The founder of Dangote Group, Aliko Dangote (pictured), has urged the government to ensure single-digit tax regime in the oil industry, in order to lure investment into Nigeria’s downstream sector, which has been losing foreign investors.
Dangote is canvassing for the single-digit tax as his conglomerate firm makes an inroad into the oil industry with the establishment of a refinery, which is projected to begin operation between 2022 and next year.
He made his request known through a statement, covering his representation during the 2022 Nigerian Content Midstream and Downstream Oil and Gas Summit, held in Lagos. Dangote was represented at the seminar by Dangote Industries Ltd technical consultant, Babajide Soyode.
In the statement made public by the chief corporate communications officer of Dangote Group, Tony Chiejina, the founder said, “Government should ensure a single-digit tax regime to encourage investment in the downstream sector.”
This comes amid the exit of International Oil Companies (IOCs) in the downstream sector, with firms like Shell, ExxonMobil, amongst other big foreign investors making their way out, citing quest for green energy as reason for their divestment.
Commenting on the role his firm’s refinery will play in the oil industry, Dangote stated that it would help stabilise the declining naira by excess availability of products for export to international market.
“Dangote Petroleum Refinery will guarantee adequate fuel production for domestic consumption and availability of excess products for export which will help to stabilise our domestic currency.” he said.