Things you must know about Fuel Subsidy

FACTS YOU MUST KNOW: SUBSIDY MADE SIMPLE (SMS)

1)      DEFINITION 

To subsidise is to sell a product below the cost of production. Since the federal government has been secretive about the state of our refineries and their production capacity, we will focus on importation rather than production. So, in essence, within the Nigerian Fuel Subsidy context, to subsidise is to sell petrol below the cost of importation.

2)      THE UNSUBSTANTIATED CLAIMS OF THE FEDERAL GOVERNMENT 

The Nigerian government claims that Nigerians consume 34 million litres of petrol per day. The government has also said publicly that N141 per litre is the unsubsidised pump price of petrol imported into Nigeria. (N131.70 kobo being the landing price and N9.30 kobo being profit.)

3)      ANNUAL COST OF IMPORTATION

Daily Fuel Consumption:                    34 million litres

Cost at Pump:                                    N141.00

No. of days in a regular year:           365 days

Total cost of all petrol imported yearly into Nigeria:

Litres          Naira       Days

34m      x     141    x     365

= N1.75 trillion

4)      COST BORNE BY THE CONSUMERS

Nigerians have been paying N65 per litre for fuel, haven’t we? Therefore, cost borne by the consumers =

Litres          Naira     Days

34m      x     65    x     365

= N807 billion

5)      COST OF SUBSIDY BORNE BY THE GOVERNMENT

In 2011 alone, government claimed to have spent N1.3 trillion by October – the bill for the full year, assuming a constant rate of consumption is N1.56 trillion.

Consequently, the true cost of subsidy borne by the government is:

Total cost of importation minus total borne by consumers, i.e. N1.75 trillion minus N807 billion = N943 billion.

Unexplainable difference: N617 billion

The federal government of Nigeria cannot explain the difference between the amount actually disbursed for subsidy and the cost borne by Nigerians (N1.56 trillion minus N943 billion = N617 billion).

6)      BOGUS CLAIM BY THE GOVERNMENT

A government official has claimed that the shortfall of N617 billion is what goes to subsidising our neighbours through smuggling. This is pathetic. But let us assume (assumption being the lowest level of knowledge) that the government is unable to protect our borders and checkmate the brisk smuggling going on. Even then, the figures still don’t add up. This is because even if 50% of the petrol consumed in each of our neighbouring countries is illegally exported from Nigeria, the figures are still inaccurate. Why?

WORLD BANK’S FIGURES: POPULATIONS OF WEST AFRICAN COUNTRIES

NIGERIA:                 158.4 million

BENIN:                     8.8 million

TOGO:                      6 million

CAMEROUN:            19.2 million

NIGER:                     15.5 million

CHAD:                      11.2 million

GHANA:                    24.4 million

The total population of all our six (6) neighbours is 85.5 million.

Let’s do some more arithmetic:

a)      Rate of Petrol Consumption in Nigeria: Total consumed divided by total population:

34 million litres divided by 158.8 million people = 0.21 litres per person per day.

b)      Rate of Petrol Consumption in all our 6 neighbouring countries, assumed to be the same as Nigeria:

0.2 litres x 85.5 million people = 18.35 million litres per day

Now, if we assume that 50% of the petrol consumed in all the six neighbouring countries comes from Nigeria, this value come to 9.18 million litres per day.

7)      PATHETIC ABSURDITY

There are two illogicalities flowing from this smuggling saga.

a)      If 9.18 million litres of petrol is truly smuggled out of our borders per day, then ours is the most porous nation in the word. This is why: The biggest fuel tankers in Nigeria have a capacity of about 36,000 litres. To smuggle 9.18 million litres of fuel, you need 254 trucks. What our government is telling us is that 254 huge tankers pass through our borders every day and they cannot do anything about it. This is not just acute incompetence, but also a serious security challenge. For if the government cannot stop 254 tanker trailers from crossing the border daily, how can they stop importation of weapons or even invasion by a foreign country?

b)      2nd illogicality:

Even if we believe the government and assume that about 9.18 million litres is actually taken to our neighbours by way of smuggling every day, and all this is subsidised by the Nigerian government, the figures being touted as subsidy still don’t add up. This is why:

Difference between pump price before and after subsidy removal =

N141.00 – N65.00 = N76.00

Total spent on subsidizing petrol to our neighbours annually =

N76.00 x 9.18 million litres x 365 days = N255 billion

If you take the N255 billion away from the N617 billion shortfall that the government cannot explain, there is still a shortfall of N362 billion. The government still needs to tell us what/who is eating up this N362 billion ($2.26 billion USD).

8)      ILLOGICAL ASSUMPTIONS

i)                    We have assumed that there are no working refineries in Nigeria and so no local petrol production whatsoever – yet, there is, even if the refineries are working below capacity.

ii)                  Nigeria actually consumes 34 million litres of petrol per day. Most experts disagree and give a figure between 20 and 25 million litres per day. Yet there is still an unexplainable shortfall even if we use the exaggerated figure of the government.

iii)                Ghana, Togo, Benin, Cameroun, Niger, and Chad all consume the same rate as Nigeria and get 50% of their petrol illegally from Nigeria through smuggling.

These figures simply show the incompetence and insincerity of our government officials. This is pure banditry.

9)      FACT 9: The simplest part of the fuel subsidy arithmetic will reveal one startling fact: That the government does not need to subsidise our petrol at all if we reject corruption and sleaze as a way of life. Check this out:

a)      NNPC crude oil allocation for local consumption = 400,000 barrels per day (from a total of 2.450 million barrels per day).

b)      If our refineries work at just 30%, 280,000 barrels can be sold on the international market, leaving the rest for local production.

c)      Money accruing to the federal government through NNPC on the sale, using $80/bbl – a conservative figure as against the current price of $100/bbl – would be $22.4m per day. Annually this translates to $8.176bn or N1.3 trillion.

d)     The government does not need to subsidise our petrol imports - at least not from the Federation Account. The same crude that should have been refined by NNPC is simply sold on the international market (since our refineries barely work) and the money is used to buy petrol. The 400,000 barrels per day given to NNPC for local consumption can either be refined by NNPC or sold to pay for imports. This absurdity called subsidy should be funded with this money, not the regular FGN budget.

If the FGN uses it regular budget for subsidising petrol, then what happens to the crude oil given to NNPC for local refining that gets sold on the international market?

10)  TACTICAL BLUNDER

The federal government is making the deregulation issue a revenue problem. Nigerians are not against deregulation. We have seen deregulation in the telecom sector and Nigerians are better for it, as even the poor have access to telephones now right before the eyes of those who think it is not for them. What is happening presently is not deregulation but an all-time high fuel pump increase, unprecedented in the history of our nation by a government that has gone broke due to excessive and reckless spending largely on themselves. If the excesses of all the three tiers of government are seriously curbed, that would free enough money for infrastructural development without unduly punishing the poor citizens of this country.

Let me just cite, in closing, the example of National Assembly excesses and misplaced spending as contained in the 2012 budget proposal:

1. Number of Senators                                                                    109
2. Number of Members of the House of Representatives              360
3. Total Number of Legislators                                                         469
4. 2012 Budget Proposal for the National Assembly                       N150 billion
5. Average Cost of Maintaining Each Member                                N320 million
6. Average Cost of Maintaining Each Member in USD                    $2.1 million/year

Time has come for the citizens of this country to hold the government accountable and demand the prosecution of those bleeding our nation to death. Until this government downsizes, cuts down its profligacy and leads by example in modesty and moderation, the poor people of this country will not and must not subsidise the excesses of the oil sector fat cats and the immorality cum fiscal scandal of the self-centred and indulgent lifestyles of those in government.

Here is a hidden treasure of wisdom for those in power while there is still time to make amends:

PROVERBS 21:6&7

“Getting treasures by a lying tongue is the fleeting fantasy of those who seek death. The violence of the wicked will destroy them because they refuse to do just.”

A word of counsel for those who voted for such soulishly indulgent leadership:

“Never trust a man who once had no shoes, or you may end up losing your legs.”

This is the conclusion of the matter on subsidy removal:

i)                    “If a ruler pays attention to lies, all his servants become wicked.” (Proverbs 29:12)

ii)                  “The Righteous God wisely considers the house of the wicked, overthrowing the wicked for their wickedness. Whoever shuts his ears to the cry of the poor will also cry himself and will not be heard.” (Proverbs 21:12&13)

Thanks for your attention. God bless you all.

By Pastor Tunde Bakare

The Son

My Son
This is great, take a moment to read it, it will make your day!
The ending will surprise you.
Take my Son.....

A wealthy man and his son loved to collect rare works of art. They had everything in their collection, fromPicasso to Raphael. They would often sit together and admire the great works of art..
When the Vietnam conflict broke out, the son went to war. He was very courageous and died in battle while rescuing another soldier. The father was notified and grieved deeply for his only son.
About a month later, just before Christmas,
There was a knock at the door. A young man stood at the door with a large package in his hands..
He said, 'Sir, you don't know me, but I am the soldier for whom your son gave his life. He saved many lives that day, and he was carrying me to safety when a bullet struck him in the heart and he died instantly... He often talked about you, and your love for art.' The young man held out this package. 'I know this isn't much. I'm not really a great artist, but I think your son would have wanted you to have this.'
The father
Opened the package. It was a portrait of his son, painted by the young man. He stared in awe at the way the soldier had captured the personality of his son in the painting. The father was so drawn to the eyes that his own eyes welled up with tears. He thanked the young man and offered to pay him for the picture.. 'Oh, no sir, I could never repay what your son did for me. It's a gift.'
The father hung the portrait over his mantle. Every time visitors came to his home he took them to see the portrait of his son before he showed them any of the other great works he had collected.
The man died a few months later. There was to be a great auction of his paintings. Many influential people gathered, excited over seeing the great paintings and having an opportunity to purchase one for their collection.

On the platform sat the painting of the son. The auctioneer pounded his gavel. 'We will start the bidding with this picture of the son. Who will bid for this picture?'
There was silence...
Then a voice in the back of the room shouted, 'We want to see the famous paintings. Skip this one.'
But the auctioneer persisted. 'Will somebody bid for this painting? Who will start the bidding? $100, $200?'
Another voice angrily. 'We didn't come to see this painting. We came to see the Van Gogh's, the Rembrandts. Get on with the Real bids!'
But still the auctioneer continued. 'The son! The son! Who'll take the son?'
Finally, a voice came from the very back of the room. It was the long-time gardener of the man and his son. 'I'll give $10 for the painting...' Being a poor man, it was all he could afford.
'We have $10, who will bid $20?'
'Give it to him for $10. Let's see the masters.'
The crowd was becoming angry. They didn't want the picture of the son

They wanted the more worthy investments for their collections
The auctioneer pounded the gavel.. 'Going once, twice, SOLD for $10!'
A man sitting on the second row shouted, 'Now let's get on with the collection!'
The auctioneer laid down his gavel. 'I'm sorry, the auction is over.'
'What about the paintings?'
'I am sorry. When I was called to conduct this auction, I was told of a secret stipulation in the will... I was not allowed to reveal that stipulation until this time. Only the painting of the son would be auctioned. Whoever bought that painting would inherit the entire estate, including the paintings.
The man who took the son gets everything!'
God gave His son 2,000 years ago to die on the cross. Much like the auctioneer, His message today is: 'The son, the son, who'll take the son?'
Because, you see, whoever takes the Son gets everything.

FOR GOD SO LOVED THE WORLD HE GAVE HIS ONLY BEGOTTEN SON, WHO SO EVER BELIEVETH, SHALL HAVE ETERNAL LIFE...THAT'S LOVE
God Bless.

Pastor and Demon!

A young African-American Pastor was called to cast demon out of a possessed man, and here was the conversation between him and the demon.
Pastor: Hey! demon
Demon: Sup dude! how u doin?
Pastor: Cool man!
Demon: k! what can I do u for?
Pastor: I want you to get out of that stinking dirty body!
Demon: Say what?
Pastor: I said you should get out of that body
Demon: Wait! Jesus I know, Paul I know, who the hell on earth are you?
Pastor: (smiling) Google me on internet, search my profile on Facebook and if you like you can follow me on Twitter.
Demon: Damn! what of your LinkedIn account? I need to check your connection and recommendation.
Pastor: what you talking about?
Demon: So, you dont have a LinkedIn account? I dont think you a big reason to convince me to leave this body!
Pastor: what!? :(
Demon: I need your recommendation dude! keep kool :)

The HAVE you must have

Have peace enough to press on.
Have hope enough to keep your heart.
Have strength enough to battle obstacles and overcome them.
Have commitment enough to not give up too soon.
Have fun enough to enjoy every aspect of life.
Have patience enough to let faith complete its work in you.
Have love enough to give to those who deserve it the least but need it the most.
Have focus enough to say "no" to many good ideas.
Have forgiveness enough to never end the day hating someone.
Have honesty enough to never have to remember what you said.
Have character enough to do in the light what you would do in the dark.
Have gratitude enough to say "thank you" for the small things.
Have purpose enough to know why not just how.
Have perseverance enough to run the entire race that is set out before you.
Have responsibility enough to be the most dependable person you know.
Have kindness enough to share what you have and who you are with others.
Have mercy enough to forgive and forget.
Have devotion enough to do the right things on a daily basis.
Have courage enough to face and fight any opposition to what you know is right.
Have expectancy enough to be on the lookout for opportunities every day.
Have obedience enough to do the what is right without thinking twice.
Have direction enough to when and where to go.
Have knowledge enough to have your mind continually educated.
Have credibility enough to cause others to want to work together with you.
Have generosity enough to give before being asked.
Have passion enough to be moved by the needs of others.
Have loyalty enough to be committed to others

The Slavery Master you never ask for or know.

The Slavery Master you never ask for or know.

Who are Slavery Masters? How can we know them? Are they human? Can they talk? This remind me of a  young man story, who was enslave by a Slavery Master.

Long time ago there was a man who's name was Iyanda, Iyanda was a young agile man, desperate to take what life offers him and turn it to a better one with the positivity stage of his mindset. He was the first son of his family and the second in the family of 5. His father was an Engineer and his beautiful middle age and God fearing mother was a teacher, so he grew up in a humble home. But the whole story changed at his age of 19 when he was in his 2nd year in the University, he discovered that his GP was low and is getting lower day by day. So, he talk to his friend about it, and his friend told him that the breakthrough was smoking, " Iyanda, this is the only thing that can help you to concentrate on your study and it will help you to boost your GP" says his friend. Although he rejected it for some days knowing and fully remembering the type of home was from. 

But the GP was getting worse and anytime he got home his parent complain and lament on his report and performance, and never for a minute help him on how to concentrate on his studies to boost up his performance, either with prayer or procedures.

One day when he was complaining to his friend again and he reminded him of his suggested subject he told him and he said "ok, let me try it out and see how it works", so that was his introduction into his life time misery and slavery. 

So, before Iyanda got to part 4 he was a working smoke. Many preaches to him, his Christians friends persuaded him to stop and informed him how dangerous smoking is to health but he himself can't help the situation, he tried to stop many times but he will quickly picked it back when he saw himself acting funny like a insane person. But luckily his mother took the responsibility after his graduation when she discovered that her son was a smoker and drug addict. After a long prayer and fasting, she confronted him and talked about the smoking attitude and when she heard that he was also trying to stop but is being impossible that was when she took him to church for deliverance and they were informed that he was already in slavery by the spirit of smoking.

Thanks

Life Out side and inside Christ

Hello My name is John, I just want to share my life experience outside and in Christ with you.

I was born into a normal but claiming Muslim family, my father never goes to the mosque, oh maybe once in a while during Salah festival, so I was a normal young non religious boy. But as a boy, I used to think and ask some questions about life, here are some of the questions:

• Who is God?
• Why and how did God created create us?
• Who created God?
• Why did people died? why do people die
Why cant we see God?
Why are some people rich and some poor?

But the responses I got to these questions are not relevant to the real answers I later discovered. My second problem was being oppressed by the power of darkness every night, and there wasn't any solution to it. Even my parents could'nt be of any help to me because they did'nt have the solution either. So, when I grew up to become a teenager  I decided to make a move to find answer[s] to the questions my parents could not answer, . I met people with wrong views of what life is and they try tried to encourage and paint my heart with another definition of life.

But luckily after all of my miserable thoughts, moves and decisions, I met someone who knows the Foundation of the Planet Earth and funny enough He is the Creator of it and the uppermost Heaven (John 1:3).

He explained what Earth and life is all about and He told me His purpose for creating the Earth and everything that lives within it and also made me to discover what i am capable of (Philippians:4:13).  This Wonderful man's name is Jesus. And he crowned it all with the greatest thing ever, by making me to come across people who contributed, and are still contributing positively to my life. And do you know what? you're one of those people, the fact that you are reading this article, is a great joy to me. Thank you I really appreciate it, God bless you.

Jesus is Lord.