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Discussion: Nigeria Oil subsidy or No subsidy?

Read latest Nigeria news trending right now on NigeriaTrends.com via Nigerian Newspapers.... "Discussion: Nigeria Oil subsidy or No subsidy?"


First, what is subsidy? Definitions of subsidy below:

  1. Monetary assistance granted by a government to a person or group in support of an enterprise regarded as being in the public interest.
  2. Financial assistance given by one person or government to another.
  3. Money formerly granted to the British Crown by Parliament.

The concept of fuel subsidy is another word for capital cronyism” which allows private individuals to own Oil wells belonging to Nigerians, either as a front or in trust or in corrupt collusion with people in government with vast capacity and vessels to transport it out of the country and then refine it at some privately owned refineries cited in another countries or by other arrangements with refineries own and built by other sovereign nation in which they have vested interest and later secure import contracts to bring it in to sell at exorbitant unregulated prices at the pumps to innocent Nigerian citizens.

The Oil Sheikhs and Oligarchs receive substantial billions of naira in return from a colluding government which they now put to Nigerians as Fuel Subsidy!

We now know that those companies and Individuals are no more faceless either by design or default, some of them have recently been named, but their backers in government remain faceless. The personalities behind these so called Fuel subsidy sham are not unfamiliar to Nigerians and indeed the world.

Majority of those Sheikh exist in a cabal of government collaborators and have dine and wined publicly with different sponsors in successive government in Nigeria till date. They have been celebrated and awarded national honours, GCON, CFR, CON, OFR etc. Little wonder then why the current government of Goodluck Jonathan is claiming to be subsidizing them and their companies with about N1.3 Trillion per year, being payment for services rendered for and on behalf of themselves and sponsors in government.

Removal or no removal of fuel subsidy, these cabals still retain the import licence and infrastructure to continue to import refined fuels and transport crude anyway, so the current price that the government just announce would further increase the income give to these cabals and it will also promote artificial scarcity and hoarding of imported fuel as these people also own the storage facilities for the imported fuel. The constituted government agency NNPC is effectively inert.

So, the argument for Subsidy removal is warped, watery, unfounded and curiously suspicious. Recently, it will refresh your memories when a General publicly admitted that he made a profit of $500 million when he sold off an Oil well gifted to him for $1 Billion and he admittedly was ran out of ideas on what to do with the windfall in one deal!

The aforementioned is typical of why Nigeria found herself in the current debacle of so called fuel subsidy.

The bottom line is that there is nothing like Fuel Subsidy and there is infact no subsidy on anything in Nigeria, let alone fuel! The fuel claiming to be highly subsidised is the fuel taken out of the country by the Oil Cabals to be refined and imported back to be sold at the pump to Nigerians. The Cabals and cronies have also contributed remotely or directly to sabotaging the refineries in Nigeria to sustain their import business with dividends for their sponsors in government. It is a false economy, it is capital fraud, and it is a monumental corruption of mega proportion! It is sustained by official institutional corruption, bad governance and inept leadership till date since 1985! (Dr Olayowola Ajileye)

Now, Discussion: Nigeria Oil subsidy or no subsidy?

This discussion or you may call it a debate transpired between some so called “young citizens” of Nigeria in regards to the current fuel subsidy situation in Nigeria. Joining the debate is a neighboring party from Sierra Leone.

We shall identify our two young Nigerian debaters in this dialogue as:

I. Naija Mayor

II. Naira Boy:

Our correspondent from Sierra Leone whom also asked the question shall be identified as Salone Minister.

Salone Minister asks: Nigeria Oil subsidy or no subsidy?

Naija Mayor: No subsidy. Subsidizing fuel is like a parent(federal govt) taking out loans(4rm IMF) to pay 4 a kid’s (oil sector) education and dat kid don’t even registar 4 classes but creates a false impression.

Salone Minister: Really..wow…I was wondering why did the govt stop the subsidy..It was sudden.

Naira Boy: No subsidy bro, not for a country that is blessed with oil….it is just a fraud at the highest level. Nigeria is the largest crude oil producer in Africa, and also a major source of U.S.oil imports, so how can our fuel be subsidized when we have it abundantly?

Let’s say for instance Nigeria is not rich in oil, and there’s fuel scarcity, and fuel currently costs $5 per gallon – if the Nigerian government goes to a neighboring country to purchase tanks of oil for lets say $10 per gallon and then sells it to the people for $5 per gallon still, (they bought for $10, but gave us for $5) then the $5 is the subsidy.

But that’s not the case here, we have oil, we never lacked oil, we’re always selling oil to foreign countries abundantly. I believe there is a cartel behind Nigeria’s oil. I’d say watch the series of videos in this post by Nigeria’s former ministry of petroleum Prof. Tam David West, as he expose the current government and their subsidized fraud:http://nigeriatrends.com/prof-tam-david-west-on-fuel-subsidy/

Salone Minister: Then why is the scarcity and the sudden increase in fuel price?..Oil crisis should be the least Nigeria problem.

Naija Mayor: (In response to Naira Boy’s opinion) Why didn’t TAM david west speak when he was in power? the oil is not in ALL of Nigeria it is in the Niger Delta and you google the word “NAIJA DELTA” and tell me what you see.

Salone Minister: So Naija Mayor, you trying to say the govt is not in control of the oil?

Naira Boy: There’s no fuel scarcity, just a hike in price, which was suppose to explain the removal of subsidy. The government is and has been playing games with us for a while now, but all that will soon change.

Too many corruption in the country, our government officials are all crooks. Do you know that just our Senate earns more than Obama annually? At least they earn around to $4 million yearly, not to mention the surplus allowances they get. The president and vice president are reported to be getting around 1.2 billion Naira yearly for just food allowance and such (thats over $7 miilion), and this does not include their salary.

@ Naija Mayor, the issue is not about the richest oil region in Nigeria. And what do you mean by oil is only in the Niger Delta? The Niger-Delta is the richest oil region in the country YES, but not the only region with oil!

When Tam David West was in power, he was under Buhari, and then there was no such thing as fuel subsidy. And major Buhari (a former president) is saying the same thing, that there is no subsidized fuel.

Here’s a video interview from former president Buhari on fuel subsidy (he ruled from 1983 -1985):http://www.youtube.com/watch?v=YmG_dYY7YRA

Salone Minister: (In response to Naira Boy’s info on how much Nigeria’s senate earns) ‎$4 MILLION DOLLARS!!….That’s lots of money for people who don’t do their job.

Naira Boy: (In response to Salone Minister) Yup…just corruption at the high level.

Naija Mayor: (In response to Naira Boy) And why didn’t buhari say this when he was the leader? Buhari created an initiative called OMPADEC which was a big SCAM, TAM did not speak when he was in power also. Subsidy should be removed till corruption goes away.

Naira Boy: (In response to Naija Mayor above) Thought you understood there is no subsidy, so why still say subsidy should be removed till corruption goes away? Lol the subsidy is the corruption. Did you even know when the fuel subsidy fraud kicked in?

Salone Minister: We agreed their should be no subsidy..Right?

Naira Boy: Yes, no subsidy, not for fuel. And after removing the “ghost subsidy”, there shouldn’t be an increase in fuel price. Let’s say Sierra Leone has a large and working refinery, and we export our crude oil there to get it refined. Instead of paying Salone hard currency for the refinement, we could simply pay with crude oil which I believe will be a fair deal for both parties. (Mind you, we can also pay cash for refinement from the $$$sale of crude oil). Rather they want to make the struggling masses pay for the cost of refinement (the cost of refinement can’t be much, i’ll do some research later). If we allow this, then where does the money from the sales of crude oil go? The pockets of our politicians of course. (Too many confusion on the fuel subsidy, and many people don’t know what is what especially when they fall for the lies of the government).

There would be no refined oil/fuel if there is no crude oil. This crude (hydrocarbons), comes from the Nigerian soil and belongs to the Nigerian people. (We don’t buy crude oil like other nations). Many are made to believe we are importing (buying) fuel, when in the real sense we are only bringing back what belongs to us after it was refined from crude oil. That’s how the subsidy fraud kicked in, and I believe this kicked in during Babangida’s regime. So there’s no such thing as fuel subsidy bro, and this concludes our fuel subsidy debate. Thank you.

Salone Minister: Do Nigeria have refinery?..They can have the crude oil but it cost money to refine it overseas and then import it again.

Naira Boy: They don’t want us to have our own refineries, they’ve pretty much destroyed the three refineries we have. Like I mentioned earlier, there’s a cartel (top gang) behind Nigeria’s oil industry. They know if Nigeria has a working refinery, that would prevent them from making the greedy money they wish to die for.

Nigeria is one of the top producers of crude oil in the world, but imports almost all of its refined oil. Why? Because the elites who import generators, fuel, and diesel, etc., are more powerful than those who want Nigeria to refine its own oil and use it to generate electricity. This is the way Nigeria has been for decades. Its like this: 1% of the Nigerian population are more powerful than the remaining 99%, so this miserable 1% can keep the economy down at their will or make it better.

Naija Mayor: Nigeria has 4 refinerie 2 in MY CITY.(Emphasis on my city) meaning you are saying what u see on TV, I am telling you what I have lived throgh. Salone Minister google Naija delta, PH refining company,Kaduna refining corporation and Warri refining corporation. Nigeria does not I repeat does not produce crude oil. The crude oil was deposited naturally in the southern soil and we import experts(white men) from shell, texaco chevron to help us drill it out and what happens to these men? They get kidnapped.

Salone Minister: Naija Mayor..How can the problem be solved?..who is responsible for the crisis?

Naira Boy: (In response to Naija Mayor’s recent statement above) Nigeria has three refineries my friend.

The two Port Harcourt refineries were built in 1965 and 1989. In 1993 they were merged into one, with a total capacity of 10.500 million mt/yr (Metric Tonne Per Year). The Eleme Petrochemical plant,which was built adjacent to the Port Harcourt refinery in 1995, has an Olefin production capacity of 483,000 mt/yr (Metric Tonne Per Year), a Polypropylene capacity of 80,000 mt/yr and a Polyethylene production capacity of 250,000 mt/yr.

Don’t be daft Naija Mayor, am trying to give you as much info & stats to inform you properly. I don’t give a damn where you’re from or who told you the nonsense information you claim to know about Nigeria’s crude oil. Crude oil is a natural resource, you don’t produce/manufacture it lol! (with the way you put it). It is found naturally just like Gold, Diamond, Water, etc. When you hear oil producing states/countries/nations/economy anywhere in the media press, they are not referring to the same production/manufacture as cars, clothes, soft drinks, etc. So don’t confuse yourself bro. If you know what natural is, you should’ve understood this in the first place.

Now, what is crude oil?

Crude oil is a complex mixture of carbon and hydrogen (hydrocarbons), which exist as a liquid in the earth’s crust. Crude oil has many compositions, some is black, thick and tar like, while other crude oils are lighter in color and thinner. The carbon and hydrogen in crude oil are “thought” to have originated from the remains of microscopic marine organisms that were deposited at the bottom of seas and oceans and was transformed at high temperature and pressure into crude oil and natural gas. (Source: Elmhurst)

Another definition of crude oil, should in case you didn’t understand the one above:

Crude oil is the term for “unprocessed” oil, the stuff that comes out of the ground. It is also known as petroleum. Crude oil is a fossil fuel, meaning that it was made natural­ly from decaying plants and animals living in ancient seas millions of years ago — most places you can find crude oil were once sea beds. Crude oils vary in color, from clear to tar-black, and in viscosity, from water to almost solid. (Source: HowStuffworks)

Crude oil is obtained by drilling a hole into the reservoir rock (sandstone, limestone etc.) and pumping it out. Meanwhile Gold is obtained by miners digging or blasting rocks surrounding it.

Salone Minister: You guys have excellent points but I am afraid all refineries mentioned are ineffective in solving the oil crisis.

Naira Boy: To stop/prevent the oil crisis in Nigeria will cause a lot of lives bro, that’s for sure. The present government is incapable of stopping the crisis. Simply put, to prevent oil crisis in Nigeria, we need to fight off corruption, where their is corruption there will always be crisis.

Salone Minister: Corruption is truly a pandemic in African and the people who don’t know what happening are out in the street dying..Thanks for the conversation Naira Boy and Naija Mayor…I appreciation it. I learnt something today..lol.

Naira Boy: You’re welcome bro.

End of dialogue. If you have something to contribute, you may do so either using the Facebook comment box below, or using NigeriaTrends comment box. Thank you!

The parties involved in this dialogue are concerned citizens of not only their respective countries, but that of Africa as a whole. Their discussions on the matter of fuel subsidy in Nigeria is only their opinion and should be understood as such. 

Filed under: Opinion | Discussions & Debate

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2 Responses to “Discussion: Nigeria Oil subsidy or No subsidy?”

  1. fasqwee
    May 30, 2012 at 6:37 pm #

    HAHAHAHA :)

  2. Shonta1999
    September 4, 2012 at 11:25 pm #

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