Dangote Industries Limited President Aliko Dangote has linked the high cost of petrol in Nigeria partly to the continued smuggling of the product into neighbouring countries where it can be sold at higher prices.
Dangote said petrol in some neighbouring countries costs between 30 and 50 per cent more than in Nigeria, creating a significant financial incentive for traders to move the commodity across the borders.
He made the remarks during an interview with Arise TV on Tuesday while discussing petrol prices, domestic supply and the possible impact of the ongoing crisis in the Middle East on energy markets.
Responding to concerns that petrol remains expensive despite Nigeria having domestic refining capacity, Dangote argued that the cost of the product should be considered alongside prices in surrounding countries.
“Expensive is relative,” he said, urging Nigerians to compare domestic prices with those in neighbouring countries.
According to Dangote, the price gap has continued to encourage the movement of Nigerian petrol across borders, with traders able to buy the product locally and potentially resell it at a premium outside the country.
“I don’t know if you know that there’s still a lot of smuggling of the same petrol we are producing to our neighbouring countries,” he said.
He specifically cited Niger, where he said petrol could sell for between 20 and 25 per cent more than in Nigeria.
Dangote used a hypothetical domestic price of N1,350 per litre to illustrate the attraction of the price difference, arguing that a trader could potentially make an immediate return by moving petrol across the border.
“So, what business are you going to do that will make you have an instant 25 per cent return?” he asked.
He also described how petrol meant for distribution within Nigeria could allegedly be diverted towards border communities.
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Using Sokoto and Ilela as an example, Dangote said some traders could claim to be transporting petrol to destinations within Nigeria while instead taking it towards the border for sale to buyers in neighbouring countries.
The businessman said such activities could reduce the amount of petrol available to Nigerian consumers because products intended for the domestic market are diverted to places where higher prices can be obtained.
However, Dangote said the bigger concern for Nigeria’s downstream sector could soon move beyond pricing.
He warned that the continuing crisis in the Middle East could create challenges around the availability of petroleum products in the international market.
“And the problem now, going forward, I must also warn that this crisis in the Middle East is not even about price; it’s about availability,” Dangote said.
The warning comes amid broader concerns about the potential impact of geopolitical tensions in the Middle East on global energy markets, including petroleum supply and prices.
Asked whether Nigerians should be concerned about petrol availability, Dangote said his refinery was prepared to continue supplying the domestic market.
“We will deliver to Nigeria. Nigerians don’t need to worry. There will not be any shortage from our own part,” he said.
“There won’t be any shortage. There will not be any queues. We will make sure that we keep satisfying the market, despite all odds,” he added.
Dangote’s comments came a day after his refinery opened a N2.15tn initial public offering on the Nigerian Exchange.
The IPO was formally launched at the NGX trading floor in Lagos, where Dangote sounded the opening gong to mark the commencement of the offer.
The refinery became the first petroleum refinery to be offered to investors on the Nigerian stock market in the Exchange’s 66-year history.
The offer comprises 4.1 billion ordinary shares priced at N525 each, with a minimum subscription of 10 shares costing N5,250.
Retail and institutional investors, as well as eligible African investors, can participate in the offer, which is scheduled to close on October 13, 2026.