President of Dangote Group, Aliko Dangote, has raised concerns over the growing volatility in the global oil market, warning that the ongoing conflict in the Middle East could worsen economic hardship across Africa if not urgently resolved.
Speaking on the implications of the crisis, Dangote said that although Nigeria is not directly involved, the ripple effects of global oil price fluctuations would inevitably be felt.
“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 after his visit to President Bola Tinubu in Lagos on Monday.
Dangote warned that a prolonged crisis could further destabilise economies, particularly in Africa, where fiscal buffers are limited, and debt pressures remain high.
“If it doesn’t de-escalate, we’ll end up paying big prices, like what I said earlier on to CNN. 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 the people, on everybody, for something that we have no involvement in.”
He stressed that energy costs are central to nearly all sectors of the economy, meaning sustained increases would have widespread and cascading effects on livelihoods and production.
“So if this thing doesn’t de-escalate, it is going to keep going up and up and up, and governments cannot really now go and add salaries also. So 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 pointed to possible global adjustments as countries respond to the crisis, including reduced work schedules and remote working arrangements to cut energy consumption.
“I mean, you can see in some countries today what they’ve done; they asked everybody to work from home. I think in Indonesia, they say, ‘No, only go to work four days a week.’ And they will look at the situation.
“If it doesn’t improve, they will ask everybody not to go to work anymore. We will do it like the time of COVID, where people will now go and 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,” said the businessman.
Economic Boost
Meanwhile, Dangote described Tinubu’s recent state visit to the United Kingdom as a major boost for Nigeria’s economic prospects.
“Well, I think it has opened ways. Today, diplomacy without the economic part of it is not complete. So I believe his own visit will open quite a lot of doors,” he said.
Dangote described the major agreement worth about £746 million secured by Nigeria as significant, noting the difficulty often associated with securing such commitments.
“You can see the agreement that was signed for actually improving our infrastructure, especially in the ports and other areas, which is almost £746 million; that’s quite a lot. It’s not that easy dealing with the British, getting this kind of money out of them. They, too, are struggling on their own.”
He stressed that beyond the financial value, the deal represents renewed global confidence in Nigeria’s economy and leadership.
“But I think this is to show confidence. It’s not about the money. It’s about the confidence in Nigeria.
“So 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,” he added.
Dangote also urged Nigerian investors to take advantage of the opportunities created by the agreements, particularly access to international credit facilities.