Aliko Dangote, Africa’s richest man, has warned that surging oil prices driven by tensions around the Strait of Hormuz could devastate airlines and worsen food inflation across the continent.
Dangote spoke on Thursday during an interview with Semafor
World Economy in Washington DC, where he highlighted the ripple effects of
volatile energy prices on key sectors.
His comments come amid disruptions to lStrait of Hormuz, a
critical global oil transit route, where instability typically drives up crude
prices with far-reaching economic consequences.
The disruption is caused by the war involving Iran, United
States and Israel.
“The majority of African airlines won’t be able to survive
the current spike in fuel costs,” Dangote said.
According to the chairman of Dangote Group, some Nigerian
carriers have already indicated plans to suspend operations if prices are not
reduced.
Dangote described the current oil market volatility as
unprecedented.
“Between morning and night, you see the oil moving up and
down $100. I’ve never seen it like that. Never,” he said.
The billionaire added that the surge in fuel prices poses a
significant threat to the aviation sector, which is heavily dependent on stable
energy costs.
Beyond aviation, Dangote raised concerns about the impact on
agriculture, particularly fertiliser prices, which he said have more than
doubled in recent months.
“Two months ago, fertiliser was about $400. Today, it is
$850,” he said.
“This farming season, the governments have to actually give
subsidies.”
According to Dangote, the sharp increase in input costs
could translate into higher food prices, putting additional pressure on already
strained households across Africa.
He said a potential agreement between the United States and
Iran could ease tensions and stabilise oil markets, but warned that any relief
would not be immediate.
The businessman added that even in a best-case scenario,
supply chain disruptions would delay a return to normalcy.
Dangote said in “another two, three months before we go back
to normal”.
On April 16, Fatih Birol, head of the International Energy
Agency (IEA), warned that Europe may have just six weeks of jet fuel left as
the airline industry grapples with supply disruptions linked to the Middle East
conflict.
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