The President of Dangote Group, Aliko Dangote, has explained why petrol prices remain high in Nigeria despite the commencement of large-scale domestic refining, saying local production does not completely shield the country from fluctuations in global crude oil prices and market disruptions.
Dangote, who spoke during an interview on Arise TV on Tuesday, said his refinery purchases crude oil at prevailing international market prices and, in some instances, pays substantial premiums.
He explained that these costs make it difficult for the refinery to sell petroleum products below sustainable market levels.
Responding to concerns over the price of petrol, Dangote said the cost of fuel was relative, noting that prices in neighbouring countries were significantly higher than in Nigeria.
According to him, “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 per cent to 50 per cent more expensive than Nigeria.”
Dangote disclosed that the refinery bought crude oil for as much as $124 per barrel in May, stressing that the company could not continue to absorb the rising costs.
“We can’t go now and subsidise everything,” he said.
He, however, assured Nigerians that the Dangote Refinery would continue to meet domestic demand.
“Nigerians don’t need to worry. There will not be any shortage from our own part. There will be no queues, and we’ll make sure we keep satisfying the market despite all odds,” he said.
High interest rates threaten industrialisation
Speaking on Nigeria’s industrialisation prospects, Dangote identified high borrowing costs as one of the biggest obstacles to new investments.
“It is very difficult to industrialise with interest rates at 30 percent. I can’t see the magician who can actually industrialise a country with 30 per cent interest cost,” he said.
The businessman also warned that Nigeria could struggle to attract new refinery investments unless government policies deliberately protect domestic producers.
“Under the current things that are going on, especially downstream, I cannot see any new refinery in our lifetime,” he said.
Dangote urged the government to create policies that would protect productive domestic industries, arguing that such businesses create jobs, generate tax revenue and stimulate economic activity.
“Government must protect productive domestic industries if it expects businesses to create jobs, generate taxes and deepen economic activities,” he said.
He also criticised excessive reliance on imports, saying, “If you import, what you are doing is you are importing poverty and exporting jobs that you are supposed to create out of the country.”
Dangote identified inconsistent government policies and inadequate electricity supply as other major challenges facing manufacturers.
“You cannot manufacture goods with diesel,” he said.
‘I’ve lived in my current home for 36 years’
Dangote also spoke about his personal lifestyle, revealing that he has lived in his current home for 36 years and has no plans to move.
“You know how long I’ve been here? Thirty-six years. I don’t plan on leaving. I’m very comfortable here,” he said.
The billionaire said he was generally content with his home and did not feel compelled to constantly pursue new luxuries.
“Once I come in in the evening, it’s difficult to take me out of my house,” he added.
Dangote also criticised wealthy Africans who spend heavily on private jets without making investments in productive ventures.
“What I see is people now owning aircraft all over the place, flying all over, and they don’t have one single factory.
“So it means that they’re not actually helping in growing the economy, and that has to change,” he said.
He said his focus remained on using his wealth and business interests to contribute to Africa’s industrial development, adding that his biggest legacy would be helping to build productive capacity across the continent.
According to him, foreign investors are increasingly interested in Africa but need large-scale projects capable of attracting substantial capital.
“Foreigners are very interested now; they want to invest in Africa, but they don’t have big-ticket items,” he said.
He added that the emergence of major investment opportunities would encourage more foreign and African investors to participate in the continent’s development.
“So right now, they have started seeing big-ticket stuff, and they will join. And we will join to develop our own continent, Africa,” he said.
Having a male heir not my priority
On succession, Dangote said having a son to inherit his business empire was not a priority, stressing that his three daughters were capable of leading the Dangote Group.
Asked whether he could see one of his daughters eventually taking charge of the conglomerate, he said, “I think, yes, I can see one of them. I’ve been watching all of them, so I can definitely see one of the three that can actually lead.”
Dangote’s daughters, Halima, Fatima and Mariya, hold senior positions within the business group, with their responsibilities expanding as part of its succession structure.
The billionaire said their involvement in the family business was driven by personal interest rather than pressure from him.
“They are very, very interested in the business. I’m not forcing them to come and be part of this business, no. They are very interested, and they enjoy it,” he said.
Dangote expressed confidence that his daughters could surpass his achievements and take the company to greater heights.
“One of them can be better than — I never expected to perform this much. But I’m sure they’re highly educated, so they will be more creative.
“So most likely, they might be even taking the company to the next level,” he said.
Asked whether all three were capable of achieving this, Dangote replied, “All of them.”
He also dismissed the idea that having a male heir was necessary to preserve a family legacy, despite traditional expectations surrounding male succession in Kano.
“Sometimes you can pray for God to give you a son, but that son might be the one to bring down the name of the family.
“Sometimes when God doesn’t give you something, don’t push. I don’t think a son would have done something better than these three daughters that I have. That one, I think, you know, it’s not my priority,” he said.
Dangote stressed that his succession plan was not simply about handing control of the conglomerate to a family member but ensuring that the company remained professionally managed.
“I want this company to be run professionally. I want to have the highest level of governance,” he said.
He cited global companies such as Microsoft and Apple as examples of businesses that have continued to thrive beyond their founders.
“We want to make sure that we make it very difficult for any family member to come and destroy anything,” he said.
Dangote said his ultimate ambition was to contribute to the industrialisation of Africa, adding that he expected other African entrepreneurs to join the effort.
“What I want to leave as a legacy is to industrialise Africa. I cannot do it alone, but I’m 100% sure that in the next two or three years, other Africans will join,” he said.