The continued smuggling of petrol across Nigeria’s borders to countries where the fuel commands significantly higher prices is partly responsible for high domestic fuel costs, according to the President of Dangote Industries Limited, Aliko Dangote.
Speaking during an interview on Arise Television on Tuesday, Dangote explained that petrol prices in neighbouring nations are 30 to 50 per cent higher than in Nigeria. This substantial price differential, he argued, creates a lucrative incentive for traders to illegally divert products out of the domestic supply chain instead of selling them locally.
Dangote highlighted the trade dynamics along border towns to illustrate how petrol meant for internal distribution is routinely rerouted. “You pretend you are taking it to Sokoto, you go and just take it to Ilela, and you sell,” he said, questioning what legitimate enterprise could generate such “an instant 25 per cent return.” He noted that in Niger, for instance, petrol commands a premium of 20 to 25 per cent over the domestic price of ₦1,350. Addressing public perceptions of high fuel costs, he added: “What they need to do is ask, what is the neighbour’s price?”
Beyond cross-border illicit trade, the industrialist warned that escalating volatility in the Middle East could shift market pressures from pricing concerns to product availability. He cautioned that the primary threat confronting the downstream sector could soon center on securing actual physical supply.
Despite potential global market disruptions, Dangote assured domestic consumers that the Dangote Petroleum Refinery is fully equipped to meet local demand. He affirmed: “We will deliver to Nigeria. Nigerians don’t need to worry. There will not be any shortage from our own part.”
The comments coincide with a historic milestone on the Nigerian Exchange, where investors flooded the trading floor in Marina, Lagos, on Monday for the opening of the Dangote Petroleum Refinery and Petrochemicals Initial Public Offering.
Dangote sounded the official gong to launch the landmark ₦2.15 trillion public offer, the first petroleum refinery listing in the Exchange’s 66-year history. The offering comprises 4.1 billion ordinary shares priced at ₦525 per share, with a minimum entry threshold of 10 shares valued at ₦5,250. The share offer, open to retail, institutional, and eligible pan-African investors, is scheduled to close on 13 October 2026.