‘We Can’t Subsidise Everything’ — Dangote speaks on petrol price, crude cost

The President of Dangote Group, Aliko Dangote, has said Nigerians should not expect a sharp reduction in petrol prices simply because the country now has large-scale local refining capacity.

Dangote explained that the price of crude oil and developments in the international market continue to influence the cost of petrol produced by the Dangote Refinery.

The billionaire businessman made the remarks during an interview with Arise TV on Tuesday, where he explained that his refinery purchases crude at prevailing market prices and, in some instances, pays significant premiums.

According to him, the cost of acquiring crude makes it difficult for the refinery to sell petrol significantly below sustainable market levels.

Addressing concerns over the high cost of petrol in Nigeria, Dangote said prices should also be considered in relation to those in neighbouring countries, where he claimed petrol was significantly more expensive.

“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,” he said.

Dangote disclosed that the refinery purchased crude at as much as $124 per barrel in May, stressing that the company could not continue to absorb the cost difference by subsidising its products.

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

Despite the concerns over pricing, Dangote assured Nigerians that his refinery would continue to supply the domestic market and prevent shortages.

“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 Faults 30% Interest Rate Over Slow Industrialisation

Speaking on Nigeria’s industrialisation, Dangote identified high interest rates as one of the major challenges confronting businesses and discouraging new investments.

He argued that borrowing costs of around 30 per cent make it difficult for businesses to finance large-scale industrial projects.

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

Dangote also warned that Nigeria could struggle to attract another major refinery investment if local industries were not adequately supported through government policies.

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

The businessman urged the government to protect productive domestic industries, arguing that locally based businesses contribute to employment, tax revenue and wider economic activity.

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

He also criticised excessive reliance on imported products, saying such a practice could undermine local job creation.

“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,” Dangote said.

He further identified inconsistent government policies and inadequate electricity supply as other challenges confronting manufacturers.

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

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