President of Dangote Industries Limited, Aliko Dangote, has blamed the continued high cost of petrol in Nigeria partly on the smuggling of the product to neighbouring countries where it commands significantly higher prices.
Dangote said petrol sells between 30 and 50 per cent higher in some neighbouring countries, creating a strong incentive for smugglers and traders to move fuel out of Nigeria for quick profits.
He spoke in an interview on Arise TV yesterday while discussing petrol prices, supply and the possible impact of the ongoing crisis in the Middle East on the Nigerian downstream petroleum market.
The business mogul said Nigerians should consider petrol prices in the context of what the commodity costs in neighbouring countries rather than looking at the domestic price in isolation.
“You know, expensive is relative. In the sense that today, maybe, you know, a lot of them, there’s ignorance also. What they need to do is ask, what is the neighbour’s price?” he said.
Dangote disclosed that despite increased domestic production, petrol was still being smuggled across Nigeria’s borders because of the substantial price differences.
“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.
According to him, the price difference provides smugglers with an opportunity to make substantial profits by buying petrol in Nigeria and selling it across the border.
“Those neighbouring countries are about 30 to 50 per cent more expensive than Nigeria. So, it’s not actually like for like,” Dangote said.
He specifically cited Niger Republic, saying petrol there was selling between 20 and 25 per cent higher than in Nigeria.
Using a domestic pump price of N1,350 as an example, Dangote questioned what legitimate business could provide an immediate 20 to 25 per cent return.
“So, what business are you going to do that will make you have an instant 25 per cent return?” he asked.
He explained that some traders allegedly divert petrol meant for Nigerian destinations to border communities where they sell it at higher prices.
“It means that, yes, you take the [petrol], you go and take it across the border. You pretend you are taking it to Sokoto, you go and just take it to Ilela, and you sell,” he said.
Dangote warned that such diversion could reduce the volume of petrol available to Nigerian consumers, despite the country’s growing domestic refining capacity.
However, he said the major concern facing the downstream sector going forward may not necessarily be the price of petrol but its availability, especially amid the ongoing crisis in the Middle East.
“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,” he said.
The warning comes amid global concerns over the impact of the Middle East crisis on energy markets and the supply chains for petroleum products.
Despite the concerns, Dangote assured Nigerians that his refinery would 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,” Dangote added.
His comments came as investors flocked to the Nigerian Exchange following the opening of the initial public offering of Dangote Petroleum Refinery and Petrochemicals.
The N2.15 trillion IPO, comprising 4.1 billion ordinary shares offered at N525 per share, was formally opened at the NGX trading floor in Marina, Lagos.
The offer, which has a minimum subscription of 10 shares valued at N5,250, is open to retail, institutional and eligible African investors and is scheduled to close on October 13, 2026.
The refinery is the first petroleum refinery to be offered to investors on the Nigerian stock market in the 66-year history of the Nigerian Exchange.
