Despite the public outcry against the proposed removal
of oil subsidy as from next year, Niger State Governor Babangida Aliyu yesterday wooed traditional rulers to support the Federal Government's plan.
Despite the public outcry against the proposed removal
of oil subsidy as from next year, Niger State Governor Babangida Aliyu yesterday wooed traditional rulers to support...
Nigeria's civil rights community has told President Goodluck Jonathan to shelve the proposed removal
of oil subsidy.
Not exact matches
Fossil - fuel
subsidies drain government budgets, throwing up a fiscal wall that blocks state support for clean energy while protecting the interests
of the
oil industry.
Between 1985 and 2000, the European Court
of Auditors reported that 87 percent
of misappropriated EU
subsidies for olive
oil bottlers had gone to Italy.
It also gradually phased out
subsidies that kept retail fuel cheap, causing prices at the pump to climb by an average
of nearly 25 % since 2014, even though global
oil prices fell by as much as 75 % during that period.
In Indonesia, which ended gasoline
subsidies in 2015 and lowered the diesel
subsidy to 500 rupiah (3.6 U.S. cents) per litre in 2016, retail prices also haven't risen by as much as the price
of crude
oil.
His rivals play off it on the campaign trail, with the NDP's Thomas Mulcair bemoaning billions in
subsidies to the fossil fuel sector and Liberal Leader Justin Trudeau saying Harper «bet everything on the price
of oil.»
A version
of this article appears in print on July 4, 2010, on Page A1
of the New York edition with the headline: As
Oil Industry Fights a Tax, It Reaps
Subsidies.
But there's also a new element that Thomas Mulcair has added to this conversation:
subsidies to the
oil and gas industry — mostly in the form
of allowing the industry to externalize environmental costs.
Obama wants to do away with corporate tax benefits like
oil and natural gas industry
subsidies, special breaks for the purchase
of private jets and certain corporate tax shelters.
The
oil companies want all the profits they can suck including part
of our royalties and
subsidy money and they know quite well Alberta is the place to be.
Energy exporting governments must use falling costs as an prospect to reduce generous
subsidies and restore their fiscal health, according to the personal arm
of the Planet Financial institution Low
oil rates will aid invigorate personal investment decision in the Center East according to a leading determine at the private...
Brazil was able to reduce
subsidies in
oil and gas, but its export business was challenged as a result
of the declining
oil prices, and its economy remained flat.
Now 50 %
of the country takes some kind
of help from the government, whether it's fuel
oil assistance, food stamps, or some
subsidy.
Tax cuts for the rich,
subsidies for
oil companies that raked in billions in profits, laws passed making it much more difficult to declare bankruptcy and also legislation absolving big phrams
of any lawsuits due to their non compete policies.
Tropical Traditions also restored traditional methods
of producing coconut
oil by hand, and also worked to provide consumer access to other traditional products that had fallen out
of favor in the U.S. market, but for which there was a demand from health - conscious consumers interested in sourcing food outside the corporate commodity food supply kept cheap by government
subsidies.
Recall that the agitation for the payment
of the
subsidy claim started at the tail end
of ex President Goodluck Jonathan's tenure owing to the unforeseen contingencies perceived by the
oil marketers.
«The Presidency has also failed to offer explanations on the alleged involvement
of its officials in various sneaky
oil subsidy deals as well as reported diversion
of N1.1 trillion worth
of crude last year to service APC interests.
«If you take the Economic Intelligence Unit (EIU)[report], they said 2017 and onward is going to be a period
of prosperity for Ghana and that is because
of the foundation that we have laid, it's because
of the work that we have done, we've eliminated a lot
of the deficits that were created by huge
subsidies on utility tariffs, we eliminated a lot
of the
subsidies that created huge deficits on the cost
of petroleum products, today as I speak, Tema
Oil Refinery (TOR) is running, and producing petroleum products for Ghana, we have enough stock
of LPG, our tanks and strategic reserves for petroleum products are all full, and, so, we have ships standing offshore Ghana with petroleum products, but there is no space to offload those products, and, so, we've done a good job in stabilising various sectors
of the economy.
The Minister
of Finance, Mrs. Kemi Adeosun, had, on Dec. 9, confirmed the payment
of N407.07 billion fuel
subsidy to
oil marketers.
Why would we leave the value chain
of the Nigerian
oil industry undeveloped beyond crude
oil and gas extraction and export simply because we want to continue with an unsustainable
subsidy?
Marketers disclosed that they owe their foreign suppliers in excess
of $ 1.29 billion, even as the marketers were paid only N413 billion in December 2015 for
oil subsidies.
With the government removing fuel
subsidies and
oil marketers refusing to sell diesel at pump prices, the cost
of doing business in Nigeria is expected to double over the next three months especially as
oil hits a benchmark price
of $ 38 per barrel with the International Monetary Fund (IMF) predicting a further drop to $ 20 per barrel by mid-year.
Justice Agbim noted that «the fuel
subsidy fraud involved corruption and fraud on a very massive scale»; that it involved many
oil companies and officials
of government's regulatory agencies «looting and stealing
of trillions
of naira from the Federal Government
of Nigeria and threatening the security and economy
of Nigeria.»
In an example
of strange bedfellows, the coalition fighting the deal includes
oil and gas producers who, like anti-nuclear activists, oppose the
subsidies.
NEWS - REVIEW FILE PHOTO Greg Blass handling home heating
oil subsidies as Department
of Social Services commissioner in 2010.
The Executive Director
of the Chamber
of Bulk
Oil Distributors (CBOD), Senyo Hosi, says government needs to consider scrapping the
subsidy on premix fuel, since such monies are only ending in private pockets through the diversion
of the commodity meant for the country's fisher - folk.
«His weak green light to renewable fuels, refusal to cut fossil fuel
subsidies and his call for further imports, completely undermines last year's recognition
of the need to end the nation's
oil addiction,» she said.
A state - owned
oil company which can award contracts worth billions
of dollars without the knowledge
of the minister
of state for petroleum who is also chair
of its board, and which can administer a petrol
subsidy scheme that is not budgeted for is probably not an epitome
of anti-corruption!
This development is coming about eight months after the Muhammadu Buhari - led regime stopped the fuel
subsidy, which was costing the government millions
of naira being paid monthly to
oil marketers importing the product then.
So... while (1)
subsidies for businesses (like the
oil companies» outrageous
subsidies) are a CREDIT or GAIN from the perspective
of businesses, they most certainly can be called (2) handouts or foregone income or SPENDING from the government's perspective... which is a DEBIT or LOSS for the government.
On May 20, 2015, nine days BEFORE the government was inaugurated, I laid out «Policy Prescriptions» - diversification
of production, government revenue, and exports; imperative
of a strong and credible economic team and cabinet; targeting «opportunity sectors» (solid minerals, refining and petrochemicals, a new and realistic fiscal regime for upstream
oil and gas, private sector investments in power and infrastructure, agro-processing, retail and construction); freeing «up resources from downstream petroleum sector deregulation» emphasizing «an economic reality in which hard decisions including some previously rebuffed by the opposition will have to be taken» a clear reference to the petrol
subsidy which government waited a full year before countenancing the critical decision!
The Senate on Thursday said it would not take any decision on
oil subsidy that would aggravate the suffering
of Nigerians.
In «Nigerian Economy in 2016: Withdrawal Symptoms» (January 27, 2016), I compared Nigeria to an addict finding it difficult to wean itself
of the drug
of oil and warned that «in 2016 we will be forced to begin reconciling ourselves to the real exchange rate
of the Naira» and «it is wise to formally and publicly end the
subsidy regime and bring certainty and investments into the downstream petroleum sector.»
One
of the charges read, «That you, Adegbite Adetoye and Ponnle Abiodun whilst being directors
of Origin
Oil and Gas Limited on or about the 8th day
of October 2010 to December, 2011 in Abuja within the jurisdiction
of the High Court
of the Federal Capital Territory, Abuja and with intent to defraud, conspired to obtain the sum
of N735, 132, 076.18 From the Federal Government
of Nigeria under false pretence that the said sum represented
subsidy accruing to you, whereas the sum is above the actual
subsidy payment for the importation
of 15,000 mt
of premium motor spirit (petrol) which you claim to have purchased from Vitol SA and imported into Nigeria through MT Silverie which representation you knew to be false.»
The concept
of «
Oil tax
subsidies» is what's disingenuous.
The Major
Oil Marketers Association
of Nigeria, MOMAN, has called on the federal government to pay the fuel
subsidy claims owed to its members.
The question
of what Empire State taxpayers are getting in exchange for these
subsidies is never clear and compelling, despite regular claims
of an economic bonanza that would sound quite normal coming from the lips
of a supply - side snake -
oil salesman.
One
of the nation's most conservative districts has made it clear that sacrificing Medicare for continued tax cuts on the wealthiest 2 % and
subsidies for
oil companies is NOT acceptable.
The Minister
of Finance, Mrs Kemi Adeosun, on Tuesday said the Federal Government had fully paid the N48.2 billion outstanding
subsidy arrears owed
oil marketers in 2015.
He said instead
of putting more burden on the people, the APC government should come out clear on the «sleaze in the
oil sector» under its watch, particularly the «shady
oil subsidy payouts and illegal lifting
of N1.1 trn worth
of crude, using unregistered companies.»
Between September 2017 and April this year, the
oil firm had been incurring what it called under - recovery, which actually is
subsidy, on the importation
of petrol.
Detectives at the Police headquarters investigating the $ 620, 000
oil subsidy bribe money collected by erstwhile chairman of the House of Representatives Subsidy Probe Panel,
subsidy bribe money collected by erstwhile chairman
of the House
of Representatives
Subsidy Probe Panel,
Subsidy Probe Panel, Hon....
The military practically abolished Nigeria's federal system in favour
of a unitary, distributive economy in which we all shared proceeds
of oil; they created more and more states eroding sub-national economic viability; they nationalized and indigenized banks and declared that government would hold the «commanding heights»
of our economy, marginalizing investment and the private sector brought in «big government»; they implemented «Udoji awards» and other elements
of oil and FX
subsidies that Nigeria battles to overcome today; and the about - to - depart government
of Murtala / Obasanjo took the first $ 1billion jumbo loan that set Nigeria on the path to debt peonage!
Removing fossil
subsidies would only slightly slow the growth
of CO2 emissions, with the result that by 2030 they would only be 1 - 5 % lower than if
subsidies had been maintained, regardless
of whether
oil prices are low or high.
The largest effects
of removing
subsidies were found in areas that export
oil and gas, such as Russia, Latin America, and the Middle East and North Africa.
Reform
of energy
subsidies in
oil - exporting countries can reduce carbon emissions and add years to
oil exports, according to a new paper from Rice University's Baker Institute for Public Policy.
«The governments
of oil and gas producing countries are already under pressure to reduce spending on
subsidies as revenues shrink,» says Jewell.
The bad air quality has prompted the Ministry
of Finance and NDRC to negotiate with the
oil companies about
subsidies in order to encourage high - quality fuel.