Dangote: Petrol price gap fuels smuggling as Nigeria faces fresh pump price surge

Africa’s richest industrialist and President of Dangote Industries Limited, Aliko Dangote, has said the relatively lower price of petrol in Nigeria compared with neighbouring countries is encouraging cross-border smuggling of the product.

Dangote made the disclosure during an interview with Arise TV on Tuesday, while responding to concerns over rising petrol prices in Nigeria.

He argued that the affordability of petrol should be assessed against prices in neighbouring countries, where the product, according to him, sells between 30 and 50 percent higher than in Nigeria.

“Expensive is relative,” Dangote said, urging Nigerians to compare domestic petrol prices with those in neighbouring countries.

He said the price disparity creates an incentive for traders to move petrol across Nigeria’s borders and sell it at higher prices.

According to him, even at a domestic price of about N1,350 per litre, petrol in Niger Republic could be 20 to 25 percent more expensive, making cross-border arbitrage attractive.

Dangote explained that some traders could disguise their destination by claiming to be transporting petrol to Sokoto before diverting supplies towards the Ilela border for sale in neighbouring markets.

His comments came as petrol prices rose further at several filling stations across the country, with pump prices reaching about N1,400 per litre in Lagos and N1,450 in Abuja on Monday.

Dangote refinery assures Nigerians of supply

The Dangote refinery boss also expressed concern that the ongoing crisis in the Middle East could create challenges for global energy markets, with product availability potentially becoming a bigger concern than price.

He, however, assured Nigerians that the Dangote refinery would continue supplying the domestic market.

“We will make sure that Nigeria will be fully delivered. Nigerians don’t need to worry,” he said.

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“There will not be any shortage from our own part. There won’t be any shortage. There will not be any queues.”

He added that the refinery would continue working to meet domestic demand.

Policy inconsistency, power crisis threaten manufacturers

Beyond the petroleum market, Dangote identified inconsistent government policies and inadequate electricity supply as two major challenges confronting businesses in Nigeria.

“The greatest problem, there are two, which are still existing. One is inconsistencies in government policies. The second one is to do with lack of electricity,” he said.

He said manufacturers were being squeezed by the high cost of alternative energy sources, particularly diesel, warning that expensive energy was undermining the profitability of local production.

Dangote cited the baking industry as an example, saying high diesel costs could make it difficult for businesses to produce basic goods such as bread profitably.

Dangote raises alarm over Africa’s power deficit

The industrialist also drew attention to Africa’s electricity shortage, saying about 600 million people on the continent still lack access to electricity.

He said the scale of the deficit required stronger intervention and greater private-sector participation, noting that some African business leaders were increasingly considering direct involvement in addressing the continent’s power challenges.

His comments come amid continuing concerns over energy costs, petrol prices, electricity supply and the impact of higher operating expenses on Nigerian manufacturers and consumers.