President of Dangote Group, Aliko Dangote, has cautioned that escalating Middle East tensions could deepen economic strain across Africa, urging urgent de-escalation to stabilise global oil markets.
Speaking after meeting Bola Ahmed Tinubu in Lagos on Monday, Dangote said while Nigeria is not directly involved, it will inevitably feel the impact of oil price volatility.
“The world is a global village. It will affect us, unfortunately, but we pray the situation is resolved,” he said.
He warned that a prolonged crisis could worsen fiscal pressures across Africa, where debt burdens are already high.
“If it doesn’t de-escalate, we’ll pay heavily. Africa is already servicing significant debt, and this will add hardship for governments and citizens alike.”
Dangote stressed that rising energy costs would ripple across all sectors, squeezing households and businesses.
“If prices keep rising, governments can’t simply increase salaries. People will feel it—small businesses, bakeries, industries running generators.”
He noted that some countries are already considering energy-saving measures such as reduced workdays and remote work—similar to the COVID-19 pandemic response—if the crisis persists.
“We just need this to end. Otherwise, the impact on livelihoods will be severe.”
Tinubu’s UK visit boosts confidence
Dangote also praised Tinubu’s recent visit to the United Kingdom, describing it as a strategic move to unlock investment and strengthen economic diplomacy.
He highlighted a £746 million agreement focused on infrastructure, particularly ports, as a sign of renewed global confidence in Nigeria.
“It’s not just about the money—it’s about confidence. When others see this, more countries will follow.”
He urged Nigerian investors to leverage emerging opportunities, especially access to international financing.
Oil volatility hits home
Global crude prices have surged amid supply disruption fears linked to the Middle East crisis, driving up petroleum costs worldwide.
In Nigeria, the effect is already visible in rising pump prices, as refiners—including the Dangote Refinery—adjust to higher input costs.
With many businesses reliant on petrol and diesel due to unreliable power supply, energy inflation is feeding into broader production costs and consumer prices—intensifying pressure on households and the wider economy.
