Dangote: Smuggling Drives High Petrol Prices in Nigeria

Aliko Dangote, President of Dangote Industries Limited, stated that the high price of petrol in Nigeria is partly due to the smuggling of petrol to neighboring countries, where it sells for 30-50% more. In an interview on Arise TV, he explained that this price disparity creates a financial incentive for traders to move petrol out of Nigeria.

Dangote highlighted that petrol prices in countries like Niger are 20-25% higher than in Nigeria, making it attractive for smugglers to divert petrol intended for the domestic market. He emphasized that the perception of high petrol prices in Nigeria should be viewed in the context of these neighboring prices.

Dangote noted that the ongoing smuggling undermines the availability of petrol for Nigerian consumers, as traders can achieve significant returns by selling across the border. He questioned what other legitimate business could offer such immediate returns, illustrating the economic pressures affecting petrol distribution in Nigeria.