Alhaji Aliko Dangote, President and CEO of the Dangote Group, has urged the Federal Government to completely remove fuel subsidies, arguing that this will help reveal the true fuel consumption in Nigeria. He also confirmed his company’s ownership of two oil blocks in the upstream sector, with production expected to begin next month.
In a recent interview with Bloomberg Television, Dangote highlighted how fuel production from his $20 billion Lagos refinery, which has a capacity to process 650,000 barrels of crude oil daily, would ease pressure on the naira by reducing fuel imports. He emphasized that this is the right moment to eliminate subsidies, noting that their removal would prevent the government from overpaying for inflated fuel prices.
Dangote explained that his refinery will provide transparency in the nation’s fuel consumption, which is currently debated, with estimates ranging from 60 million liters of gasoline per day to lower figures. By producing locally, he said, Nigeria would have better control over its fuel distribution and consumption, with plans to monitor the transport of oil to ensure it remains within the country, ultimately saving the government money.
Reflecting on the journey to complete the refinery, which faced delays due to issues with state governments and local communities, Dangote expressed pride in overcoming these challenges. He also acknowledged the financial pressures, including a $2.4 billion loan, but reiterated that the refinery would be profitable, as it has the option to export fuel or sell it locally.
He concluded by stating that as a private enterprise, profitability is essential, given the $20 billion investment in the project.