Dangote Urges Nigerian Government to End Fuel Subsidy

Aliko Dangote, the founder of Dangote Petroleum Refinery, has urged the federal government to remove the fuel subsidy, stating that now is the right time for Nigeria to shift away from this practice.

In an interview with Bloomberg TV on Monday, September 24, Dangote highlighted the global trend of eliminating subsidies. He emphasized that continuing the subsidy is no longer a viable option for Nigeria, as it creates price distortions and leads to the government incurring unnecessary expenses.

“It is the right time to remove the subsidy because most countries have already done so,” Dangote said, pointing out that the existing system encourages price hikes and further strains the government’s finances.

Acknowledging the sensitivity of the issue, Dangote explained that his refinery will help track petrol consumption in Nigeria, allowing for more transparency in fuel distribution. He revealed plans to implement a tracking system to ensure fuel meant for local use is properly accounted for, which he believes will help the government cut unnecessary costs.

While Dangote made it clear that the final decision rests with the government, he stressed that continuing the subsidy is financially unsustainable. He expressed that the country can no longer afford to keep subsidizing fuel.

“Our refinery will bring clarity to Nigeria’s actual consumption rates,” Dangote said. “Estimates vary, with some saying it’s 60 million litres per day, but no one can be sure. With our production, every litre can be tracked. We will ensure that the fuel stays within Nigeria, saving the government substantial amounts of money.”

Dangote also drew a comparison with Saudi Arabia, where citizens once enjoyed low fuel prices, but he noted that gasoline is now about 40% cheaper in Nigeria than in Saudi Arabia, a situation he finds illogical.