Alhaji Aliko Dangote, President and Chief Executive of Dangote Group, has urged the Nigerian Federal Government to fully eliminate fuel subsidies,
Dangote noted that it would help determine the country’s actual petrol consumption and alleviate financial strain.
In a recent interview with Bloomberg Television, Dangote emphasized that removing subsidies would prevent inflated pricing and unnecessary government spending.
Dangote explained that once his $20 billion refinery, located in Lagos, becomes fully operational, it will refine 650,000 barrels of crude oil per day.
He believes this development will help stabilize the naira by reducing the country’s dependence on imported petroleum products.
According to him, petroleum products account for about 40% of Nigeria’s foreign exchange expenditures.
He further revealed that Nigeria has long struggled with inflated fuel consumption estimates, with figures ranging between 60 million litres of gasoline daily.
Dangote argued that domestic fuel production would bring transparency to consumption figures.
His refinery, which started supplying fuel to the Nigerian National Petroleum Company Limited (NNPCL) on September 15, will track all sales to ensure accountability.
Although Dangote acknowledged the sensitivity surrounding subsidies, he stressed that now is the right time to end them.
He highlighted the ongoing pricing discussions with NNPCL and confirmed that his company had offered fuel at a lower price than imported alternatives.
Despite this, Dangote emphasized that pricing decisions ultimately rest with the government.
In addition to refinery operations, Dangote announced the ownership of two oil blocks in the upstream sector, with production expected to commence soon.
He also disclosed ongoing negotiations with the government regarding a deal to sell crude oil domestically in naira, which could further alleviate pressure on the naira.
Meanwhile, the Federal Government has announced plans to provide land for tanker parks near the refinery.
This follows concerns raised by the Minister of Works, Dave Umahi, about the impact of static loads from over 3,000 fuel tankers on newly constructed roads.
The plan aims to prevent road deterioration, similar to what occurred in the Apapa area of Lagos.
Dangote’s statements align with broader government efforts, under President Bola Tinubu, to gradually eliminate fuel subsidies, which have historically been a significant drain on national resources, costing Nigeria $10 billion in 2022 alone.
The shift is expected to bring relief to the naira while supporting the country’s long-term economic stability.
(Bloomberg / vitalnewsngr.com)
