Dr. Samson Simon, a prominent economist and public affairs analyst, has raised alarm over the potential full removal of petrol subsidies in Nigeria. His comments come in response to an interview with Aliko Dangote, Chairman of Dangote Group, on Bloomberg TV, where Dangote advocated for the complete elimination of subsidies. Dr. Simon emphasized the nation’s inadequate local refining capacity as a critical issue that must be addressed.

As the Chief Economist at Economics & Data Limited, Dr. Simon acknowledged that while the theoretical benefits of subsidy removal could unlock funding for essential sectors like education, healthcare, and infrastructure, previous attempts have only led to increased hardship for Nigerians due to soaring fuel prices. He remarked, “It means there is an issue somewhere,” highlighting the complexities involved in this decision.

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The economist also stressed the need to develop domestic refining and supply systems, cautioning against allowing Dangote to maintain a monopoly. “Dangote is a businessman who seeks profit, and a monopoly could be detrimental,” he warned, pointing out the risks associated with having a single dominant player in the refining industry. He drew parallels to the cement market, where Dangote, despite not being the sole manufacturer, commands over 60% market share, leading to prices that exceed the global average.

Dr. Simon argued that fostering competition is essential for a fair and balanced market, asserting that now is not the ideal time for the full removal of subsidies. While he recognized Dangote’s contributions to the industry, he cautioned that the nation could face significant challenges if he becomes the dominant player in fuel refining.