Aliko Dangote, founder of Dangote Petroleum Refinery, has called on the Nigerian government to end the fuel subsidy regime, citing its unsustainability.
In an interview with Bloomberg on Monday, Dangote argued that continuing the subsidies leads to the government “paying what they are not supposed to be paying,” making it essential to abolish them.
Dangote emphasized that the President Bola Tinubu administration cannot afford to maintain petrol subsidies.
President Tinubu had initially announced the end of fuel subsidies during his inauguration in May 2023 but reinstated them as inflation soared. In early September, the cap on gasoline prices was eased, but prices remain below market levels.
“I think it is the right time to take away the subsidy because all countries have gotten rid of the subsidy,” Dangote stated.
He highlighted the unsustainability of Nigeria’s gasoline prices being about 60 percent lower than neighboring countries, which encourages smuggling across porous borders.
Dangote’s call comes as petrol lifting from the Dangote Refinery has commenced, with prices reaching N950 per litre in Lagos and exceeding N1,000 in the northern states.
He added that fuel production from his refinery could ease pressure on the naira and streamline Nigeria’s fuel consumption by ensuring accurate tracking of fuel distribution.
“Subsidy is a very sensitive issue. Once you are subsidising something, people will bloat the price, and the government will end up paying what they are not supposed to be paying. It is the right time to get rid of subsidies,” Dangote said.
He also noted that tracking systems on trucks and ships transporting oil from his refinery would help ensure the fuel remains within Nigeria, potentially saving the government significant amounts of money.
