Middle East Crisis: Dangote Warns of Deeper Hardship for African Economies

President of Dangote Group, Aliko Dangote, has warned that the escalating crisis in the Middle East could push African economies into deeper hardship, potentially leaving governments unable to raise wages amid surging energy costs.

Speaking after a visit to President Bola Tinubu in Lagos State on Monday, Dangote highlighted a critical consequence of prolonged oil market volatility, noting that governments may struggle to cushion citizens through salary increases even as living costs continue to rise.

“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.

Focusing on the strain on households and small businesses, Dangote warned that rising fuel prices would directly hit everyday economic activity while limiting government response capacity.

“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 added.

He stressed that Africa’s already fragile fiscal position, marked by heavy debt burdens, would worsen if the crisis persists, despite the continent having no direct involvement in the conflict.

Dangote further pointed to possible global responses to sustained energy shocks, including reduced work schedules and a return to remote work models seen during the COVID-19 period. He warned of the human cost of such disruptions, stating that for many, lost work days would directly translate to lost livelihoods.

Imported Fuel and Rising Costs

His comments come amid rising fuel prices in Nigeria, following the closure of the Strait of Hormuz amid escalating tensions between the US, Iran, and Israel. The strait conveys about 20 percent of global energy needs daily.

Nigeria has recently experienced a sharp hike in fuel prices, with petrol exceeding N1,000 per litre in many parts of the country.

Data from the National Bureau of Statistics (NBS) shows that Nigeria imported petrol worth N3.5 trillion in the fourth quarter of 2025 alone. This brought the total fuel import bill for the year to N8.8 trillion, marking the highest annual outlay on petrol in Nigeria in recent years. Earlier in 2025, the country had spent N5.3 trillion on fuel imports between January and September.

Expert Calls for Proactive Measures

Meanwhile, a development expert, Engineer Micheal Ale, has urged President Tinubu and the National Assembly to take proactive measures to forestall impending hardship arising from the energy price hike. He advised the President to work with lawmakers to constitute a committee of experts and technocrats to address the looming crisis.

Ale made the call in a statement on the occasion of World Water Day, warning that energy price hikes would worsen in the days to come if urgent action was not taken.