Sunday, January 15, 2012

FACTS YOU MUST KNOW: SUBSIDY MADE SIMPLE by Pastor Tunde Bakare

Being Text of Speech delivered live at the Latterrain Assembly, Lagos, Nigeria – Sunday, January 15th, 2012.

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

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

Daily Fuel Consumption: 34 million litres
Cost at Pump: N141.00
No. of days in a regular year: 365 days
Total cost of all petrol imported yearly into Nigeria:

Litres Naira Days
34m x 141 x 365 = N1.75 trillion

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