Dangote Calls for Removal of Fuel Subsidy

President and CEO of Dangote Group, Aliko Dangote, has called for the removal of Nigeria’s fuel subsidy, asserting that its elimination would provide a clearer picture of the country’s actual petrol consumption.

In a 26-minute interview with Bloomberg Television in New York on Monday, Dangote also confirmed ownership of two oil blocks in the upstream sector, with production expected to begin next month.

He emphasized that fuel production from his $20 billion refinery in Lagos will help reduce pressure on the naira by curbing fuel imports, which he said will significantly ease currency stress.

“Subsidy is a very sensitive issue. Once subsidies are in place, prices are inflated, causing the government to pay more than necessary. It’s the right time to remove them,” Dangote explained.

He highlighted the importance of accurate petrol consumption data, noting that estimates vary, with some suggesting Nigeria consumes 60 million litres of gasoline daily. “With our refinery producing locally, we can track and account for every litre, which will help the government save money,” Dangote added.

He also stated that while the subsidy removal is a government decision, it is essential to balance economic realities. “As a private company with a $20 billion investment, we must ensure profitability. The government will eventually need to make tough choices regarding the subsidy,” he said.