Aliko Dangote, the billionaire owner of Dangote Refinery, has clarified why Nigerians will not see lower petrol prices from his refinery, explaining that current fuel pricing in Nigeria is unsustainable compared to other oil-producing countries, particularly Saudi Arabia.
Dangote’s Interview
In a recent interview Dangote supported the Nigerian government’s decision to remove fuel subsidies, calling it a necessary step in line with global trends.
He pointed out that it makes little sense for petrol prices in Nigeria to be about 40% cheaper than in Saudi Arabia, despite both nations being oil producers.
Dangote noted that fuel subsidies have become a huge financial burden on the Nigerian government, making it impossible to sustain them.
“All countries have actually gotten rid of subsidies,” Dangote said, using Saudi Arabia as an example of a nation that once sold petrol at low prices due to its oil wealth but no longer does.
He further highlighted that Nigeria’s petrol prices are roughly 60% of what it costs in neighbouring countries.
The porous borders between Nigeria and its neighbours mean that cheaper fuel often flows out of the country, making the current pricing structure unsustainable.
“The amount of subsidy that we were paying, the government cannot afford,” he explained.
Addressing the role of Dangote Refinery, he made it clear that while they can produce and sell locally, the company operates as a private entity and must remain profitable.
“We built something worth $20 billion, so definitely, we have to make money,” he said.
Dangote stressed that the decision to remove the subsidy lies with the government, not the refinery.
“The removal of subsidy is totally on the government, not us. We cannot change the price,” he concluded, emphasizing that the government’s choice will ultimately determine the future of fuel pricing in Nigeria.
Also read: Dangote: Our Petrol Is 15% Cheaper Than NNPCL’s Imported Fuel
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