President of Dangote Industries Limited, Aliko Dangote, has linked the high cost of petrol in Nigeria partly to the continued smuggling of the product into neighbouring countries where it commands higher prices.
Dangote said petrol sells for between 30 and 50 per cent more in some neighbouring countries than in Nigeria, creating a lucrative incentive for traders to move the product across the borders.
He spoke in an interview aired on Arise TV on Tuesday, September 15, while discussing petrol prices, supply and the potential impact of the ongoing crisis in the Middle East.
Responding to concerns about why Nigerians still consider petrol expensive despite domestic production, Dangote said the cost should be viewed in relation to prices 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 price disparity had continued to encourage the movement of petrol out of Nigeria.
“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, the substantial price difference makes it more profitable for smugglers to sell Nigerian petrol across the border than 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 mentioned Niger, saying petrol there was selling at a premium of between 20 and 25 per cent compared with Nigeria.
“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 what legitimate business could generate such a return almost immediately.
“So, what business are you going to do that will make you have an instant 25 per cent return?” he asked.
He explained that petrol distributors could allegedly exploit the situation by claiming that supplies were destined for locations within Nigeria before diverting them towards border communities.
“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.”
Dangote said such activities could reduce the amount of petrol available to Nigerian consumers as supplies are diverted to markets where higher prices can be obtained.
However, he said the Middle East crisis presented a different challenge for the Nigerian downstream sector, warning that the immediate concern could become product availability rather than price.
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“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.
On concerns over petrol supply, he 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.
“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,” Dangote added.
His comments came a day after the opening of the N2.15tn initial public offering of Dangote Petroleum Refinery and Petrochemicals on the Nigerian Exchange.
The IPO was launched at the NGX trading floor in Marina, Lagos, with Dangote sounding the opening gong.
The refinery is the first petroleum refinery to offer shares to investors on the Nigerian stock market in the 66-year history of the Nigerian Exchange.
The offer comprises 4.1 billion ordinary shares priced at N525 each, 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 October 13, 2026.