Friday, January 6, 2012

The Oily Affairs of a Profligate Nation

I have read and watched several arguments pervading the public domain since the announcement of the removal of the fuel subsidy. I have been very circumspect in pitching my tent during these turbulent times.  

However, it is clear that all Nigerians are justifiably angry. By Nigerians I refer to the majority of people who have their own hands in their own pockets! 

Despite the fervent uproar that heralded this unpopular  government policy,  some things have been achieved. What amazes me is the speed at which these two things have been achieved:

First, the truth is coming out concerning the mono-trade that props-up our nation. Veiled behind contrasting facts, figures and extrapolations is the truth. More people have come out with their own versions of the  real reason why Nigeria needs to stop a subsidy that  should not have existed in the first instance.

Second is that Nigerians have become more perceptive at seeing the big lie that has been sold to them for the past fifty years. 

The government has been a big lie, its policies a poignant reminder of the wickedness of man to man and its appetite for waste compares only to Usain Bolt’s abilities to break his own world records over and over again. Subsequent Nigerian governments have elevated corruption and wasteful spending to a new art form. No stable nation competes with us in this genre, we are record breakers!

Let us briefly examine the origins of the fuel subsidy, and the carnage of catastrophy that has followed. We discovered oil in the southern part of Nigeria and sited refineries in Warri, Port Harcourt and Kaduna. In typical Nigerian style, our refineries were left to deteriorate while Turn Around Maintenance contracts were constantly awarded to incompetent firms. 

Miraculously too, our leaders also forgot to build additional refineries to cater for the burgeoning population. Our three refineries were built when Nigeria’s population was about eighty million people. While we doubled in size, our leaders were more focused on lining their own pockets than planning for a growing population.

As far back as the Babangida years, Nigeria had been experiencing shortfalls between internally refined petroleum products and actual demand for petroleum products.  Professor Tam David West managed the challenge by exchanging crude oil for finished products. He devised a system where countries were paid in crude oil for refining petroleum products, ensuring that nobody made money from the situation.

This problem of lack of internal capacity to refine crude oil is perennial, just that the politicians took over and devised a clever way of making money from their own incompetence.

The politicians created a class of super rich Nigerians who became cohorts in funding elections and perpetuating corrupt people in government. How else can you explain the fact that everyone who has donated two hundred million naira to the presidential campaign fund in the past two elections are all major players in the oil sector? How would they be paid back? SUBSIDY! 

People like Aliko Dangote, Femi Otedola and Wale Tinubu all became purse keepers and financiers for the politicians, empowered and capable to provide cash for political conquest. Some of them barely existed ten years ago! The politicians neglected the refineries, did not build new ones and created the elaborate scheme of phantom subsidy in order to solve their own problems, not ours!

Like all businessmen, the “oil marketers” were quick to sense opportunity. Several of them set up accounts with banks to harness the business opportunity of subsidy, not petroleum products marketing. Sanusi Lamido Sanusi provides insight into these fraudulent dealings in his write up. This is a transcribed copy (in part) of his submission at the Town Hall meeting on deregulation of  refined petroleum products which was held on the twenty-second of December 2011:

“You establish an LC for importing 20,000MT of PMS and the PPPRA says this is at a landed cost of N145 for example per litre. So you know that for every litre in that vessel you will get at least N85 as subsidy. Now you have a number of "possiblities": 

1. You can off load 5,000 MT and bribe customs and other officials to sign papers confirming you offloaded 20k MT. Then do the same across the chain with a paper trail showing you delivered 20k MT to a tank farm, and maybe even that you transported it to Maiduguri entitling you to a share of the price equalization fund. Maybe for N20-N30 per litre youbribe all those who sign the papers. The 15k MT you take to Benin or Ghana or Cameroun and sell at market price thus makin an additional "profit" of N55/ltr on 15,000MT! 

2 you can just forge documents and have them stamped without bringing in anything and collect the subsidy-PPPRA pays based on DOCUMENTS. 

3 you can bring in the fuel, load on tankers, sell some at N65N some at 80 some at 100 some across the land borders. 

You can do all this and no one can catch it or prove it because somebody was paid to sign off on documentss. And with a high enough margin there is too much temptation to be resisted and firepower for bribing officials. 

When I spoke to the house of reps I told them why I was suspecting fraud. It starts from PPPRA "allocations" based on "capacity". You will find a company like Mobil with capacity for say 60,000 MT and a relatively unknown name with a capacity of say 90k MT. Red alert number 1. 

Although PPPRA is supposed to give license only to marketers with a national distribution network you see names of companies where you have never seen a filling station in their name.
I was a chief risk officer in UBA and in FBN for many years approving loans so I know the name of every big player in every industry that nigerian banks lend to as these are among the biggest banks in the country. I see names on the list I don't recognise either from portfolios. I looked at or industry studies over the years. Red alert number 2. 

I studied the papers presented to PPPRA in a short period in 2010 (I won't tell you how I got them!). And I was surprised that on some days over 10 vessels are said to have discharged cargo in lagos on the same day-clearly the same officers stamping and "verifying" that the vessels were SEEN. Is it really realistic that on the same day 13-15 vessels can discharge in Lagos? Red alert number 3. “

According to the same write up, Femi Otedola’s Zenon and AP owe the Nigerian banking system about 220 billion naira in bad loans that have been taken over by AMCON, yet he did not have stock of petroleum products worth a fraction of that amount. You can bet he also did not have the cash in his corporate accounts. More importantly, he could still afford to give the Jonathan/Sambo campaign organization 200 million naira during the election season.

I have taken time to quote the Governor of Nigeria’s Central Bank in order to show you, my reader, the sleaze that makes for an arresting Hollywood thriller. On all sides, you see subterfuge, greed and corruption. You see institutionalized  kleptomania across the value chain, oil marketers, port officials, PPPRA, DPR and bankers who knew the truth and never said it until now!

It is clear to me that the subsidy scheme was created and executed by the government to enrich their friends and themselves. It means the nation budgeted huge amounts of money which we knew was going to be pocketed by a few people.

Why is the Goodluck government removing the subsidy? Profligacy is not sustainable on the long run! They now want us to pay for their incompetence. It is clear that no official wants to let the truth out of its hiding place. We are broke! Our external reserve is down to 27 billion dollars from 80 billion when Obasanjo handed over. 

Our internal debt is 5 trillion naira. External debt is back to 35 billion dollars.  Excess crude oil account is down to zero. We are broke yet the only rich people in Nigeria are politicians and some pastors. Politicians who earn more than every other earthly government and pastors who collect earthly money, lay hands on and promise heavenly bliss to men of shady character. Some of these super rich pastors are not saying anything now. Some of them are speaking as a matter of expediency. Some of them have private jets with which to fly out of Nigeria. They share that same luxury with the  dirty politicians they bless and celebrate with front row seats in their churches.

We need to ask our government what they are getting paid for. Is it the national pride that we currently enjoy or our infrastructure that is out of this world? We still have polio in Nigeria in 2012. We have hospitals that are not fit to treat animals. No government primary school competes with a public school in South Africa. Our universities provide better criminals than scholars. We do not have roads. in the place of roads we have long stretches of death traps designed to keep the population in check through untimely death. We do not have electricity. We have lost our factories to Ghana. Just a few grumbling manufacturers remain, who are yet to get land in Ghana.

We have lost everything we met on the land. Cocoa, palm oil, groundnuts, cotton, cashew and rubber have been forgotten and are better produced by nations who came to learn from us. We have lost our moral compass, our society is fractured, our statehood is threatened. Our citizens are in all prisons around the world. Some of them prefer foreign prisons to Nigeria. Our passport is treated with disdain everywhere you present it. Why should our Senate Leader earn 600 million naira per annum? Why should our senators earn 30 million naira per month? Why should our National Assembly gulp 1.2 trillion naira per annum while we try to save 1.4 trillion from subsidy removal ? Why should our government be this big with special advisers on cassava and beans affairs? Do we need 52 ministers and 36 states? Do we need a Minister for Water Resources when 95 percent of Nigeria cannot recognize a water faucet? Why would our president spend close to a billion on food while close to eighty percent live on less than a dollar a day?  Why should he budget a billion for generators and diesel when he is urging us to believe in his power sector reform? Why does our President need  9 private jets? Why do our governors move around with twenty-vehicle convoys while David Cameron has just two vehicles and one outrider? 

Why should our politicians keep their salaries when Obama slashed his? Why should we continue to be wasteful when the handwriting on the wall says “danger”? Why should we believe this government when it says the subsidy gain will be properly reinvested? Despite my utmost respect for Christopher Kolade, I have this ominous feeling that he is being set up to be rubbished. Same for Alfa Belgore!

Labaran Maku must be suffering from foot and mouth disease if he really used that cavity to announce 1,600 buses as palliative measure for 170 million people. Lagbus has 500 buses. What impact will that make? You mean the government of Nigeria needs to subject her citizens to hardship in order to buy 1,600 buses. On the strength of the initial information on how the  savings will be invested, given by Labaran Maku and the minister for Labour,  the government is bereft of both ideas and dictionaries! 

To move Nigeria forward, we must do the following:
·    Demand more transparency from the government especially in oil dealings and allocations. Remember the way Okonjo Iweala was publishing the allocations to all tiers of government.
·   Demand immediate reduction of the size of this government and its wasteful ways.
·      Demand specific prioritized projects which should be tied to the subsidy savings (if we negotiate a reduction instead of outright reversal).
·      We need to demand same from our state governments, prune down the waste.
·      We need to ensure our protest is peaceful and organized to avoid loss of life.
·      We need to resist provocation and divisionist tendencies.

·    We need to pray for Nigeria. I still believe God can use this moment to make a change in Nigeria.  Pray that anyone who steals from Nigeria’s commonwealth will experience pain and sorrow. Pray for God to help us in the same way he intervened Abacha-wise.
·      Share additional information online, do not stop the flow of information. The more we know, the better we become.

Just an addendum, later today, I shall be publishing specific line  items from Nigeria's 2012 budget to expose the  financial recklessness of this administration that is asking Nigerians to sacrifice. Make sure you check in!

I have posted a new  entry on how our money is stolen through overblown and unrealistic budgets. I picked out line items from the budgetary allocations of the office of the Vice President in the 2012 budget. Please read that post. It makes interesting reading.


  1. I cry 4 dis country, subsidy removal prize of everytin has gone up. I wonder d job of ICPC dat dey can't fish out dis pple eating dat subsidy money.

  2. Sometimes,the more we know,the more despair sets in.Thanks so much for your enlightening article!!We will all put our hands (and thoughts too) for a better Nigeria.God bless you.

  3. The time for change has come and every Nigerian has a part to play in other for this change to materialize. We can't continue to fold our arms and expect things to change. We will only de defined as insane if we continue to do the same things and expect a different result.

  4. LAGBUS has 5,000? where did you get this data from or is it a typo? The govt should deal with dubious marketers as they did bank chiefs. Nigeria also needs whistle blowers, lets expose these rouges with incontestable facts lest they destroy our childrens' future

  5. So what is your stand on whether the subsidy should remain?


    Sorry, that was a typo, Lagbus has over 500 buses. Please check article inlink posted above. Thanks for noticing it!

  7. Dear Demo, may God fill u with undiluted Happiness. U shall be bereft of ideas like those Oles in power. This is a struggle of ideological reorientation. It is not stopping only on d N65 only but other issues added-education, minimum wage, health, unemployment etc.

  8. Exceptional reading! Gives voice to what a number of people feel! The time really is right for the masses to enforce change in Nigeria! I wish Okonjo who I still want to believe is sincere despite the faux pas of deceiving Nigerians as to the timing of subsidy removal would read this article and take a stand! All the promises we are getting amounts to hogwash really if measures are not put in place to stop corruption! In addition to your well articulated points I strongly believe that embezzelment, misappropriation of funds as well as shoddy delivery on contracts should be made a punishable offence with atleast 20 non negotiable years in prison! That will give all the thieving fat cats pause to think! What's the point in saving money from subsidy only to have government give contracts to incompetent buffoons willing to pay a sizeable kickbacks so that they can build roads that will be destroyed within a year necesitating a re-awarding of the same contract possibly to the same contractor using a different business name! For now Jonathan should return the hastily removed subsidy which was probably done with glee at the prospect of huge returns that would line their pockets while allowing for some, yet minimal economic changes which they can then laud as achievements in their administration! He should first show sincerity and earn trust by showing what he can do with the little in his coffers before asking for trust with the humongous savings that will acrue from subsidy removal!

  9. Excellent article. I enjoyed reading it. Something must be done about corruption in Nigeria if not, we are doomed as a people. Below is another article I found interesting:

    On a recent trip to West Africa, the newly appointed managing director of the International Monetary Fund, Christine Lagarde ordered the governments of Nigeria, Guinea, Cameroon, Ghana and Chad to relinquish vital fuel subsidies. Much to the dismay of the population of these nations, the prices of fuel and transport have near tripled over night without notice, causing widespread violence on the streets of the Nigerian capital of Abuja and its economic center, Lagos. Much like the IMF induced riots in Indonesia during the 1997 Asian Financial Crisis, public discontent in Nigeria is channelled towards an incompetent and self-serving domestic elite, compliant to the interests of fraudulent foreign institutions.

    Although Nigeria holds the most proven oil reserves in Africa behind Libya, it’s people are now expected to pay a fee closer to what the average American pays for the cost of fuel, an exorbitant sum in contrast to its regional neighbours. Alternatively, other oil producing nations such as Venezuela, Kuwait and Saudi Arabia offer their populations fuel for as little as $0.12 USD per gallon. While Lagos has one of Africa’s highest concentration of billionaires, the vast majority of the population struggle daily on less than $2.00 USD. Amid a staggering 47% youth unemployment rate and thousands of annual deaths related to preventable diseases, the IMF has pulled the rug out from under a nation where safe drinking water is a luxury to around 80% of it’s populace.

    Although Nigeria produces 2.4 million barrels of crude oil a day intended for export use, the country struggles with generating sufficient electrical power and maintaining its infrastructure. Ironically enough, less than 6% of bank depositors own 88% of all bank deposits in Nigeria. Goldman Sachs employees line its domestic government, in addition to the former Vice President of the World Bank, Ngozi Okonjo-Iweala, who is widely considered by many to be the de facto Prime Minister. Even after decades of producing lucrative oil exports, Nigeria has failed to maintain it’s own refineries, forcing it to illogically purchase oil imports from other nations. Society at large has not benefited from Nigeria’s natural riches, so it comes as no surprise that a severe level of distrust is held towards the government, who claims the fuel subsidy needs to be lifted in order to divert funds towards improving the quality of life within the country.

    To be continued....

  10. continued....

    Like so many other nations, Nigerian people have suffered from a systematically reduced living standard after being subjected to the IMF’s Structural Adjustment Policies (SAP). Before a loan can be taken from the World Bank or IMF, a country must first follow strict economic policies, which include currency devaluation, lifting of trade tariffs, the removal of subsidies and detrimental budget cuts to critical public sector health and education services.

    SAPs encourage borrower countries to focus on the production and export of domestic commodities and resources to increase foreign exchange, which can often be subject to dramatic fluctuations in value. Without the protection of price controls and an authentic currency rate, extreme inflation and poverty subsist to the point of civil unrest, as seen in a wide array of countries around the world (usually in former colonial protectorates). The people of Nigeria have been one of the world’s most vocal against IMF-induced austerity measures, student protests have been met with heavy handed repression since 1986 and several times since then, resulting in hundreds of civilian deaths. As a testament to the success of the loan, the average laborer in Nigeria earned 35% more in the 1970’s than he would of in 2012.

    Working through the direct representation of Western Financial Institutions and the IMF in Nigeria’s Government, a new IMF conditionality calls for the creation of a Sovereign Wealth Fund. Olusegun Aganga, the former Nigerian Minister of Finance commented on how the SWF was hastily pushed through and enacted prior to the countries national elections. If huge savings are amassed from oil exports and austerity measures, one cannot realistically expect that these funds will be invested towards infrastructure development based on the current track record of the Nigerian Government. Further more, it is increasingly more likely that any proceeds from a SWF would be beneficial to Western institutions and markets, which initially demanded its creation. Nigerian philanthropist Bukar Usman prophetically writes “I have genuine fears that the SWF would serve us no better than other foreign-recommended "remedies" which we had implemented to our own detriment in the past or are being pushed to implement today.”

    To be continued...

  11. continued...

    The abrupt simultaneous removal of fuel subsidies in several West African nations is a clear indication of who is really in charge of things in post-colonial Africa. The timing of its cushion-less implementation could not be any worse, Nigeria’s president Goodluck Jonathan recently declared a state of emergency after forty people were killed in a church bombing on Christmas day, an act allegedly committed by the Islamist separatist group, Boko Haram. The group advocates dividing the predominately Muslim northern states from the Christian southern states, a similar predicament to the recent division of Sudan.

    As the United States African Command (AFRICOM) begins to gain a foothold into the continent with its troops officially present in Eritrea and Uganda in an effort to maintain security and remove other theocratic religious groups such as the Lord’s Resistance Army, the sectarian violence in Nigeria provides a convenient pretext for military intervention in the continuing resource war. For further insight into this theory, it is interesting to note that United States Army War College in Carlisle, Pennsylvania conducted a series of African war game scenarios in preparation for the Pentagon’s expansion of AFRICOM under the Obama Administration.

    In the presence of US State Department Officials, employees from The Rand Corporation and Israeli military personnel, a military exercise was undertaken which tested how AFRICOM would respond to a disintegrating Nigeria on the verge of collapse amidst civil war. The scenario envisioned rebel factions vying for control of the Niger Delta oil fields (the source of one of America’s top oil imports), which would potentially be secured by some 20,000 U.S. troops if a US-friendly coup failed to take place At a press conference at the House Armed Services Committee on March 13, 2008, AFRICOM Commander, General William Ward then went on to brazenly state the priority issue of America’s growing dependence on African oil would be furthered by AFRICOM operating under the principle theatre-goal of “combating terrorism”.

    At an AFRICOM Conference held at Fort McNair on February 18, 2008, Vice Admiral Robert T. Moeller openly declared the guiding principle of AFRICOM was to protect “the free flow of natural resources from Africa to the global market”, before citing China’s increasing presence in the region as challenging to American interests. After the unwarranted snatch-and-grab regime change conducted in Libya, nurturing economic destabilization, civil unrest and sectarian conflict in Nigeria is an ultimately tangible effort to secure Africa’s second largest oil reserves. During the pillage of Libya, its SFW accounts worth over 1.2 billion USD were frozen and essentially absorbed by Franco-Anglo-American powers; it would realistic to assume that much the same would occur if Nigeria failed to comply with Western interests. While agents of foreign capital have already infiltrated its government, there is little doubt that Nigeria will become a new front in the War on Terror.

    Nile Bowie is a freelance writer and photojournalist; he's regularly contributed to Tony Cartalucci's Land Destroyer Report and Alex Jones' Infowars.

    Global Research Articles by Nile Bowie


  12. Talking about corruption - remember all the articles about $7 per barrel paid by importers of PMS towards financing the 2011 elections? And the massive fraud in the nomadic education campaign? The paper that reported these stories is no longer in print cirulation. This is a fight for good governmanr and againt a corrupt system, not really about fuel subsidy,

  13. I have been wondering whether there is a law that says that our four refineries cannot work. Is it a taboo for the cost of governance to come down? Some loans were taken after Obasanja left, what projects were the loans used to finance? I wish I could believe in the Nigerian Government but I can't seem to see why I should. Is Jonathan-led administration saying that it does not have the capacity nor the willingness to fight corruption and bring offenders to book?

  14. Thanks for the explicit details contained in the post. The man that claimed not to grow up with shoes and his co-horts have grossed enough to last them three lifetimes (if they can live that long), so how can they understand the plight of an average man? 3m on food daily for Mr President, 280m for 2 bullet proof vehicles for the P and VP, 45m allocated to the VP for newspapers... The list goes on. Graduates are roaming the streets with brown envelopes containing CV's, Resumes, Proposals etc. The key problems in Nigeria are corruption and the Nigerian Police/Law Enforcement Agencies. In this jet-age, ownership of a laptop/pc (which incidentally costs less than a new blackberry) is the equivalent of owning a non-licensed AK47. Policemen harass citizens day and night and threaten to parade you as robbery suspects if you don't succumb to their demands. Heard occasions where Policemen/Sars round up citizens on the highway and drive them to the ATM and withdraw all they have (a particular instance, when the victim reached his withdrawal limit around 10pm, they sat with him till 12am which equates to d next day n withdrew the till he reached his limit). U can't even gamble on driving to the next street after 7pm to get asun for your wife and kids because u don't know if you'll be the next horror film. Whatever needs to be done should be done, the excesses of these uniformed men r too much and its not them we fear (its d guns they carry). Its really pathetic because we know and see brilliant graduates with impressive credentials who can defend their certificates anyday roaming the streets and we have majority of our leaders who can't make sound impromptu speeches. In the end these tomorrow's leaders get killed by these uniformed men... GOD help us n heal Nigeria

  15. Very informative article, thanks. But I am personally getting frustrated with so much depressing information and the feeling that its all talk with no action. A well informed and well meaning negotiation group needs to emerge to deal with the whole political class and their friends....PDP and the supposed opposition are on the same side when it comes to corruption and sharing of resources! And as for 'Labour', they are just doing what they need to do to extort as much as possible from Government. Note the transition of Oshiomole from Labour leader to do you imagine his election was funded!

  16. Am appalled by the government ineptitude to create a decent and friendly direction within the plausible economic tenets. If they are not corrupt themselves or accomplices in crime, why is it so dificult for them to fight these few Nigerians who are determined to milk us to emptineness. This is serious. HAVING HAD ACCESS TO MORE INFO ABOUT HOW INVOLVED THE SUCCESSIVE GOVTS HAVE BEEN ON THIS SUBSIDY RACKETEERING, I HAVE CHANGED MY MIND. MY STAND NOW IS THAT GOVERNMENT SHOULD GO AND CLEANSE THEIR HOME BEFORE THINKING AT ALL ABOUT SUBSIDY. Are these few corrupt people bigger than the government? From all indication, they know them but they prefer to do otherwise. I can assure you that if the government see them as untouchables, the massess will touch them. ENOUGH IS ENOUGH. NO TO SUBSIDY REMOVAL. JONATHAN AND HIS ECONOMIC TEAM ARE BUNCH OF FAILURES. THEY SHOULD LEAVE THE STAGE FOR FRESH IDEAS.

  17. I am absolutely torched by dis write up, i think our political offices shld be made less juicy. This will discourage ppl who want to go there and make money. Every political office shld be a check on d other. Am irritated by dis rich ppl who have forgotten there is death. And kp stealing more. Just how much does one need to live a quality life.

  18. When these govt officials take the oath of office, do they swear on the bible or a hard back stashed with something? Amazing that majority of them have revealing facts of those that have sucked the nation dry but hide behind a steel curtain.
    I guess if you rock the boat and are also in it, it might also take you under too!
    Our great Nation now needs" a few good men", can the likes of the central bank governor be one?

  19. I just want to make an observation, I have looked @ the budget for this year and don't see any money allocated to fuel subsidy, so I don't understand what savings the government setup the Christopher Kolade panel to manage, can someone please explain... Y☺u don't manage what doesn't exist

  20. Jonathan is actually the leader of the cabal. How come the commander-in-chief of the federal republic with all the security agencies available to him,is saying there is a faceless cabal that cannot be time jonathan or okonjo iweala says there is a cabal.ask him to point to one. He knows his members.we need a change and we will get it.govt paid d cabals now he wants the masses to pay his cabals.Strike pls go on until CORRUPTION is routed out!

  21. I am a proud Nigeria residing in the UK but with a job that takes me to every part of the world. On reading this article, i almost cried because of what i have always been saying. Why are we so wasteful, why are we so greedy, why are we so unholy but act as if we are the holiest? Our greed goes beyond anything this world has seen....Nigeria has the potential to be the top ten richest countries in the world and belive me I mean top 10!!! Afterall we have the resources it takes and say and i hope in my lifetime, things will begin to move in a positive direction. There is corruption in every part of the world but there is also a strong national belief in progression as the ultimate Nigeria Progression is an individual entity and not a national entity...How can one say Nigeria of the 70s and 80s is better than Nigeria today...where is the progression, where is the vision!!!! Our facilities were built for those times and since then we have not progressed!!! The population in Lagos overwhelm the infrastructure in Lagos....My green passport is always targeted whenever i use it in countries...Dubai was a mere fish town in the 70s and today it is a force to be reckoned with!! Jesu christi wa sha...but we must act! The fact that there is a God means we must act and not wait for him to come down on our behalf!! May he Bless Nigeria

  22. Well said Demo, I believe NLC should negotiate for reasonable and achieveable things, total reversal maybe not..whatever projects the 'subsidy monies'are used for should be monitored closely, because there are two things that the government is doing that kills Nigerians physcologically and emotionally -lack of trust by nigerians to the government (Nigerians have lost all forms of trust in the ability of the government to keep a promise)and extravagant/wasteful spending.

    Honestly subsidy or no subsidy, the 'cabal' will keep raking in money, but why they can't build refineries in Nigeria with all the money they have is what I don't understand -(man unkind - tuface).

    I can go on and on..but when a government says it can't bow to its people, then you know there's problem. We aint practising democracy.

    I am not one to point fingers, GEJ, okonjo-iweala (brilliant woman, good ideas, but has to realise theory on paper is different from practical in reality) and all senators n HORs, u really want the best for our country, let them do what they know is right, not what they think...cut your expenses, lead by example..

    Sometimes, talking through pain and anger, doesn't make one express self clearly..

  23. Let 'em ... Give us electricity, good road network, and remove corruption subsidy ... as a starter

    Maybe, just maybe

    ACK (liquidation of PHCN), Lets encourage him now,
    If you use right hand to rebuke a child, use left hand to encourage him

    1. Institutionalise allocation profiling and reporting up to sub directorate level
    2. Remove Corruption subsidy
    3. Tackle the Electricity Cabal and "Let there be Light"
    4. Let there be Road Network and alternate
    5. Let Good Governance Reigns
    Go an extra mile and
    6. Take a portion of the Reserve to TRULY Fix the Refineries
    Bade Adesemowo
    #fuelSubsıdy : the BADEsemowo plan : #gradualımpact : remove fuel subsıdy over 5 years wıth a plan.
    Year1 : remove 20% of #fuelsubsıdy , and show us what the savıngs ıs used for . Thıs should ınclude subsıdızıng nıgerıan transport system(see ben bruce plan) and buıldıng refınerıes .
    Year 2 : after showıng accountabılıty and buıldıng trust ın Year 1 , you can remove a further 20% .
    Year 3 - 5 : Thıs goes on tıll year 5 when 100% ıs removed. Thıs plan delıvers gradual ımpact and wıll ensure obvıous cost / benefıt / ROI over tıme I support fuelsubsıdy removal only ıf thıs plan (or somethıng sımılar ıs put ın place)

  24. Thanks for the article, its very enlightening, I suggest a complete reversal of the subsidy removal,I.e, petrol should go back to 65, the money for the supposed infrastructures should be taken from the excesses of the presidency,vice,special advisers,senators,reps,godfathers,ghost workers,thieves(past looters)e.t.c, when this is done, there wouldn't be a need for subsidy as refineries would be working and petrol will be sold as it should be sold.

  25. Thank you for the write up Demola

    I have thougt deeply about this nation as a whole and also smaller groups in country and I have come to the conclusion that the reason we keep carrying on as we do is because:

    'There is no adequate and publicly visible recognition for good behaviour as a whole, neither is their any adequate and publicly visible punishment for bad behaviour'

    I strongly believe that iif this two parameters are addressed we will sit up as a nation.

    We are natural 'go-getters, enterpreneurs, intelligent scholars etc. We have too much of what a lot of nations are begging for.

    We just lack the right discipline and leadership

  26. We all voted for Goodluck Jonathan because we believe he can deliver,now he makes a thoughtful decision suddenly we are demonising him,why don't people leave sentiments and debate openly on this issue I don't believe he is out to punish Nigerians,even in developed world leaders make painful decisions for better tomorrow,am angry with him for the way he is handling this boko haram issue with laxity,this demon inspired group is busy wiping out souls of innocent people and the Executives and the legislators are busy meeting over subsidy removal,let them not think that they are safe in Abuja. the blood of the innocents massacred every hour is crying,where is the state of emergency? The group operate openly with impunity destroying and murdering wherever they choose. the fear in the north eastern Nigeria is palpable,Christian families in disarray,they don't know where to go to,Jonathan,the security chiefs what are the soldiers and police in the unaffected part of the country doing in their barracks?you can stop the civil war now. Stop it now that is possible or allow individual to carry arms and defend themselves.MAY GOD SAFE US

  27. Nice Article Demola, one of the best I've read so far. The main problem I see with this subsidy issue and the so called 'Cabals or Marketers' is that the Nigerian government is highly irresponsible because they are the ones who gave them the chance to exploit the nation. I believe since the oil sector is the major driver of the Nigerian economy, the government should put in place strict regulations and monitoring agencies that would monitor the activities of these marketers. Secondly, the government through CBN and the Nigerian banks should have funded refinery projects instead of funding unseen and shady dealings of these businessmen and marketers which end up resulting to bad debts. It is just obvious that all the sectors in Nigeria are seriously corrupt. May God help us in this country.

  28. Apart from stating the obvious,what i find of most intrest are the solutions you proferred or attempted to proffer.At this point what i am intrested in is the way forward based on the facts available to us now.There is so much noise being made and most of them are emotive without any iota of logic attached so i have decided to be careful what i listen to,read or react to.What i expect from our so called critics are solutions and not playing to the gallery.As for those who react to issues by "weeping for Nigeria"i hate to dissappoint you.We are not intrested or moved by your tears.Stop tearing and start proferring

    1. Tunde,profer your own solution and stop kidding.

    2. Tunde,
      I find your response as insulting and insensitive as the government's relationship with the people over the years.
      Could it be possible that you are a collaborator in this matte too? Else it does not take a genius to know that the government should suspend the subsidy removal. Spend the next 12 months putting its house in order , indicting and prosecuting allegations raised, fix refineries to min 70% capacity. And when we see this changes, we can come back to discuss subsidy removal if indeed there is subsidy at all.
      By the who are the us and we you refer to in your response as i am sure you do not speak for Nigerians.

  29. We Nigerians have been too complacent when it comes to lending our voices to what happens in government. I feel this is the time for us to get involved. If the government succeeds in removing fuel subsidy (another name for unparalleled corruption), we should then all rise up and enforce accountability in governance. Public officers salaries must be made to reflect realities on ground. Government frivolous and unnecessary spending at all levels must be curbed. A few people in government at the federal level mean well and we should encourage them. Nigeria must survive, but the rats must be eliminated.

  30. Very good write up, shows how we feel. Truth is we are tired of talk and no action. Can you see how Jonathan remains stubborn on this issue yet does not have the same zeal in tackling major issues like the Boko Haram and true all round development, but spends time on baseless laws against homosexuals.
    What happened in Ghana is what we need in Nigeria, many of us have been sayin it and we would continue saying it. A revolution that would kill all these people or most of them while the others would be forced into exile. If not they would completely sell Nigeria off to the western world or cause a major war. Please watch 'CRY FREEDOM' on youtube and see how Nigeria could be like SeiraLeone with many terorist groups and worse cause of their own natural resource which is diamond(ours obviously is oil).
    There's so much information, many of us educated or not know all these but we are tired of talking, complaining, weeping and suffering. We need serious action, something bold, daring, to kill the stubborn greedy people that intimidate the people, or the true future leaders would have nothing to lead, no homeland to be proud of. Many of us based abroad just have no choice but to live as 3rd grade citizens amidst racism and the likes cos of the access to amenities. We don't even know what system we practise in Nigeria.It's the change we need. God help us all.

  31. Can't understand y all d general overseer's such as alfa's and pastors havnt gone 2 meet jonathan 4 a dialogue. God help dis country

  32. This write-up is based on speculations and cooked up facts. I will list a few:
    1.That lagbus has 5000 buses.
    2.The the Federal government has 72 Federal Ministers.
    3. Assumption that N85/litre subsidy is all profit. Check the actual cost of importing product (cost of product, freight, other cost components, distribution and marketing cost, etc) and you will realize that the subsidy is only a reimbursement and not profit that can be freely used to bribe government agencies.
    4. Quantities for subsidy claims are not based on quantity in the vessels but on what is discharged into the depots and witnessed and verified by several parties including independent auditors of international repute separately appointed by federal ministry of finance.
    5. The claim that PPPRA is supposed to give license only to marketers with a national distribution network are supposed to import. This is a pure lie. Please confirm for yourself from the PPPRA Subsidy guidelines.
    6. The big oil players you know are like Mobil are not given or are given less to import.This shows lack of understanding of the sector. The sector is so segmented that one may decide to play at any of the different points of the value chain; jetty, depot, marketing, transport, retail outlet. Mobil may have large capacity but decide not to import in a period or apply for smaller quantity less than you would expect them to do. There is not forcing Mobil to import and other companies that meet the import guidelines are allocated quantities based on an capacity and other parameters.

  33. The article is thought provoking and good, but I think what we need to be protesting about is the unbearably high level of corruption that is leading us down the drain. From the quotation of Sanusi's statement, the whole mess of subsidy has been created by NNPC officials and other operatives of Govt in the Customs service etc.
    The Govt. knows who these people are; probably touching the top most echelon of our Legislative,Executive and Judiciary arms of our governance. Rather than wage direct war on these people, the President is taking the easy way out of making the people carry the burden of his timidity and inability to clean the Aegean Stable. We are once again sweeping the problem under the carpet and walking away from the cancer; except that I think the theatre of corruption will shift to other areas - be it Power or fertilizer etc or other lucrative areas that we ordinary mortals do not have the guile and criminal mind to see. The battle to liberate ourselves has never started. Maybe we should pray for the young 'Jerry Rawlings' of Nigeria to take off the heads of these cartels who have kept us in bondage for years.

  34. Demo, God bless you and God bless Nigeria! Thank you for the very explicit thought provoking writeup. The good people of Nigeria wake up and let's come together to save our beloved country from all the rouges and pen robbers we have, by our collective acts of commission or omission now in positions of leadership in all sectors of governance. TRIBES AND TONGUES MAY DIFFER! IN UNITY WE SHOULD STAND! On Monday January 9,2012 a MOVEMENT was born and a REVOLUTION has commenced. The spirit of Complacency is gone for ever. Arise Compatriots! It is time to roost the Thieves in the fire they ignited themselves. Let's say NO to removal of inexistent subsidy and all other injustices being metted to the poor masses of this great Country! For Nigeria and Nigerians to survive, the CABAL or CARTEL or whatever name they're called both in the Executive and Legistlative arms of government must be destroyed. Too bad we have a LAME DOCK PRESIDENT who has no vision for Nigeria, and even if we have a hundred of Okonjo Iwealas, Sanusis, Adewunmi Adesinas - who meant well for the nation, as long as the Headship is weak and rotten the nation is doomed- God forbid. Today is the time to act! The youths of Nigeria- Arise, for the destiny of the nation is in your hands! God save and bless the Federal Republic of Nigeria!

  35. I like article it's really impressed me. great Nigeria let us all stand on our words, Jonathan must return fuel prize to #65 otherwise Nigeria is giong to face hardship. cos the money wi be share by our leaders. God help us.

  36. Thanks for your analysis. But note that LAGBUS is only one part of BRT operation in lagos. LAGBUS operates the red buses while LAMATA operates the blue buses. It is therefore right to say Lagos have about 1000 buses if only LAGBUS have 545.

  37. Can the anonymous person arguing that this write up is based on speculation and cooked up facts kindly enlighten us as to what the facts really are?
    There is nothing wrong in having an healthy argument but it is wrong to do exactly whta you are accusing someone of doing by not providing or correcting the alledged falsehood or misinformation.
    I am praying that this person agrees that there is something fundamentally wrong with Nigeria

  38. We refuse to be deceived! Why shoud we embrace the removal of fuel-subsidy by these 'looting-frats' when its actually meant to cover their open-wounds of corruption, aswell enrich their pockets!!

  39. I'm in support of the subsidy removal...but to start this the right time to remove the subsidy? NO..Nigerians have just finished the festive season and that definitely left a big hole in the pockets of many..this aside, Nigeria is a country tha likes a fire brigade to many serious issues..The debate on the removal has been running for many before you can remove subsidy, there should have been some measures to cushion the effect, the railway should have been working effectively, the power supply should have been stable so that we don't have to fuel our generators for domestic use, the roads should have been in a good state..that is when the government should talk of subsidy removal...if the government is providing 1600 buses to assit in tr ansport, then the government should start producing sachet water so that we can stop buying at ten naira and should also start supplying tomatoes, pepper, onions and the like because the government must be fully aware that any change in pump price always has a rippling effect on all commodities and services in the country...if those concerned can do this, then I'm in full support of the subsidy removal...Bunch of shameless, heartless, corrupt people

  40. This comment has been removed by the author.

  41. I'm in support of the subsidy removal...but to start this the right time to remove the subsidy? NO..Nigerians have just finished the festive season and that definitely left a big hole in the pockets of many..this aside, Nigeria is a country that likes a fire brigade approach to many serious issues..The debate on the removal has been running for many before you can remove subsidy, there should have been some measures to cushion the effect, the railway should have been working effectively, the power supply should have been stable so that we don't have to fuel our generators for domestic use, the roads should have been in a good state..that is when the government should talk of subsidy removal...if the government is providing 1600 buses to assit in tr ansport, then the government should start producing sachet water so that we can stop buying at ten naira and should also start supplying tomatoes, pepper, onions and the like because the government must be fully aware that any change in pump price always has a rippling effect on all commodities and services in the country...if those concerned can do this, then I'm in full support of the subsidy removal...Bunch of shameless, heartless, corrupt people

  42. Thank you for a very detailed commentary.

  43. Demola,

    I believe you have shade some light in the debate on corporate governance in Nigeria, inspire of a few incorrect points.

  44. Nice write up Demo. Jonathan has failed. If he were an honourable man, he should resign.

    All this talk of diverting the 'so called' subidy savings to other areas of development is TOTAL BULLSHIT!! Every year money is allocated in the budged to fix roads, electricity, health care, etc and the next year there's always a deficit. Unless my understanding is faulty, but that should mean that the money allocated was overused. But has there been any improvement in these areas?

    Now all of a sudden this same government that has failed us, expects us to trust that due to some divine intervention they're now going to use this 'so called' subidy savings to better develop Nigeria? Dem don see us finish!!!

    We should even be ashamed to tell people we import fuel. The government now wants the masses to suffer for it's failures.

  45. You actually wrote 500 lagbus
    buses and not 5000 as one commentator wrongly pointed out!, nice write up and I'm gonna share it with friend and family so that it will get to as many people as possible for them to know how our government have selling lies and bulshit to us! God bless u Demo! Bless Nigeria!!

  46. Demo, Right now the president has decide that we must stop paying these guys free money in the name of subsidy and we are protesting that he must continue paying them. I have a feeling the cabals are the ones behind NLC becos no sensible Nigeria will encourage government to keep paying these guys.
    By protesting, we are saying Government must go back to paying them the money. I'm really embarrassed by this expression of ignorance under the guise of poverty

  47. Very nice write-up. But wot do u have with Pastors? You aren't to judge anyone, talk more of God's elect.. Pls I appreciate we stick to d problem at hand instead of apportioning blame inappropriately. Nobody has ever been placed under duress to give ANYTHING to those pastors u're referring to.
    Apart from that, Ur write-up is well-researched! BRAVO!
    We will keep prayn for God's intervention in our country-Nigeria!

  48. A vry elaborate article. Indeed dis senario has opened our eyes to d bitter truth. Sanusi lamido has done a vry good job on dat. Our govt is full of currupt nd hrtless leaders. As muvh as we nigerians want to fight for our rihgts nd demand justice nd transparency in our govt it is quite obvious dt we r far from acheiving dt goal. I leave in kaduna nd I can testify dt d protest held today was peaceful. Yet d governor decided to impose a 24hr curview in d state. To me I feel d govt has reliased power of usin sucurity forces on citezins. So they wil use wat eva power they hav to enslave us. So far they have killed about four inocent protesters (from my count). So here u see we'll nid not jst determination bt the Hands of God Almighty to acheive our gool. Our govt policy needs to b reform it gets worst by d day, I often wonder wat d future of this nation wil b like. I only pray nd hope it wil be good! May The Almighty help us!

  49. Great journalistic contrbution, Demo. I watched the Sanusi presentation too and your quotations are damn accurate! What he did not tell os how the other sectors use the import smokescreen to rob us of what Otedola and cohorts left behind - from the goodness of their rut filled hearts. He should tell us how another cabal milk us importing rice or wheat or sugar or cement. Indeed we are not just broke we are flat out and cold! It is time to fight back with full resolve to end these carnage one way or the other.
    One other thing nobody mentioned at the debate was that the government does not take oil for domestic consumption at global price of oil but ay cost as stipulated in the MOU that governed oil operation for 20 years as well as the Petroleum Tax Law (PPT).
    Besides, the price of all oil and products at the various parts of the world are published daily in a journal called "Platts Oilgram" Where does the landing price of N145 per litre came from? The "refiners margin" and other technical costs associated with oil operations are well known and published daily. Where did Okonjo Iweala find her numbers? Which refineries refine "leaded" petroleum in the world? These are technical questions which Iwaela and Allison-Madueke must explain? The deceit is technical and political.

  50. I don't care about the accuracy of the figures here. They are indicative enough for me to use my senses to complete the equation. The fraud going on in this country is unmatched in the existence of man.

    There are better sources of fund for GEJ and his shallow minded myopic cohorts, they should simply cut their personal income and expenses and we'll have enough money for development. Things are too hard in Nigeria already and fuel price hike will make it ever worse.
    My prayer is that the wrath of God will fall on all the tormentors of this country.
    I have no confidence in the re-investment plan. It has never happened in the history of this country. Let them point at one thing that was done from previously removed subsidy or it this the first time they are removing it. Even if Ngozi and Jona mean well, the same way they fail to control the cabal and the land borders, they will fail to see the re-investment project to success.

  51. Very interesting read!!!
    Reality is that there is a cost to importing refined petroleum into nigeria. But the subsidy we are talking about is not on the fuel itsself but the inefficiencies built in to the process.
    For each cargo that is transshipped there is a tolerance of 5 of 10 % and these figures can be fiddled and translate in to huge amounts of money over time.
    What PPPRA does is pay for those inefficiencies.
    You can not have a CABAL without government supporting it. Having worked in two of these companies I know how much monies and favours were paid out to bank executives and govt officials at every level right up to the presidency.
    The reality is that the subsidy needs to be removed, but the manner and pace of the removal is detrimental to the people of Nigeria.
    What will result is that there will be fewer players participating in the industry resulting in scarcity and price hikes.
    When you look at their accounts, they ALL have billions of niara in debt owed to the banks.
    One company had 6billion in debt owed to 3 banks which they werent servicing. They were relying on their political connections to sort out that mess. we were just not to look at those accounts. one of the banks has since collaped and has been recapitalised.
    WE had 3 sets of audited accounts, one of them showing the true picture of our financial standing, one for international banks, one for local banks.
    Why 6billion in the red you might wonder? this was largely as a result of overinvoicing of each cargo by $1 million by the international trading company who bought cargos on our behalf even if it was a bad trade. So basically PPPRA was paying us back $1million more thatn it cost us to import and discharage a cargo. This money was kept aside abroad for personal gain and to fund election camapigns.
    I am only trying to illustrate that Corruption is endemic, The bankers, importers, customs, navy, ppmc, pppra, dpr, chief of staff, ministry of finance, the ppp, FIRS and the list is endless.
    No matter how much good will the people at the top (SLS, NOE) have and how much theory they spurt. They are incapable of executing any meaning ful change because they are all friends and have history.
    This is what is keeping us underdeveloped, and is killing any hope of a future for our children.
    I dont want my children to grow up as second class citizens in aanother country, I want them to be pround of their Country and imbibe the rich culture we have.

  52. It is surprising that nobody has suggested an indictment of any of these culprits. Eventhough the country has no respectable judiciary the international community can help to make sure that the book is thrown at these people no matter how untouchable they think they are. The common people while demanding the removal of the fuel subsidy should include a grand jury composed of jurists, economists and accountants from the UN to do justice to this case.

  53. I think I have just read the long version of a coup speech; please be careful, lest you make each of your readers an ACCESSORY AFTER THE FACT. By the way, tell me when you intend to execute it, so I can blow the whistle by informing the SSS to abort it?

  54. I will rather buy the pms for N150 and endure the temporary pain than remain in the bondage of unscrupulous oil cartel that will only lead to endless suffering and enslavement of my children in the near future. lest forgive the president for poor enlightenment on the subject and say bye bye to poverty and welcome the emerging prosperous Nigeria. Danboyi Ojogun

  55. Mr President Goodluck Jonathan, please stay the course;do not deviate from current agenda to revitalize the economy and save it from imminent collapse due to fuel subsidy abuse in the down stream sector. - Your name will be written in Gold in the history of Nigeria "if you stay the course".Any reversal on this will set Nigeria 50 years backward - we must all rise up to support Ngozi Okonjo-Iweala with all our strength for the' CHANGE'.We should show her love,respect her,encourage her and trust her for this bold step of 'CHANGE'.It is now clear to us why the Cabal hates her.

  56. This is indeed the true state of affairs in our country.Charity they say, begins at home. If truly the president is out to fight corruption, and better the lives of the citizens of Nigeria, then he should start by cleansing himself and his household. Let him cut down on his budget on feeding because he is not a glutton unless he is stating otherwise. If he can do that, he will realize that the will save more funds for the nation than what he is expecting from the removal of oil subsidy.Why will the vice president budget about N45.08 million on just reading newspaper when about one-tenth of that amount will bne more than enough assuming he buoys 30 different newspapers at N400 for 366 days? Isn't that sheer wickedness on the part of a man who is claiming to fight corruption? These and many more should be the reason why our prayer point remians "LET THE WICKEDNESS OF THE WICKED STOP". God will definitely see us through.

  57. This is right time for change,and we have to fight for it ourselves,cos government is not ready to shift grounds on this issue. Fellow Nigerians lets wake up from our slumber,for the sake of our generation and future generation.

  58. Interesting article,but as patrotic nigerians its important we don't mislead the population and feed them with misrepresented facts.

    1.The National Assembly budget is not 1.2trillion -the entire budget is 4.2trillion out of this the civil service consumes 1.2trillion per annum aside capital budget and other recurrent expenditure.

    2.I support Government needs to cut wastage instead of passing the burden to the people but to be fair removal of fuel subsidy is closing the leaking tap which if done otherwise I wonder if Jonathan's government would survive it.

    3.Our youth crave for employment but its important to note that our leaders have failed us and they deserve nothing but the worst for them and their generations but no sensible investor will put money in a sector that the price is controlled by Government.

    To wrap it up I believe we have a duty to educate ourselves with the right information and not misrepresented facts.

    Long live Nigeria

  59. Interesting article,but as patrotic nigerians its important we don't mislead the population and feed them with misrepresented facts.

    1.The National Assembly budget is not 1.2trillion -the entire budget is 4.2trillion out of this the civil service consumes 1.2trillion per annum aside capital budget and other recurrent expenditure.

    2.I support Government needs to cut wastage instead of passing the burden to the people but to be fair removal of fuel subsidy is closing the leaking tap which if done otherwise I wonder if Jonathan's government would survive it.

    3.Our youth crave for employment but its important to note that our leaders have failed us and they deserve nothing but the worst for them and their generations but no sensible investor will put money in a sector that the price is controlled by Government.

    To wrap it up I believe we have a duty to educate ourselves with the right information and not misrepresented facts.

    Long live Nigeria

  60. Don't think to far abt d sudden announcement abt d removal, the country is broke.
    Sanusi, iweala & diezani have not given any guarantee that monies from this removal with actually be used for all they dream the govt will provide.
    Diezani can't give accurate report of activities in her ministries, corruption there is like breathing air but yet she can't deal with d issue,she said on her that govt has no interest in the business of refineries. I then wonder y she thinks she can say anything an a reasonable nigerian will agree to a criminal.we all know her family is a major player in the oil business, let's start dealing with pple like her.
    Sanusi says his house and family will crumble if its not removed, we're waiting excitedly for that to happen.
    What was done with the monies from subsidy removal on diesels?


  61. Very nice read, and I commend this writer for it. The real true problem with Nigeria is that there is just way too much that is done in the dark in this country. It is absurd for us Nigerians to expect corruption to go away when all of our national dealings are done in the dark. It is absurd for a country to claim to have democracy but yet its leadership still controls major news network and controls the voice that should totally have belonged to the people. It is absurd to expect a strong democracy but yet have a very weak press that has no power and/or full access to our leadership day-to-day financial and project dealings. It is absurd to have political systems and political parties that are openly bought and paid for by money people. It is absurd to have our senators and HOR's have so much immunities from arrests and prosecution (what are they afraid of and what are they hiding that made them to ensure these protections)? It is absurd to employ civil servants(ministers & others), pay them huge amounts of salaries and begin to worship them like demi-gods and put them above the law instead of challenging them to perform and deliver results. Why is it so hard to put each one of our ministers on national TV every Sunday for 2 hours to share his/her project progress & how he/she is spending the nation's wealth in front of all Nigerians to see(using private, aggressive journalists/interviewers)? After-all, he/she is just a common civil servant and is supposed to serve us. It is totally absurd and unfathomable that a senator makes $1 million us dollar to sit around and talk and do some non-productive debates whenever he/she chooses to show up at the chambers. It is absurd to see how most Nigerians just worship mere humans..........we historically just put our leaders on the pedestal and never create systems to put these leaders in check, especially knowing that all humans have faults and all humans, given an opportunity, would corrupt absolutely. And little wonder that they do when they have the cover of the darkness to do it under. Everything about our country is full of absurdities and if we don't develop a strong press system(with super talented journalists) with broad powers to access all of our leadership's financial & project dealings, I am afraid that we would continue to chase our tails.

  62. With all due respect, i don't think God is the answer and that the solution will come from Him. the solution is with Nigerians. it's too easy to defer to God. Sanusi in an article published in the Nation on December 23 said: " “the attitude of the average Nigerian of wanting to take more than his fair share in everything saying is the very genesis of corruption which practically every Nigerian is guilty of”. Politicians have their share of responsibility in this mess but the average Nigerians too. So.....

  63. Yes the Govt has been a big lie and it is corrupt and wasteful.Imagine he dirt exposed in the write up by sanusi lamido sanusi.How do the importers calculate and arrive at their landind cost? We do not have a way to cross-check this,all the possibilities highlighted are food for thought.
    Sharp practices of this nature are not limited to the oil sector,it is every ask for and collect more than it is due to them,politicians demand for jumbo pay for passing few bills,traders and businessen desperate to make more gain may engage in illicit acts to achieve their objectives.
    If he Govt is now saying that we will remove fuel susbidy because the fraud,he is not properly addressing the issue.There should be a way of confirming the claim of the marketers and assertaining that they have actually imported the quantity declared and smuggling should be checked.Any of them caught making a fraudulent claim should be dealt with according to the law.I think the 'people' involved are powerful and our Govt is afraid to touch or deal with them.They are untouchable but we the poor people of nigeria are weak and the Govt can deal with us anyhow.
    The Govt should pause and think of this point.If they succeed in kicking these fraudulent os out of the oil sector by the removal of oil subsidy.they will look for another area that has the opportunity that can exploit,so it is a vicious circle.
    My position is that those who have engaged in fraudulent activities in oil sector thereby making the Govt to pay more than the actual amount should be punished and the stolen money recovered from them,this will deter crime.Our president does not have the gut to do this,he wont bite the finger that feeds him.

    Sad S.A.F

  64. PS. The reason the politicians can't expose the CABAL is because we slat away their money, keep thier mistresses, assist thier investments, and fund their campaigns.
    Just wait and see- every avenue will be taken to avoid attacking or prosecuting these so called CABALISTS because they (politicians) will just be exposing themselves.
    GEJ is not an exception.

  65. Block de road u r ryt. Protesting in fuel subsidy alone is like tellin d govt we want them to continue giving d cabals our money. We need to defind our terms clearly, we nid to find a way to tell d govt want we want. Like d comment someone made here let's organise a body apart from d NLC/TUC to meet wit the govt nd table our issues to them. We see reasons why the subsidy needs to be removed, its a step to block a particular curruption. What of all d other curruption that are happening? What of all d over expenditures they consume, why is it that they don't see it as a waste of resources on themselves? Can't they figure out a way to remove the subsidy and still cut down the fuel price? And why can't they built/re-structure our refineries to be able to refine our crude oil? There are so many questions that are un answered. And this has been on and on for so long now. I pray for the day nigeria wil prosper for all to enjoy!

  66. Demooo! The word of God can never be swept aside, "And ye shall know the truth...and the truth we know shall set us free!"
    You are the bomb! You are light to the truth that we all seek in Nigeria,..pls keep this light of information shining! The fight is beyond fuel subsidy, and we are all going to fight it until sanity is restored.

    Truth and fairness have been murdered in Nigeria a very long time ago, and unfortunately the corpse which was buried in the heart of Nigerians from the highest and lowest in the society is rotten to the bone, so much that in our today’s generation exhuming the corpse of trust, truth, & fairness is a total mirage talk less of reviving it! Because the decay in us has caused corruption to become an integral part of an average Nigerian existence! The point I am making here is not only touching only on subsidy removal saga even though I have my reservation, but the cancerous strain of corruption that has ravaged the Nation that must destroyed from the root! Olotu Kehinde Andy, my brother said and I quote,
    “What a life we live in this human jungle called Nigeria. Some want others dead so they can live. A place where the whispers of a few men drowns the shouts of millions. Some gets the fill of their laughter from the grins and grief of other men. Some if only they have the power would have sought for sole proprietorship of the rain, just to ration its water to others.
    In this jungle, surprises just keep coming !
    You know the ways of this land and its people are funny.
    A poor man by chance finds his way to the sit of government and returns to the street as a next door neighbor, what do we say; ha! this guy must have been cursed from his father's house, you mean he roamed the corridors of power for four years and returns like this!
    Corruption runs in our blood and to the extent that we can’t even draw the line anymore.
    We only cry out when we are not beneficiaries directly or indirectly.
    We are responsible for the corruption of our leaders for expectation produces manifestation.
    I hear they say we need revolution, let's start with ourselves first lest we become like a whitewash sepulchre.
    If you are weighed in the balance, will you not be found wanting?
    We have gone so low that we cant even obey a simple law except someone watches our back.
    What is it that makes us join voices to speak for the common good of man and with the slightest ascension to a place of power fail to replicate the same feat?
    I wonder why the likes of Reuben Abati, Oronto Douglas haven't resigned yet.
    Guess what, they have left the struggle for you and me only to feed themselves with the king's rich delicacies.
    One wonders how quickly the memories of the pains suffered by a once shoeless man have been drowned by a few years of allocated 1Billion naira for food alone.”
    Before now let’s agree Nigeria Jungle was very immature, that was why they took undue advantage of the poor! But today, the ongoing protest is going to spell doom for the devil’s advocate and his political cohorts! And as we all fight for the good of the nation, let us all also purge ourselves of the worms of little! little corrupt practices we perpetuate in our closets! The Nigeria Jungle has matured and we must all fight for our rights now or never!

  67. Bottom Line: Vagabonds In Power.
    The Conclude: Greed, sycophancy and ignorance will impoverish EVERYONE on the long run. Then, the solution will emerge.
    Way out: The People, The People, The People.
    Too much analysis, too much talk from people who given the chance will do the same. The People must take ownership of their country. Make the LAW sacrosanct - prosecute and convict corruption and fraud, put country first. The only ex-gov in jail is the one the whiteman arrested, others are still enjoying their loot at the expense of the people because in Nigeria, laws are unenforceable which means there are "no" crimes! So, my people - why complain?

  68. Hi Demo, this was a great piece and i want to commend you on it, well done. I have taken the liberty of posting your blog to my facebook page. Looking forward to more of the same. Best regards

    Shehu Sada

  69. What a beautiful piece Demo. Can you please elaborate further, the meeting point between these two issues; Insecurity in the country (Boko Haram to be specific) and Removal of Fuel Subsidy. These two have been haunting me these days. I don't know which one to worry about the more.

  70. Thank God, onething very important is that any person or group of persons who want unleash unnecessary hardship to another (innocent person or group of persons) God will surely expose him/them. Object porverty in Nigeria is now re-uniting Nigerians (to fight a commom enemy). They succeeded in dividing Nigerians along ethnic and religious lines for the purpose of continued divide and rule. Meanwhile, they believe in one religion (Naira), they have one tribe- Naira, they belong to one State/region- Naira. They created sects and paid them heavely to divert attention. Nigerians must all wake up not only fighting the oil subsidy but other vices createdby our corrupt leaders/politicians. God bless Nigeria.

  71. Please broadcast - Petroleum Marketers are fighting back by exposing some of the subsidy deals.

    They say Nigeria must know that Haruna Momoh the MD of PPMC and Diezanni Allison Madueke Minister for Petroleum have been demanding and pocketing up to N50 per litre of Kerosene PFI allocations which is officially N43 to NNPC. These 2 corrupt ones amongst so many unmentioned others now demand for such premium which is why the price of Kero went as high as N120 for months. This has been going on since Jan 2011 till date. The reason they gave to marketers is that it was marketers contribution to Jonathan's election, but it has continued even after the elections.

    That the govt should probe Meczor SA and Tridax SA two companies owned by the Petroleum Minister run by her junior cousin. This two companies in the last 16 months of her tenure has from no where become one of the few companies lifting crude oil and one of the largest beneficiaries of the subsidy.

    The marketers want Nigeria to probe the new list of briefcase companies now lifting crude oil because they paid minimum of $1 million to Momoh and Diezanni.

  72. It is evident that over the years, Nigerian governments have put the cart before the horse. They have run the nation like a bunch of cowboys. No planning, no strategies, no goals, except their personal aspiration to rule and leave the office richer than they got there. Meanwhile, the people have been passive and gullible. That is why the masses have always been used against themselves. This is wickedness of man to man.
    1) What did we do with all the money we made from oil all these years?
    2) Why does governments (Federal, States and LGs) take pleasure in expanding the Civil Service in size, claiming they are creating employments when the productive sectors are shrinking?
    3) Why didn't our leaders think of investing in critical infractructure all these years?
    4) Thank God we have been given the identity of the subsidy villains and the amounts they are responsible for. Is government saying it cannot bring these culprits to book, least to say recover the money from them?
    5) The system that allowed such leakages is grossly inefficient and fraudulent. By the latest act, government is owning up to its inefficiency. Are Nigerians now condemned to paying for the inefficiency of our government?
    6) Didn't government apply modelling and simulation approaches to measure the probable effects of its actions before making such publuc?
    This government strikes one as an insensitive and irresponsive government. There is need to go back to the drawing board. Definitely, PMS is central to all econonomic activities in the land. The arguments of these ministers do not hold water. The fuel subsidy removal touches the common man more than it touches the money bags.
    There are many issues in the land begging for solution; this is before the subsidy removal. The latter has not only revealed the position of the governed in the heart of the governmrent, it has also exposed our leaders' insincerity in tackling the crucial national issues.
    Maybe, the current protest will force government to address all the issues at hand, thereby saving the nation from the parth of disintegration.

  73. The Federal Government of Nigeria failed to tell Nigerians the total quantity of fuel consumed by Nigerians on daily basis. The total quantity refined in the Country and the balance imported and subsidize by them.

    Additionally the action of the Federal Government in this subsidy removal imbroglio implicitly depicted their insensitivity to the masses and unemployment situations of this country. At a time where every responsible government is searching for every opportunity to create jobs for her teeming youths that graduate from universities and other tertiary institutions our leaders would prefer to throw out this opportunity for their selfish reason.

    Since Nigerian National Petroleum Company (NNPC) and her agents talked about endless Turn-around – maintenance for our refineries and failed to negotiate a better deal for Nigerians, then Nigerians cannot ask for less but insist on the scrapping of this sleeping regulatory body. The activities of their management and all those that contributed to this mess over the years be properly investigated and persecuted in the appropriate law court.

  74. I would to give a rejoinder to the anonymous guy who countered Demola's write-up about his facts;


    Demola stated that the 5,000 Lag bus earlier written was a typo. Lag bus has about 500 buses. The importance of that must not be lost on us. If lagos is being serviced by 500 buses, how many more buses will the rest of Nigeria need? Simple maths.


    He countered Demola's statement about capacity and questioned his knowledge of the industry. My stand is that you dont need to be an expert to know that a lot of rot and corruption takes place at our ports. Anyone can be bought in Nigeria, independent auditor or can take that to the Bank, so it is not totally impossible for the marketers to overstate figures which will be reconfirmed by all parties in cohort. it isn't new; case point- Bode George and contract splitting of over N200B.

    thirdly, as a former banker before relocating to the US, i know that there is an element of truth in Demola's statement, as you can always open an LC transaction in Nigeria and inflate the parameters.

    that is why the Otedolas are owing so much in bad loans with nothing in their accounts. This i believe is to give the impression that they are apparently doing "legitimate business" using borrowed funds

    Additionally, it is obvious that the nation is going broke. you dont need to be an expert to figure that out otherwise the govt would not be placing the cart before the horse by removing subsidy at a time when they should be rolling out palliative measures and adressing boko haram, causing a spike in the price of fuel required to power the economy with no better energy solution/alternative. i remember i used to be so angry and frustrated getting back from work at night to a blackout and an empty generator.


    while it is not a bad idea to plug all loopholes via removal of unwarranted govt expenses, the govt has continuously failed to address the fundamental issue of endemic corruption. If you are bold enough to do the crime, u should be able to do the time. Come to America and ask Bernie Maddoff what he is in jail for.
    To Demola, i say thank you for a great write-up. It was really eye-opening

  75. Thank you or the write up;
    its revealing
    its educating
    its encouraging
    It seems time have come for Nigerians as we are seen..............

  76. Nothing will change in Nigeria for decades, until we change the mindset and greed of not only the politicians but also much of the people who seem to think a blackberry is more important than a job, respect and morals and that no matter how much you pray God will not change it for you. Until you know right from wrong and make good moral and ethical choices and respect others .... life in Nigeria my friends will not change, there is a still a high mountain to travel.

  77. What I have read here is UNBELIEVABLE but going through the CBN Governor's presentation, it is my belief that we have had and still have people in our government who are either INSANE or SADISTS and should be behind BARS in Sanitorium or Prison.
    President Jonathan needs to study the CBN Governor's submission in details and go after these MAD/WICKED Nigerians. In addition, he should also go through Prof. Tam David West submission on the TRUE COST of PMS.
    As a matter of urgency, Mr. President should REDUCE the number of Ministers to a maximum of 36 and Special Advisers/Assistants to a maximum of 36 also.The government budget on Entertainment and Security AT FEDERAL, NATIONAL ASSEMBLY, STATE, AND LGA LEVELS should be cut by 50% NOW.
    The people are asking their GOVT very pertinent QUESTIONS that need FACTS and FIGURES as answers.
    If this Govt is a listening one, It must go back to STATUS-QUO ANTE and then DISCUSS/NEGOTIATE with ALL RELEVANT STAKE-HOLDERS and NOT ONLY with NLC and TUC. ANYONE who claims to LOVE Nigeria MUST Speak up NOW or FOREVER KEEP QUIET. NIGERIA MUST SURELY SURVIVE. LONG LIVE NIGERIA.