Nigeria’s high petrol prices are being linked to continued cross-border smuggling, with Dangote Group President Aliko Dangote saying the price gap between Nigeria and neighbouring countries is creating a strong incentive for traders to move fuel across the borders. Dangote made the disclosure during an interview with Arise Television on September 15, 2026, arguing that the cost of petrol in Nigeria should be viewed in comparison with prices in surrounding countries.
According to Dangote, petrol remains significantly cheaper in Nigeria than in some neighbouring markets, despite recent increases in domestic prices. He said petrol prices in neighbouring countries can be between 30% and 50% higher than in Nigeria, while using Niger as an example, where he said the price could be about 20% to 25% higher than Nigeria’s current ₦1,350 per litre level.
Dangote said the price difference creates an immediate financial incentive for smugglers to move petrol across Nigeria’s borders and sell it at a higher price. He explained that traders could take advantage of the margin by moving products through border routes, including from Sokoto towards Ilela, where the fuel can fetch more in the neighbouring market.
His comments come shortly after Dangote Petroleum Refinery increased its petrol gantry price from ₦1,265 to ₦1,350 per litre, effective September 12. The ₦85 increase represents a 6.7% adjustment and marks the refinery’s fourth upward price review since August 21, taking the cumulative increase over the period to ₦185, or about 15.9%.
The latest development adds another layer to the debate over Nigeria’s petrol prices, as motorists continue to feel the impact of higher fuel costs while global crude prices remain elevated. Dangote’s position is that the price disparity with neighbouring countries is helping sustain fuel smuggling, highlighting the challenge of keeping petrol within Nigeria’s domestic market when it can command a higher price across the border.
source: nairametrics
