Dangote Highlights Cross-Border Smuggling Risks Amid Price Hike

On September 12, Dangote Petroleum Refinery raised its petrol price from N1,265 to N1,350 per litre, marking an N85 or 6.7 percent increase. Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, stated that despite this increase, petrol remains cheaper in Nigeria compared to neighboring countries, where prices can be 30-50 percent higher.

For instance, petrol in Niger is approximately 20-25 percent more expensive than Nigeria's current price, translating to a potential price of about N1,688 per litre in Niger. This price differential creates a significant incentive for traders to smuggle petrol across borders, as they can achieve substantial profits by purchasing in Nigeria and selling in more expensive markets.

Dangote emphasized the economic rationale behind this smuggling, questioning what other business could yield an instant 25 percent return.