Says He Will Be Upset If Fuel Price Is Increased
![image](/2020/10/lawreport.jpg")
A renowned Professor, Senior Advocate of Nigeria (SAN) and
Chairman Presidential Advisory Committee Against Corruption (PACAC)
Itse Sagay has expressed worry over plans of the Federal Government
to increase the price of Premium Motor Spirit (PMS) in the country.
Prof. Sagay SAN in an interview with Temidayo Akinsuyi of the
Independent Newspaper said that he will b very upset if the Fuel
price is increased.
![image](/2021/01/payne-alex.jpg")
When asked of his take on the Federal Government approval of
$1.5 billion to fund the repair of the Port Harcourt refinery which
was closed two years ago and the mixed reactions generated from
Nigerians including the Governor of Rivers State Chief Nyesom Wike
as a result of whooping approval.
The federal government few weeks ago approved $1.5bn in funding
to repair the Port Harcourt refinery, which was closed two years
ago. This has continued to generate mixed reactions from Nigerians,
as some have argued that it should have been sold in its present
state. What is your take on that?
Prof. Sagay noted that he want to take refuge in his ignorance
because he was shocked when he heard the amount to be used in
repairing the refinery.
“$1.5 billion just to repair? Honestly, I was
shocked. I thought we could get a brand new, excellent
refinery with that money. I also listened to the Minister of State
for Petroleum and others who are in support, telling us that the
whole refinery will be totally overhauled and what we are going to
get after the repair will be as a brand as new at the rate of 90
per cent. I pray for their sake that it is true. If after that huge
sum of money had been spent on revamping it and then production
commences and it becomes epileptic, I don’t think they will be able
to survive the barrage of attacks that will be landing on them. In
fact, it will be more than that because people will call for them
to be prosecuted for misleading the public and investing so much
amount of money on the refinery.”
However, Prof. Sagay noted that why he is not worried so much is
that there is a cabinet which holds a weekly Federal Executive
Council (FEC) meeting of about 50 to 60 people. He noted that if
they are able to carry all those people, maybe they must have made
some cogent points. That is the way he comforts himself.
He equally expressed that we just have to wait for the next
three to four years whether they will be proven right or not. He
pray for their sakes that they are proved correctly that we are
going to have a refinery that is brand new, even though it is an
old one that is fixed. What they are telling us is that this is not
turnaround maintenance, but total rebuilding.
He said he has also read the opinion of some people who said
instead of repairing the refinery, why can’t they sell it in the
present state and then allow the buyers to repair it themselves? He
said he think that is being too clever because who will now want to
pay $1.5 billion or more for a refinery that they know was scrap
before and someone has just tried to fix?
He think it is better for him to aim to be able to produce the
90 per cent capacity and produce with it for about five years
without question. Otherwise, I don’t think he is going to have any
peace on this matter. The money is just too much. $1.5 billion is a
huge sum of money. We are not talking of N300 million which they
used for their turn around. $1.5 billion is a huge sum. So, he pray
for his sake that all they have promised will be materialized.
When asked of if he would be shocked on The Group Managing
Director (GMD) of Nigerian National Petroleum Corporation (NNPC),
Mele Kyari’s expression that the corporation can no longer bear the
over N120bn monthly subsidy on Premium Motor Spirit (PMS) also
known as petrol. Nothing that it may have impact on the current
price of fuel at N162.
Prof. Sagay noted that he will not be surprised but he will be
very upset.
“I think it is good to be ignorant. Those of us who are
ignorant in economics are not seeing it the same the NNPC and the
experts are seeing it. Let us try and look at the logic of what
they are saying. When the NNPC are getting almost nothing for oil,
if the price crashes to $10 per barrel, then they are ready to dash
Nigerians the petrol and were selling it for little or nothing. In
other words, out of that their little or nothing, they now have to
look for money to make us get petrol. But now when they are being
well-paid for it, when crude oil is now at $60 per barrel, that is
when they can afford to subsidise because they are making so much
money. They can take out of that money and make cheap petrol
available for the country. But the way economic theory has turned
it round that the less NNPC earns in terms of crude oil, the more
it should be able to subsidise we, the users to the extent of
almost paying nothing for it. But when it is earning huge sums;
when it has the money to actually do the subsidy, then it should
also increase the price. It makes no sense. The illogic of it
arises from the fact that they say that it is a theoretical thing.
We are now earning $60 per barrel. So, if we give away crude oil
for refined one, it must be at that rate because that is the rate
it is being sold. If we give it at a lower rate, we are losing
money at the international level. I think that is stupid economics.
In my view, the more you earn, the lower the price of petrol
because you are having more money now from the industry, which can
enable you bring the price down for the benefit of the people. The
less you earn, the more difficult it should be for you to
subsidise. That is when the price should go up. So, for me, the
economics is upside down economics. They will never have a good
excuse in my eyes for increasing the price of petrol when they are
doing very well in the international market for crude oil. To me,
that logic is theoretical economics logic which is totally at
variance with the reality of what they are earning and therefore
with the interest of the people of this country. So, there is no
excuse for increasing the price of petrol and I will be very upset
if they do that.”
He noted that it would amount to sheer wickedness for Nigerians
to be bear unnecessary burden expressing that he will be very upset
if the price of petrol is increased.
Says He Will Be Upset If Fuel Price Is Increased
A renowned Professor, Senior Advocate of Nigeria (SAN) and
Chairman Presidential Advisory Committee Against Corruption (PACAC)
Itse Sagay has expressed worry over plans of the Federal Government
to increase the price of Premium Motor Spirit (PMS) in the country.
Prof. Sagay SAN in an interview with Temidayo Akinsuyi of the
Independent Newspaper said that he will b very upset if the Fuel
price is increased.
When asked of his take on the Federal Government approval of
$1.5 billion to fund the repair of the Port Harcourt refinery which
was closed two years ago and the mixed reactions generated from
Nigerians including the Governor of Rivers State Chief Nyesom Wike
as a result of whooping approval.
The federal government few weeks ago approved $1.5bn in funding
to repair the Port Harcourt refinery, which was closed two years
ago. This has continued to generate mixed reactions from Nigerians,
as some have argued that it should have been sold in its present
state. What is your take on that?
Prof. Sagay noted that he want to take refuge in his ignorance
because he was shocked when he heard the amount to be used in
repairing the refinery.
“$1.5 billion just to repair? Honestly, I was
shocked. I thought we could get a brand new, excellent
refinery with that money. I also listened to the Minister of State
for Petroleum and others who are in support, telling us that the
whole refinery will be totally overhauled and what we are going to
get after the repair will be as a brand as new at the rate of 90
per cent. I pray for their sake that it is true. If after that huge
sum of money had been spent on revamping it and then production
commences and it becomes epileptic, I don’t think they will be able
to survive the barrage of attacks that will be landing on them. In
fact, it will be more than that because people will call for them
to be prosecuted for misleading the public and investing so much
amount of money on the refinery.”
However, Prof. Sagay noted that why he is not worried so much is
that there is a cabinet which holds a weekly Federal Executive
Council (FEC) meeting of about 50 to 60 people. He noted that if
they are able to carry all those people, maybe they must have made
some cogent points. That is the way he comforts himself.
He equally expressed that we just have to wait for the next
three to four years whether they will be proven right or not. He
pray for their sakes that they are proved correctly that we are
going to have a refinery that is brand new, even though it is an
old one that is fixed. What they are telling us is that this is not
turnaround maintenance, but total rebuilding.
He said he has also read the opinion of some people who said
instead of repairing the refinery, why can’t they sell it in the
present state and then allow the buyers to repair it themselves? He
said he think that is being too clever because who will now want to
pay $1.5 billion or more for a refinery that they know was scrap
before and someone has just tried to fix?
He think it is better for him to aim to be able to produce the
90 per cent capacity and produce with it for about five years
without question. Otherwise, I don’t think he is going to have any
peace on this matter. The money is just too much. $1.5 billion is a
huge sum of money. We are not talking of N300 million which they
used for their turn around. $1.5 billion is a huge sum. So, he pray
for his sake that all they have promised will be materialized.
When asked of if he would be shocked on The Group Managing
Director (GMD) of Nigerian National Petroleum Corporation (NNPC),
Mele Kyari’s expression that the corporation can no longer bear the
over N120bn monthly subsidy on Premium Motor Spirit (PMS) also
known as petrol. Nothing that it may have impact on the current
price of fuel at N162.
Prof. Sagay noted that he will not be surprised but he will be
very upset.
“I think it is good to be ignorant. Those of us who are
ignorant in economics are not seeing it the same the NNPC and the
experts are seeing it. Let us try and look at the logic of what
they are saying. When the NNPC are getting almost nothing for oil,
if the price crashes to $10 per barrel, then they are ready to dash
Nigerians the petrol and were selling it for little or nothing. In
other words, out of that their little or nothing, they now have to
look for money to make us get petrol. But now when they are being
well-paid for it, when crude oil is now at $60 per barrel, that is
when they can afford to subsidise because they are making so much
money. They can take out of that money and make cheap petrol
available for the country. But the way economic theory has turned
it round that the less NNPC earns in terms of crude oil, the more
it should be able to subsidise we, the users to the extent of
almost paying nothing for it. But when it is earning huge sums;
when it has the money to actually do the subsidy, then it should
also increase the price. It makes no sense. The illogic of it
arises from the fact that they say that it is a theoretical thing.
We are now earning $60 per barrel. So, if we give away crude oil
for refined one, it must be at that rate because that is the rate
it is being sold. If we give it at a lower rate, we are losing
money at the international level. I think that is stupid economics.
In my view, the more you earn, the lower the price of petrol
because you are having more money now from the industry, which can
enable you bring the price down for the benefit of the people. The
less you earn, the more difficult it should be for you to
subsidise. That is when the price should go up. So, for me, the
economics is upside down economics. They will never have a good
excuse in my eyes for increasing the price of petrol when they are
doing very well in the international market for crude oil. To me,
that logic is theoretical economics logic which is totally at
variance with the reality of what they are earning and therefore
with the interest of the people of this country. So, there is no
excuse for increasing the price of petrol and I will be very upset
if they do that.”
He noted that it would amount to sheer wickedness for Nigerians
to be bear unnecessary burden expressing that he will be very upset
if the price of petrol is increased.