Chairman of Dangote Group, Aliko Dangote, has called on the Nigerian government to eliminate the long-standing fuel subsidy regime, arguing that it is no longer economically viable.
In an interview with Bloomberg TV on Monday, Dangote stressed that the subsidy places an undue financial burden on the government, which is already grappling with economic challenges.
According to the billionaire businessman, the continuation of the subsidy is resulting in the government “paying what they are not supposed to be paying,” adding that the current economic environment demands its removal.
Dangote highlighted that the subsidies are unsustainable, particularly given Nigeria’s porous borders and the lower cost of gasoline in comparison to neighboring countries.
“I think it is the right time to take away the subsidy because all countries have gotten rid of it,” Dangote said.
He further explained that Nigeria’s gasoline prices are about 60 percent of what is charged in neighboring nations, a situation that incentivizes smuggling and places further strain on government resources.
The fuel subsidy has been a contentious issue in Nigeria for decades, with successive administrations grappling with its economic and political implications.
On May 29, 2023, during his inaugural speech, President Bola Tinubu declared an end to the subsidy, triggering an increase in fuel prices across the country.