Aliko Dangote, Chairman of Dangote Group, has renewed his call for the Nigerian Government to end the fuel subsidy regime.
In a recent interview, Dangote emphasized that the government can no longer afford to sustain the petrol subsidy, particularly given Nigeria’s porous borders and relatively low gasoline prices compared to neighboring countries.
Dangote’s stance on fuel subsidies aligns with President Bola Tinubu’s initial declaration to end fuel subsidies during his inauguration speech in May 2023.
Although the president later reinstated subsidies due to public protests over the resulting price hike, Dangote believes now is the right time to remove subsidies.
The business mogul argued that Nigeria’s gasoline prices are approximately 60% lower than those in neighboring countries, making the current subsidy regime unsustainable.
He said with the country’s porous borders, smugglers exploit this price difference, further straining the government’s finances.
According to Dangote, by ending fuel subsidies, the government can stabilize the naira by reducing demand for dollars, stressing that this move would also align Nigeria with global trends, as most countries have eliminated fuel subsidies.
Dangote’s call to end fuel subsidies highlights the need for Nigeria to reform its fuel pricing structure and reduce its financial burdens.
Dangote said: “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 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.”
