paid in 2011 for petroleum products purportedly imported to the country over two years ago! As if that is not enough a large quantity of the fuel subsidized by the Federal Government is smuggled to neighbouring countries by the so-called “oil cartel” with the connivance of  security personnel.
 
The Limit of NNPC’s powers
 
The controversy surrounding the planned removal of fuel subsidy has drawn attention to the illegal management of the Federation Account and the usurpation of the powers of the PPPRA by the NNPC to the detriment of the Nigerian people. As an agency of the Federal Government the NNPC cannot interfere with the management of the funds belonging to federal, states and local governments without appropriation by the National Assembly.

Whereas all revenues collected by the Federal Government shall be paid to the Federation Account pursuant to section 162 (1) of the 1999 Constitution as amended the NNPC has been operating the Federation Account illegally. For instance, the NNPC has admitted that state and local governments have been shortchanged to the tune of N420 billion. It has announced its plan to pay the 'debt' without any reference to the National Assembly or the Federal
Executive Council! With respect to fuel subsidy the NNPC operates the Petroleum Support Fund which is funded through imposition of monthly levy of 50% on the Federal Government, 25% on state governments and 25% on local governments. Such deductions are made from source by the NNPC without appropriation or approval of any tier of Government.

Last year, the NNPC shocked the nation when it demanded reinbursement from the Fedeal Ministry of Finance for the sum of N1.5 trillion  withdrawn from the Federation Account and distributed to various unnamed persons in the last one decade on the illegal directives of two former Heads of State. Although the disclosure was made to the National Assembly it was, as usual, swept under the carpet. Such economic crime should be investigated no matter whose ox is gored.

No doubt, Section 7 of the Petroleum  Act  empowers the NNPC to defray all expenses incurred from “such monies as may be received by the Corporation in the course of its operations” this cannot be a justification for the illegal operation of the Federation Account.The National Assembly should pluck up the courage, this time around, to subject the operations of the NNPC to scrutiny. More so, that its accounts have not been submitted for  verification for the past 12 years!
 
The Way Out
 
The reasons adduced for the decision of the government to stop fuel subsidy with effect from January 2012 are jejune and dishonest. How can the Federal Government admit its inability to deal with the so called 'oil cartel' responsible for the fraud that has characterised the importation of petroleum products? Will the National Assembly allow the Government to inflict more economic punishment on Nigerians for the criminal activities of the “oil cartel” and a few public officers?
 
For several years, I have suggested effective maintenance of the four refineries and the construction of new ones. I have also requested the NNPC to build mega stations in neighbouring countries like Benin, Togo and Niger to discourage smuggling and generate revenue for the Government. Venezuela has over 2,000 gas stations in the United States.
 
Instead of importing petroleum products from Europe at a colossal cost the government should refine crude oil in neighbouring countries whose refineries are functioning and producing below capacity. Senegal has a well maintained 47-year old refinery. Chad and Niger have just built new refineries. 
 
Like citizens of other oil producing countries Nigerians are entitled to derive maximum benefit from crude oil. Contrary to official claim the prices of petroleum products in Nigeria are the highest among the majority of OPEC members. The investigation recently conducted by a Nigerian newspaper revealed that ‘petrol sells for the equivalent of N58.40k in Iran, N30.55k in Kuwait, N32.12k in Qatar; N17.52k in Saudi Arabia, N54.00k in the United Arab Emirates, N15.95k in Libya, N39.42k in Bahrain...

Each of the afore-mentioned countries has functional refineries. For instance, Venezuela has 18 refineries most of which are dedicated to the exportation of refined petroleum products. In Nigeria, our four refineries currently produce below 10% of their capacity. Why has the government failed to invite the companies which built them to maintain instead of giving turn around maintenance contracts to incompetent party loyalists?

Given the political will the country's four refineries can be fixed in six months while four new ones can be built by the Federal Government in the next one year. To fund the project the Government should draw from the foreign reserves which are currently withdrawn regularly to pay for the importation of non essential goods to the country.The government may also offer some incentives to the oil majors operating in the country to invest in refineries.

In the interim, the PPPRA should be reconstituted with patriotic Nigerians while the NNPC should be restrained from further preventing the PPPRA from carrying out its statutory duties with respect to the importation, marketing and distribution of petroleum products. The NNPC has no power under the law to import and sell petroleum products.

Finally, should the National Assembly endorse the withdrawal of fuel subsidy? The implication is that the pump price of petrol will jump to N144.70k. Based on the nature of the neo-colonial economy of the country the plan will immediately aggravate the economic crisis as the cost of goods and services will hit the roof. If the unpopular policy is imposed the government should be prepared to face the anger of Nigerians. Those who believe that
Nigerians have been cowed to submission can go ahead and provoke them.

They will live to regret their action!

Comments
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Ifyguy(true democracy)

I appreciate ur comment but dont make it look like democracy is all about votes.DEMOCRACY IS"GOVERNMENT OF THE PEOPLE,FOR THE PEOPLE AND BY THE PEOPLE".POLICIES IN A TRUE DEMOCRATIC GOVERNMENT IS IN D BEST INTEREST OF THE PEOPLE.ANYTHING OUTSIDE DAT VIOLATES DEMOCRACY.NEXT TIME SPEAK RATIÖNALY NOT LIKE SOME KINDA HOOFER.@UR RESPONDENT,I LUV UR DEFINITION OF MADNESS.BUT NEXT TIME THINK OF DOING THE RIGHT THING D WRONG WAY,WIT D WRONG PEOPLE BEFORE D HASTY CONCLUSION OF DOING THINGS DIFFERENTLY.WE SIMPLY NEED THE RIGHT PEOPLE 2 DO THE RIGHT THING.IT MUSNT DIFFER FROM WHAT'S ALREADY ASTAKE.

@Deri: Jonathan govt. is a fraud says Prof Tam David West

@Deri
On Prof. Tam David West you now claim he was the best Oil Minister... looks like you don't know the opinion of Prof David West on Jonathan. Prof. Tam David West thinks Jonathan is a clueless rogue and clearly stated oil-subsidy is fiction. Here is a link on his October 2 interview.

http://saharareporters.com/interview/oil-subsidy-fiction-okonjo-iweala-h...

I would advise you stop your misinformation as we are prepared to match your Clueless One toe-to-toe on this issue. But guess what? ironically i have the beleive Jonathan does not have the balls to remove oil-subsidy come January and as usual you guys would explain it to mean he's a listening President but we know he's a COWARD !

MY TAKE IS....

...NO SUBSIDY REMOVAL! AT ANY COST! We have refineries- fix them! And build more!

No compromise! If we, the masses cannot go on international junkets, like J-boy & Co., let us, at least, enjoy some benefits of our God-given wealth!

@Stanley Igwe

Stanley ..... what is your profession to declare authoritatively a TAM can't be done in 6 months? This is link that says a TAM takes 1 - 4 weeks.
http://www.api.org/aboutoilgas/sectors/refining/refinery-turnaround.cfm
can you please back up your claim of the over 6months with facts and figures please !
So in your imagination, because OBJ paid PDP donors to do TAM and they in turn embezzled the money means that anyone else cannot do it ? God knows in what cage you live !
I don't care if you don't like my guts ..... engage me on facts. If Venezuela can maintain 18 refineries, why is Nigeria not able to ? Niger (Nigeria's neighbour) has finished a refinery in Zinder it started building late 2008; it took it less that 3 years. PDP has been in power since May 1999 (over 12years now) and the rogues you idolise cannot even maintain one and you are here defending them because you don't see beyond that your cage !

@Stanley Igwe

First of all, I am my own boss and i live in a society where internet access is a basic part of everyday life and not a luxury like u ve hence I am online 24/7. So u saying "What a shame that you are going to live miserably for 4 years of GEJ rule" just exposed your emptiness again. It is a pity daft people like u are even allowed to have an opinion hence u thinking Jonathan is here to solve "20yrs problem" as you put it. But he could achieve nothing in Bayelsa. KEEP HALLUCINATING.Can you explain to us how "Subsidy removal is an integral element to achieve deregulation" in this case but Subsidy removal WAS NOT an integral element to achieve deregulation in the telecoms sector.In 2010, the EU spent €57 billion on agricultural development, of which €39 billion was spent on direct subsidies. Agricultural and fisheries subsidies form over 40% of the EU budget. Discuss facts if you have got any. in UK , u ve got Health, transport and jo benefits, what does Nigerian govt. provide you ?

@tundemash

Those who benefit from D importation of petrol are (oil-less) Naijas. Let me jog yr memory a bit. It was OBJ who told us the criminals u mentioned are behind the ongoing nuclear war against attempts to stop the importation of fuel from Togo. Every sane Nigerian knows that most of the fuel supplies come from the NNPC depots, which operates like an Ogboni, Boko Haram or Okija shrine cult group. Ask yourself why Buhari, IBB, Abacha, Ribadu and OBJ were not able to dislodge them? The saddest aspect of the fuel subsidy rubbish is that Gov, has not been able to articulte her position properly to the masses. Do we want to import fuel from Togo for another 51yrs? The answert is no. Were these same crooks not friends to Ibb, Abacha, OBJ, and Yaradua? Was Emeka Offor not cloned by Abacha and awarded the TAM job for less than $255m? How many ppl from the FREE crude oil zone in the SS of Naija, are involved in the deal? Yet pay 250 4 a gallon of petrol in d creeks 2 run dem dead engine boats!

@Tundemash

Tundemash I find it strenuous to argue with you because your brain have reached menopause.I find it also utterly difficult to understand your own opinion on any subject matter other than attacking people's comment with your subsidized ignorance.
Please put more effort you may understand my submission, I did not say that subsidy removal is the same thing as deregulation, am not as daft as you. Subsidy removal is an integral element to achieve deregulation.
What a shame that you are going to live miserably for 4 years of GEJ rule.It appears that you are jobless because staying on this website 24/7 venting your frustration is pitiable.An O yes member who do not have brain of his own and who can not articulate an idea of his own, but have the gut to abuse others shame on you. I can't help your timidity and hiding under other's opinion have failed to boost your esteem.

@usabram

@usabram I said no amount of political will can fix four refineries within '6 MONTHS' and I stand by it.You are thinking of fixing these refineries as reparing one component that is not functioning well.Think! the efficiency of these plants are 10% technically means they are dead, not just that they broke down.The refineries are working but they are lagging in their install capacity. What it needs is not just repair but total overhaul and this I said can not be achieved within 6 months.You can't even do turn Around maintenance of 4 refineries within 6 months.
I don't care to know who built all the refineries and I will say it again voting in Buhari and not CPC and giving with the kind of political system we are practicing now will not solve the problem.OBJ whose under his leadership he supervised the building of two refineries could not even do ordinary Turn Around Maintenance.Buhari may have military might but he has zero political will and does not imbibe any democratic ethos.

@Deri:

U claim "Thoughts expressed in support of buying fuel from Togo, has the full backing of of the gangsters, who have been sabotaging our refineries for the past 40yrs."

I know 4 of those gangsters; 1.Emeka Offor (the man paid billions to do TAM on the refineries)2. Femo Otedola , the man importing diesel 3. Gen. (rtd.) Danjuma (the Chairman of the Advisory Committee to Jonathan),4. Jimoh Ibrahim (Chairman of NICON and Nigeria Airways). All these people are major donors to Jonathan so what the heck are u talking about ? Name a few you know yourself and I bet they are major donors to Jonathan's campaign !

U claim "The shortage of petrol, at gas stations did not start with GEJ. It was there when Buhari overthrew the government of Shagari"

On that one, U ARE HALLUCINATING!!! And if it didn't start with GEJ, was he voted in to prolong it ? FOOL !!

@Stanley Igwe: Re: Deregulation is the answer (2)

Let me take the oil-subsidy issue to the level you, Deri and IFYDemocracy would understand at the village Otuoeke level.

It's like a fisherman in Otueke who sells raw fish to Eateries in Lagos but buys fried fish (not from Otuoeke) but from same or other Eateries in Lagos and claims to his family he's subsidizing fried fish meal for them. Why won't he pay so much for his stupidity ? He's got to pay for transportation and markup price of the Eatery in Lagos and then add foreign exchange rate if we are talking on fuel.
And the only reason, the foolish Otueke fisherman can't fix the cooker in the house or get a new one is because he fears sabotage by one or two people living in the house. He would rather punish the whole family tha confront the one/two criminals.
It is silly for anyone to continue on same path other rogues in his party have toiled and failed. Like some said the other time, I pray he removes the subsidy, those the Otueke gods wants to destroy, he first makes mad!

@Stanley Igwe: Re: Deregulation is the answer (1)

Deregulation is NOT same as oil-subsidy removal. Stop mixing issues and make research before u dabble into things u have no mastery of.
Deregulation is to open a sector to competition and disuade monopoly. To my knowledge, as of now, there are importers importing Petroleum products into this country on behalf of NNPC e.g Femi Otedola so what are u talking about ?
Oil-subsidy is govt. saying they must charge the naira equivalent of fuel importation plus port landing cost. So even after your so called deregulation and fuel is still being imported, how is the problem solved?
Solution is build new refineries and repair old ones. How is Venezuela able to maintain 18 refineries and Nigerian none? If other countries are as useless as Nigeria, where would u import fuel from ?

@Stanley Igwe: Re: Deregulation is the answer (1)

Deregulation is NOT same as oil-subsidy removal. Stop mixing issues and make research before u dabble into things u have no mastery of.
Deregulation is to open a sector to competition and disuade monopoly. To my knowledge, as of now, there are importers importing Petroleum products into this country on behalf of NNPC e.g Femi Otedola so what are u talking about ?
Oil-subsidy is govt. saying they must charge the naira equivalent of fuel importation plus port landing cost. So even after your so called deregulation and fuel is still being imported, how is the problem solved?
Solution is build new refineries and repair old ones. How is Venezuela able to maintain 18 refineries and Nigerian none? If other countries are as useless as Nigeria, where would u import fuel from ?

Stanly Igwe you have no public shame

Stanley igwe or whatever, you should go and bury your head in a pit toilet for trying to defend a president who would rather protect the vicious interests of friends and cabals than work for the people who elected him. Well, tell Mr president that we are now informed better about what happens in Aso rock. We do not want deregulation anymore, and if he doesnt repair those refineries and compel those shit companies to build new ones before 2015, he may as well join you in the pit toilet and eat shit because no vote for him. If he cant do the job, we'll try other people till we find someone who can, thats the way its done elsewhere in the world.

FUEL SUBSIDY

@Igwe & Ify Guy,can you guys please educate us why Toll Gates were abolished in Nigeria in 2003/2004?

Stanley igwe, an issue remains a problem when we do nothing

U said no amount of political will can fix our four refineries producing only 10% of capacity. The man that had the vision to turn Dubai to what it is today was in Nigeria in 1978 to borrow Money to kick start project Dubai. OBJ turned down the request. But without Nigeria, he turned Dubai into a great city with his citizens being fed from the investment made. Unfortunately if u may not know, Buhari built 3 of the 4 refineries - 2 when he was the petroleum minister under OBJ and 1 when he was head of state with Tam David west as minister of petroleum, which IBB commissioned after over throwing Buhari in a coup. We are only talking about mere repairing here. Today's govt is of, by and for the cabals. The cabals are GEJ friends. Why cant GEJ invite the CEOs of the companies that built the refineries and negotiate directly in the same way IBB dealt with Julius Berger/STRABAG/Dantata & SAWOE to build Abuja that we all see today. Helping the masses to live is not in GEJ's agenda. Period!

Go and Hide because you have

Go and Hide because you have nothing to offer.
We need actions not words. GEJ should start doing something to better the lot of most Nigerians who voted him. His subsidy removal proposal suggest he's not on the masses' side

Go and Hide because you have

Go and Hide because you have nothing to offer.
We need actions not words. GEJ should start doing something to better the lot of most Nigerians who voted him. His subsidy removal proposal suggest he's not on the masses' side

Stanley Igwe U Be Mumu

So it's Femi Falana that u're calling Dick & Tom? U better pray you achieve 1% of what he has achieved in his life.

If your CRETIN president JONA has half of his brain, Nigeria would have turned to paradise. Fool!

WE ALL PRAY FOR THE SUBSIDY TO BE REMOVED, GOD HELP

HE WHO THE GODS WANT TO KILL THEY FIRST MAKE MAD. I THINK THIS WILL BE THE STROKE THAT WILL BREAK THE CAMEL'S BACK. THE BACKS OF THE SUFFERING MASSES OF THIS COUNTRY ARE ALREADY THRUST ON THE WALL. THESE LOOTING AND SHAMELESS POLITICIANS HAVE TAKEN NIGERIANS FOR GRANTED MUCH TOO LONG.
I DARE THEM TO REMOVE THE SUBSIDY. MISSILES ARE AIMING AT THEIR VARIOUS MANSIONS ALREADY. WE DARE THEM TO TRY .. FUEL SUBSIDY REMOVAL OR NOT, THE MOBILIZATION FOR THE REVOLUTION IS CONTINUING. ENOUGH IS INDEED ENOUGH. THEY WANT TO USE THE REMOVAL OF SUBSIDY TO MAKE US MORE ANGRY , AND LATER CANCEL THE IDEA TO WIN OUR HEARTS. WE CAN NO LONGER BE FOOLED. MAY GOD BLESS NIGERIA AND THE 500,000 REVOLUTIONARIES WHO HAVE SIGNED UP.
SIGN UP AT : nigeriarevolution@rocketmail.com

WE ALL PRAY FOR THE SUBSIDY TO BE REMOVED, GOD HELP

HE WHO THE GODS WANT TO KILL THEY FIRST MAKE MAD. I THINK THIS WILL BE THE STROKE THAT WILL BREAK THE CAMEL'S BACK. THE BACKS OF THE SUFFERING MASSES OF THIS COUNTRY ARE ALREADY THRUST ON THE WALL. THESE LOOTING AND SHAMELESS POLITICIANS HAVE TAKEN NIGERIANS FOR GRANTED MUCH TOO LONG.
I DARE THEM TO REMOVE THE SUBSIDY. MISSILES ARE AIMING AT THEIR VARIOUS MANSIONS ALREADY. WE DARE THEM TO TRY .. FUEL SUBSIDY REMOVAL OR NOT, THE MOBILIZATION FOR THE REVOLUTION IS CONTINUING. ENOUGH IS INDEED ENOUGH. THEY WANT TO USE THE REMOVAL OF SUBSIDY TO MAKE US MORE ANGRY , AND LATER CANCEL THE IDEA TO WIN OUR HEARTS. WE CAN NO LONGER BE FOOLED. MAY GOD BLESS NIGERIA AND THE 500,000 REVOLUTIONARIES WHO HAVE SIGNED UP.
SIGN UP AT : nigeriarevolution@rocketmail.com

Fiscal federalism now!! Our oil! Their empty commonwealth

Thoughts expressed in support of buying fuel from Togo, has the full backing of of the gangsters, who have been sabotaging our refineries for the past 40yrs. The shortage of petrol, at gas stations did not start with GEJ. It was there when Buhari overthrew the government of Shagari and has refused to go away ever since. Ribadu had the list of the thieves involved in the deal and did nothing! Rather than back efforts at improving the situation, some are threatening hell. Its as if oil flows from every beer parlor in Nigeria! The cabal who 4 decades made fortunes from the importation of fuel, are all from Non oil producing states. In the south south, where the oil wells are located, petrol is sold at 150 per gallon. There are no gas stations in any of the oil bearing riverine areas in the Niger Delta. Fuel import to protect just 30 (oiless) Nigerians, who want to make Bill Gates look like an Ajegunle boy in the global money market, is madness. Fiscal federalism in Naija now!

Deregulation is the answer.

Every dick and Tom is now petroleum subsidy expert. Femi no amount of political will can fix four refineries producing only 10% of its 100% capacity within 6 months. Engineering principles do not operate on political will. This govt have let us in to know there is serious problem in the petroleum sector. What Nigerians know is don't remove subsidy I also agree since our life depends on it.What Nigerians need is availability of fuel at a cheap and affordable price. so what we should ask ourselves is are we going to achieve this by subsidy? We are almost 20 years behind building refineries and the challenges before GEJ is solving a 20 years ago problem in the face of much demanding today's problem. Abusing and calling GEj all sorts of names will not help us, even voting in Buhari and not CPC can not come anyway near solving this problem.

Responce to IFYGUY

God will judge everyone that have been paid to comment in favour of the government on this forum,is it until the masses die of hunger, before will be able to tell them the truth,Government have betrayed the trust of the masses, they have been playing politics with the lives of over 150 Million Nigerians. Please relate the problem of the masses with the government, this is not the right time to remove fuel subsidy because there is nothing like subsidy any where, tell the government to repair & build more refinery, because the money they waste on governing the masses and the one they embezzle is more than enough to build 20 refineries across Nigeria, Masses can not suffer for the problem that government created for themselves through corruption & greed, We will not allow it, we will not accept it, we will not fold our arm for the government to sold the future of Nigerians away.

THE PDP BACKED FUEL IMPORTING CABAL IS THE CAUSE OF OUR PERIL.

For twelve years,the PDP has been in power,what excuses have these politicians got to tender for not building at least one new refinery in Nigeria and keeping the existing ones running?For all the calousness in the world,these unrepentant profiteers have systematically stood against the ability of a country like Nigeria from being able to have a refining capacity,just like in the generation of power we keep hearing tales of power plants and how difficult they are to build,these are all white lies.
Biafra refined all the oil it needed without importing one spare part and under economic blockade and military pressure,most parts were locally fabricated.The dishonesty of this ruling party is the cause of our woes and if we dont realise that, we will keep suffering.THIS ADMINISTRATION MUST AS A MATTER OF URGENCY PUBLISH AND EXPLAIN WHO HAS BEEN IMPORTING OIL INTO OUR COUNTRY,WE SUSPECT THAT THE OIL CABAL DONT WANT FUNTIONING REFINERYS IN NIGERIA,WHO ARE THESE GHOSTS?

@FUNMI ABIODUN-FINDO YOU HAVE A POINT THERE

ONLY THAT FUEL IS NOT MOBILE PHONE. EVEN IF IT IS CAN YOU GUARANTY THE FUEL PRICE WILL FALL BY A FACTOR OF 9 IN DAY ONE (MOBILE NITEL=N180,000...MTN=N20,000)? FUEL IS THE MOST STRATEGIC PRODUCT IN NIGERIA TODAY. I CAN CHOOSE TO LIVE LIFE WITHOUT A MOBILE PHONE (ASK WARREN BUFFET THE RICHEST MAN IN THE WORLD) BUT YOU CANT LIVE WITHOUT FUEL IN NIGERIA. A SENSIBLE GOVT WILL APPROACH THE PROBLEM IN TWO WAYS. FIX THE STORAGE, DISTRIBUTION AND DISPENSING INFRASTRUCTURE, LIKE PIPELINES, DEPOTS ETC. THE PRIVATE INVESTORS WILL NEED THE DEPOTS AND PIPELINES, OTHERWISE THEY WILL ADD THE COST OF TRANSPORTATION. SECONDLY REDUCE THE DEMAND FOR ALL CLASSES OF FUEL BY FIXING THE RAILWAYS, PROVIDING ELECTRICITY USING COAL AND AN EFFICIENT PUBLIC TRANSPORTATION SYSTEM E.G. ELECTRIC TRAMS FOR MAJOR CITIES IN THE COUNTRY. BUT YOU SEE BIODUN THIS CANNOT BE ACHIEVED IN AN AIRCONDITIONED OFFICE WITH OGOGORO ON THE TABLE!

@Justkennie..,vote is begining to count in Nigeria

Vote is begining to count in Nigeria. If not how come Rochas is now the governor of Imo? How come the Amosun is now the governor of Ogun and Akala was voted out in Oyo? How come former speaker Bankole did not return to the house of reps? My point is that the time for REVOLUTION in a DEMOCRACY is during elections. If a people collectively decide that a govt will be evicted during an election,that govt is gone(especially now that we have reasonably free and fair,not perfect,elections). No amount of spending on campaign can save that govt. There is NO ROOM FOR REVOLUTION in-between elections in a DEMOCRACY. It is FALLACY to assume that events of the arab spring could be replicated here because there is no similarity

re: Misconceptions On Fuel Subsidy - by Falana

The threat of any mass protest that will make Aso rock back down on any anti-people policies is a tale of musical chairs. Nothing will move any government in Nigeria. They know where and how to meet anyone crying foul. Settlemania has destroyed the conscience of the nation. It cannot negotiate its way out of bloodshed. What the catalyst would be is what we may not know....

@IFYGUY-Democracy 4ever : Re: Let the subsidy be removed,Heavens

Mr. IFYGUY-Democracy 4ever,

If you asking us to make more sacrifices, would u kindly explain to us
1. How the gain on past oil-subsidy removal was used
2. How N34trillion was spent in the last 10yrs by the govt. ? This was stated today the Minister of State of Finance.

http://www.thenationonlineng.net/2011/index.php/news/25204-federation-ac...

You are an animal

As an animal that you are, you can say whatever you like

Re-Misconceptions on Fuel Subsidy

The private sector will not invest in the down-stream/refinery sedctor of the economy without subsidy removal. No right thinking business person or rational bank will fund and invest in a sector where product price is fixed and or regulated.
Yes the pain will initially be felt by the populace, but in the next 24 months so much capital, manpower, competition and efficiency will flow into the sector that prices will come down; just review our telecomunication sector and compare the price of a SIM card 10 years ago to today's price.
We need to have a private sector driven economy for Nigeria to have a chance.