Aliko Dangote, founder of Dangote Petroleum Refinery, has called on the federal government to eliminate the petrol subsidy, arguing that it is time for Nigeria to move away from such payments.
In an interview with Bloomberg TV on Monday, September 24, he stated, "I think it is the right time to remove the subsidy because all countries have done so," emphasizing that continuing the subsidy is no longer sustainable for Nigeria. He highlighted that subsidies create price distortions and lead to the government "paying what it shouldn’t."
Dangote acknowledged the sensitivity of the issue but explained that the current system encourages price hikes, placing additional burdens on the government. He also mentioned that petrol produced by his refinery will be tracked to monitor consumption rates accurately.
While he noted that the ultimate decision to end the subsidy rests with the government, he stressed that maintaining these payments is unsustainable in the long run.
He further explained, "This refinery will clarify many issues. It will reveal Nigeria's true consumption, as estimates vary widely. Right now, by producing locally, we can accurately track everything. We will also have trackers on trucks and ships to ensure they distribute the oil within Nigeria, which could help the government save significant money."
Dangote compared Nigeria's fuel prices to those in Saudi Arabia, stating, "Currently, gasoline is about 40 percent cheaper in Nigeria than in Saudi Arabia, which doesn’t make sense."