FUEL PRICE RISE: Dangote suggests how businesses can address it

Chairman and CEO of Dangote Group, Aliko Dangote, has provided advice on how businesses can overcome the increase in prices of fuel products caused by the crisis in the Middle East region.

He spoke on Monday after meeting with President Bola Tinubu at the president’s Ikoyi private residence in Lagos.

He suggested that the business world could adopt the strategies used during the Covid-19 pandemic when workers worked from home to save costs.

He cited Indonesia’s response to the pressures of the energy crisis, with authorities asking workers to operate only four days a week and considering full work-from-home arrangements as seen during the COVID-19 pandemic.

“In some countries now, what they’ve done is asked everyone to work from home because they can’t afford it.

“I think Indonesian people also only go to work four days a week. And they will see that if the situation doesn’t improve, they will ask everyone not to go to work anymore.

“We will do it like during COVID, where people will work from home,” Dangote said.

Expressing deep concern about the economic impact of oil price volatility on a continent already burdened by debt, the industrialist stated, “If this doesn’t subside, you know, normally we in Africa, we don’t have savings reserves.

“So, people usually go out and earn money for the next day or even for the same day. Some of them, if they don’t work that day, they won’t eat.”

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The billionaire businessman warned that Africa would suffer disproportionate consequences if a crisis occurred that did not involve the continent.

“It’s not just about energy. Some people will try to take a chance and say, ‘Ah, this is an opportunity. So, let me make some money.’

“So, if this is not reduced, then this will continue to increase and increase, and the government will not be able to increase salaries.

“So, the community will really feel the impact,” he said.

Dangote emphasized that this crisis will have the most severe impact on African communities running small businesses, especially barbers, bakers and industries that depend on generators as a source of electricity.

“People who are barbers, people who make bread, people who have industry, who have to pay for their own generators, you know, I mean, you can see what’s going on,” he said.

He called for urgent prayers and international intervention to end the conflict.

“We just need to pray that this problem ends soon,” said the Dangote Group chairman.

The Middle East crisis has raised concerns about the volatility of oil prices globally, potentially impacting inflation, transport costs and energy-dependent sectors across Africa.

Nigeria, despite being an oil producing country, remains vulnerable to fluctuations in global oil prices due to its dependence on imports of refined petroleum products.