Why Petrol Remains Expensive In Nigeria — Dangote

President of Dangote Industries Limited, Aliko Dangote, has linked the high cost of petrol in Nigeria partly to the continued smuggling of the product to neighbouring countries where it sells at higher prices.

Dangote said petrol prices in some neighbouring countries were about 30 to 50 per cent higher than the prices in Nigeria, creating an incentive for traders to move the commodity across the borders for greater returns.

He made the remarks during an interview on Arise TV on Tuesday while discussing petrol prices, domestic supply and the possible impact of the ongoing crisis in the Middle East on petroleum markets.

Dangote explained that the cost of petrol in Nigeria should be viewed in relation to prices in neighbouring countries. He said the difference between domestic and foreign prices had encouraged the diversion of petrol meant for Nigerian consumers to markets across the borders.

He specifically cited Niger, where he said petrol was selling at about 20 to 25 per cent above the Nigerian price.

According to him, such a price difference provides a quick financial gain for those involved in cross-border petrol smuggling, making the illegal trade attractive compared with many legitimate businesses.

Dangote explained that some petrol distributors could claim to be transporting products to places such as Sokoto while actually taking the commodity towards border communities such as Ilela, where it could be sold to buyers from neighbouring countries.

He said the practice could reduce the quantity of petrol available to Nigerian consumers because products supplied for the domestic market are diverted to countries where they can command higher prices.

The businessman said the situation also explains part of the difficulty in keeping petrol within Nigeria at prices that reflect domestic market conditions, as traders are encouraged to move the product across the border whenever a large price gap exists.

Beyond the issue of domestic petrol prices, Dangote warned that developments arising from the Middle East crisis could create a more pressing challenge for the global and Nigerian petroleum markets.

He said the major concern going forward might not only be the price of petrol but also the availability of the product, depending on how the crisis affects international energy supply chains.

Dangote, however, assured Nigerians that his refinery was prepared to continue supplying the domestic market and would work to prevent shortages and long queues at filling stations.

He said the Dangote refinery would continue delivering petrol to the Nigerian market despite challenges arising from developments in the international oil industry.

His comments came as the Dangote Petroleum Refinery and Petrochemicals began its N2.15 trillion initial public offering on the Nigerian Exchange.

The offer was launched during the opening gong ceremony at the NGX trading floor in Marina, Lagos, with Dangote participating in the event.

The refinery’s share offer involves 4.1 billion ordinary shares priced at N525 each. The minimum subscription is 10 shares, valued at N5,250.

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

The listing process represents the first time a petroleum refinery has been offered to investors through the Nigerian stock market since the establishment of the Nigerian Exchange 66 years ago.