Dangote also disclosed that his company owns two oil blocks in the upstream sector, with production expected to begin next month.
The Nigerian government must end fuel subsidies completely now, says Aliko Dangote, president of Dangote Group.
Speaking in an interview with Bloomberg Television in New York on Monday, Dangote stressed that subsidy removal would help determine the actual petrol consumption in Nigeria and reduce unnecessary government expenditure.
Dangote also disclosed that his company owns two oil blocks in the upstream sector, with production expected to begin next month.
He had set up a $20billion oil refinery in Lekki, Lagos, with a capacity of 650,000 barrels per day. He said he believes that the refinery will solve multiple problems for Nigeria. “Subsidy is a very sensitive issue.
“Once you are subsidising something, then people will bloat the price and then the government will end up paying what they are not supposed to be paying. It is the right time to get rid of subsidies," Dangote said.
He added that the refinery will help provide accurate data on Nigeria’s fuel consumption. "It will show the real consumption of Nigeria, because, you know, nobody can tell you. Some people say 60 million litres of gasoline per day. Some say it’s less. But right now, if you look at it by us producing, everything can be counted."
To ensure transparency, Dangote explained that the company plans to install trackers on trucks and ships. "We are going to put a tracker on them to be sure they are going to take the oil within Nigeria, and that, I think, can help the government save quite a lot of money."
As a private business, Dangote noted that his company has the flexibility to sell locally and export. "We produce, we export, and when we produce, we sell locally. But we are a big private company. And yes, it’s true, we have to make a profit."
He emphasized that the decision to remove subsidies lies with the government. “We cannot change the price, but I think the government will have to give up something for something. So I think at the end of the day, this subsidy will have to go.”
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