President of Dangote Industries Limited, Aliko Dangote, has linked the high cost of petrol in Nigeria partly to the continued movement of the commodity across the country’s borders.
Dangote said petrol sells for considerably more in neighbouring countries, creating a lucrative opportunity for traders to buy the product in Nigeria and resell it outside the country.
He made the disclosure during an interview aired on Arise TV on Tuesday while discussing petrol prices, domestic supply and the possible impact of the ongoing crisis in the Middle East on petroleum products.
According to Dangote, the cost of petrol in Nigeria should be assessed alongside prices in surrounding countries rather than viewed in isolation.
Dangote said petrol prices in some neighbouring countries were between 30 and 50 per cent higher than the prices obtainable in Nigeria.
He argued that such a wide price gap naturally creates an incentive for the illegal diversion of petrol from the domestic market.
“You know, expensive is relative,” Dangote said, urging Nigerians to compare the local price with what consumers pay in neighbouring countries.
He added that significant volumes of petrol were still being smuggled out of Nigeria despite the country having domestic production capacity.
“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.
The Dangote Group chairman specifically pointed to Niger Republic as an example of the price disparity.
He said petrol in Niger could cost about 20 to 25 per cent more than the Nigerian price.
Using a pump price of N1,350 as an example, Dangote said the difference could provide a substantial profit opportunity for anyone moving the commodity across the border.
“And people can now go and ask, okay, fine, what is the price of, even now at N1,350? Okay, the price in Niger is 20 to 25 per cent more than Nigeria,” he said.
Dangote questioned why someone would ignore such an opportunity when legitimate businesses may not provide an immediate return of the same magnitude.
“So, what business are you going to do that will make you have an instant 25 per cent return?” he asked.
Dangote explained that petrol meant for Nigerian consumers could be diverted towards border communities where it is sold at higher prices.
He gave an example involving fuel transported under the guise of being taken to Sokoto but allegedly diverted towards Ilela on the Nigeria-Niger border.
“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,” he said.
According to Dangote, such movements reduce the quantity of petrol available for Nigerian consumers while allowing traders to benefit from price differences in neighbouring markets.
While discussing petrol prices, Dangote warned that the ongoing crisis in the Middle East could create a different challenge for the Nigerian downstream petroleum market.
He said the major concern may eventually shift from the price of petrol to whether sufficient quantities will be available.
“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 concerns over the potential effects of geopolitical tensions in the Middle East on international energy markets and petroleum supply chains.
Despite the potential challenges facing global energy markets, Dangote assured Nigerians that his refinery would continue supplying the domestic market.
He said the Dangote refinery was prepared to maintain deliveries and prevent a shortage of petrol.
“We will deliver to Nigeria. Nigerians don’t need to worry. There will not be any shortage from our own part,” he said.
Dangote also assured motorists that the refinery would work to prevent the return of long queues at filling stations.
“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.
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Dangote’s comments came as investors turned their attention to the Nigerian Exchange following the commencement of the initial public offering of Dangote Petroleum Refinery and Petrochemicals.
The N2.15tn offer was formally launched at the Nigerian Exchange trading floor in Marina, Lagos, during an opening gong ceremony attended by Dangote.
The refinery’s listing offer marks the first time a petroleum refinery has been offered to investors on the Nigerian stock market in the 66-year history of the Exchange.
The IPO consists of 4.1 billion ordinary shares priced at N525 each, with investors able to subscribe to a minimum of 10 shares valued at N5,250.
The offer is available to retail, institutional and eligible African investors and is scheduled to close on October 13, 2026.
