Dangote: Petrol Smuggling to Neighbours Driving Up Nigeria’s Fuel Prices

The 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 at significantly higher prices.

Dangote said petrol prices in some neighbouring countries were 30 to 50 per cent higher than in Nigeria, creating a strong financial incentive for traders to move the product across the borders for profit.

He stated this in an interview aired on Arise TV on Tuesday while speaking on petrol prices, supply and the possible impact of the ongoing crisis in the Middle East on Nigeria’s downstream petroleum sector.

According to him, the cost of petrol in Nigeria should be viewed in comparison with prices in neighbouring countries.

“You know, expensive is relative. In the sense that today, maybe, a lot of them, there’s ignorance also. What they need to do is ask, what is the neighbour’s price?”

Dangote said the significant price gap had continued to encourage the diversion of petrol meant for domestic consumption to neighbouring countries.

“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 specifically cited Niger, where he said petrol was selling 20 to 25 per cent higher than in Nigeria.

Using a hypothetical Nigerian pump price of ₦1,350 per litre, Dangote explained that the price difference could provide smugglers with an immediate and substantial return on their investment.

“So, what business are you going to do that will make you have an instant 25 per cent return?” he asked.

He further explained that some traders allegedly disguise the destination of petrol consignments, claiming they are taking the product to locations within Nigeria before diverting them to border communities for sale in neighbouring countries.

According to Dangote, such activities reduce the volume of petrol available to Nigerian consumers and create additional pressure on the domestic market.

However, he warned that the ongoing crisis in the Middle East could create a different challenge for the Nigerian downstream sector, with availability rather than price potentially becoming the major concern.

“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.

Dangote, however, assured Nigerians that the Dangote Refinery was prepared to continue supplying the domestic market despite possible disruptions in the global energy market.

“We will deliver to Nigeria. Nigerians don’t need to worry. There will not be any shortage from our own part.”

He added:

“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.”

The comments came as the ₦2.15 trillion Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals opened on the Nigerian Exchange on Monday.

Dangote formally opened the offer during the opening gong ceremony at the NGX trading floor in Marina, Lagos.

The refinery has become the first petroleum refinery to be offered to investors on the Nigerian stock market in the 66-year history of the Nigerian Exchange.

The IPO comprises 4.1 billion ordinary shares at ₦525 per share, with a minimum subscription of 10 shares valued at ₦5,250.

The offer is open to retail, institutional and eligible African investors and is scheduled to close on October 13, 2026.