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Aliko Dangote, President of Dangote Industries Limited, has linked the elevated cost of Premium Motor Spirit in Nigeria to persistent cross-border smuggling into adjacent nations where the product commands far higher rates.
Speaking during a television interview on Tuesday, the industrialist noted that petroleum prices across surrounding West African countries sit 30 to 50 percent above local figures, creating a lucrative environment for illegal traders to divert supplies outward.
Addressing public concerns regarding fuel affordability despite domestic refining capabilities, Dangote emphasized that local pricing cannot be assessed without evaluating market trends across neighboring borders.
He said, “You know, expensive is relative. In the sense that today, maybe, you know, a lot of them, there’s ignorance also. What they need to do is ask, what is the neighbour’s price?”
The billionaire highlighted that a substantial volume of domestically processed fuel continues to be illegally transported across national frontiers due to the significant price gap.
He stated, “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 fuel acquired locally can be offloaded at a heavy markup outside the country, illicit traders prioritize border diversion over domestic distribution.
He added, “Because those neighbouring countries are about 30 to 50 per cent more expensive than Nigeria. So, it’s not actually like for like.”
Dangote specifically pointed to Niger Republic, where petrol fetches a 20 to 25 percent premium over current domestic rates.
He said, “And people can now go and ask, okay, fine, what is the price of, even now at N1,350? Okay, the price in Niger is 20 to 25 per cent more than Nigeria.”
He framed the scenario to show how massive price discrepancies offer instant, high-yield financial returns for illegal operators.
He asked, “So, what business are you going to do that will make you have an instant 25 per cent return?”
Illustrating the diversion tactics employed by smugglers, Dangote described how trucks intended for internal destinations are routinely rerouted toward border posts for immediate sale.
He explained, “So, it means that, yes, you take the [petrol], you go and take it across the border. You pretend you are taking it to Sokoto, you go and just take it to Ilela, and you sell. Actually, they don’t have.”
He maintained that as long as neighboring markets lack sufficient local supply and maintain higher price tags, products designated for Nigerian consumers will face persistent diversion risks.
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