“This is more than disingenuous”. It mentions the cost of the PMS to import the fuel to Nigeria but it doesn't mention the price these importers pay for the crude leaving Nigeria for overseas refineries.
The cost to the importer, based on the price of the crude under the 450,000 bbl/day is less than 41 Naira a litre delivered back to Nigeria .
Moreover, the profit made on the refined output of the Nigerian crude from which this PMS (and diesel and kerosene also delivered to Nigeria at a profit) is equivalent, at today's netback for the remainder of the refined barrel not imported to Nigeria, at around US$46 per barrel (or 7,400 Naira a litre) - not one kobo of which is paid to NNPC or the Treasury. So, there is no subsidy at all. The 65 Naira price already included a profit of 24 Naira a litre.
This 24 Naira is a subsidy to the importers not the Nigerians. In addition, the unreturned profit for the refined product not imported to Nigeria equals 445,000 barrels times USD$46 or USD$20,930,000 a day.
This is why Nigerian importers are rich beyond everyone's dreams and why most Nigerians are poor and without basic services. What a farce!
About the Author Gary Busch is a Director and Senior Associate with Scribe Strategies & Advisors (UK). He has been Chairman and CEO of International Bulk Trade, Transport Logistics, Transport Africa and the North Pacific Lines. These companies have owned, chartered and operated marine dry cargo vessels and cargo aircraft worldwide.
He set up the transport and logistics systems for the Russian aluminium industry and operated transport and port facilities within Russia and for Russian exports. His airline companies were the national cargo airlines of two African countries.
He was a Professor and Head of Department at the University of Hawaii and has been a visiting professor at several universities. He was the head of research in international affairs for a major U.S. trade union and Assistant General Secretary of an international union body. He has been a consultant on international political developments for several major international corporations, think-tanks and private intelligence companies, with a speciality in African politics.
He speaks and reads 12 languages and has written six books and published 58 specialist studies. His articles have appeared in the Economist Intelligence Unit, Wall Street Journal, WPROST (a leading Polish weekly news magazine), Pravda and several other major international news journals. He was the host and executive producer of three 39-week series on Public Broadcasting and has been a frequent contributor to television documentary series. He is the editor and publisher of the web-based news journal of international relationswww.ocnus.net and the distance-learning educational websitewww.worldtrade.ac. He can be reached by mail firstname.lastname@example.org
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