Aliko Dangote, President/Chief Executive Officer of Dangote Industries Limited, has explained why petrol is still pricey in Nigeria despite the country’s big refining capacity and status as a major crude producer.
Dangote told Arise Television on Tuesday, September 15, 2026, that the main reason is ongoing smuggling. Traders move fuel to neighbouring countries where it sells for much more, even after prices rose here.
His comments came just after Dangote Petroleum Refinery raised its gantry price from ₦1,265 to ₦1,350 per litre, effective September 12, citing higher international crude and product prices.
Dangote says the high price is relative when you compare it with neighbours. He argues that because petrol is 30% to 50% costlier across the border, smugglers can grab quick profits and risk moving product out of Nigeria.
When asked why petrol is still expensive in Nigeria, Dangote said, ‘’The expensive is relative in the sense that today, there is ignorance too, what they need to do is to ask what is the neighbour’s price. I don’t know whether you know there is still a lot of smuggling of the same petrol we are producing to our neighbouring countries.
‘’Those neighbouring countries are about 30% to 50% more expensive than in Nigeria. So it’s not actually like-for-like. People can now go and ask, what is the price, even now, at N1,350, the price in Niger is 20%, 25% more than in Nigeria.
So what business are you going to do that will make you have an instant 25% return? So it means that you will take the risk to go and take it across the border, you pretend that you are taking it to Sokoto, and you go and just take it to Ilela and you sell.’’
