PRESIDENT of the Dangote Group, Aliko Dangote, has expressed concern over rising instability in the global oil market, cautioning that the ongoing tensions in the Middle East could deepen economic challenges across Africa if not urgently addressed.
Dangote made the remarks after meeting with Bola Tinubu in Lagos, noting that although Nigeria is not directly involved in the conflict, its economic impact will be unavoidable due to the interconnected nature of global markets.
He warned that continued escalation could worsen financial strain on African economies already grappling with high debt burdens.
According to him, sustained increases in oil prices would significantly affect everyday life and business operations, as energy costs influence nearly all sectors.
He explained that rising fuel prices could drive up production and transportation costs, ultimately placing additional pressure on citizens and businesses that rely heavily on generators due to inconsistent power supply.
Dangote also highlighted the possibility of wider global adjustments if the crisis persists, including reduced working days and increased remote work, as seen in some countries attempting to manage energy consumption.
He stressed that such measures could have serious implications for workers in economies where daily income is critical for survival.
On a more positive note, Dangote commended President Tinubu’s recent state visit to the United Kingdom, describing it as a significant step toward strengthening Nigeria’s economic outlook.
He pointed to a £746 million agreement focused on infrastructure development, particularly in ports, as a sign of renewed international confidence in the country.
He noted that beyond the financial value, the deal could attract further investments from other nations, potentially boosting economic growth and development.
Dangote also encouraged Nigerian investors to take advantage of emerging opportunities, especially access to international credit facilities.
The ongoing Middle East tensions have already driven global oil prices upward, raising concerns about supply disruptions.
In Nigeria, the effects are being felt through increased fuel prices, with refiners, including the Dangote Refinery, adjusting rates in response to global market conditions.
The rising cost of petroleum products has added to the burden on consumers facing inflation and high transportation costs, while businesses continue to struggle with increasing energy expenses, often passing these costs on to end users.
