Fuel subsidy removal: “Why the Nigerian Government will not revert the fuel price to N65/litre” – Diezani Allison Madueke
Nigeria’s Petroleum Minister, Mrs Diezani Alison-Madueke, yesterday, gave reasons why the government would not revert fuel price to N65 per litre.
According to the Minister, maintaining the fuel subsidy would entrench the endemic graft in the downstream sector of Nigeria’s petroleum industry and make it difficult for the government to tackle the issue of corruption among Nigerian oil marketers.
The Minister insisted on air on the Nigerian Television Authority (NTA) yesterday that the fuel subsidy is at the core of the corruption going on in the nation’s downstream oil sector.
According to her:
“People want us to fight the oil cabal and yet they don’t want us to remove subsidy, which is the main cause of corruption in the sector. We can’t fight corruption in the downstream sector with our hands tied.”
On the issue of smuggling, the Minister emphasized that it will be difficult to ensure zero smuggling of fuel at Nigeria’s borders and insisted that even more advanced economies like the United States have been unable to achieve this.
She asserted that Nigeria’s fuel price without the subsidy remains low compared to other countries stating that the fuel prices in Chad, N210; Ghana, N175; Niger, N181; Benin Republic, N167 and Morocco, N198 are still much higher than that of Nigeria.
“We have only one country, one Nigeria. We want to leave a legacy for us to be remembered for in future. We want to ensure that we can look back after the next three years and say we managed well the temporary pains that came with the removal of fuel subsidy,” she said.
What do you think of Mrs. Diezani Allison Madueke’s recent statements on the issue of fuel subsidy removal in Nigeria?
See also
“Fuel subsidy benefits the cabal more than the poor” – Sanusi Lamido Sanusi
Contributor
Her comments are downright irresponsible how can the Chief security of a nation be overwhelmed by a ''cabal'' It is impossible, the arguments adduced are asinine and regrettable. Jonathan has consistently displayed his inability to take this country anywhere at all. Any nothing good ever comes from PDP
No Emeka, it is not. There is no way government would overwhelmed the "cabal" because the has market power they are the key players in the oil industry. They (cabal) have the right to determine what the price would be. Government has Crude, "cabal" has refined product.
Emeka give i some thoughts
Your argument is as lame and illogical as that of Diziani Madueke. All those countries she cited are non-oil producing except Ghana, which just discovered oil barely 2yrs ago. And I can bet you that market fundamentals will bring down their pump price as soon as they achieve full domestic refining capacity, which Ghana is aggressively working towards achieving. So, what is the basis of Madueke's comparison. She should have compared Nigeria pump price to that of major oil producing countries like UAE, Qatar, Venezuela etc. They are fond of using statistics only when it serves their narrow interest to keep deceiving the people.
The lame excuse of not turning around our refineries doesn't appeal to Nigerians any more, having been short-changed, sidelined and hoodwinked over the years. They should first of all build and people will come, and that is the new mantra of modern economy. Why can't govt refine the brought within its own shores? Are we short of human capital or know-how to refine oil and improve our economy by way of providing decent jobs to teeming youths around the country.
Also, another question that begs answer from Madueke is, what happens to the domestically refined products?? Is it also part of the subsidized one? Something is fishy with NNPC under her watch. And above all, with rich countries cutting down on waste and cost of governance, ours are overbloating theirs as if they live in a different planet. Lessons from struggling EU countries like Greece, Ireland, Portugal, Hungary etc would have readily come to mind if only we are in a sane society. GEJ/Sambo budgeting #2 billion for their feeding while over 150million Nigerians are wallowing in abject poverty and yet they are so callous and insensitive enough to inflict more pain to them. SMH…what a country.
She knows not what she is saying! Remove the log from your own eye so you can see clearly to remove the shard from your brother's, you talk about corruption in the downstream sector while you yourself are sitting in the 'House of Corruption' itself.
Please come out straight and tell us Nigerians that you have mismanaged our funds and therefore need more funds which you and your cabal can further embezzle.
Hon you are right
Hmmn.It is disgusting,nausating and really shameful that Diezani should speak like this.U are comparing Nigeria with non oil-producing countries with higher wages.It only butresses the point that u are daft,have a low mentality and outrightly stupid with other top govt officials.I wish the Boko Haram would face u people and bomb each and every one of u till no last of ur kind remains.If u don't revert back to the #65,u would av d money but u won't be able to spend it.As u have resorted to take what d masses mostly depend on for survival,GOD would take from u all u depend on to make ur life meaningful.Give Nigerians peace and u would av peace unless……..
We al knw Jonathan is a weakling bt I used to think women in power are always motherly and smarter but u proved me wrong.U said subsidy is the main cause of corruption.What a DUMB statement.Even a 5 yr old wouldn't commit such a blunder.It is u who should be removed nt subsidy because u're practically useless and so full of lies.May GOD judge u according to ur actions.
i couldnt have said it better..
This statement clearly shows the inefficiency of this govt, so all along it was the subsidy that promotes corruption, bunkering, religious and ethnic violence, Boko Haram, insecurity, unemployment, hunger, bad roads etc, this excuse is absurd madam, GEJ and your cohorts pls admit to Nigerians that you have failed.
You are an idiot, i'm not sorry to say. Do all the countries you listed have crude oil, and moreover can you come out and refute the mansion you bought @ 20million euro @ vienna, austria while millions of nigerians are living in abject poverty. You are summarily a big fooool.
It doesn't matter if they have crude oil or not, they all import PMS just like we do. we sell our crude oil which is our foolishness.
I 100% support subsidy.
So if there is child trafficking to all these neighboring countries, what you and your petroleum minister will proffer as solution is to make all women sterile and stop giving birth? Dumb solution!!! It is sure you are agent and not thinking.
Who are the cabals? The people they are trying to paint as cabals all have legal documents and they signed it. So what makes you think they haven't signed others in other areas and trying to move funds to such areas?
Diesel was deregulated, anything to show for it? It is you that should think, if you allow these people to deceive you, your children and posterity will not forgive you!!!
It does matter because the Nigerian govt. controls the crude oil via the land act.The subsidy of the PMS is the only welfare the masses get from the billions of dollars generated from crude oil sales. She should compare Nigeria with countries that produce as much crude oil as Nigeria, with same land act in effect, and comparable minimum wage, then, perhaps, her argument might hold some water. Compare Nigeria with countries like Libya, Venezuela, etc.
Indeed we will remember yoi for the Harm you have Done and for Putting Pains on The Poor Massess we will Remember you and The Almighty God will Remember Your Generation Yet to Come………..
D oil petroleum minister is definitly right.we nigerians shuld tink about d suitable changes n d benefits we'l achive in d future n try adjustin 2 d temporal hardshps…Ryd on Jonathan n Allison..!
You are a fool. Ur parents av wasted money on u to send u to school. Bastard.
there is never any benefit that comes out of this. They always get away with talks like this. they never expect Nigerians to react to this extent. I wish and pray that there should be a result after all these.
How could the federal government conive with mrs diezani to compare nigeria with countries like benin rep., chad, morocco etc. That do not have oil of theirs, let them try and compare nigeria with countries like, vennezula, saudi arabia, libya etc. And see what different it would make:-qfor it is better to pay a large sum of money to have your sight than to loose your sight before paying it. Those who have ears jet them hear.
God bless you my Guy….You are sensible
foolish talk.what about the executive allowances?which are higher than fuel subsidy?have you ever give an account of the nnpc before or apply general auditing to investigate and see what game you are playing in that so-called office of shop and shop money laundry?i pity those who waist their precious vote of this man called Jonathan who borrowed a woman name and answered it to camouflage to gain power.well is clear that when the people you are serving reject you,i think you are not wanted there anymore.piss off minister of scam
i hope revolution will transit the current crises and put things together.executive councils are the owner of the nnpc account and you mrs is their manager.tell us what do we benefit from being a natural resources citizens?where are the skul fees of all the masses which goes to the gov purse?have the gov rebuild any of the skul or only to collect and increase skul fees?what about hospitals?since you were made the manager of that scumbag office,what have you archived? can you allow the the student of Nigeria university Nsuka,economic and finance section of the skul to investigate ur honorable office and see what u have been doing there all the while? you didn't talk of the jonathan buying a car of 300 million naira joining his 23 expensive cars and 6 private jets what trillions of dollars?while the masses do not even see a good commercial vehicle to transport their family in good condition? i guess you will watch and see the transitional in move.
CAN I ASKED THE HON MINISTER OF PETROLEUM THIS QUESTION PLEASE, YOUR HUSBAND LT.GEN T DANJUMA SAID HE MADE OVER HALF A BILLION DOLLARS FROM HIS OIL BLOCK AND HE DOESN'T KNOW WHAT HE WANT TO DO WITH THE MONEY, YOU AND YOUR FAMILY ARE PART OF THE CORRUPTIONS, YOUR HUSBAND CONTRIBUTED TO THIS MESS, AND YOU ARE STILL ENTHRONE AS A PETROLEUM MINISTER WHAT A SHAME, CAN YOU TELL US HOW MANY BARRELS OF CRUDE OIL IS BEING SHIP FROM THE OFFSHORE AND HOW MANY CUBIC VOLUMES OF REFINE CRUDE OIL WE IMPORT, WHO ARE THE AGENCY MONITORING THESE SECTORS…………………………………………
Dont ask daft questions here. Do you know her ? u Rely on what some stupid media feed into your dull brains and you refuse to think of your own accord.
Ask your self How much #18,000 minimum wage can afford before you talk about fuel subsidy
I believe this useless woman must out of her sense because, how can she compared Nigeria with NO crude oil country. NiGERIAN say NO to FUEL SUBSiDY REMOVAL.
you and your cabal will die painful deaths ,the vultures will eat from your remains,greedy fools,your children and grand children will suffer from your greed and you will die a painful death,you people think we are fools.its so outdated what you people do.when you die you just lay in one coffin,you sleep in only one room ,why the greed.die bitch
Since all what you are doing is for the poor masses and they said they dont want it, why you would not stop it.
She is incompetent and a fraud.
how do we trust this same president GEJ who promised us and gave the cement producers ultimatum to reduce the price of cement but after all was said and done cement is stil increasing by the day and you have the gust to ask us to trust to to fight corruption?
stop deceiving yourself in an attempt to deceive us!. monkwaic minsters of doom!!!
So the people wen dey rule us no know book. God arise and dethrone the enemies of this country!
one man has 24 cars nd 10 jets bcos he calls himself d president. Illiterate husband of an illiterate woman. As 4 u madam minister no be ur fault. Do u knw hw much a cup of rice is sold? Nd u claim u're doin us good. We no want, na by force. Wicked pple. Hw dare u compare Nigeria to Niger, Benin republic etc. It shows hw dumb u ar. Hungry pple wey neva drim say they go dey where them dey 2day, especially dat man nd his illiterate wife. Ur time is up.
CHINEDU…… if the government says the cabal is their then let them deal with it and not take it out on the people. and as for this woman called minister you and your oga are failures . he should resign now that he can or be ready to join gadhafi. idiots
Let God arise and dethrone the enemies of Nigeria.
What a joker! Is there only corruption in the petroleum industry????
Are we going to only tackle the issue of corruption among Nigerian oil marketers at the expense of the entire nation all due to your failures and inadequacies.
I pray you are soon isolated from this ignorance that blinds most leaders. God give us wisdom!
You are not a nigeria madam. Everything you need schl, medical care etc are from abroad. Niger is among the poorest countries in africa yet they have light. Compare infrastructures in ghana to that of nigeria and tell us the result. Tell us just two things you have achieved since 3yrs ago. You are serving WEST and you have already fail. Jonathan lack strength to fight corruption. He has made corruption official. Just revert to #65 or face the wrath of God and that of Nigerians. Mrs corruption Diesani
People who can't come up with alternative options are not fit to rule this country. You can't fight corruption by removing fuel subsidy because those corrupt cabal would find other ways to milk the country unless you face head-on. These people fail to consider hyper Inflation and devaluation of Naira by more than 50% which would exist as a result of hike in the price of fuel and be a great problem for the country. In short, I think she should resign if she can't come up with any other alternative since that's a suicidal path!
very lazy argument from a dullard of a minister. U epitomise corruption in d very essence, right from late umaru yaradua's era(u corruptly circumvented returning unspent appropriation of ur ministry back to d treasury) to d present ignominous badluck time. U fed. govt. claim 500 billion naira share/annum from d subsidy removal & that's what'll take us to eldorado? Stop kidding & go tell that to d marines. We know d game plans. It won't work. Chikena! Nigerians know better now. By the way, why are u people shying away from debate as challenged by Tam David West? Afraid of d naked truth uh!
Allison Madueke! This is your sentence…you are going to be stripped naked, in onitsha market and thoroughly doused in water, and flogged with a whip. A lash, for every fruitless day spent in office. and after this day spent being humbled by the people, you shall spend the rest of your days in YABA LEFT in a straight jacket where people like you who are touched in the head, and therefore spew psycho babble BELONG.
What do you people take Nigerians for, do you thing we don't know that your increasing the fuel price is done deliberately to have enough to share among the cabals of which you and your husband belong. And that your reference to allowing investors is simply a camouflage. You are wicked and very Callous.
Your Judgement Is NOW!
wow who want 2 live a poor man life is not easy at all,our PRESIDENT we elect u 2 b our leader in NIGERIA,poor pple are dying every day why rich pple are enjoying every day,put ur self in our shoe doing things very dificult,all our leaders remember ur convenant u make 2 us on ur swearin day,as God appointed u are leaders pls&pls remember us we love u dat is y elect u.we are proud of our country.ONE LOVE NIGERIA ONE LOVE 2U ALL IN JESUS NAME.
PLEASE, NIGERIANS, THE MINISTER IS TELLING THE WORLD HALF TRUTH. LET HER KNOW TODAY, THE TRUTH NOTHING BUT THE TRUTH. THESE ARE THE FUEL PUMP PRICES AND MINIMUM WAGES IN OPEC NATIONS:
1.VENEZUELA N3.61 N95,639
2.KUWAIT N34.54 N161,461
3.S/ARABIA N25.12 N99,237
4.IRAN N102.05 N86,585
5.QATAR N34.54 N101,250
6.UAE N78.18 ———
7.ALGERIA N63.33 N55,957
8.LIBYA N26.69 N23,813
9. IRAQ N59.66 N25,813
10.NIGERIA N141.00 N18,000?
NON-OPEC NATIONS
1. USA N157.00 N197,296
2. UK N334.41 N295,644
3.OMAN N48.67 N91,583
IF THE GOVERNMENT WANTS NIGERIANS TO BUY FUEL IN ACCORDANCE WITH THE INTERNATIONAL PRICE, THEN, PAY US IN ACCORDANCE WITH WITH THE INTERNATIONAL MINIMUM WAGE.
Dear dishonorable minister Nigerians are fed up with your lies, this hunger and there is hanger in the land. You and your co-thieves have pushed people to the wall. We have cabals who are sabotaging power, oil etc and you and your incompetent boss cannot put them behind bar. The poor masses are expected by you to pay for your stupidity. Boko haram are bigger than GEJ govt, cabal also are bigger than him. He should resign honorably. If all d money you claimed you have being spending is being sharing among your powerful cabals, then don't pay them again, and since there nothing like subsidy, why increasing petrol price. Madam game over, Nigerian are wiser now.
GEJ is right about d need for subsidy to b removd nd Nigerians aren't against its removal.wat we're against is d timing and implementation.260 billion was budgettd lastyr 4 subsidy nd 1.4 trillion was spent.govt can't explain it.d President is too scared 2 bring ds who av defrauded d govt 2 book.2 of our 3 refineries r moribund,d 3rd is barely working.even d current PMS available 4 sale has been paid 4 by subsidy.so y sell dm at 140?ds nd many other indices show govts insincerity,incompetence,and irresponsibility.
Wow..I thought Diezani & Iweala were responsible than this. If the federal govt needs to save money for infrastructure, all they need to do is to cut there stupid unmerited salaries and budget that doesn't make any sense.
In 21 out of 50 Ministries, Departments and Agencies revealed the following amounts for some recurrent and capital expenditure items:
· Travel – local and international N13 billion
· Stationery, Magazines, Newspapers, etc. N4.5 billion
· Maintenance of vehicles, furniture, etc.N17 billion
· Training N5 billion
· Fuel and Lubricants for cars, generators, etcN4 billion
· Miscellaneous: welfare packages, refreshments, meals,N9 billion
· Acquisition of Computer Software N2.5 billion
· Research and Development: N27 billion
N1.2 billion in the Ministry of Agriculture is to incorporate commodity marketing companies! The Ministry of Foreign Affairs wants to spend N322 million to acquire "computer software".
The following are some examples of what has been included in the State House (Aso Rock Villa) budget:
Overhead is about N7.2 billion, or about N20 million per day to keep our President and VP happy. Their local travel budget is N724 million or N2 million per day, including weekends, while their international travel budget ix N951 million or nearly N3 million per day.
The president's office has N285 million to hand out as "welfare package", N265 million to buy computers, N150 million to buy scanners, N161 million for buses, N295 million for new furniture, and N1.8 billion to "maintain existing furniture, office and residential quarters". Desktops for N300,000 each, laptops for N314,000 each and scanners for a whopping N190,000. The public address system in the President, VP's office and Banquet Hall will cost N150 million! The SGF will spend N65 million on tree planting.
You guys got to be kidding me. Please fix our refineries and we won't even have this conversation of subsidy that is just simply fraud. IT DOESN'T EXIST.
WHY ARE WE DOING THIS NOW?
Let us remind ourselves the reason for this showdown. It is not about subsidy, I keep repeating this fact. It is about the following indices that make our government big, wasteful and ineffective:
Big and overblown governments at all levels
70 Ministers
Over twenty Special advisers (on what?)
Every minister is entitled to 4 Special Assistants.
Senate President earns 88 Million Naira monthly.
His Deputy Earns 55 Million Naira monthly.
Senators take home 14 Million Naira monthly.
It takes 1.4 Billion naira to maintain the NASS annually (Remember what Sanusi said about 25% of our GDP is used to feed people who only sit Tuesday – Thursday).
Our Governors exhibit such level of opulence shunned by the richest nations in the world
Our 2012 budget has a deficit component to it. We are supposed to borrow about 1.6 TRILLION NAIRA.
NASS will be paid from that! Aso Rock will use 1 Billion of it to eat! Aso Rock will use another 1 Billion to fuel generators.
The Vice President will use 58 Million Naira to buy newspapers.
The office of Patience Jonathan will use 500 Million to speak bad English to you.
We will spend close to 500 Billion on International Travels.
In 2012, some state governors will collect 100 Million as security votes MONTHLY.
They will continue to enjoy immunity clause!
Your hospitals will have no drugs.
Your schools will still have no quality to train a world class scholar
Your roads will still be death traps.
You will still be a local government unto yourself, providing water, security, power and social security!
You will still pay more for petroleum products.
You will pay toll in 2012 on federal interstate roads.
If you will like this to continue in 2012, then stay at home and enjoy power as provided by PHCN!
http://www.elombah.com/news/node/3824
http://www.youtube.com/watch?v=IpewOF9JX2w&fe…
http://www.placng.org/home/index.php?option=com_c…
D major problem we are facing in this country is lack of leadership.i believe the govt should tackle the security issues rather aiming for selfish interests.i thank the minister of petroleum is suffering from a mental constipation,high level of hallucination compounded by lack of honesty and sound advice.to hell with the govt.
It does matter because the Nigerian govt. controls the crude oil via the land act.The subsidy of the PMS is the only welfare the masses get from the billions of dollars generated from crude oil sales. She should compare Nigeria with countries that produce as much crude oil as Nigeria, with same land act in effect, and comparable minimum wage, then, perhaps, her argument might hold some water. Compare Nigeria with countries like Libya, Venezuela, etc.
He who pay piper dictate d tune dat is her problem. Badluck has definitly fail Nigerian.
Bullshit. I would be disappointed if Nigerians stop the revolt even with the reversal of the oil subsidy removal. This is the chance to totally sanitize the nation. This is the chance to decide on one Nigeria or a forgone Nigeria, This is our opportunity to reshape our future and that of our generations to come. The reversal shows the power of Nigerians when we act as one. I vote for war against our oppressors. We must plant a new tree of freedom, equality and fairness and we shall water the tree with their blood. Enough is enough.
The minister is talking as though we are not well schooled on what is going in the economy of other nation.
1. Is the minimum wage in Uk or US N18000 equivalent? No it is far greater..even ordinary South Africa housemaids(nongraduate) earn between N30000 -N40000 equivalent of which gradutes earn a starting salary of at least N140,000 Rand equivalent or more
2. The electricity supply in UK, US, South Africa and Ghana is 100% constant, meaning citizens do not need to waste money to buy petrol/kerosene to fuel generators and for cooking respectively. This situation is a direct opposite in Nigeria's case
3. The transport networks and good roads in the countries the gov mentioned are world class. So the citizens can physically see where their tax money is being spent.
My question to the governor/government is:
* was it because of the subsidised fuel subsidy all these years that has made the country to experience
1. Epileptic power supply
2. Bad road networks
3 poor salary scale
4. Brain drain
5. Poor social amenities etc
If it is corruption that the removal of subsidy is expected to correct, the minister is putting the cart before the horse. They should first remove, prosecute and punish the corrupt politicians in government starting from the presidency. Then subsidy removal can be discussed.
Mr president stop this bad act of yours afterall your name is goodluck why are u now badluck to our nation
rutting desperate undiluted demonic blood sucker so called leaders who never care about people but only for themselves.What a shame that all gave deference unreasonable reasons which means them don't know what they are doing. This is really mess and so disappointed that i took my precious time to vote. This is 21st century,revolution is the key!!
Go to Wikipedia and read Diezani's profile. After reading it tell me if you would like to listen to anything such a person says.
The fuel subsidy removal is not the major problem in Nigeria. our major problems are 1} High level of corruption , 2} Government's Insincerity 3} Selfishness 4} Refusal of the old power drunks to leave the affairs of the govt for the youths 5} God fatherism to mention but a few.
Plse let Mrs Diezani tell us in which of the ""top oil producing countries"" does fuel cost that much?
Don,t mind this woman is a political liars i swear i know she toast her hubby cause her mount too sweet,i know she will toast me too when she see me lol
i think what she said is wrong,what i belive is dat,corruption can not be better still can never be removed in nigeria,let them deal with now next three years will come with it problem,and it is same them the so called leaders that will embazzled the money,we have been hearing of change for long and nothing has changed so please they should grant our wish,we the poor.
May the allied force of the beasts of both the land and sea eat up the 'toto' and breasts of this badluck's mistress. If sincere, why compare the 12th largest producer of petroleum in the world with Chad and Niger? Amadioha punish u and ur mumu boss. EWU!
My own opinion is that we shuld learn how 2 coroperate and without luv u can do anything and work 2gether so the best thing s 2 pray 4 her and nt only her bt 2 every body than u abusing her s nt d best.