Aliko Dangote, President of Dangote Group, has urged the Nigerian government to eliminate fuel subsidies entirely. In a recent interview with Bloomberg Television, Dangote stressed that the country must remove these subsidies, which have drained trillions from Nigeria’s finances.
Following the commencement of petrol distribution from the Dangote Refinery, fuel prices have risen to ₦950 per litre in Lagos and above ₦1000 in northern regions. Dangote believes removing subsidies will reveal Nigeria’s true fuel consumption and enable the government to save significant amounts.
“Subsidies inflate prices, and the government ends up paying more than necessary. Now is the right time to end them,” Dangote explained. He also mentioned that the refinery would monitor all petrol distribution to ensure accurate accountability.
Fuel production from the Dangote Refinery aims to reduce pressure on the naira and decrease Nigeria’s dependence on foreign exchange. Currently, petroleum products account for 40% of the country’s foreign reserves. By producing fuel locally, the refinery could help stabilize the naira and curb inflation.
The removal of subsidies might also lower prices for local consumers. While Dangote acknowledged that the refinery must remain profitable, he argued that eliminating subsidies would benefit both the government and his refinery.
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With inflation in Nigeria hitting 34% and food inflation reaching 40%, Dangote’s refinery may offer some economic relief if the government acts on his advice.
