President of Dangote Industries Limited, Aliko Dangote, has attributed the continued high cost of petrol in Nigeria partly to the smuggling of the product into neighbouring countries, where it sells at higher prices.
Dangote made the disclosure during an interview with Arise Television on Tuesday while discussing petrol prices, domestic supply and the potential impact of the ongoing crisis in the Middle East.
According to him, petrol prices in some neighbouring countries are between 30 and 50 per cent higher than in Nigeria, creating a strong financial incentive for traders to move the product across the border for resale.
He specifically cited Niger, where he said petrol could sell for between 20 and 25 per cent more than the Nigerian price. Using a Nigerian price of ₦1,350 per litre as an example, Dangote said the price difference makes cross-border smuggling highly profitable.
He explained that petrol intended for the Nigerian market could be diverted towards border communities and sold to buyers in neighbouring countries rather than reaching its intended domestic destination.
Dangote also argued that the cost of petrol should be considered in comparison with prices in neighbouring countries, rather than viewed only from the perspective of the Nigerian market.
Beyond domestic pricing, he warned that the Middle East crisis could create another challenge for the petroleum sector, with the major concern potentially shifting from price to the availability of petroleum products.
Despite the uncertainty, Dangote assured Nigerians that his refinery would continue supplying the domestic market and said there would be no shortage or fuel queues from his facility.
The comments come amid renewed concerns over petrol prices following recent adjustments in the domestic market. They also come shortly after the Dangote Petroleum Refinery and Petrochemicals opened its ₦2.15 trillion initial public offering on the Nigerian Exchange.
