‘We Can’t Subsidize Everything’ – Dangote Breaks Silence On Rising Petrol Price

The President of Dangote Group, Aliko Dangote, has said that Nigerians should not expect petrol prices to fall sharply simply because the country now has large-scale local refining, Naija News reports.

He explained that the cost of crude oil and developments in the international market still affect the price of petrol produced by his refinery.

Speaking in an interview with Arise TV on Tuesday, Dangote said his refinery buys crude at prevailing market prices and sometimes pays significant premiums, making it difficult to sell its products below sustainable market levels.

Responding to concerns over the high cost of petrol, the billionaire businessman said the price was relative, pointing out that petrol remained more expensive in neighbouring countries.

According to him, “there is still a lot of smuggling of the same petrol we are producing to our neighbouring countries because those neighbouring countries are about 30 per cent to 50 per cent more expensive than Nigeria.”

Dangote disclosed that the refinery bought crude for as much as $124 per barrel in May, stressing that the company could not continue to absorb the difference.

“We can’t go now and subsidize everything,” he said.

He, however, assured Nigerians that the refinery would continue to meet local demand despite the challenges.

“Nigerians don’t need to worry. There will not be any shortage from our own part. There will be no queues, and we’ll make sure we keep satisfying the market despite all odds,” he said.

Dangote Blames 30% Interest Rate For Slow Industrialization

Speaking on Nigeria’s industrialization, Dangote identified high borrowing costs as one of the major challenges facing businesses and new investments in the country.

“It is very difficult to industrialize with interest rates at 30 percent. I can’t see the magician who can actually industrialize a country with 30 per cent interest cost,” he said.

He warned that Nigeria could struggle to attract another major refinery investment if domestic industries were not deliberately protected through government policies.

“Under the current things that are going on, especially downstream, I cannot see any new refinery in our lifetime,” he said.

Dangote urged the government to protect productive local industries, arguing that such businesses create jobs, generate taxes and support economic activities.

“Government must protect productive domestic industries if it expects businesses to create jobs, generate taxes and deepen economic activities.

“If you import, what you are doing is you are importing poverty and exporting jobs that you are supposed to create out of the country,” he said.

He also listed inconsistent government policies and poor electricity supply among the challenges facing manufacturers.

“You cannot manufacture goods with diesel,” Dangote declared.