Nigerian billionaire businessman and owner of Dangote Refinery, Aliko Dangote, has described petrol pricing in Nigeria as unsustainable, particularly when compared to other countries like Saudi Arabia.
In an interview with Bloomberg TV on Monday, Dangote expressed support for the removal of fuel subsidies in Nigeria, calling it a timely move that aligns with global practices.
He pointed out that it is illogical for Nigeria’s petrol prices to be around 40% lower than those in Saudi Arabia, another oil-producing nation.
Dangote further explained that the cost of maintaining fuel subsidies had become too burdensome for the Nigerian government, especially as other nations have already eliminated them.
Additionally, he noted that petrol prices in Nigeria are roughly 60% of what they are in neighboring countries.
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On whether it is time to remove the fuel subsidy, he said, “I think it is because all countries have actually gotten rid of subsidy. Let me give you an example: Saudi Arabia used to give what Saudis, the citizens, believe that oil is a God-given gift. So the government shouldn’t charge us for it. The government was selling it at a very low price, but today, as we speak, gasoline is about 40 percent cheaper in Nigeria than in Saudi Arabia, which I think doesn’t make sense.
“That is one. Number two: our price of gasoline is about 60 percent of the price of our neighbouring countries, and we have very porous borders, so it is not sustainable. The amount of subsidy that we were paying, the government cannot afford.
“We have a choice: either when we produce, we export, or when we produce, we sell locally. But we are a private company. Yes, it is true, we have to make a profit. We built something worth $20 billion, so definitely, we have to make money.
“The removal of subsidy is totally on the government, not us. We cannot change the price, but I think the government has to give up something for something. I think, at the end of the day, the subsidy will have to go.”
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