Dangote urges Nigerian government to end petrol subsidy --[Reported by Umva mag]

The President and Chief Executive of Dangote Group, Alhaji Aliko Dangote, has called on the Nigerian Government to end petrol subsidies completely.

He said the removal would help determine the actual petrol consumption in Nigeria and confirmed ownership of two oil blocks in the upstream sector with an expected production date of next month.

Dangote also stated that fuel production from his $20bn mega refinery in Lagos will help ease pressures on the local currency, the naira and that the refinery can refine 650,000 barrels of crude oil daily.

According to the Punch newspaper report on Tuesday, Dangote told Bloomberg Television in an interview in New York on Monday that the Nigerian government should end petrol subsidies now.

The report added that Dangote explained that ending petrol imports will have a huge upside in easing 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 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,” Dangote said.

Dangote, who 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, 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.”

President Bola Tinubu removed the subsidy when he took office in May 2023, exacerbating a cost-of-living crisis that sparked protests, but quickly reinstated it as inflation spiked.

Nigeria, until Dangote’s refinery came on stream was fully dependent on imported petroleum products, and has been taking tentative moves to finally end the nation’s pricey fuel subsidies, which in 2022 cost $10bn.

Dangote, who has the option of either exporting his fuel or selling it domestically, said the decision on subsidies was the government’s, but added that ending gasoline imports will have a huge upside in easing currency pressures.

GIK/APA

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