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Founder of Dangote Petroleum Refinery, Aliko Dangote has called on the federal government to end the fuel subsidy regime, emphasizing its unsustainable financial burden on the country.
In an interview with Bloomberg on Monday, Dangote warned that continuing to subsidize fuel would result in the government “paying what they are not supposed to be paying.”
Dangote stressed that the administration of President Bola Tinubu cannot afford to maintain petrol subsidies, citing the example of other countries that have already removed similar policies.
“Our price of gasoline is about 60 percent of what neighboring countries are paying, and with porous borders, it’s not sustainable,” Dangote remarked.
Though President Tinubu had initially declared an end to the fuel subsidy during his inauguration on May 29, 2023, the policy was quickly reinstated as inflation surged.
More recently, in September, the government eased the price cap on gasoline, although prices remain below market levels.
Dangote’s comments come as his refinery begins lifting petrol, with prices spiking to N950 per litre in Lagos and above N1,000 in northern Nigeria.
He pointed out that fuel production from his refinery could alleviate pressure on the naira and improve the country’s financial position.
He also revealed plans to begin oil production from two upstream oil blocks next month.
Dangote argued that subsidies invite exploitation, with prices inflated beyond actual consumption levels, forcing the government to overpay.
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“Once you are subsidising something, people will bloat the price, and the government will end up paying more than necessary,” he said.
The business mogul added that his refinery would help accurately measure Nigeria’s fuel consumption, allowing the government to save money through stricter oversight.
“This is the right time to get rid of subsidies,” Dangote concluded, expressing confidence that the refinery’s production would bring greater transparency to the fuel supply chain and support the country’s economic recovery.
“But this refinery will resolve a lot of issues out there, you know, it will show the real consumption of Nigeria, because, you know, nobody can tell you. Some people say 60 million litres of gasoline per day.
“Some say, it’s less. But right now, if you look at it by us producing, everything can be counted. So everything can be accounted for, particularly for most of the trucks or ships that will come to load from us. We are going to put a tracker on them to be sure they are going to take the oil within Nigeria, and that, I think, can help the government save quite a lot of money. I think it is the right time, you know, to remove the subsidy.”
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