Aliko Dangote, President of Dangote Group, has raised concerns over the rising volatility in the global oil market, cautioning that the ongoing conflict in the Middle East could exacerbate economic difficulties across Africa if not swiftly resolved.
Speaking after a visit to President Bola Tinubu in Lagos on Monday, Dangote said that while Nigeria is not directly involved, the ripple effects of oil price fluctuations would be felt across the continent.
“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 warned that a prolonged crisis would further strain African economies, which are already grappling with high debt and limited fiscal space. He noted that rising energy costs impact almost every sector, from small businesses to industries relying on generators, creating widespread economic pressure.
“If it doesn’t de-escalate, it is going to keep going up and up, and governments cannot really now go and add salaries also. People will feel it — barbers, people baking bread, industries running generators,” he explained.
He also highlighted potential global adjustments, such as reduced workdays and remote working, as countries attempt to curb energy consumption. “You can see in some countries today… they asked everybody to work from home or reduce workdays. If it doesn’t improve, further measures will follow. We just need all hands on deck to pray that this comes to an end,” he added.
Economic Opportunities
Dangote also lauded President Tinubu’s recent state visit to the United Kingdom, describing it as a boost for Nigeria’s economic prospects. He highlighted a £746 million agreement aimed at improving infrastructure, particularly ports, as a sign of renewed international confidence in Nigeria.
“It’s not just about the money. It’s about the confidence in Nigeria. When they do this, other countries will follow — Germany and others will line up,” Dangote said, urging Nigerian investors to take advantage of the new opportunities.
Impact on Nigeria
Global oil price instability has already affected Nigeria, with refiners and marketers raising pump prices to reflect higher crude costs. Consumers are facing increased energy and transportation expenses, while businesses dependent on petrol and diesel generators are contending with rising production costs.
Dangote’s warning underscores the urgency of resolving the Middle East crisis to prevent further economic strain across Africa.
