• About Us
  • Contact Us
  • Privacy & Policy
Friday, July 18, 2025
Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history
Advertisement
  • National
  • Politics
  • Economy
  • Entertainment
  • Sports
  • Editorial
  • Opinion
  • Columns
No Result
View All Result
  • National
  • Politics
  • Economy
  • Entertainment
  • Sports
  • Editorial
  • Opinion
  • Columns
No Result
View All Result
Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history
No Result
View All Result

Dangote Calls for End to Petrol Subsidy, Says It’s Unsustainable for Nigeria

Vincent Amadi by Vincent Amadi
September 24, 2024
in Economy
Reading Time: 4 mins read
A A
0
Dangote Calls for End to Petrol Subsidy, Says It’s Unsustainable for Nigeria
Share on FacebookShare on TwitterShare on WhatsappShare on EmailShare on Telegram


Aliko Dangote, the founder of Dangote Petroleum Refinery, has stated that the time has come for the Nigerian federal government to discontinue the petrol subsidy. Dangote made these remarks during an interview with Bloomberg TV, where he elaborated on the unsustainable nature of fuel subsidies and the economic benefits of abolishing them.
“I think it is the right time to (take away subsidy) because all countries have gotten rid of subsidy,” Dangote asserted, emphasizing that Nigeria is out of step with global trends. He explained that subsidies, while sensitive, often lead to market distortions where prices are artificially inflated, causing the government to bear unnecessary financial burdens. According to Dangote, continuing the subsidy forces the government to pay for fuel consumption beyond what is reasonable or sustainable.
Dangote’s Refinery to Track Local Petrol Sales;


In addition to advocating for the removal of the petrol subsidy, Dangote highlighted the steps his refinery is taking to enhance transparency and accountability in the local fuel market. He revealed that his refinery will track the petrol sold locally to ensure that the actual consumption rate is properly accounted for. He pointed out that there is significant uncertainty about Nigeria’s daily fuel consumption, with estimates ranging from 60 million litres per day to significantly lower figures.
“But this refinery will bring quite a lot of issues out there. It would show the real consumption of Nigeria because nobody can tell. Some people say it is 60 million litres per day, some say it is less,” Dangote stated. He stressed that by producing fuel locally, the actual consumption could be accurately monitored and verified, eliminating the ambiguity that currently exists.
To achieve this, Dangote plans to install trackers on trucks and ships that load petrol from the refinery. These trackers will ensure that the fuel remains within Nigeria and is used for domestic consumption. “Most of the trucks or ships that will load from us, we will put a tracker on them to be sure they are going to take the oil within Nigeria and that can help the government to save a lot of money,” he explained.
Dangote also compared the current situation in Nigeria to Saudi Arabia, highlighting the discrepancies in fuel pricing. He noted that while Saudi citizens once viewed cheap oil as a divine right, petrol prices in Nigeria are now about 40 percent cheaper than in Saudi Arabia, a situation that he finds illogical given the economic context. “For example, Saudis, the citizens believe that oil is our god-given gift and should not charge us for it. Government was selling it at a very low price. But today, as we speak, gasoline is about 40 percent cheaper in Nigeria than in Saudi Arabia, which I think does not make sense,” he remarked.


Petrol Subsidy Not Sustainable, Government Can’t Afford It;
Dangote reiterated his stance on the unsustainability of petrol subsidies, explaining that Nigeria’s gasoline prices are significantly lower than those in neighboring countries. This, combined with Nigeria’s porous borders, creates opportunities for fuel smuggling, further exacerbating the strain on the government’s finances. “Our price of gasoline is about 60 percent the price of our neighbouring countries and we have porous borders, so it is not sustainable. Government can not afford the amount of subsidies we are paying,” Dangote emphasized.
He also addressed the government’s role in determining the future of the subsidy, making it clear that while Dangote Refinery is a private enterprise, the decision to retain or remove the subsidy rests with the government. “The removal of subsidy is totally dependent on the government, not on us,” he said. “We built something worth $20 billion, and definitely we have to make money. We are a private company and it is true we have to make a profit.”
According to Dangote, whether or not the government decides to remove the subsidy, it will eventually have to make concessions. “We can not change the price but I think the government would have to give up something for something,” he added, suggesting that the subsidy removal is inevitable in the long run.
The Federal Government’s Ongoing Struggle with Subsidy;
On May 29, 2023, President Bola Tinubu declared an end to the petrol subsidy regime, a decision that was widely reported and seen as a significant policy shift. However, despite this official stance, there have been multiple conflicting reports regarding the status of the subsidy.
Nearly three months after the announcement, some journalists reported that President Tinubu was considering a “temporary subsidy” due to rising crude oil prices and fluctuations in foreign exchange rates. However, Ajuri Ngelale, the former presidential spokesperson, dismissed these claims, stating there was no plan to reintroduce the subsidy.
On January 3, the Nigerian National Petroleum Company (NNPC) Limited also denied any reintroduction of the petrol subsidy, insisting that it had been entirely removed. Yet, confusion persisted when, on April 15, Nasir el-Rufai, the former governor of Kaduna State, asserted that the federal government was actually spending more on petrol subsidies than before.
Adding to the controversy, it was reported on August 19 that President Tinubu had approved an NNPC request to use the 2023 final dividends owed to the federation for subsidizing petrol. Initially, the NNPC denied this, only to admit hours later that the federal government owes it N7.8 trillion for fuel subsidies already provided.
Despite the ongoing uncertainty, President Tinubu has maintained that Nigeria’s daily petrol consumption has drastically reduced since the removal of the subsidy. “Nigeria’s daily consumption of petrol reduced to about 30 million litres after subsidy removal,” Tinubu said almost a month later, a significant drop from previous estimates of 60 million litres per day.
In conclusion, Dangote’s call for the removal of the petrol subsidy is rooted in the economic realities facing Nigeria, as the country grapples with unsustainable financial obligations tied to subsidizing fuel. While the government continues to weigh its options, Dangote’s refinery aims to introduce much-needed transparency in the fuel sector, ensuring that Nigeria’s true consumption is accounted for, and ultimately contributing to the country’s economic stability.

Vincent Amadi

Vincent Amadi

Related Posts

Dangote Cement, BUA, First Bank Holding, other stocks drive NGX to N833b gain
Economy

Dangote Cement, BUA, First Bank Holding, other stocks drive NGX to N833b gain

8 hours ago
Dangote Refinery Begins Distribution of Petrol Nationwide
Economy

Marketers kick against Dangote’s plan to crash price of cooking gas

2 days ago
Senate Threatens Arrest of NNPCL Boss over missing N210 Trillion
Economy

Senate Threatens Arrest of NNPCL Boss over missing N210 Trillion

3 weeks ago
IPMAN: Dangote’s New Delivery Plan Will Bring Cheaper Fuel to Nigerians’s
Economy

IPMAN: Dangote’s New Delivery Plan Will Bring Cheaper Fuel to Nigerians’s

4 weeks ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

NATIONS NEWS

Dangote Cement, BUA, First Bank Holding, other stocks drive NGX to N833b gain
Economy

Dangote Cement, BUA, First Bank Holding, other stocks drive NGX to N833b gain

8 hours ago
Breaking: Momodu resigns from PDP, joins ADC
National

2027: ADC won’t play catch-up to APC — Dele Momodu

8 hours ago
NELFUND Disburses ₦73.2bn in Interest-Free Student Loans Across Nigeria
National

NELFUND Disburses ₦73.2bn in Interest-Free Student Loans Across Nigeria

21 hours ago
INEC Extends Anambra Voter Registration by Three Days
National

INEC Extends Anambra Voter Registration by Three Days

22 hours ago
FG suspends recruitment into paramilitary services
National

FG suspends recruitment into paramilitary services

1 day ago
Breaking: Momodu resigns from PDP, joins ADC
National

Breaking: Momodu resigns from PDP, joins ADC

1 day ago

POLITICS

Breaking: Momodu resigns from PDP, joins ADC

Breaking: Momodu resigns from PDP, joins ADC

1 day ago
Breaking News: Former vice president Atiku Abubakar resigns from PDP

Breaking News: Former vice president Atiku Abubakar resigns from PDP

2 days ago
Kwankwaso asserts refraining from making comments on political events

Kwankwaso Not Leaving NNPP for ADC – Dungurawa Clears the Air

4 days ago
ADC Accuses Tinubu of Plotting to Derail 2027 Momentum Through Courts

ADC Accuses Tinubu of Plotting to Derail 2027 Momentum Through Courts

4 days ago
ADC Questions President Tinubu’s Five-Day Disappearance After 2025 BRICS Summit in Brazil

ADC Questions President Tinubu’s Five-Day Disappearance After 2025 BRICS Summit in Brazil

5 days ago
2027: APC chieftain warns opposition leaders and ADC against reckless statements

2027: APC chieftain warns opposition leaders and ADC against reckless statements

5 days ago

YOUR ECONOMY

Dangote Cement, BUA, First Bank Holding, other stocks drive NGX to N833b gain
Economy

Dangote Cement, BUA, First Bank Holding, other stocks drive NGX to N833b gain

8 hours ago
Dangote Refinery Begins Distribution of Petrol Nationwide
Economy

Marketers kick against Dangote’s plan to crash price of cooking gas

2 days ago
Senate Threatens Arrest of NNPCL Boss over missing N210 Trillion
Economy

Senate Threatens Arrest of NNPCL Boss over missing N210 Trillion

3 weeks ago
IPMAN: Dangote’s New Delivery Plan Will Bring Cheaper Fuel to Nigerians’s
Economy

IPMAN: Dangote’s New Delivery Plan Will Bring Cheaper Fuel to Nigerians’s

4 weeks ago
Enforce Transparent Pump Pricing, oil marketers Cheating Nigerians, PENGASSAN laments
Economy

Enforce Transparent Pump Pricing, oil marketers Cheating Nigerians, PENGASSAN laments

1 month ago
PETROAN kicks against Dangote’s petrol distribution strategy
Economy

PETROAN kicks against Dangote’s petrol distribution strategy

1 month ago

E & P

Atalanta rejects Inter Milan’s €40m bid for Ademola Lookman
Sports

Atalanta rejects Inter Milan’s €40m bid for Ademola Lookman

by Steven Atogi
8 hours ago
0

Inter Milan has shown interest in signing Nigerian forward, Ademola Lookman from Atalanta. The Serie A club, Atalanta, on Thursday,...

Update: Speed Darlington sues NAPTIP, demands N3billion for alleged damages

Update: Speed Darlington sues NAPTIP, demands N3billion for alleged damages

2 days ago
Victor Osimhen Transfer Drama Escalates as Napoli Rejects Galatasaray’s Third Bid

Osimhen Asks Napoli to Clear Path for Galatasaray Move – Mustafa Göksu

4 days ago
Victor Osimhen Transfer Drama Escalates as Napoli Rejects Galatasaray’s Third Bid

Victor Osimhen Transfer Drama Escalates as Napoli Rejects Galatasaray’s Third Bid

1 week ago
Oliseh Warns Osimhen Against Galatasaray Return, Urges Premier League Move

Oliseh Warns Osimhen Against Galatasaray Return, Urges Premier League Move

1 week ago
Just In: Osimhen agrees on personal terms with Galatasaray, rejects Al Hilal €75m bid

Just In: Osimhen agrees on personal terms with Galatasaray, rejects Al Hilal €75m bid

2 weeks ago

YOUR THOUGHT & HISTORY

A Democracy Strained: Buhari’s Human Rights Record and the Repression of Dissent
Columns

A Democracy Strained: Buhari’s Human Rights Record and the Repression of Dissent

by Odini Brains
3 days ago
El-Rufai Plans New Party as ADC Backup Against APC Interference
Columns

The Shadow Strategist: El-Rufai, the Illusion of Power, and 2027’s Looming Reckoning

by Odini Brains
2 weeks ago
Columns

Kidnapped, Silenced, Vindicated: The Full Impact of Kanu’s Judgment

by Odini Brains
3 weeks ago
The Emerging Kogi: Economic Growth Impact Transforming Better Reality
Columns

The Emerging Kogi: Economic Growth Impact Transforming Better Reality

by Kiikpoye Karibo
3 weeks ago
ON THE PUBLIC NUISANCE CALLED SOWORE
Opinion

ON THE PUBLIC NUISANCE CALLED SOWORE

by Kiikpoye Karibo
5 months ago

Who we are

Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history

Welcome to Umpire News, your go-to online newspaper dedicated to broadening perspectives and expanding the horizons of our numerous readers. Read more

Browse by Category

  • Columns
  • Economy
  • Editorial
  • Entertainment
  • International
  • National
  • News
  • Opinion
  • Politics
  • Sports
  • Trends

Recent News

Dangote Cement, BUA, First Bank Holding, other stocks drive NGX to N833b gain

Dangote Cement, BUA, First Bank Holding, other stocks drive NGX to N833b gain

July 18, 2025
Atalanta rejects Inter Milan’s €40m bid for Ademola Lookman

Atalanta rejects Inter Milan’s €40m bid for Ademola Lookman

July 18, 2025
  • About Us
  • Contact Us
  • Privacy & Policy

© 2024 Copyright Umpirenews. All rights reserved

No Result
View All Result
  • Home
  • National
  • Economy
  • Politics
  • Sports
  • Entertainment
  • Editorial
  • Opinion
  • Columns

© 2024 Copyright Umpirenews. All rights reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
🤑Join & Get Our Easter Gifts 🤑

Enter your NAME & Email NOW!!

Be among the 1st 100 lucky WINNERS to win our Amazing GIFTs this Easter Period as you READ our Daily hot NEWs & make meaningful comments and follow us on our social media handles.

Name
Enter your email address