Nigeria’s petrol market could soon face a bigger problem than cost, as global supply chains buckle under pressure from the escalating Middle East crisis, Aliko Dangote has warned.
The President of Dangote Industries Limited said geopolitical tensions in the region could shift the conversation from pump prices to whether there’s enough fuel to go around at all.
“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,” Dangote said in an interview aired on Arise TV.
His comments come as Nigerians continue to grapple with high transportation and living costs following the removal of the fuel subsidy.
Dangote, however, urged Nigerians to view the domestic price situation in the context of the wider region, pointing to widespread smuggling of Nigerian-refined petrol across the country’s borders. He said the price gap between Nigeria and neighbouring countries — which he put at 30 to 50 percent — has made cross-border fuel smuggling an attractive business for many.
Using Niger Republic as an example, he said petrol sells there for 20 to 25 percent more than in Nigeria. With local pump prices at N1,350 per litre, he argued the margin was hard to resist.
“So, what business are you going to do that will make you have an instant 25 percent return?” he asked, describing how smugglers disguise cross-border movement by claiming to be transporting fuel to destinations like Sokoto before diverting it to border towns such as Ilela for resale.
Despite the looming external pressures, Dangote assured Nigerians that his refinery would keep the domestic market fully supplied.
“We will deliver to Nigeria. Nigerians don’t need to worry. There will not be any shortage from our own part. There won’t be any shortage. There will not be any queues. We will make sure that we keep satisfying the market, despite all odds,” he said.
His remarks came as the Dangote Petroleum Refinery and Petrochemicals launched a N2.15 trillion initial public offering on the Nigerian Exchange. The offer covers 4.1 billion ordinary shares priced at N525 each, with a minimum subscription of 10 shares worth N5,250. It is open to retail, institutional, and eligible African investors and is set to close on October 13, 2026.
The listing marks a major milestone for Nigeria’s capital market — the first time a petroleum refinery has been offered to investors on the Nigerian Exchange in its 66-year history.
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