End petrol subsidy completely now, Dangote tells FG

To be able to determine the actual amount of fuel consumption in the country, the President of Dangote Group, Alhaji Aliko Dangote, has called on the Federal Government (FG) to totally end fuel subsidies.

Dangote also expressed delight that fuel production from his $20bn Dangote Refinery Ltd (DRL) in Lagos would go a long way in reducing pressures on the naira as the refinery can refine 650,000 barrels of crude oil daily.

He, however, confirmed ownership of two oil blocks in the upstream sector,adding that production would kick off next month.

The richest man in Africa stated this during a 26-minute interview with Bloomberg Television in New York on Monday, monitored by The Punch.

Dangote also expressed optimism that ending petrol imports would ease currency pressures.

“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 it’s not supposed to be paying. It is the right time to get rid of subsidies,” Dangote said.

“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.”

Dangote also recalled the challenges faced after the project’s launch in 2013, experiencing a five-year delay due to issues with state government and host communities and a running loan of $2.4bn.

He said that he was personally proud to achieve the feat.

Dangote who also noted that subsidy removal would make the refinery viable, said: “Well, you see, we have a choice of either one. We produce, we export, and when we produce, we sell locally. But we are a big private company. And yes, it’s true, we have to make a profit. We build something worth $20bn. So, definitely we have to make money.

“The removal of subsidies is totally dependent on the government, not on us. We cannot change the price, but I think the government will have to give up something for something. So I think at the end of the day, this subsidy will have to go.”

Recall that President Bola Tinubu removed the subsidy when he took office in May 2023. The development triggered an astronomical increase in the cost of living, but quickly reinstated some measures when inflation spiked.