By Adedapo Adesanya
The chief executive of Dangote Group, Mr Aliko Dangote, has insisted that the federal government must end fuel subsidies completely as he weighed in on the contentious matter.
Mr Dangote made this assertion in an interview with Bloomberg Television in New York on Monday.
President Bola Tinubu announced the removal of the subsidy when he took office in May 2023, but evidence points to the return of the scheme— but he has always insisted that it was removed.
Mr Dangote during the 26-minute interview argued that fuel subsidy was removed for a while but later reinstated and says a real removal would assist the country in many ways.
“Subsidy is a very sensitive issue. Once you subsidise something, people will bloat the price and the government will end up paying what they are not supposed to be paying. It is the right time to get rid of subsidies.”
He also noted that his refinery will help Nigeria accurately track consumption data, a hot topic that has created friction among government agencies.
“But this refinery will resolve a lot of issues out there, you know, it will show the real consumption of Nigeria, because, you know, nobody can tell you. Some people say 60 million litres of gasoline per day.
“Some say, it’s less. But right now, if you look at it by us producing, everything can be counted. So everything can be accounted for, particularly for most of the trucks or ships that will come to load from us.
He stated that fuel production from his refinery will help ease pressures on the Naira.
“We are going to put a tracker on them to be sure they are going to take the oil within Nigeria, and that, I think, can help the government save quite a lot of money. I think it is the right time, you know, to remove the subsidy.”
Mr Dangote also said the refinery will be profitable due to the high cost of building and maintenance, adding that the move to end subsidies currently fell on the Tinubu-led government.
“Well, you see, we have a choice of either one. We produce, we export, and when we produce, we sell locally. But we are a big private company. And yes, it’s true, we have to make a profit. We build something worth $20 billion so definitely, we have to make money.
“The removal of subsidies is totally dependent on the government, not on us. We cannot change the price, but I think the government will have to give up something for something. So I think at the end of the day, this subsidy will have to go.”