The time is now for you to end Fuel Subsidy Payment — Dangote tells Tinubu’s Govt

The time is now for you to end Fuel Subsidy Payment — Dangote tells Tinubu’s Govt

Billionaire bussinessman and founder of Dangote Petroleum Refinery, Aliko Dangote, has called on the federal government to end the fuel subsidy system.

Speaking in a Monday interview with Bloomberg, Dangote argued that the subsidies lead to unnecessary government spending, urging their removal.

He emphasised that President Bola Tinubu’s administration cannot sustain the continued payment of petrol subsidies.

Although President Tinubu announced the end of the subsidy during his May 29, 2023 inauguration, it was quickly reinstated following a surge in inflation.

A further move toward ending the subsidy came in early September when the price cap on gasoline was relaxed, though prices remain below market rates.

The billionaire’s remarks come as the Dangote Refinery begins supplying petrol, with prices rising to N950 per litre in Lagos and surrounding areas, and exceeding N1,000 in northern Nigeria.

He stated that fuel production from the refinery will help reduce pressure on the naira and also revealed his ownership of two oil blocks in the upstream sector, with production expected to start next month.

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.

“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.”