Petrol Smuggling Threatens Nigeria’s Fuel Supply, Dangote Warns

Aliko Dangote, President of Dangote Industries Limited, has blamed the continued smuggling of petrol to neighbouring countries for worsening the price pressure on Nigerian consumers, saying huge price differences across the borders are encouraging traders to move fuel out of the country.

Dangote said petrol sells 30 to 50 per cent higher in some neighbouring countries than in Nigeria, creating a lucrative incentive for smugglers to divert products meant for domestic consumers.

He made the disclosure during an interview aired on Arise TV on Tuesday while discussing petrol prices, fuel availability and the possible impact of the ongoing Middle East crisis on Nigeria’s downstream petroleum sector.

According to him, Nigerians should not assess the price of petrol in isolation without comparing it with prices in neighbouring countries.

“You know, expensive is relative. In the sense that today, maybe, you know, a lot of them, there’s ignorance also. What they need to do is ask, what is the neighbour’s price?” Dangote said.

He disclosed that substantial volumes of petrol produced in Nigeria were still being moved illegally across the country’s borders because of the opportunity to make quick profits.

“I don’t know if you know that there’s still a lot of smuggling of the same petrol we are producing to our neighbouring countries,” he said.

Dangote said the price disparity was particularly significant in some countries, where petrol could command a premium of between 30 and 50 per cent over Nigerian prices.

“Because those neighbouring countries are about 30 to 50 per cent more expensive than Nigeria. So, it’s not actually like for like,” he said.

Using Niger as an example, Dangote said petrol could sell for 20 to 25 per cent more than the prevailing Nigerian price.

He argued that such a margin creates a powerful incentive for illegal fuel traders seeking immediate returns.

“So, what business are you going to do that will make you have an instant 25 per cent return?” he asked.

Dangote explained that some traders could obtain petrol supposedly meant for distribution within Nigeria and then divert it towards border communities for sale in neighbouring countries.

He cited the route through Sokoto and Ilela, saying smugglers could claim that the product was being transported for domestic distribution before moving it across the border.

The Dangote Group president warned that such diversion could reduce the volume of petrol available to Nigerian consumers, particularly when the financial incentive to smuggle remains high.

Middle East crisis threatens availability

Beyond the issue of petrol prices, Dangote warned that the escalating crisis in the Middle East could create a more serious challenge for Nigeria’s downstream petroleum market.

According to him, the biggest concern going forward may not necessarily be the price of petrol but whether enough of the product will be available.

“And the problem now, going forward, I must also warn that this crisis in the Middle East is not even about price; it’s about availability,” Dangote said.

His warning comes amid growing concerns about the potential impact of geopolitical tensions in the Middle East on global energy markets, petroleum supply and prices.

However, Dangote assured Nigerians that his refinery would continue supplying the domestic market.

“We will deliver to Nigeria. Nigerians don’t need to worry. There will not be any shortage from our own part,” he said.

“There won’t be any shortage. There will not be any queues. We will make sure that we keep satisfying the market, despite all odds.”

Dangote refinery opens N2.15tn IPO

Dangote’s comments came as investors turned their attention to the N2.15tn initial public offering of Dangote Petroleum Refinery and Petrochemicals on the Nigerian Exchange.

The IPO was formally launched on Monday 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 has become the first petroleum refinery to be offered to investors on the Nigerian stock market in the Exchange’s 66-year history.

The offer comprises 4.1 billion ordinary shares at N525 per share, with a minimum subscription of 10 shares valued at N5,250.

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