By Agbonavbare Victor Omoregbe

President of Dangote Industries Limited, Aliko Dangote, has attributed the high price of petrol in Nigeria partly to the continued smuggling of the commodity to neighbouring countries where it sells for significantly more.

Dangote said petrol prices in neighbouring countries were between 30 and 50 per cent higher than in Nigeria, arguing that the price difference creates a strong financial incentive for traders to move petrol out of the country.

He stated this in an interview  on Tuesday while speaking about petrol prices and the availability of the product 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 considered in isolation from the prices in neighbouring countries.

He said the continued movement of Nigerian petrol across the borders was partly driven by the significant difference between domestic prices and those obtainable in neighbouring countries.

The price gap means that petrol bought in Nigeria can potentially be resold across the border at a substantial premium. Dangote said this creates an incentive for smugglers to divert petrol meant for the Nigerian market rather than sell it domestically.

Dangote specifically cited Niger, where he said petrol was selling at a premium of between 20 and 25 per cent compared with Nigeria.

He further used the example to illustrate why the border trade could be financially attractive, particularly when the price difference is large enough to provide an immediate return on the commodity.

He questioned what other legitimate business could provide such an immediate return.

Dangote further explained how petrol intended for domestic distribution could allegedly be diverted towards the border for sale to buyers in neighbouring countries.

The implication, according to Dangote, is that a product that should remain available to Nigerian consumers can be moved out of the country because of the higher prices obtainable across the border.

Beyond the issue of price, however, Dangote said the current crisis in the Middle East could pose a different challenge to the Nigerian downstream market.

He warned that the major concern could shift from how much petrol costs to whether sufficient volumes would be available to consumers.

The comment comes against the backdrop of concerns over how developments in the Middle East could affect global energy markets, including the availability and cost of petroleum products.

Asked whether Nigerians should be worried about petrol supplies, Dangote said the Dangote refinery was prepared to continue meeting domestic demand.

The remarks came as investors flooded the Nigerian Exchange on Monday following the opening of the initial public offering of Dangote Petroleum Refinery and Petrochemicals.

The 2.15trillion naira IPO was formally opened during the opening gong ceremony at the NGX trading floor in Marina, Lagos, with Dangote sounding the gong to mark the commencement of the offer.

The refinery became the first petroleum refinery to be offered to investors on the Nigerian stock market in the Exchange’s 66-year history.

The IPO comprises 4.1 billion ordinary shares offered at 525naira per share, with a minimum subscription of 10 shares valued at 5,250naira.

The offer is open to retail, institutional and eligible African investors and is scheduled to close on October 13, 2026.