Categories: Economy

Dangote Advocates for Full Subsidy Removal, Says Refinery Will Tackle Consumption Challenges

The founder and Chief Executive of Dangote Group, Alhaji Aliko Dangote, has urged the President Bola Tinubu-led government to place its trust in the Dangote Refinery.

In a 26-minute interview with Bloomberg Television in New York on Monday, Dangote stated that the refinery would address many of Nigeria’s issues, particularly the high consumption rates that have turned the nation into an importer of most goods.

However, the businessman also called on the Federal Government to fully eliminate fuel subsidies.

According to him, now is the right time to remove fuel subsidies so that the country can determine its actual petrol consumption.

He said, “Subsidy is a very sensitive issue. Once you are subsidizing something, people will inflate the price, and the government will end up paying more than they should. It is the right time to get rid of subsidies.”

He added, “This refinery will resolve a lot of issues. It will provide clarity on Nigeria’s real consumption because, right now, no one can give a definite figure. Some say 60 million litres of gasoline per day, while others say less. But once we start producing, everything will be measurable.

“Everything will be accounted for, especially with the trucks and ships loading from us. We will track them to ensure the oil stays within Nigeria, which I believe will help the government save a significant amount of money. Now is the right time to remove the subsidy.”

Dangote further revealed that the responsibility for removing subsidies rests solely with the government.

He continued, “We have the option of either producing and exporting or selling locally. As a large private company, we do need to make a profit. We have built something worth $20bn, so, of course, we have to generate revenue.

“The removal of subsidies is entirely up to the government, not us. We cannot adjust the price, but I think the government will have to compromise on certain things. In the end, the subsidy will have to be removed.”

Bassey Marshall

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Bassey Marshall

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