Dangote Blames Cross‑Border Smuggling for High Petrol Prices, Says No Shortage Expected

On September 15, 2026, Aliko Dangote, President of Dangote Industries Limited, appeared on Arise TV to explain why petrol remains relatively expensive in Nigeria despite the country’s new refining capacity. Dangote said the price of ₦1,350 per litre should be viewed against the cost of fuel in neighbouring countries, where prices are 30 to 50 per cent higher. He pointed to Niger Republic as an example, where petrol costs about 20 to 25 per cent more than in Nigeria.

According to Dangote, this price gap creates a strong incentive for smugglers to divert the locally produced fuel across the border, reducing the supply that stays in the domestic market and pushing up the retail price. The businessman warned that the ongoing crisis in the Middle East could further tighten fuel availability, adding another layer of challenge beyond price. However, he reassured Nigerians that the Dangote Petroleum Refinery will continue to supply the local market without any shortage or queues. 'Nigerians don’t need to worry. There will not be any shortage from our own part,' he said.

Dangote also noted that the relative price difference makes the fuel appear expensive, but the real issue is the illegal movement of the product. He added, 'Expensive is relative. There’s still a lot of smuggling of the same petrol we are producing to our neighbouring countries.' The interview highlighted the need for stronger border controls and regional cooperation to curb smuggling, which the industrialist says is a key factor behind the high cost at the pump. While the refinery’s output is sufficient to meet domestic demand, the loss of fuel to illicit trade undermines the benefits of local refining. The high price has been a burden for commuters and transport operators who rely on cheap fuel to keep logistics costs low. Many traders have complained that the cost of moving goods has risen, affecting food prices across the country. The price differential also fuels corruption at border crossings, where officials may collude with smugglers.

Dangote urged the federal government to review border policies and strengthen customs enforcement. He also called for a regional dialogue with West African neighbours to harmonise fuel pricing and reduce arbitrage opportunities. If the price gap narrows, the incentive for smuggling would diminish, allowing the domestic market to benefit fully from the refinery’s output. As Nigeria continues to grapple with high energy costs, Dangote’s comments bring attention to the cross‑border dynamics that affect price stability.

The situation remains fluid, with the Middle East crisis potentially impacting global oil supply chains, which could reverberate in Nigeria’s fuel market. For now, consumers can expect the refinery to keep pumping, but the price may stay high until smuggling is tackled.