Why FG must End Petrol Subsidy Now—Aliko Dangote

Nigerian businessman and industrialist and Chief Executive Officer of the Dangote Group Alhaji Aliko Dangote has called on the Federal Government to end fuel subsidies entirely.

He stated that the removal would help determine the actual petrol use in Nigeria, as he confirmed ownership of two oil blocks in the upstream sector with an expected manufacturing date of next month.

The CEO of Dangote Groups also noted that fuel manufacturing from his $20bn mega refinery in Lagos will help lessen pressure on the naira. The refinery has a daily capacity of 650,000 barrels of crude oil.

Dangote told Bloomberg Television that fuel subsidies should be abolished now. He stated this yesterday during a 26-minute interview in New York monitored by our correspondent.

The founder of Dangote's group noted that ending petrol imports will have an enormous upside in easing currency stress.

He affirmed that “subsidy is a very sensitive issue. Subsidising something can lead to price inflation, forcing the government to pay more than intended. It should be eliminated now."

“But this refinery will resolve a lot of problems out there; you know, it will show the real consumption of Nigeria, because, you know, nobody can tell you. Some say 60 million litres of gasoline daily.

“Some people say it’s less. But currently, if you look at it by us manufacturing, everything can be counted. So everything can be accounted for, especially 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.