Nigerian billionaire businessman and owner of Dangote Refinery, Aliko Dangote, has described the petrol pricing in Nigeria as unsustainable compared to other countries, particularly Saudi Arabia.
Speaking in an interview with Bloomberg TV on Monday, Dangote backed the removal of fuel subsidies in Nigeria, stating that it is a timely decision that aligns with global trends.
According to him, it is illogical that the petrol price in Nigeria is about 40% cheaper than in Saudi Arabia, which is also an oil-producing country.
Dangote explained that the burden of subsidies had become too costly for the Nigerian government to maintain, noting that all countries have eliminated fuel subsidies.
He also disclosed that the fuel price in Nigeria is about 60% of what it costs in neighbouring countries.
On whether it is time to remove the fuel subsidy, he said, “I think it is because all countries have actually gotten rid of subsidy. Let me give you an example: Saudi Arabia used to give what Saudis, the citizens, believe that oil is a God-given gift. So the government shouldn’t charge us for it. The government was selling it at a very low price, but today, as we speak, gasoline is about 40 percent cheaper in Nigeria than in Saudi Arabia, which I think doesn’t make sense.
“That is one. Number two: our price of gasoline is about 60 percent of the price of our neighbouring countries, and we have very porous borders, so it is not sustainable. The amount of subsidy that we were paying, the government cannot afford.
“We have a choice: either when we produce, we export, or when we produce, we sell locally. But we are a private company. Yes, it is true, we have to make a profit. We built something worth $20 billion, so definitely, we have to make money.
“The removal of subsidy is totally on the government, not us. We cannot change the price, but I think the government has to give up something for something. I think, at the end of the day, the subsidy will have to go.”
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