It’s Time to End Fuel Subsidy Payment – Dangote to Nigerian Govt

Chairman of Dangote Group, Aliko Dangote, has said it’s time for the Nigerian Government to end the fuel subsidy regime.

Dangote said fuel subsidy would lead to the Nigerian government “paying what they are not supposed to be paying,” hence the need to end it.

In an interview with Bloomberg TV on Monday, the business mogul insisted that the Nigerian government can’t afford to sustain petrol subsidy.

On May 29, 2023, President Bola Tinubu had declared an end to fuel subsidy during his inauguration speech in Abuja.

The end of the fuel subsidy regime had led to an increment in the pump price of fuel across the country.

However, 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.”

This comes as the House of Representatives Minority Caucus recently rejected the new fuel prices, describing them as outrageous and exploitative.

The caucus argued that locally refined fuel should be priced lower than imported fuel, as it avoids costs like landing charges and import duties.

They called for regulatory bodies and the government to review the pricing framework to ensure Nigerians aren’t subjected to unsustainable fuel prices.

President Bola Ahmed Tinubu had earlier told Nigerians in China that the reasons for the recent increase in the pump price of petrol in Nigeria were due to the country’s economic realities.

The Federal Government’s decision to end fuel subsidy has generated mixed reactions from Nigerians, with some supporting the move as a necessary step towards economic stability, while others have expressed concerns about the impact on the cost of living.