Dangote Advocates For Fuel Price Increase

The Chairman of Dangote Group, Aluko Dangote, has suggested that fuel prices in Nigeria should be increased to reflect current production costs.

This statement comes amid ongoing debates about fuel subsidy removal and pricing dynamics in the country, saying the time is right for the federal government to stop petrol subsidy.

Recall Tinubu had, on inauguration day, May 29, 2023, announced the removal of subsidy on petroleum products.

Tinubu declared that “Subsidy is gone,” during his inaugural address at Eagle Square in Abuja, shortly after he was sworn in as the 16th President of Nigeria.

Speaking in a national broadcast on the nationwide protest against economic hardship in the country in August 2024, the president described the removal of fuel subsidy as a painful decision by his administration.

He added that he took the decision to remove fuel subsidy and abolish multiple foreign exchange rates because they had impeded the economic development and progress of the nation.

Equally, Dangote, in an interview with Bloomberg Television in New York, the United States, on Monday, September 23, said the removal of fuel subsidy would help determine the actual petrol consumption in Nigeria.

He said subsidy is a sensitive issue, adding that once a country subsidises the product, marketers would increase the price.

Dangote said payment of subsidy had led to government paying what they are not supposed to be paying, admitting that petrol subsidy is not sustainable and the government cannot afford to keep subsidising.

“The removal of subsidy is totally dependent on the government, not on us.

“We cannot change the price but I think the government would have to give up something for something.”

Dangote said eventually, the subsidy would have to go.

Almost three months later, TheCable reported that Tinubu was considering a “temporary subsidy” on petrol as crude oil prices and foreign exchange rates soared.

However, Ajuri Ngelale, former presidential spokesperson, said there was no reintroduction of subsidy.

Also, on January 3, the Nigerian National Petroleum Company (NNPC) Limited denied the return of the petrol subsidy, saying it had been removed entirely.

However, on April 15, Nasir el-Rufai, former governor of Kaduna state, said the federal government is spending more on petrol subsidy than before.

Tinubu had approved a request by NNPC to utilise the 2023 final dividends due to the federation to pay for the petrol subsidy, but NNPC denied the existence of petrol subsidy, only to admit hours later that the federal government owes it N7.8 trillion for subsidising petrol.

Almost a month later, Tinubu said Nigeria’s daily consumption of petrol reduced to about 30 million litres after subsidy removal.