Africa’s richest man and President of the Dangote Group, Aliko Dangote, has attributed the continued high cost of petrol in Nigeria partly to smuggling, saying significant quantities of petroleum products are moved across the country’s borders to neighbouring countries.
Dangote explained that the price difference between Nigeria and some neighbouring countries creates an incentive for traders to move petrol across the borders, putting additional pressure on the domestic market.
According to him, petrol prices in some neighbouring countries are between 30 and 50 per cent higher than prices in Nigeria. This price gap, he noted, makes it attractive for unscrupulous operators to engage in cross-border fuel trade.
The businessman’s comments come amid continuing concerns over the cost of petrol in Nigeria and the impact of fuel prices on transportation, food prices and household expenses.
With Nigeria now producing a significant portion of its refined petrol locally through the Dangote Petroleum Refinery, expectations had been high that increased domestic refining would
However, petrol prices remain influenced by several factors, including international crude oil prices, exchange-rate movements, transportation and distribution costs, as well as conditions in the regional fuel market.
Recent industry analysis has also shown that petrol pricing in Nigeria is increasingly linked to international market conditions and import parity, rather than refining costs alone.
Dangote has maintained that increased local refining is important for reducing Nigeria’s dependence on imported petroleum products and strengthening energy security.
The Dangote Refinery, which has a production capacity of up to 700,000 barrels per day, has become a major supplier of refined petroleum products to the Nigerian market. The facility is also expanding its operations as demand for locally refined products grows.
As the debate over petrol prices continues, Nigerians are watching closely to see whether increased domestic refining, stronger control of cross-border fuel movement and greater competition among suppliers will eventually translate into more affordable and stable prices at filling stations.
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