Billionaire industrialist and President of Dangote Group, Alhaji Aliko Dangote, has called on the Federal Government to remove the petrol subsidy, arguing that its elimination would bring transparency to Nigeria’s actual fuel consumption and ease pressure on the Naira, Vanguard reported.
Dangote made this statement during an interview with Bloomberg Television in New York, where he discussed the impact of his $20 billion refinery and its role in stabilizing Nigeria’s economy.
Speaking on the sensitive issue of subsidy, Dangote stated, “Subsidy is a very susceptible issue. Once you subsidize, people will inflate the price, and the government will end up paying more than necessary. This is the right time to get rid of the subsidy.”
He emphasized that the removal of the subsidy would stop inflated costs and help the government save billions of Naira.
Dangote’s newly built refinery in Lagos is expected to play a pivotal role in Nigeria’s energy sector, as it will provide more accurate data on the country’s petrol consumption.
“Some people say we consume 60 million liters of petrol per day, but others argue it’s less. With our refinery, we will be able to track exactly how much is consumed, especially since we will install trackers on trucks and ships that carry the products. This will ensure they stay within Nigeria,” he explained.
He also pointed out that the removal of the petrol subsidy could free up 40% of the pressure on Nigeria’s currency, the Naira, as petroleum products currently account for about 40% of the country’s foreign exchange expenditure.
According to Dangote, “Selling locally will help reduce the need for foreign exchange, making it a win-win situation for the government, the people, and the economy.”
Regarding the agreement with the Nigerian National Petroleum Company Limited (NNPC), Dangote revealed that ongoing discussions aim to finalize a robust deal that ensures energy security.
The government will provide crude oil for refining, with 12 million barrels expected in October alone, averaging about 390,000 barrels a day.
“This deal ensures energy security and benefits the entire country,” he added.
SOURCE: News Hub Creator