Aliko Dangote, President of Dangote Industries Limited, has attributed the high price of petrol in Nigeria partly to ongoing smuggling of the fuel to neighboring countries where prices are significantly higher.
Dangote explained that petrol prices in neighboring countries are between 30 and 50 percent higher than in Nigeria, creating a strong financial incentive for traders to smuggle fuel out of the country.
He made this statement during an interview aired on Arise TV on Tuesday, discussing petrol prices and availability amid the ongoing Middle East crisis.
Describing why Nigerians might see petrol as expensive despite domestic production, Dangote said the price cannot be viewed in isolation from prices in neighboring countries.
“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 pointed out that the movement of Nigerian petrol across borders is partly driven by the large price gap between national prices and those in neighboring countries.
“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.”
This price difference means that petrol purchased in Nigeria could be resold in neighboring countries at a significant profit. Dangote said this creates an incentive for smugglers to divert petrol meant for Nigeria and sell it abroad.
“Because those neighbouring countries are about 30 to 50 per cent more expensive than Nigeria. So, it’s not actually like for like.”
Dangote specifically mentioned Niger, where petrol sells at a 20 to 25 percent premium over Nigeria.
He used this example to demonstrate why border trade can be lucrative, especially when the price difference is high enough to yield an immediate profit.
“And people can now go and ask, okay, fine, what is the price of, even now at ₦1,350? Okay, the price in Niger is 20 to 25 per cent more than Nigeria,” he said.
He questioned what other legitimate business could offer such an instant return.
“So, what business are you going to do that will make you have an instant 25 per cent return?” he asked.
Dangote also explained how petrol meant for domestic distribution could be diverted toward the border for sale in neighboring countries.
“So, 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.
“Actually, they don’t have.”
According to Dangote, this results in a product that should be available to Nigerians being moved out of the country because of the higher prices obtainable across the border.
Beyond price issues, Dangote warned that the current crisis in the Middle East could pose a different challenge to Nigeria’s downstream market.
He cautioned that the concern may shift from fuel cost to whether enough volume will be available to consumers.
“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.
This comes amid concerns about how Middle East developments might impact global energy markets, including the supply and cost of petroleum products.
When asked if Nigerians should worry about fuel supplies, Dangote said his refinery is prepared to meet domestic demand.
“We will deliver to Nigeria. Nigerians don’t need to worry. There will not be any shortage from our own part.
“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.
This came as investors flocked to the Nigerian Exchange on Monday after the initial public offering of the Dangote Petroleum Refinery and Petrochemicals opened.
The ₦2.15 trillion IPO was officially launched during the opening gong ceremony at the NGX trading floor in Marina, Lagos, with Dangote ringing the gong to mark the start.
This refinery is the first to be offered to investors on the Nigerian stock market in its 66-year history.
The IPO includes 4.1 billion ordinary shares priced at ₦525 each, with a minimum subscription of 10 shares valued at ₦5,250.
The offer is open to retail, institutional, and eligible African investors, closing on October 13, 2026.
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