Aliko Dangote urges the Nigerian government to remove the unsustainable petrol subsidy, citing its financial strain. He emphasized transparency in fuel consumption through his refinery and criticized current fuel pricing. Nigerians expressed mixed reactions, questioning the subsidy’s existence despite soaring fuel prices.
Aliko Dangote, founder of the Dangote Petroleum Refinery, has urged the Nigerian government to remove the petrol subsidy, arguing that it is no longer sustainable for the country. In a recent interview with Bloomberg TV, Dangote emphasized that it is the right time for Nigeria to abandon the subsidy, as most countries have already done so. He explained that subsidies distort prices, causing the government to spend more than necessary.
Dangote pointed out that his refinery, once operational, will help reveal Nigeria's true petrol consumption through tracking systems, which will prevent fuel smuggling and save the government substantial amounts. He also compared Nigeria’s gasoline prices to other countries, noting that it’s about 40% cheaper in Nigeria than in Saudi Arabia, a situation he believes is unsustainable given Nigeria’s porous borders and rising subsidy costs.
He added that while the decision to remove the subsidy rests with the government, continuing to subsidize petrol is financially impractical. "We cannot change the price, but the government will have to make trade-offs," Dangote stated. His comments have sparked public debate, with many Nigerians questioning the presence of a subsidy amidst soaring fuel prices.
