Africa’s wealthiest man, Alhaji Aliko Dangote, has called on the Federal Government to completely eliminate fuel subsidies, citing the need to determine the actual petrol consumption in the country.
Dangote, President and Chief Executive of Dangote Group, made this plea during a 26-minute interview with Bloomberg Television in New York.
Dangote emphasized that removing subsidies would help the government save significantly, as “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.” He added, “It is the right time to get rid of subsidies.”
The Dangote Refinery, valued at $20 billion, is expected to refine 650,000 barrels of crude oil daily. Dangote confirmed that fuel production from the refinery will help ease pressures on the naira, as “petroleum products consume about 40 per cent of our foreign exchange.” The refinery started supplying gasoline on September 15 to the state-owned oil company for domestic sale.
Dangote revealed that discussions are ongoing for crude oil sales, anticipated to begin in October. The agreement will ensure energy security, with the government providing 12 million barrels of crude oil, equivalent to 390,000 barrels per day. This will enable the refinery to produce gasoline, diesel, and aviation fuel.
Dangote reflected on the challenges faced after the project’s launch in 2013, including a five-year delay and a $2.4 billion loan. Despite these obstacles, he expressed pride in achieving the feat, stating, “We build something worth $20 billion, so definitely we have to make money.”
As Nigeria takes tentative steps to end fuel subsidies, Dangote’s refinery is poised to play a crucial role in stabilizing the naira and ensuring energy security. With the government’s decision on subsidies pending, Dangote emphasized that ending gasoline imports will have a significant upside in easing currency pressures.
