- The Chairman of Dangote Group, Aliko Dangote, has warned that the ongoing Middle East crisis could significantly disrupt economic activities in Nigeria and across Africa if it continues to escalate
- He stated that the situation may force governments to reintroduce COVID-19-era measures as rising energy costs make daily operations increasingly expensive
- Dangote emphasised that most African countries, including Nigeria, lack sufficient financial reserves to cushion the effects of prolonged global economic shock
The Chairman and CEO of Dangote Group, Aliko Dangote, has cautioned that the escalating Middle East conflict could force Nigeria and other African nations to return to COVID-19-style work-from-home arrangements if the situation worsens.
Dangote issued the warning on Monday, March 23, after a meeting with President Bola Tinubu at his Ikoyi residence in Lagos.
He expressed concerns over the ripple effects of oil price volatility on African economies already grappling with heavy debt burdens.
According to him, the continent lacks the financial buffers needed to absorb prolonged economic shocks.
“If this thing doesn’t de-escalate, you know, normally we in Africa, we don’t have any reserves in terms of savings.
“And so, people normally go out and look for money for the next day or for even the same day. Some of them, if they don’t work that day, they won’t eat.”
Dangote pointed to Indonesia as an example of how countries are adjusting to energy-related pressures, noting that some workers now operate a four-day work week, with discussions ongoing about a full shift to remote work.
“In some countries today what they’ve done, they asked everybody to work from home because they cannot afford it.
“I think Indonesians also 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 like that time of COVID, where people will work from home.”
He warned that Africa could bear a disproportionate burden despite having no direct role in the crisis, as rising costs continue to strain governments and citizens alike.
“It’s not only energy. Some people will try and take a chance and say, ‘Ah, this is an opportunity. So, let me make money.’
“So, if this thing doesn’t de-escalate, it is going to keep going up and up and up, and governments cannot really and add to salaries.
“So, people will really, really feel the pinch.”
Dangote stressed that small-scale business owners would be the hardest hit, particularly those reliant on fuel-powered operations.
“People who are barbers, people who make bread, people who have industries, who have to pay for their own generators, you know, I mean, you can see what is happening.”
He called for urgent global efforts to resolve the crisis.
“We just need all hands-on deck to pray that this thing comes to an end.”
Speaking further, Dangote expressed optimism about President Tinubu’s recent state visit to the United Kingdom, noting that it could boost investor confidence in Nigeria.
He highlighted the £746 million infrastructure agreement signed during the visit, describing it as a strong signal of trust rather than just financial support.
“It has not been easy dealing with the British, getting this kind of money out of them. They too, they are struggling on their own. But I think this is to show confidence, it’s not about the money. It’s about the confidence in Nigeria.”
He added that the development could attract more international partners.
“The moment that they do that, there will be other countries that will follow suit. Germany will come, others will line up and start coming up.”
Dangote also revealed that Nigerian investors can now access funding from the UK Export Finance agency, which has remained largely underutilised.
“For Nigerian investors, it has shown that we can also go to the same agency and tap the resources. It means that the agency now is open for business for Nigerians, and we will go as private people to look for them to give us support.”
The agreement, which focuses on port development and critical infrastructure, is expected to support Nigeria’s economic growth.
Dangote noted that his visit to the President was also to extend Eid-el-Fitr greetings and welcome him back from the trip.
The ongoing Middle East crisis continues to raise global concerns over oil price fluctuations, with potential consequences for inflation, transportation, and energy-dependent sectors in Africa.
Despite being an oil-producing nation, Nigeria remains vulnerable due to its reliance on imported refined petroleum products.