Aliko Dangote, President of Dangote Industries Limited, has attributed the high price of petrol in Nigeria partly to the continued smuggling of the commodity to neighbouring countries where it sells at significantly higher prices.
Dangote said petrol prices in neighbouring countries were between 30 and 50 per cent higher than in Nigeria, creating a strong financial incentive for traders to move the product across the borders.
He made the remarks during an interview aired on Arise TV on Tuesday while discussing petrol prices and product availability amid the ongoing crisis in the Middle East.
Explaining why Nigerians may consider petrol expensive despite the country’s domestic production, Dangote said the price should be assessed alongside prices in neighbouring countries.
He said there was still “a lot of smuggling” of petrol produced in Nigeria to neighbouring countries because of the significant price disparity.
“Because those neighbouring countries are about 30 to 50 per cent more expensive than Nigeria. So, it’s not actually like for like,” he said.
Dangote specifically cited Niger, where he said petrol was selling at a premium of between 20 and 25 per cent compared with Nigeria.
He said the price difference made cross-border smuggling financially attractive because petrol purchased in Nigeria could be resold at a substantial premium in neighbouring markets.
He questioned what other legitimate business could generate such an immediate return.
“So, what business are you going to do that will make you have an instant 25 per cent return?” he asked.
Dangote, however, warned that the major concern going forward might not be the price of petrol but its availability, particularly amid the 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.
His comments came as investors subscribed to the initial public offering of Dangote Petroleum Refinery and Petrochemicals on the Nigerian Exchange.
The N2.15 trillion IPO was formally opened during the opening gong ceremony at the NGX trading floor in Marina, Lagos, with Dangote sounding the 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 IPO comprises 4.1 billion ordinary shares offered at N525 per share, with a minimum subscription of 10 shares valued at N5,250.
The offer is open to retail, institutional and eligible African investors and is scheduled to close on 13 October 2026.
