Business mogul Aliko Dangote has called on the Nigerian government to end the costly fuel subsidy, highlighting its financial burden on the economy. Discover his key arguments for subsidy removal.
Aliko Dangote, the President and Chief Executive of Dangote Group, has called on the Federal Government to completely abolish fuel subsidies. In a 26-minute interview with Bloomberg Television in New York on Monday, he emphasized that the time has come to eliminate subsidies that have drained trillions of naira from the nation’s finances.
He argued that the removal of these subsidies would provide a clearer picture of the country’s actual fuel consumption. This statement comes in light of the recent initiation of petrol distribution from the Dangote Refinery, alongside a price increase to ₦950 per litre in Lagos and over ₦1000 in northern regions.
Dangote noted that the production from his refinery would alleviate pressure on the naira and confirmed his ownership of two oil blocks in the upstream sector, with production anticipated to begin next month. He remarked, “Subsidy is a very sensitive issue. When subsidies are in place, it leads to inflated prices, resulting in the government incurring unnecessary expenses. Now is the appropriate time to eliminate subsidies.”
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He further explained, “This refinery will address numerous challenges, as it will clarify Nigeria’s actual consumption levels. Currently, estimates vary widely, with some claiming 60 million litres of gasoline are consumed daily, while others suggest a lower figure. However, with our production, we can accurately track consumption. We will implement tracking systems for trucks and ships loading from our facility to ensure that the oil remains within Nigeria, which could significantly help the government save funds. I believe it is indeed the right moment to remove the subsidy.”
When asked about the potential impact of the federal government maintaining fuel subsidies on his refinery, Dangote responded, “We have the option to produce for both local sales and export. As a large private enterprise, profitability is essential for us. We have invested significantly in this venture.”
