Aliko Dangote, President of Dangote Industries Limited, has attributed the high cost of petrol in Nigeria partly to the significant price difference between the country and some neighbouring nations.
Dangote also warned that the ongoing crisis in the Middle East could create a bigger challenge for Nigeria’s petrol market in terms of availability rather than price.
Speaking in an interview aired by Arise TV, the businessman said disruptions linked to the Middle East crisis could put pressure on global petroleum supply chains.
According to him, the situation could eventually make the availability of petrol a greater concern for consumers and businesses.
Dangote said the price gap between Nigeria and neighbouring countries has also encouraged the movement of petrol across the borders.
He estimated that petrol prices in some neighbouring countries are between 30 and 50 per cent higher than in Nigeria, creating an incentive for illegal cross-border trade.
He cited Niger Republic as an example, saying petrol could sell there for about 20 to 25 per cent more than in Nigeria.
Using a petrol price of ₦1,350 per litre in Nigeria as an illustration, Dangote questioned how many legitimate businesses could generate an immediate return of about 25 per cent.
He explained that the price difference could encourage traders to divert petrol meant for the Nigerian market to border communities, where the product can be sold at higher prices.
Despite the concerns over possible supply pressures, Dangote assured Nigerians that the Dangote Petroleum Refinery would continue supplying the domestic market.
He said the refinery would maintain supplies and work to prevent shortages and queues, despite challenges arising from the international market.
The comments come as the Dangote Petroleum Refinery and Petrochemicals commenced a ₦2.15 trillion initial public offering on the Nigerian Exchange.
The offer consists of 4.1 billion ordinary shares priced at ₦525 each, with a minimum subscription of 10 shares valued at ₦5,250.
The IPO is open to retail, institutional and eligible African investors and is scheduled to close on October 13, 2026.
The offering is also described in the source as the first petroleum refinery to be offered to investors on the Nigerian stock market in the 66-year history of the Nigerian Exchange.
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