President of Dangote Industries Limited, Aliko Dangote, has attributed the high price of petrol in Nigeria partly to the continued smuggling of the commodity to neighbouring countries, where it sells for significantly more.
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 country’s borders for resale.
He made the remarks in 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 ability to produce the commodity domestically, Dangote said prices could not be assessed in isolation from those in neighbouring 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 said the significant price differential was sustaining the movement of Nigerian petrol across the borders.
“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.”
According to Dangote, petrol prices in neighbouring countries are about 30 to 50 per cent higher than in Nigeria, making cross-border smuggling potentially more lucrative than selling the product within the domestic market.
“Because those neighbouring countries are about 30 to 50 per cent more expensive than Nigeria. So, it’s not actually like for like.”
He specifically cited Niger, where he said petrol was selling for between 20 and 25 per cent more than in Nigeria.
Dangote used the price difference to illustrate the financial incentive for traders to move petrol across the border, particularly when the potential return is immediate.
“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.
“So, what business are you going to do that will make you have an instant 25 per cent return?” he asked.
Dangote further alleged that some petrol intended for domestic distribution was being diverted to border communities for resale in neighbouring 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.”
He said the practice could reduce the volume of petrol available to Nigerian consumers, as products intended for the domestic market are instead moved across the border in pursuit of higher returns.
Middle East crisis could threaten availability
Beyond the issue of pricing, Dangote warned that the ongoing crisis in the Middle East could create a different challenge for Nigeria’s downstream petroleum market.
He said the key concern going forward may be 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.
His comments come amid concerns over the potential impact of developments in the Middle East on global energy markets, including the supply and cost of petroleum products.
Asked whether Nigerians should be worried about petrol availability, Dangote assured consumers that the Dangote refinery would continue to supply the domestic market.
“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,” he added.
Dangote refinery opens ₦2.15tn IPO
Dangote spoke as investors flooded the Nigerian Exchange on Monday following the opening of the initial public offering of Dangote Petroleum Refinery and Petrochemicals.
The ₦2.15tn IPO was formally launched 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 is the first petroleum refinery to be offered to investors on the Nigerian stock market in the Exchange’s 66-year history.
The offer comprises 4.1 billion ordinary shares priced at ₦525 each, with a minimum subscription of 10 shares valued at ₦5,250.
The IPO is open to retail, institutional and eligible African investors and is scheduled to close on October 13, 2026.
