Africa's richest man, Aliko Dangote, has said petrol smuggling is why the commodity remains expensive in Nigeria.
According to him, smugglers move the product to foreign countries where they are sold for a significantly higher price,
Speaking during an appearance on Arise TV on Tuesday, Dangote said that despite Nigeria producing the commodity domestically, the cost could not be determined without considering neighbouring countries
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?”
“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.”
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.”
He revealed that despite the complaints about the price of a litre of petrol in Nigeria, the same quantity sells at over 20 per cent more in neighbouring Niger.
“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 said.
Galaxy TV reported that the billionaire's Dangote Refinery has launched an IPO which is expected to raise $1.6 billion.
The Lagos-based refinery, which began operations in 2024, has a capacity of 700,000 barrels per day, exceeding domestic demand in Nigeria, Africa's most populous country.
It began exporting its fuel abroad a few months ago.
The Dangote Petroleum Refinery aims to raise funds to double its capacity to 1.4 million barrels a day by 2028, making it the world's largest refinery and surpassing Jamnagar in India.
Describing it as an "historic day", Dangote said in a statement that the IPO was "not simply about listing a company. It is about listing a new possibility for Nigeria, and for Africa".
Investors can buy as few as 10 shares at 525 naira each, potentially raising 2.15 trillion naira ($1.6 billion) in a move Dangote hopes will give ordinary people a chance for a stake in a long-term asset.
He has said the offering, which closes October 13, will be the biggest IPO in African history and has encouraged participation by small investors, including people on lower incomes.
Dangote also plans to build a 700,000 barrel-per-day East African oil refinery in Lamu, on the Kenyan coast.
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