Nigerian business mogul Aliko Dangote has urged the federal government to end the fuel subsidy regime, labelling it as unsustainable and a drain on the nation’s economy.
In an interview with ThePaan on Monday, Dangote emphasized that the government can no longer afford the subsidy payments, stating, “We are paying what we are not supposed to be paying.”
He added, “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 per cent of the price of our neighbouring countries, and we have porous borders, so it is not sustainable. The government cannot afford the amount of subsidies we are paying.”
Nigeria’s fuel subsidy regime has been a major financial burden, costing the country approximately $10 billion in 2022. Ending these subsidies could help stabilize the naira and alleviate pressure on the foreign exchange market.
Dangote’s upcoming refinery, with a capacity to refine 650,000 barrels of crude oil daily, is expected to transform Nigeria’s fuel sector. Once operational, the refinery will significantly reduce the country’s dependence on fuel imports and help meet local demand.
It’s worth noting that President Bola Tinubu initially announced the removal of fuel subsidies in May 2023 but later reinstated them following widespread public protests.
