Nigerian business mogul Aliko Dangote has called on the federal government to put an end to the fuel subsidy regime, stating that it is unsustainable and bleeding the country’s economy.
In an interview with Bloomberg TV on Monday, Dangote emphasised that the government cannot afford to continue paying subsidies, which he described as “paying what they are not supposed to be paying.”
“I think it is the right time to take away the subsidy because all countries have gotten rid of the subsidy.
“Our price of gasoline is about 60 percent the price of our neighboring countries, and we have porous borders, so it is not sustainable. Government cannot afford the amount of subsidies we are paying,” Dangote said.
Dangote’s stance is backed by the fact that Nigeria’s fuel subsidy regime has been a significant financial burden, costing around $10 billion in 2022.
Ending subsidies is expected to help stabilise the naira and reduce pressure on foreign exchange.
The Dangote Refinery, with a capacity to refine 650,000 barrels of crude oil daily, is poised to change the fuel landscape in Nigeria. The refinery’s operations are expected to reduce the country’s reliance on fuel imports and help meet local demand.
President Bola Tinubu had initially declared an end to fuel subsidies in May 2023 but later reinstated them due to public protests.
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