Aliko Dangote
Dangote says petrol sells 20-50% higher in neighbouring countries, creating a lucrative incentive for smugglers, while assuring Nigerians that his refinery will prevent supply shortages despite Middle East tensions
President of Dangote Industries Limited, Aliko Dangote, has attributed the continued high cost of petrol in Nigeria partly to persistent smuggling of the commodity across the country’s borders, saying significantly higher prices in neighbouring countries are creating a powerful incentive for traders to divert petrol meant for Nigerian consumers.
Dangote made the disclosure in an interview aired on Arise TV on Tuesday while speaking on petrol prices, domestic supply and the possible impact of the ongoing crisis in the Middle East on the Nigerian downstream petroleum sector.
According to him, the price of petrol in neighbouring countries is substantially higher than in Nigeria, with the difference creating an opportunity for smugglers to buy the product locally and resell it across the border at a considerable profit.
“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?” Dangote said.
He explained that despite increased domestic production, the price of petrol in Nigeria cannot be assessed in isolation because of the wide disparity between local prices and those obtainable in neighbouring markets.
“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.
Dangote said petrol prices in some neighbouring countries could be between 30 and 50 per cent higher than Nigeria’s, making cross-border diversion financially attractive.
“Because those neighbouring countries are about 30 to 50 per cent more expensive than Nigeria. So, it’s not actually like for like,” he stated.
He specifically cited Niger Republic, where he said petrol was selling for about 20 to 25 per cent more than the Nigerian price.
Using a petrol price of N1,350 as an example, Dangote said the price differential could provide traders with an almost immediate return simply by moving the commodity across the border.
“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.
“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 petrol intended for Nigerian consumers could be loaded under the guise of being transported to a domestic destination before being diverted towards border communities for sale 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,” Dangote said.
He added that such diversion could contribute to reduced availability of petrol within Nigeria, as part of the product supplied for domestic consumption ends up in foreign markets where it commands a higher price.
Beyond the issue of pricing, however, Dangote warned that the unfolding crisis in the Middle East could present a more serious challenge to the global and Nigerian petroleum markets, particularly in terms of product availability.
According to him, the concern may increasingly shift from the price Nigerians pay for petrol to whether adequate volumes of the commodity will remain available.
“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.
Despite the concerns, Dangote assured Nigerians that the Dangote Refinery was prepared to continue supplying the domestic market and would work to prevent shortages and queues.
“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,” Dangote added.
His comments come at a time of heightened attention on Nigeria’s petroleum market, with consumers closely watching pump prices and supply levels amid international energy-market uncertainties.
The development also coincides with the commencement of the initial public offering of Dangote Petroleum Refinery and Petrochemicals on the Nigerian Exchange.
The N2.15 trillion 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 has become 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.
For Nigerians, however, the central question remains whether increased domestic refining capacity will ultimately translate into more affordable and consistently available petrol. Dangote’s position is that the supply equation can be strengthened, but as long as a significant price gap persists between Nigeria and its neighbours, the economic incentive to move petrol across the borders will remain a major challenge.
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