Dangote: Petrol cheaper in Nigeria than neighbours - Vanguard News

ABUJA — President of Dangote Industries Limited, Aliko Dangote, has said petrol is relatively cheaper in Nigeria than in neighbouring countries, a price difference he said has continued to encourage cross-border smuggling.

Dangote spoke in an interview with Arise Television on Tuesday while responding to questions about rising petrol prices in Nigeria.

He said the cost of petrol should be considered in relation to prices in neighbouring countries, noting that consumers in some of those countries pay between 30 and 50 per cent more.

“Expensive is relative in the sense that today, for a lot of them, there’s ignorance also. What they need to do is to ask what the neighbour’s price is,” he said.

According to Dangote, the price differential creates an incentive for traders to move petrol across Nigeria’s borders for higher returns.

“I don’t know if you know that there’s still a lot of smuggling of the same petrol we are producing to our neighbouring countries because those neighbouring countries are about 30 percent to 50 percent more expensive than Nigeria,” he said.

He cited Niger Republic as an example, saying petrol there was about 20 to 25 per cent more expensive than in Nigeria at a domestic price of N1,350 per litre.

“So what business are you going to do that will make you a 25 percent return?” he asked.

Dangote said the price difference could encourage traders to divert petrol intended for domestic markets to border communities for resale.

He also spoke about the potential impact of the ongoing crisis in the Middle East on energy supplies, saying availability could become a greater concern.

The businessman, however, assured Nigerians that the Dangote Refinery would continue supplying the domestic market.

“We will make sure that Nigeria will be fully delivered. We will deliver to Nigeria. Nigerians don’t need to worry,” he said.

“There will not be any shortage from our own part. There won’t be any shortage. There will not be any queues.

“And we’ll make sure that we keep satisfying the market.”

The comments came after petrol prices reportedly increased at some filling stations on Monday, with prices reaching about N1,400 per litre in Lagos and N1,450 per litre in Abuja.

Dangote also identified what he described as inconsistent government policies and inadequate electricity supply as major challenges facing businesses in Nigeria.

“The greatest problem, there are two, which are still existing. One is inconsistencies in government policies. The second one is to do with lack of electricity,” he said.

He said the cost of alternative sources of energy, particularly diesel, was putting pressure on manufacturers and making production increasingly expensive.

“You cannot manufacture goods with diesel. You can see where diesel is today. You can’t even produce bread and make money today. So, we have to look at that today,” Dangote said.

The businessman also highlighted Africa’s electricity access deficit, saying about 600 million people on the continent lack access to electricity.

“We must make sure, even for us, really, as Africans, we cannot sit down and see that everybody is complaining. 600 million of our people, they actually don’t have power,” he said.

Dangote said the scale of the electricity challenge had prompted some African business leaders to consider taking direct action to help address the continent’s power deficit.

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