Aliko Dangote, president of Dangote Industries Limited, says petrol is relatively cheaper in Nigeria, with the price difference encouraging the smuggling of the product to neighbouring countries where it sells for 30 to 50 percent more.
Dangote spoke in an interview with Arise TV on Tuesday.
Responding to questions on why petrol prices are rising in Nigeria, Dangote said Nigerians should compare the domestic price with what consumers pay in neighbouring countries before determining whether the product is expensive.
“Well, you know, the “expensive” is relative in the sense that today, for a lot of them, there’s ignorance also. What they need to do is to ask what the neighbour’s price is,” he said.
“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 because those neighbouring countries are about 30 percent to 50 percent more expensive than Nigeria. So it’s actually not like for like.”
The entrepreneur said the price difference creates an incentive for traders to move petrol across the border for higher returns.
“And people can now ask, what is the price even now at N1,350? The price in Niger is 20 to 25 percent more than in Nigeria. So what business are you going to do that will make you a 25 percent return?” Dangote asked.
“So it means that you take the list, and take it across the border. You pretend you are taking it to Sokoto, take it to Ilela, and you sell it.”
Dangote also warned that the ongoing crisis in the Middle East could create concerns beyond petrol prices, saying availability could become a bigger issue.
He, however, assured Nigerians that the Dangote refinery would continue supplying the domestic market.
“We will make sure that Nigeria will be fully, you know, I mean, delivered. We will deliver to Nigeria. Nigerians don’t need to worry,” Dangote said.
“There will not be any shortage from our own part. There won’t be any shortage. There will not be any queues.
“And we’ll make sure that we keep satisfying the market.”
On Monday, petrol prices increased across several filling stations, rising to N1,400 per litre in Lagos and N1,450 per litre in Abuja.
‘INCONSISTENT POLICIES, EPILEPTIC POWER SUPPLY BIGGEST CHALLENGES FACING NIGERIA’
Dangote said inconsistent government policies and inadequate electricity supply remain two of the biggest challenges facing businesses in Nigeria.
“The greatest problem, there are two, which are still existing. One is inconsistencies in government policies. The second one is to do with lack of electricity,” the billionaire said.
He said the high cost of alternative energy sources, particularly diesel, was making it increasingly difficult for manufacturers to remain profitable.
“You cannot manufacture goods with diesel. You can see where diesel is today. You can’t even produce bread and make money today. So, we have to look at that today,” Dangote said.
The businessman also highlighted the scale of Africa’s electricity deficit, saying millions of Africans still lack access to electricity.
“We must make sure, even for us, really, as Africans, we cannot sit down and see that everybody is complaining. 600 million of our people, they actually don’t have power,” he added.
Dangote said the challenge had prompted some business leaders to consider taking direct action to address the continent’s power deficit.