The CEO of Dangote group of Companies and Chairman of Dangote Refinery has called on the Federal Government to finally put an end to fuel subsidy.
He made this submission in an interview he had with Bloomberg on Monday.
According to him, fuel subsidies would make the government “pay what they are not supposed to pay” as the Tinubu led government cannot afford to sustain petrol subsidies payment.
Remember that the current president had declared an end to fuel subsidy on May 29th 2023 during his inauguration speech. However, it was revealed that the government was still paying subsidies despite the high price of petrol.
Another step towards ending the subsidy was taken in early September when the cap on gasoline was eased — though the price remains below the market level.
However, Dangote said it was time for Nigeria to do away with subsidy just like other countries.
“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.”
The billionaire’s advice comes after the commencement of petrol lifting from the Dangote Refinery, and price increment to N950 per litre in Lagos state and its environs, and above N1000 in the north.
According to him, fuel production from his refinery will help ease pressures on the naira, while he confirmed ownership of two oil blocks in the upstream sector with an expected production date next month.
He said: “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.”
While it is unclear the amount NNPC is lifting petrol from Dangote, the presence of fuel subsidy in Nigeria has not reduced the price of PMS.
