Africa’s richest man, and the President and Chief Executive of Dangote Group, Alhaji Aliko Dangote, has called on the Federal Government to put an end to fuel subsidies completely now.
In an interview with Bloomberg Television in New York on Monday, Dangote said the government should immediately end all fuel subsidies, adding that the removal would help determine the actual petrol consumption in the country.
Dangote further noted that ending petrol imports will have a huge upside in easing currency pressures. The business chief also stated that the refinery can refine 650,000 barrels of crude oil daily, adding that fuel production from his $20bn mega refinery in Lagos will help ease pressures on the naira.
He confirmed ownership of two oil blocks in the upstream sector with an expected production date of next month.
“Subsidy is a very sensitive issue. Once you are subsidizing something, 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 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,” he said.
Recalling 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, Dangote said he is personally proud to achieve the feat.
On whether the subsidy will make the refinery viable, Dangote 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.”
When he took office in May 2023, President Bola Tinubu removed the subsidy, triggering a huge economic crisis that sparked protests, but quickly reinstated it as inflation spiked.
