The President of Dangote Group, Aliko Dangote, has explained why Nigerians continue to pay relatively high prices for petrol despite the commencement of large-scale domestic refining, saying local production does not completely shield the country from global crude oil prices and market disruptions.
Dangote, who spoke in an interview with Arise TV, said the Dangote Refinery purchases crude oil at prevailing international market prices and, at times, pays significant premiums.
According to him, the cost of acquiring crude makes it difficult for the refinery to sell petroleum products below sustainable market levels.
Responding to concerns over the price of petrol in Nigeria, Dangote argued that the cost of fuel was relative, noting that petrol remained considerably more expensive in neighboring countries.
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“There is still a lot of smuggling of the same petrol we are producing to our neighboring countries because those neighboring countries are about 30 per cent to 50 per cent more expensive than Nigeria.”
Dangote disclosed that the refinery had purchased crude oil for as much as $124 per barrel in May, stressing that the company could not continue to absorb all market costs through subsidies.
“We can’t go now and subsidize everything.”
He, however, assured Nigerians that the refinery would continue to supply the domestic market.
“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.”
High Interest Rates Threaten Industrialization
Speaking on Nigeria’s industrialization prospects, Dangote identified high borrowing costs as one of the major obstacles to new investments.
He questioned how a country could industrialize when businesses were faced with interest rates of about 30 per cent.
“It is very difficult to industrialize with interest rates at 30 percent. I can’t see the magician who can actually industrialize a country with 30 per cent interest cost.”
The businessman also warned that Nigeria could struggle to attract another major refinery investment if domestic productive industries were not adequately protected.
“Under the current things that are going on, especially downstream, I cannot see any new refinery in our lifetime.”
Dangote called for policies that would encourage domestic production and investment, arguing that stronger local industries would create employment, generate tax revenue and expand economic activity.
“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.”
He also cited inconsistent government policies and inadequate electricity supply as persistent challenges confronting manufacturers.
“You cannot manufacture goods with diesel.”
‘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 relocate.
“You know how long I’ve been here? Thirty-six years. I don’t plan on leaving. I’m very comfortable here.”
The billionaire said he was generally content with his home and did not feel the need to constantly pursue new luxuries.
“Once I come in in the evening, it’s difficult to take me out of my house.”
Dangote Criticizes Wealthy Africans for Spending on Private Jets
The businessman also criticized some wealthy Africans for acquiring private jets without making comparable 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.”
He said wealthy individuals should consider how their investments could contribute to economic growth and job creation.
“So it means that they’re not actually helping in growing the economy, and that has to change.”
Dangote said his own priority was to use his wealth and business interests to contribute to the industrialization of Africa.
He added that his long-term legacy would be measured by his contribution to building productive capacity across the continent.
Dangote Says Daughter Could Lead Business Empire
On succession, Dangote said having a male heir was not a priority for him, stressing that his three daughters were capable of taking over the leadership of the Dangote Group.
Asked whether he could see one of his daughters eventually leading 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.”
His daughters, Halima, Fatima and Mariya, hold senior positions within the business group and have increasingly become involved in the family’s business interests.
Dangote said their involvement was driven by their own interest in the business 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.”
The billionaire said he believed his daughters could surpass his achievements and potentially take the conglomerate to a higher level.
“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.”
He added:
“So most likely, they might be even taking the company to the next level.”
Asked whether all three daughters were capable of achieving this, Dangote replied:
“All of them.”
‘Having a Son Is Not My Priority’
Dangote said he did not consider having a son essential to preserving his family name or business legacy, despite traditional expectations surrounding male heirs in some parts of northern Nigeria.
“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.”
He added:
“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.”
According to him, having a male heir does not automatically guarantee the preservation of a family’s legacy.
“God controls everything. And for me, really, sometimes, yeah, you can pray for God to give you a son, but that son might be the one that would tear down the name of the family.”
‘I Want This Company to Be Run Professionally’
Dangote explained that his succession plan goes beyond simply transferring control of the conglomerate to a family member.
He said his priority was to establish a strong professional management and governance structure capable of protecting the company from mismanagement in the future.
“I want this company to be run professionally. I want to have the highest level of governance.”
He cited global corporations such as Microsoft and Apple as examples of companies that have continued to operate and grow beyond their founders.
“We want to make sure that we make it very difficult for any family member to come and destroy anything.”
Dangote’s Legacy: ‘To Industrialize Africa’
Looking beyond his personal wealth and business empire, Dangote said his ultimate ambition was to contribute to the industrialization of Africa.
“What I want to leave as a legacy is to industrialize Africa.”
He acknowledged that the task could not be accomplished by one person alone but expressed confidence that other African investors would increasingly participate in large-scale industrial development.
“I cannot do it alone, but I’m 100% sure that in the next two or three years, other Africans will join.”
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