Dangote
Alhaji Aliko Dangote, President and CEO of Dangote Group, has urged the Federal Government to immediately end fuel subsidies. According to Dangote, removing the subsidies would enable the government to accurately determine Nigeria’s real petrol consumption and prevent inflated subsidy costs.
In a recent interview with Bloomberg, Dangote revealed that his Lagos-based refinery, capable of refining 650,000 barrels of crude oil daily, will ease pressure on the naira and stabilize currency values. He emphasized that ending petrol imports would significantly reduce the country’s reliance on foreign exchange for fuel purchases.
Dangote also noted that fuel subsidies have led to inflated prices, costing the government more than necessary. With his refinery operational, fuel production will be easier to track, helping the government save money and efficiently allocate resources.
The businessman acknowledged that ending subsidies is the government’s responsibility but stressed that removing them is critical to stabilizing the economy. The refinery began supplying gasoline on September 15, with Dangote indicating it will support domestic sales while also alleviating currency pressures.
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He confirmed his refinery’s readiness to play a pivotal role in Nigeria’s energy security and discussed ongoing negotiations with the Nigerian National Petroleum Company Limited. According to Dangote, his refinery will sell crude oil priced in naira, potentially removing 40% of the foreign exchange pressure on the naira caused by petroleum imports.
Additionally, Dangote highlighted the need for better infrastructure to support fuel transport. The government is providing land for a park to accommodate fuel tankers, helping avoid road deterioration caused by heavy traffic.
In conclusion, Dangote believes that his refinery will not only stabilize the naira but also bring long-term benefits to Nigeria’s economy. He remains confident that with the removal of subsidies
