President of the Dangote Group, Aliko Dangote, says petrol prices in Nigeria remain relatively high despite the commencement of large-scale local refining because domestic production is still affected by international crude oil prices and market conditions.
Dangote made the remarks during an interview with Arise TV, where he explained that his refinery purchases crude oil at prevailing international prices and, at times, pays substantial premiums.
He said this makes it difficult for the refinery to sell petrol below sustainable market prices.
According to Dangote, the cost of petrol should also be viewed in comparison with prices in neighbouring countries, where the product is reportedly between 30 and 50 per cent more expensive than in Nigeria.
He said the price difference was contributing to the continued smuggling of petrol produced in Nigeria into neighbouring countries.
Dangote disclosed that the refinery bought crude oil for as much as $124 per barrel in May, stressing that the company could not absorb all increases in production costs.
He, however, assured Nigerians that the Dangote Refinery would continue supplying the domestic market.
He said there would be no shortage or fuel queues from the refinery’s end, adding that the company would continue to meet market demand despite prevailing challenges.
High interest rates threaten industrialisation
Dangote also identified high borrowing costs as one of the major obstacles to industrialisation in Nigeria.
He argued that it would be difficult for manufacturers and investors to establish new industries when interest rates are around 30 per cent.
The businessman warned that without policies that deliberately protect productive domestic investments, Nigeria could struggle to attract new large-scale refinery projects.
He said government policies should support local industries that create employment, generate tax revenue and expand economic activity.
Dangote also criticised excessive dependence on imports, saying it could result in jobs being created outside Nigeria instead of within the country.
He identified inconsistent government policies and unreliable electricity supply as other challenges facing manufacturers, stressing that businesses could not depend on diesel-powered generators to sustain large-scale production.
‘I’ve lived in my current home for 36 years’
Speaking about his personal lifestyle, Dangote disclosed that he has lived in his current residence for 36 years and has no immediate plans to move.
He said he was comfortable in his home and generally preferred staying there rather than constantly pursuing new luxuries.
Dangote also criticised wealthy individuals who spend heavily on private jets without investing in productive businesses such as factories.
He said wealthier Africans should focus more on investments that contribute to economic growth and job creation.
According to him, his own priority is to use his wealth and business activities to support Africa’s industrial development.
He added that foreign investors were increasingly interested in Africa but needed large-scale projects capable of attracting substantial amounts of capital.
Dangote says having a male heir is not a priority
On succession, Dangote said having a male heir was not a major concern for him, saying his three daughters, Halima, Fatima and Mariya, were capable of taking leadership roles within the Dangote Group.
He said he could see one of his daughters eventually taking charge of the conglomerate, adding that he had observed their development and believed they possessed the capacity to lead.
The three daughters currently hold senior positions within the family business, with their responsibilities growing as part of the group’s succession arrangements.
Dangote said their involvement was based on their own interest in the business and not because he forced them to join.
He expressed confidence that his daughters could potentially surpass his achievements because of their education and ability to bring new ideas into the company.
Asked whether all three were capable of taking the business forward, he responded that they were.
On the possibility of having a son, Dangote said it was not a priority for him, noting that having a male child did not automatically guarantee the preservation of a family’s legacy.
He said his focus was instead on ensuring that the Dangote Group was professionally managed and operated under strong corporate governance.
Dangote cited companies such as Microsoft and Apple as examples of businesses that have continued to grow beyond their founders.
He said his succession plan would seek to prevent any family member from damaging the company and would prioritise professional management.
‘My legacy is to industrialise Africa’
Dangote said his ultimate ambition was to contribute to the industrialisation of Africa.
He acknowledged that achieving this objective would require broader participation from other African investors and entrepreneurs.
According to him, he expects more Africans to join efforts to develop productive industries across the continent in the coming years.
Source: VANGUARD
