President of Dangote Industries Limited, Aliko Dangote, has attributed the relatively high cost of petrol in Nigeria partly to the continued smuggling of the commodity to neighbouring countries, where it commands significantly higher prices.
Dangote said the price disparity, which he put at between 30 and 50 per cent in some neighbouring countries, creates a strong incentive for traders to divert petrol from the Nigerian market and sell it across the borders for higher returns.
He made the disclosure in an interview with Arise TV on Tuesday while discussing petrol prices, domestic supply and the potential impact of the ongoing crisis in the Middle East on petroleum products.
According to him, the cost of petrol in Nigeria should be assessed against prevailing prices in neighbouring countries, stressing that the commodity remains relatively cheaper domestically.
“Expensive is relative. Today, a lot of them, there’s ignorance also. What they need to do is ask, what is the neighbour’s price?” he said.
Dangote said there was still significant smuggling of petrol produced in Nigeria into neighbouring countries because of the substantial price differential.
“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,” he said.
He specifically cited Niger Republic, where he said petrol was selling for between 20 and 25 per cent more than in Nigeria.
Using a Nigerian pump price of N1,350 as an example, the businessman said the price differential made cross-border diversion financially attractive to smugglers.
“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.
He questioned what legitimate business could guarantee such an immediate return.
“So, what business are you going to do that will make you have an instant 25 per cent return?” Dangote asked.
He further explained that some traders allegedly obtain petrol ostensibly for distribution to locations within Nigeria before diverting the product to border communities for sale to buyers from neighbouring countries.
“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,” he said.
Dangote warned that the practice could undermine domestic supply by diverting petrol intended for Nigerian consumers to markets where higher prices can be obtained.
However, he said the bigger challenge facing the downstream petroleum sector in the coming period may not necessarily be the price of petrol but its availability, amid the continuing conflict and instability 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.
On concerns over possible petrol shortages, Dangote 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.
His comments came as trading commenced on Monday for the initial public offering of Dangote Petroleum Refinery and Petrochemicals on the Nigerian Exchange.
The N2.15tn 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 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 per share, with a minimum subscription of 10 shares valued at N5,250.
The IPO is open to retail, institutional and eligible African investors and is scheduled to close on October 13, 2026.
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