The Chairman of Dangote Group, Aliko Dangote, has called on the Nigerian government to abolish the fuel subsidy regime, citing its unsustainable nature.
In an interview with Bloomberg TV on Monday, Dangote emphasized that the subsidy leads to inflated prices, causing the government to pay more than necessary.
He noted that Nigeria’s gasoline prices are significantly lower than those in neighboring countries, making it an unsustainable situation, especially with porous borders.
“Our price of gasoline is about 60 percent the price of our neighbouring countries and we have porous borders, so it is not sustainable.
“Government cannot afford the amount of subsidies we are paying.”
This development follows President Bola Tinubu’s initial removal of the fuel subsidy in May 2023, which was later reinstated due to public outcry over increased fuel prices.
Dangote’s refinery, which commenced gasoline supply on September 15, is expected to alleviate pressure on Nigeria’s foreign exchange reserves, heavily impacted by petroleum imports.
