Alhaji Aliko Dangote, President and CEO of Dangote Group, has called on the Federal Government to fully eliminate petrol subsidies. He emphasized that the removal would help accurately determine the country’s fuel consumption and prevent excessive payments by the government.
In a recent interview with Bloomberg Television, Dangote highlighted that his $20 billion refinery in Lagos, capable of refining 650,000 barrels of crude oil per day, will ease pressure on the naira and stabilize Nigeria’s economy. He explained that eliminating petrol imports will reduce the strain on foreign currency and help the country manage its foreign exchange reserves better.
Dangote stated that subsidies inflate costs unnecessarily, and now is the right time to remove them. He believes that with the start of fuel production from his refinery, the actual consumption of petrol in Nigeria will become clearer. Additionally, the use of tracking systems for oil transportation will ensure transparency, further benefiting the government.
While acknowledging that subsidy removal is the government’s decision, Dangote noted that the move would ultimately help stabilize the naira, as petroleum products account for 40% of Nigeria’s foreign exchange usage.
Dangote also confirmed that crude oil production from his upstream oil blocks is set to begin next month. He explained that the government’s agreement to supply crude in naira will relieve pressure on the currency and create a win-win situation for the country.
The Federal Government has also announced plans to develop a dedicated parking facility for tankers at the refinery to prevent road damage from over 3,000 fuel trucks currently queuing on newly constructed roads.
Despite challenges in its early stages, Dangote expressed pride in the progress of the refinery project and the positive impact it will have on Nigeria’s economy.
