President of Dangote Group, Aliko Dangote, has said petrol selling at N1,350 in Nigeria remains cheaper than the product in neighbouring countries.
Dangote said the price gap was encouraging the movement of petrol across Nigeria’s borders, as traders seek to profit from higher prices in nearby markets.
He disclosed this during an interview aired on Arise TV on Tuesday.
According to Dangote, petrol prices in neighbouring countries are between 30 and 50 per cent higher than Nigeria’s current price, creating a strong financial incentive for cross-border smuggling.
“Expensive is relative. What they need to ask is, what’s the price in the neighbouring countries?” Dangote said.
He explained that the difference between domestic and regional prices remained significant despite the current petrol price in Nigeria, with neighbouring countries paying considerably more for the same product.
Using Niger Republic as an example, Dangote said petrol sold for N1,350 in Nigeria costs between 20 and 25 per cent more in the neighbouring country.
“Even now at ₦1,350, the price in Niger is 20 to 25 per cent more than Nigeria. So what business are you going to do that will make you have an instant 25 per cent return?” he asked.
Dangote said such a price difference makes petrol smuggling financially attractive because traders can purchase the product in Nigeria and sell it at a significantly higher price across the border.
He maintained that the disparity in regional fuel prices was therefore an important factor behind the continued movement of petrol from Nigeria into neighbouring countries.
The Dangote Group president’s comments highlight the impact of price differences across West African borders, where cheaper petrol in Nigeria can create opportunities for traders seeking quick returns in markets where the product sells for more.
