Dangote warns Middle East tensions may worsen fuel prices, inflation in Nigeria

Aliko Dangote has warned that rising tensions in the Middle East and the resulting volatility in global oil markets could have serious economic consequences for Nigeria and other African countries.

Mr Dangote spoke on Monday in Lagos after a courtesy visit and Eid-el-Fitr homage to President Bola Tinubu, where he said the visit was to extend Sallah greetings and reaffirm his support for the administration’s policies.

Global crisis, local impact

Although Nigeria is not directly involved in the crisis, Mr Dangote said the country would inevitably feel the effects due to the interconnected nature of the global economy.

“We are part of a global village, and unfortunately, developments like this will affect us even if we are not directly involved,” he said.

He warned that prolonged tensions could drive up fuel prices, increase transport costs, and intensify inflationary pressures across African economies.

“If the situation does not de-escalate, we will end up paying a heavy price, especially given existing economic challenges,” he added.

Pressure on governments, rising debt risks

Mr Dangote noted that unstable oil markets could place additional strain on government finances, particularly as fuel subsidies rise and revenues fluctuate.

He also expressed concern over Africa’s growing debt burden, warning that external shocks could further weaken fiscal stability.

“Africa is already grappling with debt, and additional shocks will only compound hardship for governments and the people,” he said.

Impact across sectors

According to Mr Dangote, rising energy costs would affect nearly all sectors of the economy, from small businesses to large-scale industries.

“Energy affects everything. From small businesses like barbers to industries running generators, everyone will feel the impact if costs continue to rise,” he said.

He added that some countries were already adopting coping measures such as reduced workdays, energy rationing, and remote working—steps that could reduce productivity and slow economic growth.

Call for de-escalation

Mr Dangote urged global leaders to prioritise peace, noting that many Nigerians and Africans rely on daily income and are highly vulnerable to economic shocks.

“In Africa, in Nigeria many people depend on daily earnings. If they don’t work, they don’t eat. So we must pray this situation comes down quickly,” he said.

Tinubu’s UK visit and investment outlook

On President Tinubu’s recent visit to the United Kingdom, Mr Dangote said the trip had strengthened Nigeria’s investment prospects and opened new economic opportunities.

“I believe the visit has opened many doors. Diplomacy without economic outcomes is incomplete, and this has created opportunities for Nigeria,” he said.

He noted that agreements reached during the visit, particularly in infrastructure and financing, signal growing international confidence in Nigeria’s economic reforms.

“It is not just about the money committed, but the confidence it shows in Nigeria and the reforms being implemented,” he added.

Boost for infrastructure and the private sector

Mr Dangote said planned investments in key sectors, including ports, would improve trade efficiency and support economic growth.

“These investments will help improve our infrastructure, especially in key areas like ports, and complement ongoing government efforts,” he said.

He also said the agreements would allow Nigerian businesses greater access to international financing and technical support.

“For Nigerian investors, this shows we can approach these agencies to access funding. It means they are now open to supporting our projects,” he said.

Mr Dangote described the development as a breakthrough, noting that such funding opportunities had previously been underutilised by Nigerian businesses.

Outlook

He expressed optimism that increased investor confidence would attract more countries, including Germany, to invest in Nigeria.

“Once confidence is established, other countries will come in. It is a signal that Nigeria is ready for business,” he said.

Mr Dangote reaffirmed his support for the administration, expressing confidence that ongoing reforms and partnerships would drive sustainable economic growth.

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