***Petrol smuggling to neighbouring countries threatens domestic supply
Nigeria could face fresh pressure on petrol supplies as the escalating Middle East crisis threatens global energy supply chains, President of Dangote Industries Limited, Aliko Dangote, has warned.
Dangote said the unfolding crisis could affect Nigeria more through product availability than price, urging attention to the possibility of supply disruptions.
“The problem now, going forward, I must also warn that this crisis in the Middle East is not even about price; it’s about availability,” he said in an interview aired by Arise TV.
His warning comes as Nigerians continue to grapple with high petrol prices, rising transport costs and a broader cost-of-living crisis following the removal of fuel subsidy.
Dangote also identified petrol smuggling into neighbouring countries as another threat to domestic supply.
According to him, petrol is between 30 and 50 per cent more expensive in some neighbouring countries, creating a strong incentive for cross-border diversion.
He cited Niger Republic, where he said petrol could sell for about 20 to 25 per cent more than in Nigeria.
Using ₦1,350 per litre as an illustration, Dangote questioned what legitimate business could deliver an immediate 25 per cent return.
He said the price gap was encouraging some traders to divert petrol meant for Nigerian consumers to border communities, where it can be sold at a premium.
“You pretend you are taking it to Sokoto, you go and just take it to Ilela, and you sell,” he said.
Despite the concerns, Dangote assured Nigerians that his refinery would continue supplying the domestic market.
“We will deliver to Nigeria. Nigerians don’t need to worry. There will not be any shortage from our own part,” he said.
The comments came as the Dangote Petroleum Refinery and Petrochemicals commenced a ₦2.15tn initial public offering on the Nigerian Exchange.
The offer comprises 4.1 billion ordinary shares priced at ₦525 each, with a minimum subscription of 10 shares valued at ₦5,250.
The IPO is open to retail, institutional and eligible African investors and is scheduled to close on October 13, 2026.
The offer also marks a major milestone for Nigeria’s capital market, with the Dangote refinery becoming the first petroleum refinery to be offered to investors on the Nigerian stock market in the Exchange’s 66-year history.