Space Summary
The Twitter Space CG x Web3 Gaming hosted by CommunityGaming. Delve into the world of CG x Web3 Gaming where automated tournaments and monetization avenues redefine the gaming landscape. Discover how community engagement on Discord and collaborations with parent accounts elevate the gaming experience. Explore the innovative potential of Web3 technology in reshaping interactions, rewards, and the overall gaming ecosystem to create a vibrant and engaging gaming community.
For more spaces, visit the Gaming page.
Space Statistics
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Questions
Q: How do automated tournaments benefit gamers?
A: Automated tournaments provide convenience, structure, and a competitive environment for gamers.
Q: What opportunities does Web3 gaming bring for monetization?
A: Web3 gaming offers decentralized rewards, NFT integrations, and play-to-earn mechanisms for gamers.
Q: Why is community building important in the gaming industry?
A: Building a community fosters loyalty, engagement, and a sense of belonging among gamers.
Q: How do collaborations with parent accounts and regional branches enhance the gaming experience?
A: Partnerships expand the gaming network, bring diverse opportunities, and amplify brand recognition.
Q: In what ways does Web3 technology transform traditional gaming experiences?
A: Web3 technology introduces blockchain, NFTs, and decentralized systems that reshape how gamers interact and earn rewards.
Highlights
Time: 00:15:29
Automated Tournaments Revolutionize Gameplay Insights into how automated tournaments enhance competitiveness and convenience for gamers.
Time: 00:25:17
Monetization Strategies in Web3 Gaming Exploring innovative ways gamers can earn rewards through Web3 technologies.
Time: 00:35:40
Building Strong Gaming Communities on Discord Tips on leveraging Discord for community growth, engagement, and networking.
Time: 00:45:55
Collaborating for Gaming Success The benefits of partnering with parent accounts and regional branches for gaming development.
Time: 00:55:10
The Evolution of Web3 Technology in Gaming Understanding the transformative impact of Web3 technology on traditional gaming mechanisms.
Key Takeaways
- Automated tournaments offer a streamlined gaming experience and increased engagement.
- Web3 gaming opens up new avenues for monetization and rewards for gamers.
- Community building through platforms like Discord is crucial for fostering a strong gaming community.
- Collaborations with parent accounts like @3XPgg and regional branches enhance gaming brand presence.
- Web3 technology revolutionizes how gamers interact, play, and earn within the gaming ecosystem.
Behind the Mic
Welcome and Introduction
Good evening everyone. Welcome to another narrow matrix spaces. Today we will be discussing NNPC high expatrial prizes again. Where do Nigerians stand now? Am I audible? Please, can anybody hear me? Okay, fantastic. And yes, we of course are going to be joined by some of our speakers here. Doctor Diodor is already here. Always good to have you on this platform. So Isano Efa, great to have you here as well today. Zera Equity. Welcome, welcome.
Recent Petrol Price Increase
Okay, so yesterday we got wind of another price increase for petrol by the NNPC. And of course that is what is the foundation of our conversation today. Talking about the ramifications of this price increase and where we go from here. Okay, so of course without further ado, I'm just going to dive into it and I'm going to start with Doctor D. Udo per usual on this conversation. Let's talk about this. So with the NNPC raising these petrol prices. Okay. How do you think this will impact the daily expenses of the average Nigerian households that are already struggling with high inflation? Because we know what happens when, you know, fuel increase happens in the country. It's sort of like just snowballs to everything else.
Impact on Nigerians
How do you think this would impact the daily expenses of the average Nigerian household already struggling with high inflation? Yes. Thanks for having me. Am I audible? Yes, you are. Okay. All right. Thank you very much. Let me say good evening to you and everyone on the platform. I'll start by saying that I sympathize with everyone in the country. I sympathize with every single Nigerian who is struggling out there with the current economic situation. It is unfortunate, it is regrettable. I would say that the current prices, how it impacts on the life of an average Nigerian. Who is an average Nigerian? That is the question.
Defining the Average Nigerian
We will start by saying who is an average Nigerian. In fact, let me just start with those that have before I come to the havelon, the former governor of river state just spoke yesterday that he's struggling to buy diesel. Now this is a man that served as speaker of the House of Assembly for 18, serve as a governor. You know what it means to serve as a governor for 18. I mean this is the food I have my sense to and for a state like university for that matter with huge resources and he served as the minister of the federal for Italy. As he came out to complain and cried and said that the Nigerians that he expects Nigeria to be protesting right now.
Voices of Concern
Last month the former governor of Abia state who served eight years and he has served as speaker or sorry I served as a senator for eight years now and he has a lot of businesses saying he cannot even fly his private. Now these are allies. He said he can't even afford to fly his private jet anymore. He has parked them. So if I want to even start from the house and come to the half node, I don't know how to even come into this conversation without sounding as if I'm being over critical of the government. There's nothing to be critical about the role situation. It is a reality. The average Nigerian is one who struggles from hand to mouth now that bracket has even widened.
Widening Economic Struggles
The middle class currently have slipped into the bracket of four Nigerians. Because if I want to earns 100,000 naira right now, can even swell his car, even if it was a little class before. So you are talking about swell price at 1000. In fact the official price is 1003 in Abuja, DC in Lagos is 998 naira. But I can tell you people in other parts of the country, I know people in a quibum that paying about 1400 to 2000 depending on if they there is the availability. So if you want to keep the conversation at the official level, which is not even a reality, you can do that. But the reality is that people are buying for right now, speaking to you at one five to 2000, let me put it in context.
Concept of Economic Burden
A small Toyota Corolla which is what people use to manage life. Now you are talking about falling that card full time within between, at that rate of 105 to 2000, 80,000 naira to fall down. What is the minimum wage of a country, which is the benchmark of earnings, which people are not even paying? That most businesses can even afford to pay that minimum wage. They let them argue that businesses can afford to pay the minimum wage of 70,000. That means that you can't even afford the cost of transportation right now. You can't even afford that. And if you look at it because of food prices, because everything ties down to fuel that you are talking about when you have high petrol prices, that means the cost of transportation has gone up.
Challenges in Everyday Life
People cannot afford to go around their businesses. People cannot afford to buy food anymore because everything will increase. Because everything is tied to transportation as well. So this is a very emotional conversation. Maybe I have to allow other speakers to give their open remark before I start sounding like a broken record because this is a topic that I don't know. Thank you very much. Yes, thank you very. Thank you very much, Doctor Diud. Yes, it is. It is an emotional conversation, especially because this is something that affects everybody.
Current Fuel Price Environment
For every Nigerian, it is a very important conversation. So, yes, like you said, it is also quite emotional as well. But the issue of, you know, fuel prices, you know, increase. And this is interesting because we know that fuel price was just increased not too long ago, just a few weeks ago, right, when the NFPC was the main off taker for Dangote fuel. And of course, we had that back and forth between, you know, Dangote and the NNPC about how much exactly they bought it from Dangote and, you know, what they're selling it for. So we had all of that happening.
Future Price Stability
And it was just a few weeks ago when people just start trying to adjust to the price going up to 900 naira, and then this happens again, you know, just yesterday. And so, of course, it has also thrown people's budgets into another issue. But we also know that one of the things that has been said is that the market is not fully deregulated. The NNPC has said it would not be the full offtaker for Dangote fuel anymore, which means that marketers can approach Dangote to buy from Dangote directly, you know. So let's talk about what this means for future price stability.
Business Outlook and Challenges
Or plan on a higher price, you. Can at least know if you're surviving. As a business or nothing, you know, so. But the outlook for the businesses, you know, is obviously quite bleak, though. It really depends on the power consumption or the power dependency of all these. Businesses and how, you know, how much. Of their cost is. You know, those fall actually take from it. But generally there is going to be. A huge impact on cost of businesses. And for businesses and that's going to impact prices and that's going to impact sales as well. So it's a very bleak outlook for businesses all around, small businesses, especially because they have a lesser financial firepower to.
Economic Implications on Employment
Cushion the situation as opposed to larger scale businesses. Yeah, all right. And thank you. Looking at the effects on businesses and do you see this, and I'm still coming to you for this. Do you see this also having some sort of noble effects on job losses and or job creation, however you want to look at it, do you think that this can lead to people being laid off or do you think that people will be able to hold on to jobs? Some people. There was a report about people not even be able to pay transport to work. But then can the businesses even hold the staff if they're spending so much on operation costs? Exactly. That's where the problem lies now. Because if the labor market starts getting a hit, then it's a bigger problem because consumer spending will be lesser.
Production and Labor Challenges
But, yeah, like if energy is taking a bigger portion of your cost, obviously. One factor of production has to suffer. And the most expendable factor of production happens to be labor. You can replace it with technology or more hours for one person, you know, so it's really, like I said, it's bleak outlook for businesses and it's also bleak for employees as well. So it's really, it's a dicey situation that, you know, I can't really see past right now. Like I said, it's a big shock that the economy has to absorb and get used to. But I'm more concerned about stability of these four prices than the absolute cost today. Because if the businesses could plan on a certain range, then, you know, at least, like I said earlier, you could know if you could walk through this or not.
Market Stability and Future Prospects
But, like, if they can't really plan through this, then you could see a lot of them really cutting deep on all that factor production and label is. Always the first to get it. Like I said, it's the most expendable. So, yeah, that is to be expected. All right, so there was a particular report today, right, on Nairo Matrix talking about IP man complaining about much Dangote sold this to the NPC and how much NPC is selling it, talking about how it's not going to help competition if the NNPC is selling. They claim, I mean, I'm not claiming that Dangote sold to the NNPC at less than 900 naira, you know, and we have, of course, NNPC taking this price up to 1030, especially here in Abuja.
Pricing Dynamics and Market Competition
Right. And so one of the issues that IBN was talking about is that, well, if that's what the NNPC is doing when they decide to go and buy, how much are they supposed to sell for? Because then they have to now take off the prices over NNPC or about the same price and complaining that we have to see the real cost, that people have argued that we need to see the real cost. How much exactly is. Because you're talking about the stability of that. The stability of that is some sort of transparency. How much is it done? What you're selling to fuel marketers or to the NNPC? Will anybody be able to give us those figures? And do you think that those figures will be able to sort of give us some sort of a range, especially if the NMD PRA can now work with those figures to say, this is how you sell?
Role of NMDPRA and Transparency
Of course, the NMDPRA is the downstream regulator. So, Cyrus, let me come to you for this. Do you think that we need that sort of transparency to be able to have a range for businesses especially to work with? And what's of the NNDPRA in all of this? Yeah. Thank you very much for the question. Am I audible enough? Yes, you are. Okay. Thank you very much. I think we cannot emphasize the role of transparency enough and just particularly on the part of NNPC and issue of pricing and because now whatever statement is coming out from that culture, you know, it's been waged by a pitch of salt, as the saying goes, because there have been a lot of, you know, ambiguities and will I say, no dishonest statement from Dakota.
Nigerians and Trust in Pricing
People want to be like the authority. And so Nigerians really don't know, like, what to trust in terms of what the price is. And yeah, for the issue about the statement of the marketer that was reported today, I also think it also the issue of the transparency because right now the marketers are saying, thankfully, NNPC is quitting as the middleman to offtake petrol product from Dangote, so they can also go in and source their own petrol from Tangote refinery or even import it. Remember, NNPC is also the sole importer of petrol into the country due to fx issues. It has been that way for. Since last year. But right now, given the fact that they say it has been fully deregulated like this, I don't think that was the case.
Deregulation and Pricing Concerns
I don't think petrol price is fully regulated. I think that's not true. I think the petrol price, I'm sorry to say this, is still a little bit undervalued. All you have to look at is the dollar rate and the price of crude oil. So I don't think it's completely deregulated. And even the simple fact that NNPC and Dangote has an agreement to sell a particular feedstock to them at naira value and to sell back, you know, to the NNPC and to the nigerian public, at naira also means subsidy. It's an arrangement and internal arrangement, form of subsidy of stimulus to help, you know, Dangote and by extension to reduce price.
Subsidy and Market Realities
So subsidy is not yet fully gone. Of course, it's been it being phased out, but I don't think because telling Nigerians that it's been fully deregulated and then maybe next week or the end of next two weeks, you see a new price and you say, oh, there's an issue of miscommunication on the part of the authorities who are supposed to be speaking to Nigeria with open mouth, like, this is what's going on, right? So I don't believe that the price is where it should be. I think, you know, and this is not just about me. This is about, you know, what the data is. If you look at other neighboring countries in Africa or even in West Africa, you will see that no way is a liter of petrol being sold less than a dollar.
Government's Fiscal Condition
So where we get our own price from. So back to the issue. I feel like right now what should happen is that the government as the way they are, like I think I was talking to that time about the body that has been on NNPC in terms of managing his own fiscal strength, managing his own fiscal condition, which is the fact that they just do not have that money to keep on paying that subsidy. Number one, FX. Number two, they just cannot target because they're not getting the support from the government not allocating any money to NNPC. So I think there will be a lot of dependence on Dangote refinery as it goes.
Future Dependence on Dangote Refinery
You know, I think right now there's already an arrangement between Dangote refinery and the NNPC and the marketers. So what would play out in the coming days would be some kind of stability. But I don't want to make a statement and make a projection based on, you know, some speculations that is not fully based on fact. The fact of the matter is that the end, the downstream sector is not fully deregulated. And so price is still not reflecting market value or market reality. So that's the fact of the matter. So I cannot tell you that this what is going to happen, right? So, but given the agreement and giving the petrol that they're going to get from Dangote, what I believe is that there's going to be some availability moving forward and maybe before the end of the year they might close the gap.
Perspectives on Downstream Sector
But my last submission would be there was no soft landing spot in the foreseeable future as we speak right now. And that's just the reality. Thank you. Thank you very much, Cyrus. So Daniel, do you agree with Cyrus that the downstream sector has not been fully deregulated even though they're saying that people, anybody can buy now there's a willing buyer, willing seller situation going on and marketers have said, I've alluded that, you know, if it gets to it, they can import if they want to.
Deregulation: Perspectives and Prices
Do you believe that the downstream sector not been fully deregulated as well? I think that there are two sides to the conversation. You would say it has not been fully deregulated because maybe that might not be the right price for petrol. We can have a lot of angles to it in terms of whether it's deregulated or not. But I think that you have people to tell us. These are the policymakers the government is saying, NNBC saying this is the price. I think I saw a report. I don't know if it's confirmed. The marketers also saying probably doing it for around 1200.
Refinery Costs and Price Factors
So if they are keeping to that range, then that might be the right price based on fact that we have a local refinery, there's no landing cost, there's no other cost of importation and also, and the crude oil is in error. So there are factors. So I might not completely say, because the only reason why we would say it's not completely deregulated is probably because we feel the price should be higher. Right. But if we don't have an accurate data on that, I think that that is a completely deregulated sector right now based on the pricing.
Pricing Dynamics and Government's Role
Because another question ask ourselves is if it is not completely deregulated, so what is the idea behind the price review? Upward. That was done again within two weeks, right? It was around eight, nine something for NNPC. Was it exactly two, three weeks ago? And now it's almost a thousand. So, and again, at the same time, the same period, we've seen oil prices go to as high as $80 per barrel. So if there is no deregulation, then there should be an explanation to that conversation there.
Industry Insights and Stakeholder Responsibilities
So for me right now, I think it is completely, I think we shouldn't even look for excuses for the government except they come out to say they are still paying subsidies. We should not say they are not or they are still doing it. As far as we know right now price of petrol is what it is the market determined price can also lift fuel from Dangote. So we are should be expecting what the returns of this suffering is in terms of what the fiscal benefits would be for Nigerians.
Subsidy and Economic Challenges
I still believe subsidy should be paid. How? I don't know. Because everywhere in the world, government still step in whenever prices get to a point whereby the people cannot afford. Right. Yes, there is this conversation announcing which we still get to, but based on what you ask, I think that we cannot. There's no data anywhere. There's no commission anywhere from NNPCL or the government that they are still paying subsidy. We've seen even the minister of finance, when running out for crude conversation, still emphasizing on completely uncomplete deregulation of the same sector.
Suffering and Economic Reality
So based on that, I don't think we should give them excuses for their cd regulating it. Just let us now wait for the returns of whatever suffering Nigerians are going through at the moment, Daniel said, is. A return on suffering. That's a very interesting way to put it. I'm going to come to you, Cyrus, because I know that you want to respond to this, but another thing that we know that there is a bit of gray area is that there is good for Nara, but we do not know at what rates.
Concerns over Pricing Transparency
Right. So we don't know at what rate the government is selling to Dangote, you know, for quit for Nara. Is it reflective of what is happening in the foreign exchange markets or is it being subsidized in one way or the other? We do not have that, you know, detail. So we cannot necessarily say this is what is happening where that is concerned. Daniel said, pay subsidy from where there's a huge deficit. We know right in the budget. So how are they going to be able to afford it, Cyrus, very quickly, so that I can bring other people into discussion as well.
Impacts and Market Dynamics
A couple of minutes for you to just respond. Go ahead. Yeah. So back to what you question that you asked that we don't know. Of course, what he said is I don't use the NAFM window, which is the official rate window, to determine what the narrow is, but other conversations that at least during, when they said NNPC is going to be the soul of taker, which simply means it's been subsidized at one way or another. It's been managed so that, you know, there will be an amount that has been sold for Dangote and Dangote is going to give them Pesto and they're going to sell it to the market.
Dangote Refinery Agreements
So that has been the issue. But right now they say that Dangote is no longer. But that agreement does not change is what could happen is that they might negotiate a deal. I mean, the market now they might negotiate a deal with Dangote refinery. And so if I regard this for this amount, is the amount we are going to pay for it. And then we can see some kind of competition between NNPC petrol and the one the marketers buy from Dangote.
Market Pricing and Competition
But Dangote as a private business is not going to sell to you at loss. That's a fact. It's not going to sell to you at loss. So for me, the crude has been subsidized for Dangote in that it's been sold in Naira, you know, and because based on some report that came out from the NiP or whatever they are called, the mixed in my downset sector is that there's an agreement between Dangote and the federal government on what fees are to be offered to them and they will be fine it for the federal government.
Current State of Subsidy
So in this case, what I do believe is that there is a facing out of subsidy. It's not like subsidy is fully gone. We are not buying a 130 because sometimes it's important that we communicate these two to Nigerians because sometimes when we say something and then something else happened. So. But they said this thing is this and they said that. So what I'm trying to say is that, look, city is not yet fully gone simply because the petrol that we are buying Niger right now does not reflect the market reality.
Market Realities and Future Directions
The data does not just add up. It's just a factory. Right? So what I believe would happen is that as these things begin to play out and there is more competition in terms of where marketers source their petrol from, obviously, if marketers cannot afford Dangote petrol, they are going to sell from somebody else. And if they can afford Dangote, and if you like, you know, in terms of comparative differences, Dangote petrol is cheaper than imported, one they are going to get from Dangote.
Conclusion on Market Dynamics
So that kind of little competition will be there. But in terms of what we have currently and the fact we are working it, there is an agreement with Dangote. And that agreement is backed by stratos, from stimulus, from the government, some support from the government in terms of how much of the cost the government is covering. So we don't know how much is it, but we also do know that it is not as much as it used to be. So that is just a file. Let's just clarify that. So moving forward, where we see price increase, we don't say body said it's been fully degraded.
Infrastructure and Energy Subsidies
But for the sake of this conversation, if that can happen, if we can see massive investments infrastructure, in pipelines, and of course, it's also important to note that there also has to be investment in processing this gas or capturing this gas in the first instance. If we see all of that happening at the same time, then there'll be hope that adoption will scale and perhaps it will reduce the burden that higher petrol prices is inflicting on many Nigerians.
Energy Poverty and Its Effects
But I think it was Daniel that made the point about the fact that every country still pays some form of subsidy for energy, which is because energy poverty is a thing and there's no amount of palliative that can deal with energy poverty, especially in an economy that is almost predominantly dependent on petrol, whether it's to power your generators, especially for small businesses in markets across the country. And so maybe there has to be a clever initiative and to perhaps borrow the german model.
Learning from Germany's Approach
When the russian and ukrainian crisis started, the cost of gas hit the roof in Germany. What they simply did was to pay those subsidies directly to citizens. And so citizens paid the market prevailing rates to the energy distribution companies and the government just simply reimbursed the citizens. So maybe we might have to adopt that kind of model to say, okay, the best way for us to deal with energy poverty to a very large extent is that we have to pay some form of subsidy.
The Challenge of Subsidy Administration
But how do we pay that subsidy? Not in the way that we have paid it over the last decade, where a few marketers went home with easy billions of naira. What we can do here is to maybe use the taxes from the angote refinery, from the extra monies that we're making, especially because now we don't have the burden of paying trillions in subsidy and those monies can now go as direct cash transfers to businesses that are dependent on petrol or to vulnerable citizens. Now, whether we have that architecture in place to effectively do that is a different conversation and an entirely different kettle of fish.
Economic Pressures and Productivity
But from where I sit, I agree 100% with Daniel. There has to be some form of subsidies. Otherwise there's a limit to the price shock that this economy can take. Remember, and don't forget that interest rates is currently one of the highest we have experienced in over three decades. Now, if that is the case, you already have a peruvian necktie that is triangulating manufacturing businesses across the country. Now, if you're going to now add higher energy costs and not just petrol cost, but electricity costs on these same businesses and these same citizens, then like I said, I'm not sure how much price shocks that the economy can take.
Negotiating Energy Costs
So something has to give at some point if you want to drive local productivity or you want to make local production possible and competitive. So there has to be some form of energy subsidy. But how that is going to be administered, the architecture that we're going to use to administer it, the transparency that is required in that administration, maybe that's the conversation that we need to be happening. But I can assure you, faith, I'm clear that if we continue like this, I do not see how we're going to reduce poverty.
Future of Employment and Economic Growth
I don't see how we'll reduce unemployment in terms of numbers. You might see the GDP grow in terms of absolute numbers, but you are likely to see poverty rise. You're likely to see unemployment rise further. All right, then. Thank you very much. Ayo. Ambassador Israel is here. Good to have you joining the conversation at this time, but let me come to Doctor D Udo before. I'll bring Ambassador Israel in just so that you can settle in and get a hang of where we are, where this commission is concerned.
Citizen Participation in Policy Discussions
So between Daniel and IO, they think there's some form of subsidy that should be paid where energy is concerned. Different countries are still paying some form of subsidy for energy consumption for their citizens. And it is because. Because governments all over the world understand that policies are made for the people. So even though we have our government telling the citizens that you have to endure because you know this is going to be for your good in the long run, the policies are basically for the people.
The Role of Citizens' Voices
Right? So let's talk about the role that people play here. So you have had the government make past pledges, unstable fuel pricing, and talk about how this macroeconomic policy that they're undertaking is for the good of the people. Really, how can Nigerians ensure that their voices are heard in policy discussions about energy cost? If you have some people saying we should still pay some form of subsidy, and whatever policies you're making are for the people, and the people are crying now that these policies are killing us.
The Condition of the Nigerian People
But are their voices being heard? And how can Nigerians make sure that their voices are heard? Doctor Diodor, I want to get your thoughts on that. Nigerians are a conquered people. There is no other definition better than that. Talking about subsidy payments, I do agree with the position of the two speakers that you mentioned, Ayudele and every serious government anywhere in the world do not allow their people to become vulnerable to shocks. Government intervenes.
Government Responsibility
The other day I was talking about even intervention in the housing market. A couple of months later, I think the German parliament did pass a bill preventing housing, you know, to prevent a housing crisis by putting a stop in rent increment for the next five years. I believe that was it. Which was what even I called upon. That was last year before these things, you know, boomed out in front of the whole. As it boomed out against the whole Nigeria government intervene in one way or the other.
Call for Action
It could be the transportation industry government. Don't surrender critical sectors and allow the people, you know, to fend for themselves. It is a no brainer. I mean, the people don't need to go on the streets to protest for the government to, you know, look into how they can bridge this gap. Because it's a gap now, just like the speaker is. It, was it, what I said, that there's going to be a huge windfall right, from this subsidy removal thing, although it has not been removed.
Understanding the Market Dynamics
I agree with the other speaker, the NPC. Last point, when they had their media round said that they have been licensing importers, other marketers to import. But why they are not important is that when they go to import, they discover the price of importing is still below the price that they're selling in Nigeria and they are not interested. They end up using that importing license to import diesel or tourism because it's not profitable to import fuel.
Transparency Issues
That is because there is still subsidy in fuel. And this is the issue about the transparency. This is the reason why the president, or not this president, but the last president, when they said they were privatizing NNPC, did nothing carried out what was a full privatization. It was a hybrid. They still left the bureaucrats in place. It is a caricature of the whole process. They left the bureaucrats who are the appointees of the president.
Government's Role in Market Stability
They are the ones here making the decision. People think NNPC and government are two different things. No, the NNPC is the. Is the federal government. The federal government is NPC is like Caesar and pilots, Pontius pilot. There are two same people. They are answerable to each other. It's not a private, it is not a deregulated industry. It is not until that industry is fully deregulated and privatized and that privation will bring transparency.
Understanding Industry Operations
Now how is an NPC able to sell crude in naira? Because it's a political decision. That is a decision from the presidency. The president gives that instruction. There is still the hand of Esau in all this. Okay? They are the ones that are controlling how much they're going to be selling that in naira to Dangote. They are controlling how much they're going to be selling. And you will soon find out.
The Complexity of Fuel Pricing
This should be. They say that the NF is never going to act like a middleman. Right? So when they go down to buy from Dangote, they will know the true price of the petrol. That is when you know the true price of the petrol. Because the dangle thing, the price is selling for NNPC. It's not going to be the price that they'll be selling to the marketers. There is a, there is a subsidy going on there and we will find out.
Market Transparency
I think they are just allowing us to see one piece at a time. They don't want us to bring us into the bigger picture because there's something they are scared of. And again, coming back to your question, because I've been diverting from that question, how do the people, how did the people get to be heard? Right. Well, the people had a chance to be heard. That was at the ballot.
Consequences of Elections
I mean, whatever decision they took for, against, I mean, brought this particular, brought us to where we are. And the next time they have an opportunity to be heard will be in two years or three years in 2027. You see, election have consequences. I've said this many times and I keep on saying this, you can't just, election is not big brother Nigeria where you go on and take very critical decisions and then you come around and start saying, oh, this man was clear from the beginning how he was going to rule the country, how he was going to go about things.
Government Accountability
He said he's going to reduce the position power of the people. He's going to do this, he's going to do that, and he's doing what he said he's going to do. But what I'm going to really say is that I like the way the country is right now. I mean, it's not going to be a popular opinion, but I like the trajectory is going because it's going to, on its own, reshape citizens participation in governance, in making responsible decisions, influencing how government do things from the electoral process, and also greater citizen engagement as well.
The Role of Citizens Moving Forward
Because this is not the end of it, right? This is not the end of this conversation. I believe that at some point people will be on the streets to protest what is going the government doesn't come out with an idea beyond outside of the box to see how they can kind of, like the last speaker said, give some sort of subsidy back to the people. It might not necessarily be the petroleum subsidy per se because the whole process has been corrupted.
Corruption and Government Involvement
And I wouldn't even encourage going back to the subsidy program because you see, the thing about Nigeria is that the government is not efficient in running anything. So anything that has to do with the government being in charge counts me out. I'm not going to be part of it. Because in corruption, everybody takes a government responsibility or appointment or a job as no man's business.
Finding a New Model
It's my turn to eat, right? So the government should find a model that will work. Either they return some credit back to the people, maybe make use of the billions that they have. Nin try and know households capture people properly so that they can have a kind of a cash transfer program, that they can return some of this money back to the people. And then you reinvest what they are saving, a huge chunk of what they are going to save because they are going to save trillions.
Budget Allocation Insights
I mean, people talk about that the budget allocation to state have increased. Yes, there's a reason why it has increased, because one, the effects has been devaluated so much that the narrow has lost value. So naturally, the monthly allocations to state will have to increase one angle based on the currency devaluation and on that angle with the subsidy now steadily being removed, because it has been removed steadily, it has only completely removed.
Current Economic Observations
I didn't even know the numbers we should be having. Thank you. Statistics, exact droppers, as I know. I'm coming. I'll wrap up in 30 seconds. As we are speaking now, faith, we should know exactly how much observed payments they are paying. And my projection is thinking is about 70 to 80 has been removed. 70, 80% has been removed, but it's just some amount. I'm only speculating. I want to know how much something is here being paid.
Concluding Remarks
I don't just want to be finding out every day new dramas coming in to. Okay, all right, over to you. Thank you. Thank you very much, Doctor judo. Because of time, I want to also give other people a chance to quickly speak. So, Victor, welcome. Saeed, Emmanuel. Victor and Saeed, your hands are up. So I'll come to Victor first, you know, to give us your comments.
Acknowledging Speakers and Comments
And then after that I'll come to Sahid and then Emmanuel, go ahead, Victor. Hi, Faith. Good evening. Yes, yes. Good evening, Victor. Okay, so I don't know why we. Do this, but I think most of. Our analysts and very intelligent people. Ignore data because they want to drive a narrative.
Importance of Factual Data
I put something on the jumbotron, which. NMPC has put out in the public for the past four weeks. It is the breakdown of how the. Price was arrived at the retail price. And I am also convinced that most. Of our analysts knows that petrol is. Sold at Platts just like crude is sold on the realtors.
Addressing Speculation in the Market
So I don't know why people are speculating something that the data is already available. They not only put the plus price, they put the premium, which is what. The refinery is charging. They also put even the regulators fees, they even put the transportation fees to arrive. In fact, to even make it was, they put their own profits. Imagine distribution cost, inspection fee, NMD, PRA, the premium, and the plots.
Recent Price Fluctuations
And if anybody would have checked or bothered to check, they will see that plus, as at yesterday, has gone to 709. So what are we arguing? The so-called hike is a 4% change in the price from 950 to 998, which reflects the exact plus change, as well as the fluctuation in the exchange rate. I think we shouldn't be doing this.
Data-Driven Discussions
We're very intelligent, very educated, and very enlightened group of people. We shouldn't always be blinded by our agenda. Please let us focus on data. Thank you. All right, thank you very much. Victor says, let's focus on data. Ian, IFI, I would hand over the floor to you now to make your comment, because we're wrapping up shortly.
Final Opportunities for Comments
So I just want to give everybody a chance to say something very quickly. I mean, whoever is on the speaker platform. So just say something very quickly as we wrap up. So I'll come to you ifi. After that, I'll go to everybody else for their last words if you go ahead. Okay, so it does look like ify is not speaking to us.
Urgency in Discussion
Yahya, can you. Can you quickly make your comments? Okay, so who is speaking now? We need to hurry this up so that we can. We can quickly wrap it up. Can you guys hear me? Okay, so is this Jacobs? Go ahead. Yes. Okay, quickly. I'm just going to.
Contributions to the Discussion
Everything that everybody has said, right, except Victor, the last speaker, you know, it's. Have really touched on what the issue is, right? The data that he's talking about. There's no transparency in that data. All right? So we shouldn't always just believe whatever NNPC had said. And that's what, you know, I have Doctor Udo, I have, you know, daily.
The Need for Caution
And, you know, Cyrus, they've said it. Okay. So there's some things where we really need to look so fake. You ask a question, you know, how do the people's voice be heard? So we have the Federal Competition and Consumer Protection Commission, right?
Role of FCCPC in Consumer Protection
So this FCCPC, that's the first level. Because when you have people coming out riot or things like that's supposed to be secondary. And the government does not really care for the populace to be honest. Right? And that's what everybody has said here. So FCCPC, they're not doing their job because they're the first layer for consumer protection. And when things are going quite wired the way NNPC situation is, they're supposed to be the forefront people that will ask for audited report of NNPC, the fraudulent report that made NPC to be NPCL. I'm glad you didn't put it as an NPCL heights petrol. But because that's, you know, it was a scam.
Pricing and Market Manipulation
Now even if there is. Dangled his refinery's absence. Because before Dangote started coming out and asking about crude and stuff to say that he was ready, NPC already did a huge hike in price. So even if there's no Dangote, they're still going to increase their price, right? But now they're having Dangote's issue as kind of like a bait to continue to confuse the people, right. The populace about this transparency. So FCCPC needs to be a forefront request for audited report of NNPC. Figure out why. You know, doctor Udo made that comment earlier, or maybe it was IO.
Subsidy Comparisons Across Countries
There is. When we're talking about subsidy, right? You have different countries that do subsidy. You have the oil producing country when we're talking about crude now and petrol. The subsidy that they give their populace is different from the subsidy that countries that are not oil producing, that they just have refineries, oil producing countries, they have a compliance code. And that compliance code says that you're drilling crude on this land, there should be a percentage of that crude that should be for local consumption via your own refinery, which you have to give to the people. That's the initial subsidy.
Refinery Issues and Crude Exports
But that never happened because all the refineries come moribund. And Nigeria finds itself in a situation whereby they're exporting crude. And now that particular subsidy percentage, nobody has given a count where it is. Because at some point in time the three refineries were collecting their crude. Now they're importing PM's petrol, what they're importing, that's where they're now creating another form of your blanket subsidy on and wishing some people because we're bringing their, you know, they're importing fuel that it's supposed not to be imported anyway for the populace. So firstly, you know, federal competition, you know, the consumer protection you have to those guys, they're not even doing the job because they need to, you know, really protect the consumer.
Urgency of Fuel Crisis Resolution
So and again, let's go to the. Court the other Jacob. Because of time. Because of time. Thank you so much. I need to stop you here. Thank you. Thank you very much. Fantastic. Because we have to wrap up soon. Ambassador Israel, I will. I would let you quickly say something as well can join the conversation. Okay. All right. Thank you so much. I think mine is just, you know, very simple. I am sorry for joining later. The network has really been bad. Speakers. They've made a fantastic. It's important that all the stakeholders needs to come together to find a lasting.
Impact of Fuel Price on Businesses
Solutions to these fuel crisis that we are experiencing currently with the Ike and petrol price. I think the essence of Dangote coming in this regard is very key and important and the stakeholder must come to Iran table, you know, discussion and. See how they can try way forward. As regards what Nigerians are facing. Because a lot of businesses are folding up day in, day out and people. Are struggling to even meet ends meet. It's important that the government needs to. Look into these areas to ensure that. The livelihood of Nigerians is not being threatened.
Continuation of Economic Concerns
Of course, what we have in today. Is like getting worse. So they need to sit up and. Ensure that they address the situation. Thank you. Thank you very much, Ambassador Israel. So as we wrap up, does anybody else. Doctor dude. Daniel Fa Ayadili. Do you need to make any statements as we wrap up or is everybody good? Yeah, if I can make my last submission. Okay, that's fine.
Market Transparency Issues
1 minute. Thank you. All right, so I just said something on the jumbo train for anyone? Okay. I think that's. All right, Daniel, when finishes, then you can go on. All right. Thank you very much. So it's been an interesting conversation. I mean everybody should be able to understand what is going on in the country even if you are nothing literate enough. My victor made a point about transparency that there is a breakdown of the price of.
NNPC Fuel Pricing Problematic
Well, well, I won't say much. I mean this is a space that comes on every week. So I will come back to that point again. But I just put something on the jumbotron NNPC explaining why marketers do not import fuel. Don't forget that NNPC has been directed by the president to sell crude to Dangote in naira. There is a reason for that. And there is a reason why this is only affecting fuel, not Karazin and diesel. Right? Because those are also products of refining crude oil.
Marketers' Challenges amid Government Policies
You are saying subsidy has gone fine. I agree. I will leave it at that. There is a reason why, when the marketers were approached, I could say by next week now any person said they have when they go to buy the fuel, let's see if they will be able to buy that fuel from Dangote and sell it. We'll get them to know the truth. Let's give it one week. We'll come back to this conversation next week. But I'm telling you that there is subsidy going on in that control program. That is the reason.
Future Conversations and Transparency
Do you think the federal government gave Dangote crude for naira for free? There is an arrangement, so I will leave it at that. Until then, the other marketers go to buy from Dangote. Then we'll have this conversation next week. Thank you. Thank you very much. Doctor diode, you are in the conversation. I know that you want to probably wrap it up for us, so go ahead, please. Good evening, everyone. And I've been listening and it's such an interesting conversation.
Insights on Crude and Local Refineries
I just needed to clarify a couple of things based on my own knowledge and my own experience. Having been in the oil and gas. Sector for over a decade. Victor was right about the pricing templates for you to buy petroleum products off refineries. Is it that you're doing plaats or you're doing ice or you're doing the. West African trade pricing? And there is always a cost per. Metric ton plus a premium which is applied.
Currency Exchange Rates Impact
And the number of things that have happened. And the number of things that have. Happened is because of the exchange rates. And that's one. And I also needed to clarify the. Second issue in terms of. Crude being given to local refineries in Nigeria, based on. The standards that it has, and based. On the original refineries, which are, I think about four of them had a 450,000 barrels local consumption standard.
Refinery Operations and Future Discussions
When the refineries stopped working, some of those things went into what you call the swap deals or what you came back to under the last administration, whereby you make arrangements with refineries and take those 450,000 barrels into those refineries, you refine the products and then you get. Back some of the products into the system. So those things are available? Yes. The refineries are not working and according.
PIA and Crude Distribution
To the PIA, there is supposed to be a certain amount of crude that goes into local consumption, which will go. To not just Dangote refineries, there are other refineries, whether they are modular refineries. Or otherwise, there are about three or four of them that I know that are operating in the. The Niger Delta region. So all these things are there.
The Need for Government Transparency
Like many of the speakers said, it's about the transparency and the will of government. Are you with me? To let everybody go into this space and run the business like a business. That is meant to be? NNPC should run it. NNPC, in the reality of it, is not a regulator, it's just a player. The regulator is the NMDPR who should be regulating those things. And those standards are available.
Clarifying Key Issues
I just need to clarify those two things. So, faith, back to you. Thank you very much. Thank you very much. Always a pleasure to have you join us on the spaces. Danny, I wanted to say something, so I'll give you 30 seconds to quickly wrap up so that we can wrap this up. Ayodele, I don't know if you want to say something as well.
Perception of Government's Sincerity
If you do, then you can go after Daniel up for 30 seconds so that we can close this. Thank you. Okay, so back to our conversation. I think that the reason why we are arguing back and forth about pricing or no pricing is because NNPC, whether it is NNPC, whether it is the government, has not been sincere when it comes to this conversation. From the get go.
Historical Context of Fuel Subsidy
We were all here about 13, 1415 months ago when the president announced that subsidy was gone. Only for us to find out, and as soon as subsidy, that statement was made by this price move over almost a hundred percent. You get over 600. We made money from. We made money over 2 trillion from that announcement. And what was done.
Consequences of Subsidy Changes
Supplementary budgets and. And different buildings were being flying around, including yacht and all. It was going all around. All around. Right. A year later, we are seeing. Now we are saying, I seen crude screwed for naira deal. Nobody knows what's happening until maybe a year later, you start seeing the truth picture. Same way a year later, start seeing forex differentials.
The Urgency of Transparency in Economic Practices
Totally close to 5 trillion naira, right? So that is one of my own big reasons for saying this. Part of the world, the only thing that gets to every citizen is subsidy payments. If we are talking about the corruption involved, it's because it is a lazy subsidy payment that we've been running up until night. It's Dangote finance is not telling us that he wants to put trackers to tankers to be able to track where our fuel goes.
The Role of NNPC and Customs
Meanwhile, we had an NPC that was there. I could have done this thing. They give us progress figures, 50 million liters, 60 million liters. Imagine we have the true figure of what we really consume on a day to day basis. Imagine we have customs stopping illegal smuggling. They would not be having this conversation about paying a trillion naira, 2 trillion naira on a yearly basis to pay subsidies.
Exploring Energy Alternatives
Still, we are getting to a point as an economy where we can afford a thousand naira as petrol. We have enough options in terms of energy alternatives for us to run an economy. But what we have is people at the aims of power who really don't care about us. They don't care about the people. Because if you care about the people, you are governing no matter what happens.
Addressing Headline Inflation and Economic Issues
Pricing, being able to afford pricing. Because what we are faced with right now is a major issue on headline inflation and it's just food and energy. If we take out those two conversations, we are good. And those are the same problems that we've not seen government that have answer to. We've done almost two years of this presentation.
The Continuing Struggle for Economic Improvement
Most likely I'm going to go another two years and none of these issues will get solved. So basically, and keep open for the best. Thank you very much, Daniel. So we do not veer into political conversation here since it's mostly just an economic one. Thank you so much for everyone that has been a part of this conversation. Thank you, Doctor Diodor. Thank you, Daniel. Thank you, Ayodele.
Closing Remarks
Thank you. Thank you, Victor. Ambassador Israel, always a pleasure. We will do this again, of course, on Tuesday.
