By Ayomide Otitoju
Aliko Dangote, President of Dangote Group, has raised concerns over mounting volatility in the global oil market, warning that the ongoing Middle East conflict could exacerbate economic challenges across Africa if not resolved promptly.
Speaking after a visit to Bola Tinubu in Lagos on Monday, Dangote noted that while Nigeria is not directly involved in the crisis, the ripple effects of fluctuating oil prices are inevitable.
“It means quite a lot. We don’t have much to do with it, but I know the world is a global village. And it definitely will affect us, unfortunately, but we pray this situation will be sorted out,” he said.
Dangote cautioned that a prolonged crisis could strain African economies, which often have limited fiscal buffers and high debt levels. “Africa is very busy paying debt, and putting this again on top of us is going to add a lot of hardship on people, on the government, on everybody, for something that we have no involvement in,” he said.
He emphasized that energy costs underpin nearly all sectors of the economy, warning that sustained price increases would have broad effects on livelihoods and production. “People will really feel the hinge — barbers, people who are doing bread, people who have industries, who have to fire their own generator,” he said.
Dangote also highlighted possible global adjustments in response to the crisis, including reduced work schedules and remote working arrangements to cut energy consumption. “In some countries today, they’ve asked everybody to work from home… If they don’t work that day, they won’t eat. So I think really we just need all hands on deck to pray that this thing comes to an end,” he added.
On a positive note, Dangote described President Tinubu’s recent state visit to the United Kingdom as a major boost for Nigeria’s economic prospects. He noted that the £746 million agreement secured during the visit, aimed at improving infrastructure including ports, signifies renewed global confidence in Nigeria’s economy and leadership.
“This is to show confidence. It’s not about the money. The moment that they do that, there will be other countries that will follow suit… Germany will come, others, so they will line up and start coming now,” Dangote said, urging Nigerian investors to leverage the opportunities, including access to international credit facilities.
The Middle East conflict has placed sustained pressure on global oil prices, driving up petroleum costs worldwide. In Nigeria, refiners and marketers, including the Dangote Refinery, have adjusted pump prices to reflect rising crude costs, compounding the financial burden on consumers already facing inflation and high transportation expenses.
Businesses across the country have expressed concern over rising energy costs, particularly given reliance on petrol and diesel for generators amid persistent electricity shortages, which increases production costs and, in turn, prices for consumers.
