By Daniel Oluwatobiloba Popoola
President of Dangote Industries Limited, Aliko Dangote, has attributed the high cost of petrol in Nigeria partly to the smuggling of the commodity to neighbouring countries, where it sells at significantly higher prices.
He made the remarks in an interview aired on Arise TV on Tuesday, 15 September, 2026 while speaking on petrol prices and product availability amid the ongoing crisis in the Middle East.
Explaining why Nigerians may perceive petrol as expensive despite the country producing the commodity domestically.
Dangote said the price could not be viewed in isolation from prices in neighbouring countries, noting that petrol sold for between 30 and 50 per cent more in those countries than in Nigeria.
“You know, expensive is relative. What they need to do is ask, what is the neighbour’s price?” he said.
He explained that the wide price gap continued to drive the smuggling of Nigerian petrol across the country’s borders, as the product could be resold abroad at a substantial premium, creating a strong financial incentive for smugglers to divert supplies meant for the domestic market.
“There’s still a lot of smuggling of the same petrol we are producing to our neighbouring countries,” he said. “Those countries are about 30 to 50 per cent more expensive than Nigeria. So, it’s not actually like for like.”
Dangote specifically cited Niger Republic, where petrol sold at a premium of between 20 and 25 per cent compared with Nigeria, using the example to illustrate how attractive the border trade had become, given the scale of the returns involved.
“At N1,350, the price in Niger is 20 to 25 per cent more than Nigeria,” he said, questioning what legitimate business could offer such instant returns. “What business are you going to do that will make you have an instant 25 per cent return?”
He went further to explain how petrol meant for domestic distribution could allegedly be diverted to the border and sold under false pretences.
“You take the product, you go and take it across the border. You pretend you are taking it to Sokoto, but you just take it to Ilela and sell,” he said, implying that supplies meant for Nigerian consumers were instead being diverted abroad because of the price differential.
Beyond pricing, however, Dangote warned that the Middle East crisis could pose a more pressing challenge to Nigeria’s downstream sector, shifting concern from cost to availability.
“Going forward, I must also warn that this crisis in the Middle East is not even about price; it’s about availability,” he said.
Asked whether Nigerians should be worried about supplies, Dangote assured that the Dangote Refinery remained prepared to meet domestic demand despite the global uncertainty.
“We will deliver to Nigeria. Nigerians don’t need to worry. There will not be any shortage from our own part, and there will be no queues. We will make sure we keep satisfying the market, despite all odds,” he added.
The remarks came as investors thronged the Nigerian Exchange on Monday following the opening of the initial public offering of Dangote Petroleum Refinery and Petrochemicals.
The N2.15tn IPO was formally launched at the opening gong ceremony on the NGX trading floor in Marina, Lagos, with Dangote sounding the gong to mark the commencement of the offer.
The refinery thus became the first to be listed for investors on the Nigerian stock market in the Exchange’s 66-year history.
The IPO comprises 4.1 billion ordinary shares priced at N525 each, with a minimum subscription of 10 shares valued at N5,250. The offer, open to retail, institutional and eligible African investors, is scheduled to close on October 13, 2026.
