Aliko Dangote, founder of Dangote Petroleum Refinery, has called on the federal government to remove subsidy on petrol, describing the current arrangement as unsustainable.
Speaking during an interview with Bloomberg TV on Monday, Dangote emphasized the negative impacts of subsidizing petrol and suggested that it is time for the government to halt the practice.
“Subsidy is a very sensitive issue. Once you are subsidizing something, people will bloat the price, and the government will end up paying more than they should,” Dangote said. “It is the right time to get rid of subsidies.”
Dangote revealed that petrol produced at his refinery will be tracked to ensure accurate consumption rates within Nigeria, highlighting the ongoing uncertainty over the country’s daily fuel consumption figures.
“This refinery will bring clarity. Some people say consumption is 60 million litres per day, others say less. But now, by us producing, everything can be counted and accounted for,” he explained.
“We will track the trucks or ships leaving the refinery to ensure the oil stays within Nigeria, helping the government save money.”
Comparing Nigeria’s petrol pricing to that of other oil-producing nations, Dangote pointed out that gasoline prices in Nigeria are significantly lower than in Saudi Arabia, a situation he believes is financially unsustainable.
“Gasoline is about 40 percent cheaper in Nigeria than in Saudi Arabia, which doesn’t make sense. Our price of gasoline is about 60 percent of our neighboring countries, and with porous borders, it is not sustainable,” Dangote stated.
He further stressed that the government cannot afford the current level of subsidies, noting that the decision to maintain or remove the subsidy rests with the government, not with private companies like his refinery.
“We built something worth $20 billion, and definitely, we have to make money,” Dangote added.
“The removal of subsidy is totally dependent on the government, not on us.
“We can not change the price but I think the government would have to give up something for something.”
