- Safiu Kehinde
Nigerian business tycoon, Aliko Dangote has harped on the need for subsidy removal while disclosing how operatives of the Economic and Financial Crimes Commission (EFCC) embarrassed his conglomerate.
The Chief Executive Officer of the Dangote Group made this known while speaking at a recent interview.
In the wake of his refinery’s commencement of fuel supply, Dangote admitted that the government can not afford subsidizing the fuel cost as the refinery also aimed at making profit.
This, according to Dangote, birthed the agreement between the federal government and the refinery to engage in Naira-based transaction.
“Government cannot afford those subsides. We have a choice of with when we produce, we export and when we produce, we sell locally. But we are a private company and we have to make profit. We built something worth of 20 billion dollars. So definitely we have to make the money.
“The removal of subsidy is totally dependent on the government not on us. We cannot change price.
“But I think the government will have to give up something for something. So I think at the end of the day, the subsidy will have to go.
“What we have done now with the government which I must really thank President Bola Tinubu for his creative idea by selling crude in Naira and for us to also sell in Naira.
“Now we are working out the exchange rate. It’s going to be at normal pricing you know if crude is at $80, Brent will pay that price. We will use an agreed exchange rate and we will also sell in the domestic market.
“What that will do is that it’s going to remove 40 percent of pressure on the Naira.” Dangote said.
He further explained how subsidy removal will boost Naira value.
“The petroleum products consume about 40 percent of our foreign exchange. It is like you have 40 percent of your demand being taken out so that it can actually stabilize the Naira.
“The government will now know, even if they want to subsidize, what is the real consumption . Because right now, nobody what can tell what we are consuming. It is only guess work.
“That can help in terms of stabilizing the market and also help in removing queues. ” He added.
On the impact of the Naira-based transaction on the group, Dangote admitted that it is a win-win situation and the agreement is inevitable, considering his status as a Nigerian.
“I think giving government something they want is a win-win. Because the issue is that we are Nigerians. We have to also do something to show that yes we do care.
“Part of caring is to now agree with the government. Because it will be very awkward for somebody like me or our group to come and say that we want to deal in dollars.
“I think it is a win-win and it will benefit the country quite a lot.
Meanwhile, Dangote disclosed how EFCC operatives had invaded his conglomerate.
While claiming that no arrest was made, he stressed on the group’s commitment in maintaining clean record- especially as it relates to tax payment.
“The office really was not raided. They visited the office and didn’t talk to anybody. They did not arrest anybody.
“They just came and left just to register an embarrassment and that’s all.
“But you know with the way we run our organization and that is why when you look at it, we are the highest tax paying corporation in Nigeria. Our company paid, in 2023, more taxes than the entire banking industry.
“So we know that whatever happens, whether it is a new government, we are the first port of call. So that’s why our own behavior has to be 100 percent clean.” He said.