The founder of Dangote Petroleum Refinery, Aliko Dangote, has said it’s time for the federal government to end the fuel subsidy regime.
In an interview with Bloomberg on Monday, Dangote said fuel subsidies would lead to the government “paying what they are not supposed to be paying,” hence the need to end it.
The business mogul insisted that the President Bola Tinubu-led government can’t afford to sustain petrol subsidies payment.
During his inauguration speech on May 29, 2023, President Tinubu had declared an end to fuel subsidy, but quickly reinstated it as inflation spiked.
Another step to ending it was taken in early September when the cap on gasoline was eased — though the price remains below the market level.
However, Dangote said: “I think it is the right time to take away the subsidy because all countries have gotten rid of the subsidy.
“Our price of gasoline is about 60 percent the price of our neighbouring countries and we have porous borders, so it is not sustainable.
“Government cannot afford the amount of subsidies we are paying.”
The billionaire’s advice follows the recent commencement of petrol lifting from the Dangote Refinery, and price increment to N950 per litre in Lagos state and its environs, and above N1000 in the north.
According to him, fuel production from his refinery will help ease pressures on the naira, and also confirmed ownership of two oil blocks in the upstream sector with an expected production date of next month.
He said: “Subsidy is a very sensitive issue. Once you are subsidising something then people will bloat the price and then the government will end up paying what they are not supposed to be paying. It is the right time to get rid of subsidies.”
“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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