Dangote Industries Limited President, Aliko Dangote, has linked the high cost of petrol in Nigeria partly to the continued smuggling of the product into neighbouring countries, where prices are considerably higher.
Speaking in an interview on Arise TV on Tuesday, Dangote said petrol sells for between 30 and 50 per cent more in some neighbouring countries, creating a strong incentive for traders to move fuel across Nigeria’s borders.
He argued that petrol prices in Nigeria should not be assessed in isolation, especially given the disparity with prices in nearby markets.
“Expensive is relative,” Dangote said. “What people need to do is ask: what is the neighbour’s price?”
According to him, the price gap has encouraged the diversion of petrol meant for the Nigerian market.
He said fuel purchased locally can be resold across the border at a significant premium.
“There is still a lot of smuggling of the same petrol we are producing to our neighbouring countries,” he said.
“Those neighbouring countries are about 30 to 50 per cent more expensive than Nigeria, so it is not actually like-for-like.”
Dangote cited Niger as an example, saying petrol there was selling at between 20 and 25 per cent above Nigerian prices, even when local prices were around N1,350 per litre.
He said the difference offers smugglers an immediate and attractive return.
“What business are you going to do that will give you an instant 25 per cent return?” he asked.
Dangote alleged that some distributors divert fuel intended for domestic destinations to border communities instead.
“You pretend you are taking it to Sokoto, but you take it to Ilela and sell it,” he said.
He added that the movement of petrol out of Nigeria could reduce the volumes available to local consumers.
Beyond pricing, Dangote warned that the ongoing Middle East crisis could pose a more serious threat to Nigeria’s downstream oil sector by affecting product availability.
“The problem going forward is not even about price; it is about availability,” he said.
However, he assured Nigerians that the Dangote refinery would continue to supply the domestic market and prevent shortages.
“We will deliver to Nigeria. Nigerians do not need to worry,” Dangote said. “There will not be any shortage from our own part. There will not be queues. We will make sure that we keep satisfying the market, despite all odds.”
His comments came as investors showed strong interest in the initial public offering of Dangote Petroleum Refinery and Petrochemicals on the Nigerian Exchange.
The N2.15 trillion IPO was formally launched at the NGX trading floor in Marina, Lagos, where Dangote rang the opening bell 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 N525 each, with a minimum subscription of 10 shares valued at N5,250.
It is open to retail, institutional and eligible African investors and is scheduled to close on October 13, 2026.
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
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