Nigeria scraps fuel subsidy, cuts petrol price to N85 per litre

NNPC Towers

The Nigerian Government announced on Friday that it has scrapped the Petroleum Support Fund, also known as fuel subsidy.

Speaking to journalists at the Port Harcourt refinery where he had spent Christmas inspecting the facility, the Minister of State for Petroleum, Ibe Kachikwu, said the government could no longer pay the subsidy due to the fraud tainting the scheme.

Mr. Kachikwu, who is also the Group Managing director of the Nigerian National Petroleum Corporation (NNPC), also added that the government could no longer afford the payment due to the dip in its revenue, caused by the drop in crude oil prices.

He said a new pricing template he signed off on Thursday effectively removed the payment of subsidy on petrol and that oil marketers would be informed of the development in the coming days.

The official price of petrol is N87 but it is sold for higher prices in many states of the federation.

When pressed on what the new price of petrol would be following the removal of the subsidy, Mr Kachikwu said it would sell for below the current official price, maybe as low as N85 per litre.

“It (new pricing regime) is out,” the minister said. ”I signed off on it yesterday (Thursday). I imagined that in the next couple of days the marketers would get advice on that. The nice thing about the PPPRA, where I signed up on it yesterday is that the price will be far below N87,” he said.

“So for the first time, people will understand that the pricing modulation I was talking about is not a gimmick. It is for real. We have gone to find out how we will be able to fluctuate this market to reflect what the reality of the crude market is. The objective is that one, we cannot afford to continue to subsidise.

“We can’t even understand where those subsidies were going to. There are a lot of fraud elements in it so we need to cut that off.

“The second is the earning capacity of the Federal Government is deteriorating by the day with lower prices of crude and come out more,” he said

The call for government to scrap the payment of subsidy on petrol has become louder recently following the drop in crude oil prices.

Last week, a leader of the ruling All Progressives Congress and former Governor of Lagos, Bola Tinubu, joined the call for the government to scrap the subsidy regime.

Mr. Tinubu,  who had opposed the removal of the subsidy under the administration of former President Goodluck Jonathan, said subsidy was originally a good idea, but it had since been “perverted”.

He, therefore, urged the government to divert the money it is currently paying on subsidy to other social programmes and infrastructure that would have more rewarding impacts on the people.

“In a perfect world, I wish we could sanitize the subsidy regime and thus continue (with) it. However, I have reached the conclusion that there are too many demons in the system for this hell to be converted into good earth let alone heaven,” he said while speaking at the 10th memorial anniversary of left-wing politician and scholar, Bala Usman, in Kaduna.

“I would choose to remove the subsidy and use the money to help people – let us feed our school children, with our local produce promote agriculture, create jobs and start erecting a social safety net for the vulnerable among us in true need,” he added.

On Tuesday, President Muhammadu Buhari told a joint session of the National Assembly that he had directed “the Petroleum Products Pricing Regulatory Agency (PPPRA) to adjust its pricing template to reflect competitive and market driven components” that would keep the price of petrol selling at “N87 per litre for now.”

According to Mr Kachikwu, the President’s comment was informed by the analysis that was done that put the price at below the official price of N87.

“But in applying that where we landed when we did the analysis for the very first time was about N85 or N86 so it is below N87.

“And maybe the first price that will come will reflect it. That was why Mr. President said that prices will be N87 for now. And that is what we have in mind,” he said.

The announcement on fuel subsidy removal came two days after the Nigerian Labour Congress threatened it would vehemently oppose any cut on the subsidy regime.

At the end of its Central Working Committee meeting in Abuja, the NLC said the discordant pronouncements from government officials on plans to cut subsidy was creating panic and confusion in the system, even as it reaffirmed its opposition to any fuel price increase.

An attempt by the government to cut fuel subsidy in 2012 led to what came to be known as the #OccupyNigeria protest.

Nigerians were outraged when in the early hours of January 1, 2012, then President Jonathan announced the removal of subsidy from petroleum products.

The then president’s New Year announcement meant that PMS, which sold for N65 a litre – with subsidy – would go for N141, more than a hundred per cent increase.

This action translated into more than one hundred per cent increase in fares, food, rents and virtually every all goods and services in Nigeria.

Petrol is central to Nigeria’s economy and literally close to every Nigerian’s heart.

Expectedly, that announcement immediately drew Nigerians to the streets, sparking spontaneous protests across the country.

But it soon became clear that the subsidy regime was characterised by monumental fraud.

For instance, to benefit from the 2011 fuel subsidy largesse, some oil companies “manufactured” fictional oil ships (vessels) they claimed traversed seas and oceans of the world carrying imaginary petrol, with Nigeria the final destination of the product, a Technical Committee set up by the Federal Government discovered.

For supplying this phantom product to Nigeria, some seven companies pocketed a princely N13 billion naira from the 2011 fuel subsidy payments, the committee’s report, exclusively obtained by PREMIUM TIMES at the time, showed.

Some other companies, not wanting to create fictional vessels, decided to space- travel existing ones; such that real vessels, which were definitely in countries like China and UAE, were purported to have discharged petrol into storage depots in Nigeria at the exact time they were in those other countries. The 11 companies involved in this category of fraud pocketed N21 billion from the 2011 subsidy payments, the report said.

Sources in the oil industry revealed at the time that those companies were able to perpetuate the crime with the help of field officers of the Petroleum Products Pricing and Regulatory agency (PPPRA) and the Department of Petroleum Resources (DPR), men of the Nigerian Navy, Nigeria Custom officers, banks and others involved in the various stages of fuel importation.

The companies and their owners are still being prosecuted by the Economic and Financial Crimes Commission.

 


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  • trutometer

    Where are the anti-PMB/anti-Change wailing wailers?? What happens non of them is saying anything? shameless morons. DO you know what happens when you resist change and refuse to adapt to changes?? you become extinct..coz that’s what happens to dinosaurs. Sai Babaaaaa!!!!

    • Buhari4Ever

      They are about to wake up from slumber

      • Yem

        Good one.. Trutho meter

  • Nkem

    So it means we have just been dashing money to a few individuals? So what happens to the people at PPPRA, NNPC, the bankers etc who have been perpetrating this fraud for so long?

    • Lenz

      The report ended with the information that those people you inquired about are currently under investigation by EFCC… didn’t you read that?

      • Nkem

        “The companies and their owners are still being prosecuted by the Economic and Financial Crimes Commission.”
        Is that the part you are referring to? Please read again.

  • dr.f.anifowoshe

    PREMIUM TIMES EDITORS,

    You should NOT quote retards on matters of economics and political science.
    Bola Tinubu, for example, has no place in this high level discussion on policy.
    You should not have quoted Bola Tinubu in this matter – he doesn’t know much.
    Why quote a retard who says he opposes fuel subsidy and wants it cancelled,
    but then says in the same sentence that the proceeds therefrom saved be put
    into transportation subsidy? Does that make sense to any educated person?
    What is fuel subsidy if not transportation subsidy by some other means?

    • Kuku

      You weren’t intelligent enough to understand him. Was there any subsidy in the first place? What has been happening were fraudulent claims on subsidy that never existed. So remove the subsidy and eradicate the existing fraud. Stop displaying your ignorance.

  • share Idea

    If anybody is looking for confused government, the person should not look further but see it in Buhari administration. What is current position of government on fuel subsidy – according to the president, NNPC should make sure that the price remained at 87 naira for now (which mean keep subsidising fuel), while for minister of state we have removed fuel subsidy but our price modulation say it will be slightly below 87 naira. When you remove subsidy, allow the market to reflect the price, why fixing or suggesting what the price will be.

    This is similar for foreign exchange which the government is touting at 197 naira to $1 but we all know what the price is at parallel market. Everything about APC is propaganda and lies

    • e_orpheus

      “NNPC should make sure that the price remained at 87 naira for now (which mean keep subsidising fuel)”.
      Your thoughts in brackets are wrong, don’t blame that on NNPC or APC.
      If a barrel of crude now sells for say $38, how much does it cost to refine and bring back to nigeria? Add to that the fact that kaduna refinery is now at 60% output and port-harcourt is also about to begin output and some volume will now be sourced locally.
      The one confused is you.

      • aisha ani

        The price should go down eventually, once everything is functional.

    • Ogom

      .. and everything in PDP is Truth & Justice!

  • evidence

    This confused and deceitful government has come again. How do you remove subsidy and still dictate to the marketers how much they will sell fuel? Shouldn’t the price of fuel be determined by the crude oil price and forces of demand and supply? Will you sell fuel at N85 in lagos and still sell the same fuel at same price in calabar or kano? Who will pay for the bridging costs? The importers and marketer will soon respond. ‎

    • e_orpheus

      You’re kidding aren’t you? Since when did deregulation translate to zero oversight.
      Who ensures that MTN and Glo and the rest of them don’t charge you N50 per minute for phone calls? Or you think it’s drop in bandwidth costs or cheaper spectrum licence fees or your cries that have been dictating price drops?
      Hint?: NCC

      • evidence

        Maybe you should have checked what deregulation entails instead of running to defend your god and his ridiculous policies and decisions with equally ridiculous analysis. 
        Deregulation means ‘free from regulation’ meaning it is no longer within the control of government. Oversight may work in other areas not price fixing. Competition and market forces will decide that. When MTN and Airtel started,did we not buy just a sim card for 20k and calls at N50? But Glo came and crashed the cost of acquiring  a sim card and to make calls. This is the same thing buhari did in 1983 that made importers and manufacturers to start hoarding goods that milk,sugar,rice and cement become essential commodities and people had to queue to buy these basic products under the watchful eyes of koboko wielding military men. Nowhere does government fix price in a deregulated economy except in buhari’s government. 

        • Yem

          @ Evidence – Pls always get ur facts right. Ur intelligence is not enough on ds matter. E_ orpheus is so right.

          • evidence

            Someone that deifies an illiterate quota system bigot  should be the last person to question another’s intelligence. 

          • Ogom

            “.. Illiterate quota system bigot” is actually bigotry, but Biafrians never see the irony in their arguments

        • PolyGon2013

          Something has to be regulated, especially, where the life of citizens is at stake. For example, electricity is regulated.

          • evidence

            You do not fix prices for a private business or in a deregulated economy, market forces which include competition does that. Don’t compare apples to oranges. 

          • PolyGon2013

            Sorry, not like electricity. In the USA, electricity is regulated. This is what everyone needs and there are only few players. Hence the reason to regulate them.

          • Julius

            lmaooooooooooooo. He doesnt think that far bro. He lacks the capacity to think beyond the bullshit he thinks makes sense. Keep educating him. He calls people illiterates . Imagine that !

        • zit

          haha! based on the answers you have gotten for your very, intelligent and insightful comment, you can see that Nigerians are mentally impaired and that is perhaps why doltish greedy people from white men to fellow Nigerians, have been able to cheat us and get away with it.

        • e_orpheus

          Freedom of speech does not mean one can blurt out anything at anytime, case in point Mr Kanu. The liberties granted by the constitution don’t give one absolute freedom, likewise deregulation is not just a combo of English language terms granting wholesale freedom but gives the latitude to sell within certain limits which the government keeps a close watch on. Government may not pay attention to prices of luxury goods, neither will they’fix’ prices, but ‘national staples’ like petrol, kerosene etc will not be absolutely deregulated.

          • evidence

            Again check what freedom of speech means. Buhari, El rufai, Junaid Mohammed, Lawal kaita, promised to make Nigeria ungovernable for Jonathan  and Amaechi and Liar Mohammed threatened to form a parallel government. Buhari promised that the dogs and baboons will be soaked in blood. ‎In America, Obama is called all sort of names by Republicans and ridiculed. That is the beauty of democracy, now those that cannot take the heat should be the ones to ship out. So sugar and milk are now luxury goods that buhari turned to essential commodities in 1984?

          • Julius

            Do those republicans and others that ridicule Obama are trying to wage war against the United States government ?. Do they have meetings where they are looking for weapons to fight the government ?. The beauty of democracy is you can say anything but not inciting violent planning a war against the government.

          • evidence

            Buhari illegally detains Kanu for just having meetings yet he released boko haram members that killed innocent people including women and children  and compensated the‎m and is spending billions “deradicalizing” them even persuading them to stop bombing . Democracy is not disobeying court orders while handling  boko haram members with kid gloves.

          • Julius

            You conveniently forgot to mention that there is a war going on against BK as we speak. Has a war been declared against Kanu and his delusional followers ?

          • evidence

            So releasing and compensating boko haram members that killed and maimed thousands of people including women and children and siphoning billions in the name of deradicalizing them is war but killing unarmed protesters ‎in the east that did not kill even one chicken in their protest is not war. Keep defending the actions of a mass murderer and Hague candidate. 

          • Julius

            Not your nonsense about Hague. You know how long you people have been talking about hague ?. Please make we talk better thing. I never said that killing an innocent protesters is okay. Stop telling history from the middle. Some of those so called protesters were armed and shooting at the soldiers. I know that doesnt make your story any better but, the truth is the truth. BK is waging a war against the country and the country is responding as she should. When some are captured, they treat them as prisoners according to the rules . If Kanu goes the same route, he will be treated as such also. I hope not.

          • evidence

            Charles Taylor, Dyilo and others indicted or convicted also thought ICC was nonsense. So now the story has changed from Shiites wielding cutlasses and knives to shooting at the soldiers? Am sure the story will change again in a week or two, making up stories will not save burantashi and buhari or change  the fact that they murdered innocent people on a procession and later invaded their houses by midnight and murdered thousands of them in cold blood, including women and children. Buhari knows how to mass murder innocent people but is busy compensating boko haram members and persuading them to stop bombing.‎

          • e_orpheus

            Before you change the subject, deregulation does not mean Government will fold their hands and then take shut their eyes also. It doesn’t work that way and it never will.
            If they grant you a licence to import products with the caveat that under prevailing international prices your product cannot retail above N85, deal with it or find another line of work. That’s part of the job of government, to look out for its citizens and if they do their analysis and insist that even while retailing at N85 you make a healthy profit then that’s what it is. There’s an intelligent man running things at NNPC now and he knows his onions and is making his take home worthwhile.

    • Oh!

      You are unequivocally an 1diot!

    • PolyGon2013

      Stop driving around.

      • Julius

        Na, he has no car !

        • aisha ani

          Lmao!

          • Julius

            Abi ?. lolz. The loser goes around posting comments calling people illiterate. He actually thinks he is smart. What a joke. He doesnt like to be corrected and go against his delusional comments. What a genius !. Happy New Year Jare !

    • herby

      Yes, government can put a ceiling on pricing of the products; dealers can now hover around there to win more customers.
      Subsidy removal doesn’t amount to policy bastardization; the govt would make the policy the way it would suit and protect the citizens and any dealer who thinks it cannot operate based on the set conditions may well decline from the business, not a problem at all. The business would be for dealers who think they can.
      Also note that the last administration had its own upper price limit of about N147 when it attempted subsidy removal that didn’t work, so price pegging is not out of place.

      • evidence

        Government putting a ceiling are all thereotical and doesn’t work in practical and real life situation,if not we won’t be buying fuel above 87 even after the government paid subsidy, and dollars won’t be N290 instead of N199.  I repeat again, no business that has invested so much and is profit oriented will allow government to tell fix price for them especially to the detriment of the business. That is how capitalism works. Buhari should not impose socialism in another man’s businesses. 

        • Julius

          You also know that you can find other businesses to engage in. Right ?. Genius !

        • SAM .A

          Yes it is theory, when you get to gas station , when others buy it N87 , go ahead and N 115 to show you are a dummy from SE , who will never believe in PMB, whose mind had been radicalized by Biafraud and the Treasonable felony & Zoo man Nnamdi Kanu.

          • evidence

            Moronic mindless follower of a quota system illiterate, ‎even when subsidy has not been removed, fuel is still sold above N87 not to mention queuing to buy it,why didn’t you you force the fuel station to sell it to you at govt approved price? Now that buhari wants to deregulate, go and force the fuel stations to sell at buhari’s price, then you will know it is not buhari that gave them money to start their businesses. Zombie. 

    • Profy

      That’s regulated industry. If u r not ready to play in that sector, u ship out. What it implies is that the sector is heavily regulated. It is a norm all over the world. They called price ceiling.

      It is only confuse to the confuse. Merry Xmas to Nigeria and Wailing wailers. I hope in 2016 ur wailing will reduce.

      • evidence

        Your unintelligible drivel makes it difficult to reply. I suggest you read your comment again and try o comment again but this time try to be coherent and avoid mixing up tenses. Illiterate.   

        • Profy

          Who is interested in tenses here werey. We are talking of regulated sector u r talking of tenses. U have not heard of price ceiling before. Awon asiere jatijati

          • evidence

            Illiterate, can’t you express yourself in English anymore, that you now use words from your native language? Moron. Which sane government  deregulates ‎and still fix prices?  When your mates were learning in the classroom, you went about playing with sand. Airhead. 

          • share Idea

            Some people are difficult to engage in public debate as they level of reasoning can drive a discerning mind mad.

      • share Idea

        When your type was warned during campaign that majority of Buhari’s campaign promises are not redeemable, you called us names and thereafter, the reality is known to even a toddler. There is no place you remove subsidy and still determine the price of such product without allowing the forces of demand and supply to determine the actual cost. If what we are saying is wrong, please can you quote for us the template price of Diesel which has been deregulated. Nigeria we hail thee

      • Chuks

        In every deregulated market there is a price range for any commodity or service within market determinants of demand and supply. Jonathan’s government transferred so much ignorance and lazy mindedness on your type, making them incapable of intellectual challenge. Have you heard of price modulation before? Please seek knowledge as it is not painful to the brain, and stop hoping on the Dasuki gift.

        • Unekwesylvester

          U are a disgrace, u simply get carried away by a lttle noise of vocabulary instead of critically analyzing the entire issue. If u say pump price is #85 officially, would the transporters ie. PENGASSAN offer free transportation service across the nation. Or are u exposing to us here that the fuel importers after offloading products to their depots will also at cost free send the products to the gas stations across Nigeria

  • Maria

    Whaooooo…So, oil subsidy can be removed and yet we can still buy fuel at reduced price? This is change…Thank God we did not vote that criminal called Fortunato.

    • David Adeniran

      That man would have run Nigeria aground!

    • Julius

      lolz.
      Fortunato is meeting with his lawyer(s)

  • David Adeniran

    This is s very welcome development. God bless Buhari Administration, God bless the Nigerian people who have endured the subsidy fraud for too long.

  • No Comment

    See the man who will bring down Buhari’s government

    “Petitions of corruption against Raji Fashola and Rotimi Amaechi
    should be discountenanced. The petitions are rubbish; they were done out of
    what Nigerians call ‘bad belle’ to prevent this government from performing well.
    And it was a vindictive action against innocent Nigerians who have served this
    nation very well. There are very wicked, thoroughly despicable characters, who
    do not deserve anything positive in this country. There were some characters
    behind it who wanted to drag the country down and prevent Buhari from giving
    the best government that Nigerians deserve. We are talking of people’s records;
    these are people with solid records. And if you look at the whole environment
    and atmosphere, they were about to be made ministers and a group of very
    corrupt people wanted to stop them. That’s all. This was because they didn’t
    want people of high capacity, ability and commitment to be in this government.
    It was an attempt to scuttle their chances to become ministers; that was the
    main purpose behind it. Have you looked at the quality of the building or if
    there was misjudgement in terms of paying more than necessary for the
    construction of the particular facility? That does not mean that the person is
    corrupt. It does not mean so. Maybe it was poor judgement on a particular
    occasion. The point I’m trying to make is that there was so much remoteness and
    implausibility in the allegations being made that they were not worth
    investigating.”

    ……………..Professor Itse Sagay

    (December 26th, 2015)

    • Rommel

      Since you disagree with his position,where are those that wrote the petition,what has happened to them and their petition? have they no evaporated?

      • ideenoble

        @disqus_MSz5KF4VNF:disqus

        We are dealing withe proved thefts at noon; not just with petitions, but with proved thefts.
        Now follow me. Wherever Raji Fashola is; there, the spirit of theft is, also. So, here we go:
        The anti-corruption agency ICPC announced on 3rd September that Alhaji Raji Fashola
        was scheduled for criminal processing en route arraignment in court of law for stealing.
        But 27 days later, as if to hinder the criminal investigation (a separate crime under
        the Penal Code) President Buhari announced RAJI FASHOLA as a Minister.

        Before then, Mr. Akinwunmi Ambode, “the new governor of Lagos state, this August revoked
        the corrupt self-allocation of over 25 plots of land in Lekki by his predecessor – Raji Fashola,
        in his final days in office. Most of the plots, it is alleged, were allocated to Raji Fashola’s own
        relatives, aides and associates —including Yewande Animashaun – his cousin who also served
        as his special adviser on public health, and Wale Ahmed, who served as his commissioner
        for special duties.

        A female newscaster with a Lagos-based TV station was one of the beneficiaries, The Cable learnt.
        The land was officially parceled into 25 plots and shared by Raji Fashola who went on to sign the certificates of occupancy on May 26, three days to his exit from office.”

        • aisha ani

          And am sure Ambode has since made the 25 plots his own, you people should stop all this nonsense. The same guy that was involved in the Falomo shopping center scam is still working for lagos state, who is fooling who?

          • Yeparipa

            @aishaani:disqus

            SUPPOSE A PLOT OF LAND IN LEKKI IS 40 MILLION NAIRA, JUST ASSUMING –
            IT MEANS RAJI FASHOLA STOLE ONE BILLION NAIRA IN FIVE MINUTES; YEPA!

        • Jimi

          Speaking better English will help us understand you better and it maybe the reason why you cannot understand complicated matters, Do yourself a favour and enrol for the upcoming WAEC exam to write English.

  • Nkem

    Frankly, I am a bit confused here. If you say your new pricing template puts the price at N85, then this has nothing to do with subsidy removal. For instance, if there are changes in the global oil market, would this not affect the variables in the template? Does this mean the price would keep going up and down? If it is about subsidy removal, simply say SUBSIDY REMOVAL. If it is about template say NEW PRICING TEMPLATE. You don’t need to confuse the two.

    • Julius

      Actually in a free market atmosphere, the market should determine the price but, it must be set at a certain price, It starts from there. up and down as long as it doesnt get out of hands. Its fine like the minister said.

      • aisha ani

        Thanks jare.

      • share Idea

        Please can you tell us what the price Diesel is? Diesel has been deregulated and nobody is been entertained about government price template of diesel and that is what we expects if subsidy have been removed.

  • Höly Wähala

    “For supplying this phantom product to Nigeria, some seven companies pocketed a princely N13 billion naira from the 2011 fuel subsidy payments… Some other companies, not wanting to create fictional vessels, decided to space- travel existing ones; such that real vessels, which were definitely in countries like China and UAE, were purported to have discharged petrol into storage depots in Nigeria at the exact time they were in those other countries. The 11 companies involved in this category of fraud pocketed N21 billion from the 2011 subsidy payments.” – Premium Times

    @Premium Times…
    How about refreshing the memories of your readers by naming those companies who space-travelled and pocketed huge sums in fraud monies from our common patrimony? Is it because they belong to names like Wale Tinubu, Femi Otedola et al, that your bigoted editors decided to spare them the public gaze…eh? That Yoro gang of fraudsters were responsible for fuel shortages in Dec. 2014 when they refused to have their bogus claims verified by Dr. NOI via the CBN, same sh*t this year again. In the end, it took the interefence of Dr. Dumbo and $2bn from our ECA account which Gov. Adams Oshiomonkey ati Amaechi pelu Femi Falan, later claimed was “mismanaged” and demanded apology from Dr. NOI. This removal is coming at an appropriate time given the falling crude prices. Next up: devaluation of the naira or allowing market price determine its worth.

    • Julius

      smh !, Happy holidays to you ma broda !.

      • Höly Wähala

        No break your necki my broda… Happy Odeku Days biko!
        May God Bless You ati Loved & Hated Ones aboundantly this coming New Year. Man-must-Wack also includes our enemies o. No mind awon ol’ojoro Premium Times, if it were Dr. NOI companies that defrauded Ndi Naija they would have claimed this is a special investigative report. Awon oloshi buruku. Na Femi ati Wale thus, “some companies” as if Höly Wähala was born yesterday. In short, I put mistake… that blanket Merry Christmas does not include the editors at PT. I take that back. Again, Seasons Greetings my man!

        • Julius

          hahahahahaha, God bless. Much respect !

  • MushinSpeaks

    This is a right step in the right direction. We can now see marketers selling hoarded fuel. CHANGE is here.

  • maigari B

    good move

  • Damilola

    Are you telling me all these happened and we weren’t queuing for fuel on persistent inclination? Kachiku said he’s bringing the price down far from what it is selling officially ( 87- but not practical), then I hear somti like as low as 85, are you kidding me? When u said 87 we’re buying at 140- 200, what reason tells us it gets better with all this rhetorical verses, the eventual end Game of a confused cabinet, which is not alien to the attentive audiences. Some people av been insinuating this paper preference for some sponsors, I can say “authoritatively ” I saw same thing today. Many people called for subsidy removal, within and outside that party, why Tinubu emphatic rhetoric. The mention of Tinubu there seems not like a mere reference, but a clear deceptive ploy, which they wud refer to as demystification of the two scenarios that brought on the subsidy issue. The Jagaban’s – father of Nigeria media… the warrior of Borgu, tot that subsidy had always been effective but developed comatose in the last five years, is too much a pooh-poohed irrational conclusion. The govt commenced in 2011, came to scrap subsidy in 2012, barely a year to governance and someone is insulating that same administration perpetrated and evoked subsidy scam? That’s a tissue lie. Because the APC failed to follow their rational mind, but blinded by selfish interest of getting hold to power, they couldn’t study the policy by the then govt “pragmatically”. They saw every issue as advantage to overall the politics. The same path we saw they took on the security of the state, especially the insurgency. There is no excuse that can wash that away from these power thirsty devils

    • Julius

      Your rant is making no sense. You need to express yourself in a simple and understanding ways.

    • Jimi

      Wailing wailer. Somebody needed to jail the PDP looters and stop them from killing Nigeria. The worst thing that Buhari can be accused of is that he is jailing only the thieves from PDP – no one can accuse him of jailing innocent people. Let PDP jail APC looters when they return to power, assuming they ever do. Take note that most of the thieves in this country are members of PDP. If you look at the people prosecuted under previous PDP governments of Obasanjo, Yar Adua and the negligible few under GEJ. 95% of them are members of the PDP. What do you have to say now?

    • Chuks

      This government has raised the bar on economics knowledge. You now talk of price modulation which is beyond the capacity of the previous government to articulate. The same arrogance and impunity that made PDP lose miserably in the last election will make them go into extinction before the next election. A bunch of disgraceful wolfs called PDP that feasted on our commonwealth have no moral ground to come near Buhari with their stink. Soon they will realise that it pays to have integrity! Olisah ‘con man’ Metuh, Nduka ‘one chance’ Obaigbena, Tony ‘anini’ Anenih, Jim ‘prison’ Nwobodo, Iyorchia ‘gentle looter’ Ayu, Doyin ‘bastard’ Okupe, Bode ‘kirikiri’ George, Peter ‘injunction’ Odili, David ‘left over’ Mark, Ayo ‘psychiatric’ Fayose, Femi ‘dancer’ Fani-Kayode, Femi ‘hate monger’ Aribisala, Reuben ‘join them’ Abati, Ike ‘nonentity’ Ekweremadu, Edwin ‘my share’ Clark, etc. did no job for Nigeria but got paid by a possibly drunk president outrageous amounts no civil servant can earn in his career life. They are the worst group of Nigerians to belong to a decent political party.

      • Damilola

        What do you understand by price modulation? When and how could govt modulate? What moral capacity dictates a govt that could embark on this?

        Truly the present govt have raised the bar on economic knowledge, our debt portfolio is set to reach for the brim soon, as we have set a new path in financing our budget through a whopping of 2trillion Naira at a go. Mind you, additional borrows wud be needed as time goes on. This will follow drastic unprecedented avalanche of Naira to dollar and other forex indices. The problem with you people is either you’re just ignorant of some facts cos u chose to be myopic in tot or u just open ur mouth for anyti to come out. I only replied u cos of the issue of Modulation u brought in there, which I will like u to reply my questions.

  • Folu Bamgboye

    Editor Premium Times,

    Dear sir, I have just read today’s irresponsible statement by Professor Itse Sagay (below).
    I have never felt as angry as duped like this. The first thing to note is that SAGAY’s views are
    actually President BUHARI’s views. The issue of SAGAY bringing down BUHARI’s government
    does not arise, fr so long as Sagay retains his job as Buhari’s Adviser on corruption matters.

    Faced with similar facts Buhari preserves and covers up APC members’ corruption by a wink.
    He looks across the aisle to PDP and blows up similar facts he finds in PDP for punishment.
    Is that how to fight corruption? Of course, not! Buhari is too morally corrupt to fight thefts.
    Nigerians will eventually have to fight corruption by themselves with mob action as it is.

    • No Comment

      “Petitions of corruption against Raji Fashola and Rotimi Amaechi should be discountenanced
      The petitions are rubbish; they were done out of what Nigerians call ‘bad belle’ to prevent
      this government from performing well. There were some characters behind it who wanted
      to drag the country down and prevent Buhari from giving the best government that
      Nigerians deserve. This was because they didn’t want people of high capacity, ability
      and commitment to be in this government. Have you looked at the quality of the building
      or if there was misjudgement in terms of paying more than necessary for the construction
      of the particular (borehole and roads) facility? That does not mean that the person is corrupt.
      It does not mean so. Maybe it was poor judgement on a particular occasion. The point I’m trying
      to make is that there was so much remoteness and implausibility in the allegations being made
      that they were not worth investigating.”

      ……………….Professor Itse Sagay

      (December 26th, 2015)

      • dadus

        WHAT THIS EXECRABLE SAGAY IS SAYING IS THAT RAJI FASHOLA HAS A RIGHT TO STEAL,
        AND ANY AMOUNT BILLIONS OF NAIRA HE STOLE IN LAGOS STATE HE SHOULD GO WITH IT.
        BUT THAT ALSO MEANS FASHOLA CAN STEAL BILLIONS OF NAIRA FROM NOW ON AS MINISTER.
        IS THIS THE SAGAY AND BUHARI SENSE OF DEMOCRACY? WOW! WOW! NIGERIA IS FINISHED.

        • aisha ani

          You never see.

          • Grego

            @aishaani:disqus

            I have lost hope in Muhammadu Buhari on anti-corruption – Buhari is part of the proble;
            he is not part of the solution, surely, he’s taken a position to defend thieves inside APC.

          • Jimi

            Somebody needed to jail the PDP looters and stop them from killing Nigeria. The worst thing that Buhari can be accused of is that he is jailing only the thieves from PDP – no one can accuse him of jailing innocent people. Let PDP jail APC looters when they return to power, assuming they ever do. Take note that most of the thieves in this country are members of PDP. If you look at the people prosecuted under previous PDP governments of Obasanjo, Yar Adua and the negligible few under GEJ. 95% of them are members of the PDP. What do you have to say now?

          • jason jasi

            Even bros Bode George. Had 16 good years to have prosecuted any APC thief they knew. Now crying over spilt milk

          • Unekwesylvester

            This is a typical Yoruba sense of reasoning

  • femi alasoadura

    Let people who are close to the Government talk to the minister of petroleum to change Nigeria oil specification (SPEC) to match that of other countries in west Africa. The cartel puposely keep the SPEC so that only particular sources are able to supply kind of petrol/diesel that matches this specification. If the SPEC is changed Iranian products are very cheap and readily available. As of today only Russia petroleum products meets our specification so few oil marketers have access to Russia market thus gives room to monopoly. Once this bondage is removed scarcity will be a thing of the past in Nigeria. I have taken environmental issue into consideration. …the SPEC should be changed so oil products can come from other parts of the world at a cheaper price. This is technical and I believe people in this field understand better. The difference is ” Lead content”and others.

    • ed

      Copy the minister of petroleum. The same gentle man is the president.

  • Dele I

    Sustainable national development is citizens’ well-being. Crude oil is created for Nigerians; Nigerians were not created for crude oil. Sustainable development requires the trinity of social equity, economic efficiency and environmental responsibility. Fortunately, the present central government is ensuring a good mix of socio-political equity, economic efficiency and environmental responsivity to sustain our wellbeing. Accessibility and affordability of energies are what Nigerians need for prosperous living. Petrol at N85 per litre from 1 January 2016 will be a great relief to the millions of impoverished Nigerians. This is the time to terminated political corruption in Nigeria caused by the treacherous and brutal Petroleum Support Fund or fuel subsidy scams.

  • ed

    Thing can get better or bust. Buhari government made the decision to free up the supply system from itself.
    Prudent management of resources required question and answer. We failed for years to know what we’re subsidizing.
    Or How much does it actually cost to get the fuel to market.
    After 2012 mini-revolts.
    The revelation came out that the whole subsidy was a scam. Jonathan didn’t correct the problem. We continue on the same paths.
    President Buhari continue the same thing for seven more months. The true cost of fuel imported to the country are still not known to any one.
    The minister or assistant to the able president/minister of petroleum Buhari, said the retail price will be N85.00 Naira per litre. How are we going to make it available at that price for all locations.

  • SECESSIONIST

    ——————————————————–
    YORUBAS & HAUSAS – Very Dangerous People?
    ——————————————————-

    I am now convinced more than ever before that Nigeria is the real fraud. Yes. That Nigeria is perceived and treated as a country, one nation is the real fraud. I am glad that my decision to actualize a disintegrated Nigeria is irreversible.
    1. How does one explain the ominous silence in the West(Yoruba Nations) and North (Hausa Fulani Bokostani Republic) over the removal of oil subsidy by a Wascless Mohammadu ?
    2. Is this not the same step that President Jonathan decided to take in 2012 that led to #OccupyNigeria by the Yorubas and Hausas in Lagos, Abuja and Kano?
    3. Why are the Yorubas and Hausas not Occupying Nigeria?

    Jonathan was removing the subsidy because of corruption. This is why the Wascless one is doing it too. So why are the Yorubas and Hausas not Occupying Nigeria? It is 6 moths plus, the #BringBackOurGirls no longer cry nor protest. Dangerous people indeed. Certainly not worthy of sharing same national passport with.

    …In Ghana we have seen how the video evidence of corrupt judges has been shown to the public and how the guilty have been fired and stripped of their benefits. Whereas in Nigeria the Video evidence of a thief like Senator Rilwan Lawal & corrupt Mr Michael Otedola is not shown to the public and none is prosecuted Yet Mohammadu says he is fighting kwororpton.

    Secession by any means will be the best for all. Mohammadu Buhari shuld be able to use his ‘brilliance’ to lift the North and West from poverty and be at peace with terrorists whom he does not like the Govt to neither kill nor destroy their houses. Where is Evil?

    • scimitar

      So the igbos did not participate in the protest.? Why are they always Contrarians?

    • Oh!

      Your decision to actualize a disintegrated Nigeria?

      Look here you deluded little monkey………..in fact,….forget it. Don’t look here. Just go away!

    • Jimi

      Nigerians protested GEJ’s subsidy removal because he was dumb and his excuse for doing so made no sense – punishing Nigerians because your friends stole the subsidy money? Buhari is different. Nigerians are ready to make sacrifice to support the government. So GEJ’s wailing wailer can you see the difference? Nigerians trust Buhari to pursue their interest but GEJ was only interested in pursuing the interest of his oil importers and the backside and frontside of Allison Deziani.

    • Adeola

      This is not just removal to hike the pump price but a price modulation….. Ask ur GEJ about the subsidy money they removed. My brother let us use our acquired skills to analyze issues

  • borngainst

    LET ME CONFESS TO ALL NIGERIANS. MY NEW YEAR RESOLUTION IS TO BE VERY CORRUPT.
    I WILL STEAL ANYTHING IN MY REACH AND CAN ROB A BANK TOO. I JUST LOST MY JOB LAST WEEK.
    I HAVE NO OTHER MEANS TO SURVIVE. BUT NEXT MONTH ELECTRICITY PRICE WILL DOUBLE, RIGHT?
    AND NEXT MONTH TOO PETROL CAN SELL AT ANY PRICE – EVEN UP TO 300 NAIRA PER LITRE, OKAY?
    THE ONLY WAY I CAN SURVIVE IT IS TO START A NEW CAREER AS A REAL BIG THIEF – NO OTHER WAY.

    • Arewa Trumpeter

      “We are overdue for a revolution. If you are afraid of a revolution, maybe you have
      something to be afraid of. What is wrong with us having a revolution here in Nigeria?
      Unless of course you belong to those who are stealing government money or you have
      something to hide, then of course you should be afraid of revolution. After the revolution,
      there is what we call revolutionary justice; the revolutionaries will get you and shoot you.
      There are many people whom if we shoot, Nigeria will become a better place. In fact, if the
      revolutionaries can shoot dead just 500 corrupt people, Nigeria will be a much better place,
      and God will forgive the revolutionaries.”

      .…….Dr. Junaid Mohammed
      (KANO, March 17, 2013)

      • Jimi

        His position was influenced by PDP’s corruption. We have had the revolution and brought in APC and Buhari but if he feels there is need for another one according to his vision, he should feel free to lead one. Making revolutionary statements from the comfort of your home is a “revolution” everyone of us can accomplish. Do it the Fidel Castro and Che Guavera way: give up the comfort and go in bushes!

        • REDEEM

          Sadly APC is running the most corrupt government on mother earth-Buhari spent 4.4trillion–on nothing–That was the budget for 2015 without buying a bag of cement from dangote-Now he is out to borrow more than 2 trillion and some animals are telling me the projected budget which was built around 38 dollars while crude oil is now selling at 31 is the best for Nigeria-Already revenue from Customs is going down like a drain pipe—–where has our brains gone to –is it on awol-?—Buhari is a curse to the Nation—-Nigeria is not moving anywhere with Aisha ati Buhari-paying Nigerians–mostly Biafrans to post childish comments on the web for us to read—

          • Adeola

            U RE SUCH A SHAME… BUDGET 2015 WAS APPROVED BY GEJ AND COHORTS…. BUHARI REGIME STARTED THIS MAY2015. THINK BEFORE U SPEAK.

          • Unekwesylvester

            U can’t even read and understand common analogy in English. Shame to the tribe u come from

        • Jacky

          Am not sure if you know what is about to happen to you and your generations yet unborn. By the time Buhari is through with Nigeria, you may end up a refugee in Cotonou or Togo, becos you may not have the capacity or ability to reach Ghana. Buhari is deceitful. How can you reduce fuel price and at the same time tell us you are removing subsidy?. The only way is if all the three refineries are working optimally, which I know is not.

    • Jimi

      Sorry for the loss of your job but if you become a bank robber you will end up being shot to death. That is the reality of robbery.

      • Alfa

        @disqus_7zyafeEEyQ:disqus

        I am even suspecting he wanted to steal before this free pricing of petrol policy.

    • Chandum

      Your manager noticed your corrupt and dangerous mind and sacked you. Since you have talent in armed robbery, try that and hopefully you will be rewarded instantly by motivated security agents with first class ticket to death and hell where you rightly belong. I advise you to relocate to Niger Delta for some lessons on kidnapping by militant contractors who were emboldened and digitalised by Dumbo’s government of corruption by the corrupt for the corrupt.

  • Dan dMan

    Some simple facts might help here.

    1 barrel of crude oil = 159 litres

    1 barrel of oil yields approx 75 litres of PMS (47%)

    1 barrel of oil sells at USD 36 (equivalent 7128 naira @ 198 naira/USD)

    1 barrel has without adding cost of production USD 17 of PMS (equivalent 3366 naira @198 naira/USD) in it

    Each litre of PMS in a barrel without adding cost of production is worth 22 cents (equivalent 44 naira @ 198 naira/USD)

    It would seem to me that a modulation price of 87 naira per litre (44 cents per litre) is projecting added cost in the value chain of approx. 100% to arrive at the pump price in Nigeria, regardless of source, based on current cost of a barrel of oil internationally.

    Looking at it like that, it is difficult to understand where price projections of 250-300 naira per litre (468-581% add on cost) are coming from unless I am missing
    something. Each importer knows the true and legitimate cost of
    purchasing PMS and bringing it into the country. Even at 150% added
    cost, would still be talking of 110 naira at pump. Now every legitimate
    importer/marketeer can bring in PMS and compete with his contemporaries
    for pump price using 87 naira per litre as a guide. There would be no
    benefit hoarding it as the refineries would be making a contribution to
    availability while the NNPC/NAPIMS/PPMC would be contributing also with
    the straightforward (we hope) arrangements that have been put in place
    for their allocated supplies of crude oil to be refined for them.
    All in all, if the supply bogey man is tamed, then Nigerians should not
    have to be held hostages of ‘greed’ (not fortune) at the pump for PMS by
    the subsidy cabal.

    Intellectual laziness is one of our
    weaknesses as a people, we can get factual information on most subjects
    to act as a guide rather than subjugate ourselves under primordial
    instincts reinforced by ‘miseducation’ and ‘dyseducation’.

    Lets work together for the liberation of our country (for now, it is the only one we have) using factual information as weapons to break the hold of ignorance and poverty.

    God bless Nigeria this Christmas season and in the coming year!!!

    Ps. As someone spotted, first Christmas in a while with no bombs going off in the NE. Nigeria go better!!!

    Dan dMan

    • Now a far better response that educates than abuses as seen above.Thank you Dan dMan for your analysis..

      • Unekwesylvester

        Have u ever asked a question as to why pms is sold in Lagos for 87 in the good old days While in some states Nigeria it is sold for as high as 180 #200. Except u read without ur eyeglasses u would have seeing in his submissions without (c.o.p) and also logistics which is a very vital arithmetic component for accurate determination of cost. Have u investigate how it cost for a ship to transport product from point a to point b and other fees inclusion? He raised only an idea dude

  • Chuks

    This government has raised the bar on economics knowledge. We now talk of price modulation which is beyond the capacity of the previous government to articulate. The same arrogance and impunity that made PDP lose miserably in the last election will make them go into extinction before the next election. A bunch of disgraceful wolfs called PDP that feasted on our commonwealth have no moral ground to come near Buhari with their stink. Soon they will realise that it pays to have integrity! Olisah ‘con man’ Metuh, Nduka ‘one chance’ Obaigbena, Tony ‘anini’ Anenih, Jim ‘prison’ Nwobodo, Iyorchia ‘gentle looter’ Ayu, Doyin ‘bastard’ Okupe, Bode ‘kirikiri’ George, Peter ‘injunction’ Odili, David ‘left over’ Mark, Ayo ‘psychiatric’ Fayose, Femi ‘dancer’ Fani-Kayode, Femi ‘hate monger’ Aribisala, Reuben ‘join them’ Abati, Ike ‘nonentity’ Ekweremadu, Edwin ‘my share’ Clark, etc. did no job for Nigeria but got paid by a possibly drunk president outrageous amounts no civil servant can earn in his career life. They are the worst group of Nigerians to belong to a decent political party.

    • PolyGon2013

      Sai Kachikwu.

  • Burning spear

    President Muhamamdu Buhari has stated that he would not be tempted to remove petroleum subsidy no matter what happens.This disclosure was made by the group managing director of the Nigeria National Petroleum Corporation, Dr. Emmanuel Ibe Kachikwu when he addressed the Senate on Wednesday, October 14., The Nation reports.
    The NNPC boss disclosed that some people in the private sector are gunning for the removal of the subsidy an idea that the president had rejected.
    Kachikwu stressed that he totally agreed with the president stance saying unless there is necessary palliatives there would be no need for the removal.

  • REDEEM

    BAN ON NIGERIANS USING THEIR ATM ABROAD.
    Senator Ben Murray-bruce reacts:

    If we must ban ATM card use abroad, why not ban it for politically exposed people like me instead of ordinary Nigerians that depend on it? With BVN, the CBN has the account details of all elected and appointed politicians in Nigeria.

    Dont punish Nigerians for our wrongs! A lot of the Small and Medium scale enterprises that employ the majority of Nigerians, depend on their ATM cards to do business abroad.

    What do Nigerians in foreign hospitals for life threatening illness do if they cant access funds via ATM?

    What do Nigerian students schooling abroad and who depend on their parents to fund them via Naira ATM do?

    How do bloggers pay for hosting if ATMs wont work on foreign sites? Is this SocialMediaBill via backdoor?

    What do thousands of young Nigerians who promote their businesses to the world via Facebook/Twitter Ads do? ‪#‎PunishpoliticiansnotNigerians‬!
    My name is Ben Murray-Bruce and I just want to make ‪#‎Commonsense‬! – Hope For Nigeria.

  • 9ja is finsihed under buhari

    Ekiti State governor, Ayodele Fayose has described Federal Government’s announced reduction of petrol pump price from N87 to N85 per litre as a continuation of the deceit propagated by All Progressives Congress (APC) led government.

    Fayose and Buhari

    The governor who also challenged the Minister of Information and Culture, Lai Mohammed to relocate to Sambisa in Borno State or Yobe and move around there without heavy military security if indeed he was sure that Boko Haram had been defeated.

    Speaking through his Special Assistant on Public Communications and New Media, Lere Olayinka, Governor Fayose said; “only God’s intervention can save Nigeria from the present economic and security problems as it is glaring that the man running the affairs of the country at the federal level does not have any answer to the problems.”

    He said; “Even the Holy Bible said in James 1:5 that if anyone lacks wisdom, he should ask God and as it is, Nigerians must assist the President in asking for wisdom and understanding to tackle the country’s economic and security problems before Nigeria is further plunged into more woes with the federal government’s decision to borrow N2.2 Trillion, which translates to N6.066 billion per day to finance the 2016 Budget.” He described the Federal Government’s announced reduction of petrol pump price from N87 to N85 per litre as a continuation of the All Progressives Congress (APC) government’s governance by deceit, saying; “Even secondary school students of economics know that you cannot deregulate and regulate at the same time.”

    The governor said; “it is only in a confused and clueless economy that government will plan to spend more when revenue has reduced by more than 50 percent.” Governor Fayose, who maintained that petrol will not sell below N100 per litre in 2016, added that; “Even now that the price is N87 and subsidy is yet to be removed, Nigerians are buying at between N130 and N300 per litre. What will now happen when they remove subsidy and allow market forces to determine the price?