The truth about Nigerian fuel 'subsidy'
THE TRUTH ABOUT FUEL ‘SUBSIDY’
Exposing the lies!

The facts they wish you didn’t know!

1) One barrel of Crude oil = 42gallons or 159 litres

2) Our Refineries (i.e. 4) Installed (combined) capacity = 445,000
barrels per day

3) Actual refineries capacity due to ageing equipment = 30% i.e.
133,500 barrels per day.

4) 133,500 barrels = 21.2 million litres

5) Local required consumption (F.O.S) =12millions litres

6) It means that even our MORIBOND refineries can actually meet our
local consumption need of petroleum

7) The cost structure of crude oil (i.e. Qua Iboe Crude Oil) production;
- Findings / development - $3.5
- Production cost - $1.5
- Refining Cost - $12.6
- Pipeline/transportation - $1.5
- Distr/bridging fund Margin -$15.69

8) True cost of one litre of petroleum anywhere in Nigeria;
- Total sum cost = $34.8
- 1ltr cost = $34.8/159 litres = $0.219
- Naira equiv. 0.219xN160= N35.02k
- Add Tax N5 + N35.02 = N40.02

9) Let FGN refute the above composition and if not, they should tell us
how they came about N65/litre.

10) Locally refined products cannot be sold at International price.

11) We really do not need FGN SUBSIDY as there was NONE in the
first place.

12) What is LACKING, is the WILL to enforce LAW ON CORRUPTION
.
(STATISTICS SUPPLIED BY PROF TAM DAVID-WEST, FORMER
MINISTER OF PETROLEUM)1

More facts and figures
Alright, just to make sure we do not rely only on Prof Tam David-
West’s analysis. According to a report from Earth Trend’s website on
the 1999 figures for energy consumption in Nigeria, the total fossil
fuel consumption for Nigeria is 14,410,000 metric tonnes per year.

Using the actual capacity of refineries due to ageing (30% of installed
capacity) as 133, 500 barrels per day, and 1 barrel being 7.33 tonnes,
we can just do a simple calculation, as follows: 7.33 x 133,500 x 300
days ( we use 300 instead of 365 days), we arrive at 293, 566, 500
tonnes produced per year. Now the comparison gets ridiculous. As of
1999, 14.1 million metric tonnes was required, and 293.5 million can
be produced at 30% installed capacity of refineries. Alright then, this
is 2012, after all. So let’s assume that between 1999 and 2012, the
demand has risen by a whopping 1000%, giving us a requirement now
of 141 million tonnes. Even then, the production capacity of our
refineries- our current refineries- indicate we can produce more than
double the amount required! So how else can you excuse the
ineptitude and callous indifference of this government?

Silly arguments!
The federal minister of Finance, Dr. Okonjo-Iweala, supported her
colleague at the Central Bank of Nigeria, Malam Sanusi Lamidi,
recently suggested on live national television debate that the removal
of the bogus fuel subsidy will affect the rich much more than the poor.
According to her argument, if it can be called argument, is that those
who have two or more cars will suffer more than those with one car, or
with motorcycles or no cars at all. That the more cars you have the
more fuel you use and so the more you will be affected by removal of
fuel ‘subsidy’.

Such nonsense, coming from a federal minister! How can you assess
those who benefit more from fuel in terms of ownership of
motorcycles, small cars and big cars, saying the more well-off you are
the more you benefit? What happens to the farmer who, even as it is,
struggles to transport his produce to the markets, incurring enormous
losses in the process? Who suffers more from the prohibitive increase
in price of foods and essential goods, if this outright fuel ‘subsidy’
removal is achieved, a subsidy that never existed in the first place?
What can you do now?

This government, and the ones before it, have gotten away with
murder long before now. Now they are embarking on a kamikaze,
scorched-earth adventure, destroying everything in their path with
reckless abandon! Now, or never, is the time to say enough is enough.
Like the Americans did at the Boston Tea Party, like the Parisians did
at the storming of the Bastille, now is the time to fight oppression and
tyranny with all resources and all the will we can muster!

You can start by printing and sharing this information. Majority of our
citizens can not afford hours of access to the internet and social
media. And majority do not know these facts. The change must begin
with the mindset of our people, and if you are able to reach 5 or 10 of
your family and friends, you would have made an important
contribution in the struggle for the soul of our dear nation.

Then join the protest, either at your neighbourhood, or at the national
level in the big cities if you can. We need a critical mass to move the
threshold and proclaim the message that it is no longer business as
usual with the clueless and corrupt leaders in Nigeria.
It is foolish to abstain and sit on the fence for fear of reprisals,
because the danger is here at your door already, the punishment for
silence and fear. The corrupt oppressors are human beings, and you
should make your voice heard, for the sake of posterity, for the sake of
our children’s children.

[1]Aside from the information that the statistics was provided by Tam
David-West, this first part of the brochure has now gone viral, and we
are unable to confirm whether the author simply reproduced the 12
points or used the stats for his own analysis.
Sourced on the Net.