Home Business & Economy Dangote Calls For End To Oil Subsidies Amid Nigeria’s Economic Struggles

Dangote Calls For End To Oil Subsidies Amid Nigeria’s Economic Struggles

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Dangote Calls For End To Oil Subsidies Amid Nigeria’s Economic Struggles

As Nigerians continue to weather the storm of hardship, business magnate, Aliko Dangote, is making some demands that could leave Nigerians in shock. There is still subsidy on petroleum products in Nigeria and Dangote wants it to be entirely removed. 

His push comes as the country seeks solutions to its mounting financial woes, sparking debate across the nation.

Dangote

In a recent interview with Bloomberg Television, Aliko Dangote, the President and CEO of Dangote Group, made a bold claim.

He revealed that Nigeria was still paying oil subsidies, despite the government’s promises to end them.

He urged President Bola Tinubu to take decisive action and eliminate the subsidy system entirely.

According to Dangote, this would benefit both his new refinery and the Nigerian National Petroleum Company Limited (NNPCL).

He explained that oil subsidies have drained trillions of naira from Nigeria’s treasury.

This financial burden has disrupted the economy, leading to inflated fuel consumption figures and mismanagement of funds.

He emphasised that removing these subsidies would clarify the country’s fuel needs and prevent the government from overpaying.

Dangote Vision For Nigeria’s Economy

“These subsidies create artificial price hikes,” he stated, “forcing the government to spend more than necessary.”

Read Also; Why Dangote Is Not Giving Nigerians Cheaper Petrol Prices

His refinery began supplying gasoline to the NNPCL on September 15, marking a significant shift in Nigeria’s fuel landscape.

Historically, the country has relied on imported fuel, but Dangote believes his refinery can stabilise the naira and reduce this dependence.

He revealed that negotiations with NNPCL are ongoing.

His refinery is already selling fuel at a lower rate than imports, despite the national oil company’s uniform price.

Moreover, Dangote pointed out that this partnership could reduce foreign exchange pressure by up to 40%.

Currently, fuel imports take a significant toll on Nigeria’s foreign reserves.

He plans to receive 12 million barrels of crude oil each month and expects to finalise agreements with the government by October.

Dangote is optimistic that this collaboration will ensure energy security for Nigeria and help stabilise the nation’s economy.

 

 

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