Dangote blames petrol smuggling for Nigeria’s high fuel prices

Alhaji Aliko Dangote, the CEO of Dangote Industries Limited, has shed light on the reasons behind the high cost of petrol in Nigeria. During an interview with Arise Television on September 15, 2026, Dangote attributed the soaring fuel prices to the ongoing smuggling of the commodity into neighboring countries, where it is sold at significantly higher rates.

This interview came after Dangote Petroleum Refinery increased the price of petrol from ₦1,265 to ₦1,350 per litre on September 12, 2026, amid rising international crude and petroleum product prices.

Dangote emphasized that the issue of high petrol prices in Nigeria is relative when compared to the prices in neighboring countries. He stated that while petrol remains expensive in Nigeria, it is still 30% to 50% more expensive in these neighboring countries. This price disparity incentivizes smuggling activities, as traders are motivated by the potential for a substantial return on investment.

Dangote questioned the demand for instant profits, stating that taking the risk to smuggle petrol across the border and sell it at a higher price provides an opportunity for a significant financial gain.

When asked why petrol remains expensive in Nigeria despite its large-scale refining capacity and status as a major crude oil producer, Dangote highlighted the issue of widespread smuggling. He pointed out that the price of petrol in neighboring countries is notably higher than in Nigeria, making it an attractive opportunity for smugglers.

According to Dangote, even at the current price of ₦1,350 per litre, the price in neighboring countries such as Niger is 20% to 25% higher. This price difference creates a lucrative incentive for individuals to cross the border and sell the smuggled petrol at a markup, despite the associated risks.