Aliko Dangote, Africa’s richest man, has called on the Nigerian government to abolish the fuel subsidy regime, citing its economic unsustainability and strain on the country.

In an interview with Bloomberg TV, Dangote emphasized that the government cannot continue paying subsidies, which he described as “unsustainable” and a financial burden.

Key Points:

– Nigeria’s fuel subsidy regime cost around $10 billion in 2022.

– Ending subsidies would stabilize the naira and reduce foreign exchange pressure.

– The Dangote Refinery, with a 650,000-barrel daily capacity, is set to reduce fuel imports and meet local demand.

President Bola Tinubu initially ended fuel subsidies in May 2023 but reinstated them due to public protests.

However, the government is now considering allowing the Dangote Refinery to set its petrol prices, potentially paving the way for market-driven pricing and an end to subsidies.

Dangote stressed, “All countries have eliminated subsidies… Our gasoline prices are 60% lower than neighboring countries, making it unsustainable due to porous borders.”