President of Dangote Industries Limited, Aliko Dangote, has attributed the relatively high price of petrol in Nigeria partly to the continued smuggling of the commodity to neighbouring countries where it sells at significantly higher prices.
Dangote made the remarks in an interview aired on Arise TV on Tuesday while discussing petrol prices and the availability of the product amid the ongoing crisis in the Middle East.
According to him, petrol prices in neighbouring countries are between 30 and 50 per cent higher than in Nigeria, creating a strong incentive for traders to move the product across the country’s borders for resale.
He specifically cited Niger, where he said petrol sells for about 20 to 25 per cent more than in Nigeria.
Dangote argued that the price difference makes petrol smuggling financially attractive, as traders can make significant returns by buying the product in Nigeria and selling it across the border.
He explained that some traders allegedly disguise the destination of petrol shipments as locations within Nigeria before diverting them to border communities such as Ilela in Sokoto State.
“Expensive is relative,” Dangote said, urging Nigerians to compare domestic petrol prices with those in neighbouring countries before assessing whether the commodity is expensive.
The businessman also warned that the ongoing crisis in the Middle East could create a more serious challenge for Nigeria’s downstream petroleum sector, shifting the concern from the price of petrol to the availability of sufficient volumes.
Dangote’s comments come amid continued concerns over petrol prices in Nigeria despite increased domestic refining capacity, including production from the Dangote Refinery.
He maintained that the significant price disparity between Nigeria and neighbouring countries remains a major incentive for the cross-border movement of petrol.
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