Dangote
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Aliko Dangote, foremost Nigerian business mogul has urged the Federal Government to end all fuel subsidy payments.
According to him, it is no longer sustainable and is setting the country’s economy backwards.
Speaking in an interview with Bloomberg TV on Monday, Dangote said: “I think it is the right time to take away the subsidy because all countries have gotten rid of the subsidy.
“Our price of gasoline is about 60 percent the price of our neighboring countries, and we have porous borders, so it is not sustainable. Government cannot afford the amount of subsidies we are paying.”
On his earlier interest in buying Arsenal, the English premiership club, Dangote disclosed that he has lost interest in the project.
He said the time is no longer right for him to purchase the Premier League club because the dynamics have changed.
Although Dangote made the purchase of Arsenal his next investment destination after completing his who had previously expressed interest in acquiring Arsenal once his refinery project, he noted that the worth of the club has skyrocketed, making it less appealing for him to invest in.
“I think that time has passed. The last time we had this interview, I told you that, yes, as soon as I finished with the refinery, I was going to try and buy Arsenal,” Dangote said.
“The issue is that everything has gone up. The clubs are all doing well, and Arsenal is doing extremely well now. At that time [when I wanted to buy], they were not doing very well.
He noted that it would not be a wise business decision to buy the club at its current value estimation of about $4 billion.
According to Dangote: “I don’t have that kind of excess liquidity to go and buy a club for $4 billion just for promotional purposes.
“I would rather do something else with the money.”
President Bola Tinubu had on assuming office on May 29 last year announced an end to the fuel subsidy regime, thereby setting off the economy on a dive to the bottom.
Although there has been controversy over alleged behind the scene continued payment of subsidy, Nigeria has been grappling with the ripple effects of the cost of Premium Motor Spirit, PMS, since the president announced its termination, which has been worsened by protracted fuel scarcity.
However, with the entrance of 650000 barrels per day Dangote Refinery, things are expected to change for the better, as it has the potential to drastically reduce the country’s dependence on importation of fuel.
This will not only help meet local fuel needs but also conserve foreign exchange as well as boost the bleeding naira.
