Foremost Nigerian industrialist, Aliko Dangote, has raised alarm over the escalating tensions in the Middle East, warning that Nigeria and other African economies could suffer severe economic consequences if the Iran crisis drags on.
Dangote issued the caution on Monday in Lagos following a courtesy visit and Eid-el-Fitr homage to President Bola Ahmed Tinubu, where he also reaffirmed his support for the administration.
According to him, although Nigeria has no direct involvement in the crisis, the country remains vulnerable due to its integration into the global economic system.
“We are part of a global village, and unfortunately, developments like this will affect us even if we are not directly involved,” he said.
Dangote warned that prolonged instability could trigger a chain reaction across economies, including surging fuel prices, rising transportation costs, inflation, and widespread hardship.
“If the situation does not de-escalate, we will end up paying a heavy price, especially given existing economic challenges,” he cautioned.
He further explained that volatile global oil markets could strain government finances, as fluctuating revenues and rising subsidy demands place additional pressure on already stretched budgets.
The billionaire businessman also highlighted Africa’s growing debt burden, noting that further economic shocks could weaken fiscal stability and limit governments’ ability to respond effectively.
“Africa is already grappling with debt, and additional shocks will only compound hardship for governments and the people,” he said.
Dangote stressed that rising energy costs would impact virtually every sector of the economy—from small businesses and manufacturing to 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 noted.
He revealed that some countries are already adopting coping strategies such as reduced workdays, energy rationing, and remote work, warning that such measures could slow productivity and threaten livelihoods, especially among vulnerable populations.
Calling for urgent global intervention, Dangote urged world leaders to prioritise de-escalation, emphasizing the fragile economic realities in Africa.
“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.
On a more optimistic note, Dangote commended President Tinubu’s recent visit to the United Kingdom, describing it as a significant step toward boosting Nigeria’s economic prospects.
“I believe the visit has opened many doors. Diplomacy without economic outcomes is incomplete, and this has created opportunities for Nigeria,” he said.
He noted that agreements reached—particularly in infrastructure and financing—reflect growing international confidence in Nigeria’s reform agenda and could unlock new investments in critical sectors like ports.
“These investments will help improve our infrastructure and complement ongoing government efforts,” Dangote added.
He also expressed confidence that more countries, including Germany, would follow suit as Nigeria’s investment climate improves.
Dangote concluded by reaffirming his belief in the administration’s reforms, stating that strengthened partnerships and increased investor confidence would play a crucial role in driving sustainable economic growth in Nigeria.
