President of Dangote Group, Alhaji Aliko Dangote, has warned that Nigeria and other African countries will feel the effects of the ongoing Middle East crisis due to global economic interdependence.
Speaking to journalists after a Sallah homage to President Bola Tinubu at his Ikoyi residence in Lagos, Dangote said developments in the Middle East, particularly oil market volatility, could have significant consequences for African economies.
“We are part of a global village, and unfortunately, developments like this will affect us even if we are not directly involved,” he said.
He cautioned that prolonged tensions could trigger higher fuel prices, increased transport costs, inflationary pressures, and widespread economic hardship.
“If the situation does not de-escalate, we will end up paying a heavy price, especially given existing economic challenges,” Dangote added.
He noted that governments could face increased fiscal strain as subsidies rise and revenues fluctuate under unstable global oil market conditions.
Dangote also warned that Africa’s rising debt burden could worsen, further limiting fiscal space and weakening economic resilience.
“Africa is already grappling with debt, and additional shocks will only compound hardship for governments and the people,” he said.
He explained that rising energy costs would affect nearly every sector, including small businesses, manufacturing, logistics, and household consumption.
“Energy affects everything. From small businesses like barbers to industries running generators, everyone will feel the impact if costs continue to rise,” he said.
Dangote added that some countries have already begun adopting coping strategies such as reduced workdays, energy rationing, and remote work arrangements, which could slow productivity and economic output.
He urged global leaders to prioritise de-escalation of tensions, noting that many Africans depend on daily earnings and are highly vulnerable to economic shocks.
“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.
Deji Elumoye
