In a bold statement that has sent shockwaves through the Nigerian economy, Aliko Dangote, the president of Dangote Group, declared that it is time for the Nigerian government to eliminate fuel subsidies. Speaking in a recent interview with Bloomberg Television, Dangote pointed out that petrol prices in Nigeria are currently 40% cheaper than those in Saudi Arabia, calling this disparity “unsustainable.”
Dangote emphasized that removing the subsidy would provide a clearer picture of actual petrol consumption in the country and significantly reduce unnecessary government spending. “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 it should,” he explained.
He also highlighted the potential of his $20 billion refinery in Lagos, which has a capacity of 650,000 barrels per day, to stabilize Nigeria’s economy. “This refinery will resolve many issues and ensure everything can be accounted for,” he stated, mentioning plans to track fuel distribution closely.
Dangote’s remarks come on the heels of ongoing debates about Nigeria’s fuel pricing and subsidy policies. While President Bola Tinubu initially removed the subsidy in May 2023, it was partially reinstated due to rising inflation and economic pressures. With Dangote’s refinery now operational, he believes that ending fuel imports could alleviate pressure on the naira and lead to more sustainable economic practices.
As discussions around fuel subsidies continue to heat up, Nigerians are left wondering: will the government heed Dangote’s call for transparency and reform? Stay tuned as this story develops!
