Nigeria will pay heavy price if Iran war doesn’t end – Dangote

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From Left: Alhaji Aliko Dangote and President Bola Tinubu.

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Foremost industrialist, Alhaji Aliko Dangote, has warned that Middle-East tensions driving global oil volatility could have far-reaching consequences for Nigeria and African economies.

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Dangote spoke on Monday in Lagos after a courtesy visit and Eid-el-Fitr homage to President Bola Tinubu.

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He said the visit was to extend Sallah greetings, reconnect with the president after some time, and reaffirm respect and continued support for the administration’s policies.

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Dangote noted Nigeria had no direct role in the crisis but would still feel the impact because of deep global economic interdependence.

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

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He warned that prolonged tensions could trigger higher fuel prices, rising transport costs, inflationary pressures, and widespread hardship across African economies.

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

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He explained that governments could face mounting fiscal strain as subsidies rise and revenues fluctuate under unstable global oil market conditions.

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Dangote added that Africa’s rising debt burden could worsen under prolonged instability, further limiting fiscal space and weakening economic resilience.

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

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He said escalating energy costs would disrupt nearly every sector, including small enterprises, manufacturing chains, logistics operations and household consumption patterns.

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

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Dangote noted that some countries were already adopting coping strategies such as reduced workdays, energy rationing and remote working arrangements.

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He said such measures, while necessary, could reduce productivity, slow economic output and affect livelihoods, particularly among vulnerable populations.

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Dangote urged global leaders to prioritise de-escalation, stressing that many Africans rely on daily earnings and remain highly exposed to economic shocks.

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“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.

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

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

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He said agreements reached during the visit, especially in infrastructure and financing, signalled growing international confidence in Nigeria’s reform agenda.

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

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Dangote said planned investments in critical sectors such as ports would significantly improve trade efficiency and support medium-term economic expansion.

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

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He expressed optimism that other countries, including Germany, would follow with investments as confidence in Nigeria’s economy strengthens.

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

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Dangote said the agreements would enable Nigerian private sector players to access international financing and technical support for large-scale projects.

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

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He described the development as a breakthrough, noting that such credit facilities had historically remained underutilised by Nigerian businesses.

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“We have not really utilised these resources before, but now there is clear capacity and willingness to fund viable Nigerian projects,” he said.

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

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(NAN)

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