Africa’s richest businessman, Aliko Dangote, has cautioned that ongoing tensions in the Middle East could have serious economic consequences for Nigeria and other African countries if not quickly resolved.
Dangote gave the warning on Monday in Lagos after paying a Sallah visit to President Bola Tinubu, where he said the trip was also an opportunity to reconnect and reaffirm support for the administration.
Speaking on the global implications of the crisis involving Iran, Dangote noted that although Nigeria is not directly involved, the country cannot escape the ripple effects due to the interconnected nature of the global economy.
“We are part of a global system, and developments like this will affect us, even if we are not directly involved,” he said.
He warned that a prolonged conflict could drive up fuel prices, increase transportation costs, and trigger inflation across African economies, worsening existing economic challenges.
“If the situation continues, we will pay a heavy price,” he stressed.
Dangote explained that governments may come under pressure as rising subsidies and unstable oil revenues strain public finances. He also warned that Africa’s already high debt burden could worsen, limiting the ability of governments to respond effectively.
According to him, higher energy costs would disrupt virtually every sector from small businesses to large-scale industries as many depend heavily on fuel for daily operations.
“Energy affects everything. From barbers to manufacturers, everyone will feel the impact,” he noted.
He added that some countries are already adopting coping measures such as reducing workdays, rationing energy, and embracing remote work, steps that could ultimately slow productivity and economic growth.
Dangote urged global leaders to prioritise de-escalation, pointing out that many Nigerians and Africans depend on daily income to survive.
“In our environment, if people don’t work, they don’t eat. So it is important this situation is resolved quickly,” he said.
Tinubu’s UK visit boosts investor confidence
Commenting on the President’s recent trip to the United Kingdom, Dangote said the visit had opened up new economic opportunities and boosted international confidence in Nigeria.
He described the engagements as a positive signal to global investors, particularly in key sectors such as infrastructure and financing.
“It is not just about the funds committed, but the confidence it reflects in Nigeria’s reforms,” he said.
Dangote highlighted planned investments in critical areas like ports, noting that they would improve trade efficiency and support economic growth.
He also expressed optimism that more countries, including Germany, would follow with investments as confidence in Nigeria’s economy grows.
According to him, the agreements reached would give Nigerian businesses better access to international financing and technical support for large-scale projects, the opportunities that were previously underutilised.
“This shows that global institutions are now more willing to support viable Nigerian projects,” he said.
Dangote reaffirmed his backing for the current administration, expressing confidence that ongoing reforms and strategic partnerships would drive sustainable economic growth in the country.
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