Olawunmi Ajibike
President of Dangote Group, Aliko Dangote, has raised fresh concerns over volatility in the global oil market, cautioning that escalating tensions in the Middle East could worsen economic hardship across Africa if not urgently addressed.
Dangote noted that although Nigeria is not directly involved in the conflict, the country remains vulnerable to its global economic consequences, particularly fluctuations in oil prices.
“We don’t have much to do with it, but the world is a global village. It will definitely affect us, unfortunately, but we hope the situation will be resolved,” he made this known during a meeting with Bola Ahmed Tinubu in Lagos.
He warned that a prolonged crisis could place additional pressure on African economies already grappling with high debt burdens and limited fiscal capacity.
According to him, rising oil prices would have widespread consequences, as energy costs influence nearly every sector—from small businesses to large-scale industries.
“If this doesn’t de-escalate, prices will keep rising. Governments cannot simply increase salaries, and ordinary people will bear the brunt—whether it’s barbers, bakers, or manufacturers relying on generators,” he said.
Dangote also highlighted how countries may adopt energy-saving measures such as reduced workdays and remote working arrangements, similar to strategies seen during the COVID-19 pandemic, to cope with rising costs.
He stressed that the situation could severely impact livelihoods, particularly in developing economies, where many workers depend on daily income.
Tinubu’s UK Visit Signals Economic Opportunities.
Despite the concerns, Dangote described President Tinubu’s recent state visit to the United Kingdom as a significant step toward strengthening Nigeria’s economic prospects.
He pointed to a major agreement valued at about £746 million, aimed at improving infrastructure—particularly in the ports sector—as a sign of growing international confidence in Nigeria.
According to Dangote, securing such a deal reflects renewed trust in the country’s leadership and economic direction.
“It’s not just about the money; it’s about confidence in Nigeria. Once that confidence is established, other countries like Germany and beyond will begin to follow,” he said.
He added that the development could open doors for increased foreign investment and urged Nigerian investors to take advantage of emerging opportunities, especially access to international credit facilities.
Rising Oil Prices Impact Nigeria
Global oil prices have surged in recent weeks amid fears of supply disruptions linked to Middle East tensions, driving up the cost of petroleum products worldwide.
In Nigeria, the effect has been visible in rising fuel prices, as refiners and marketers adjust to higher crude costs. Facilities such as the Dangote Refinery and other downstream operators have implemented price increases, reflecting global market realities.
The development has intensified pressure on consumers already dealing with inflation and high transportation costs, while businesses continue to struggle with rising energy expenses due to reliance on petrol and diesel-powered generators.
Dangote warned that unless the crisis is resolved, the economic burden on governments, businesses, and citizens will continue to grow, further straining already fragile economies.