President of Dangote Group, Aliko Dangote, has said petrol selling for N1,350 per litre in Nigeria remains cheaper than the product in neighbouring countries, a price gap he said is encouraging cross-border smuggling.
Dangote made this known during an interview aired on Arise TV on Tuesday.
The businessman explained that petrol prices in neighbouring countries are between 30 and 50 per cent higher than in Nigeria, creating a strong financial incentive for traders to move the product across the borders and sell it at higher prices.
“Expensive is relative. What they need to ask is, what’s the price in the neighbouring countries? There is still a lot of smuggling of the same petrol we are producing to our neighbouring countries because those neighbouring countries are about 30 to 50 per cent more expensive than Nigeria,” he said.
Using Niger Republic as an example, Dangote said petrol sold for N1,350 in Nigeria costs between 20 and 25 per cent more across the border.
“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.
He said the price disparity makes it financially attractive for smugglers to transport petrol across Nigeria’s borders and sell it in neighbouring markets for higher returns.
Source: Arise TV
