Aliko Dangote: Nigerians Buy Cheaper Petrol While Neighbours Pay Up to 50% More

Businessman Aliko Dangote has said petrol remains relatively cheaper in Nigeria than in neighbouring countries, arguing that the significant price difference is encouraging the continued smuggling of petroleum products across the country’s borders.

Dangote made the remarks during an interview with Arise TV while discussing petrol prices, domestic supply and the impact of the ongoing Middle East crisis on Nigeria’s downstream petroleum sector. He said petrol in neighbouring countries can cost between 30 and 50 per cent more than in Nigeria.

Aliko Dangote Points to Price Difference as Smuggling Incentive

Aliko Dangote argued that the cost of petrol in Nigeria should be considered alongside prices in neighbouring countries. He said the large price gap creates a strong financial incentive for traders to move petrol out of Nigeria and sell it in markets where it commands a higher price.

Using Niger as an example, Dangote said petrol at about ₦1,350 per litre in Nigeria could sell for roughly 20 to 25 per cent more there. He questioned what other legitimate business could provide such an immediate return, describing the price difference as one factor behind continued cross-border fuel smuggling.

Aliko Dangote Warns of Supply Pressure Despite Local Refining

Aliko Dangote also warned that the issue facing Nigeria’s downstream petroleum market could increasingly become one of availability rather than price, particularly because of developments surrounding the Middle East crisis and their potential impact on global energy markets.

Despite the concerns, Dangote assured Nigerians that the Dangote Refinery would continue supplying the domestic market and said consumers should not expect shortages or queues from his refinery. His comments came as the ₦2.15 trillion initial public offering of Dangote Petroleum Refinery and Petrochemicals opened on the Nigerian Exchange.

For OGM News NG, Aliko Dangote’s remarks have placed Nigeria’s petrol price gap and cross-border smuggling back at the centre of the fuel debate. While cheaper domestic petrol may benefit Nigerian consumers, the businessman’s argument highlights how a large price difference with neighbouring markets can create incentives for fuel to leave the country.