Aliko Dangote, President and Chief Executive of Dangote Group, has urged the Nigerian government to eliminate fuel subsidies entirely, claiming this step will clarify the country’s actual fuel consumption and alleviate economic burdens.
In an interview with Bloomberg Television in New York, Dangote emphasized that subsidies have cost Nigeria trillions of naira and are not sustainable. He stated, “Subsidy is a very sensitive issue. Once you subsidize something, the price gets inflated, and the government ends up paying more than it should. This is the right time to get rid of the subsidy.”
His remarks follow the recent increase in petrol prices at the Dangote Refinery, which has seen prices rise to ₦950 per litre in Lagos and over ₦1000 in northern regions. Dangote asserted that the refinery’s fuel production would ease pressures on the naira, and revealed that his company owns two oil blocks in the upstream sector, with production expected to commence next month.
Addressing the consequences of subsidy removal, Dangote argued that it would promote greater transparency in Nigeria’s fuel consumption. “Some say Nigeria consumes 60 million litres of gasoline daily, others say less. Our production will ensure everything is tracked and accounted for, helping the government save significantly,” he explained.
When asked if retaining the subsidy would benefit his business, he noted that as a private company, they have the option to export or sell locally. However, he stressed that subsidy removal is ultimately a government decision. “We’ve invested $20 billion, so we need to make a profit. At the end of the day, the subsidy has to go,” he added.
Before the Dangote Refinery began operations, Nigeria relied entirely on imported petrol. President Bola Tinubu removed the subsidy in May 2023, which has contributed to inflation peaking at 34% in 2024, although it has since decreased to 32.15% in August. Food inflation remains high at approximately 40%, while the naira has lost 70% of its value against the dollar since the currency peg was relaxed.