The continued smuggling of petrol to neighbouring countries is one of the reasons the commodity remains expensive in Nigeria, President of Dangote Industries Limited, Aliko Dangote, has said.
Dangote explained that petrol sells for between 30 and 50 per cent more in some neighbouring countries, creating an incentive for traders to move products purchased in Nigeria across the borders for higher profits.
He spoke in an interview aired on Arise TV on Tuesday, amid concerns over petrol prices and product availability following the ongoing crisis in the Middle East.
According to him, the cost of petrol in Nigeria should be assessed against prices in neighbouring countries.
“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 specifically cited Niger Republic, where he claimed petrol was selling for between 20 and 25 per cent above the Nigerian price.
Using a hypothetical Nigerian pump price of N1,350 per litre, he said the price difference could make cross-border smuggling highly profitable.
“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.
He added, “What business are you going to do that will make you have an instant 25 per cent return?”
Dangote alleged that some traders disguise the destination of petrol shipments meant for the Nigerian market, claiming they are transporting the product to places such as Sokoto before diverting it to border towns like Ilela for sale to buyers from neighbouring countries.
The businessman, however, warned that the Middle East crisis could create a more serious challenge for Nigeria’s downstream sector, saying the major concern might become product availability rather than price.
“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.
He nevertheless 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,” he added.
Dangote spoke as investors continued to subscribe to the N2.15tn initial public offering of Dangote Petroleum Refinery and Petrochemicals.
The IPO, which opened on Monday during the opening gong ceremony at the Nigerian Exchange trading floor in Lagos, comprises 4.1 billion ordinary shares offered at N525 per share.
The minimum subscription is 10 shares valued at N5,250, while the offer is open to retail, institutional and eligible African investors.
The offer is scheduled to close on October 13, 2026.
- Dangote blames petrol smuggling for high prices in Nigeria - September 15, 2026
- 2 newly deployed policemen killed in Benue ambush - September 15, 2026
- Six parties set for Kano Assembly by-election - September 15, 2026
