Africa’s richest man, Aliko Dangote, has warned that the escalating conflict in the Middle East threatens to push the continent’s fragile economies into a fresh era of austerity.

Speaking in Lagos following a meeting with Nigerian President Bola Tinubu on Monday, the billionaire industrialist cautioned that surging global energy costs could leave African governments unable to raise wages, even as the cost of living spirals.

Mr. Dangote, the founder of the Dangote Group, described the world as a “global village” where a conflict thousands of miles away would inevitably hit the pockets of ordinary citizens.

‘Paying a big price’

“If this situation doesn’t de-escalate, prices will keep going up, and governments cannot simply go and add to salaries,” Mr. Dangote said.

He highlighted the particular strain on small businesses—such as barbers and bakers—who rely on expensive diesel generators to stay open. Nigeria, like many African nations, has struggled with a persistent energy crisis, leaving many industries at the mercy of global oil market volatility.

“Africa is already busy paying off heavy debts,” he added. “Putting this on top of us is going to add a lot of hardship for something we have no involvement in.”

A return to ‘Covid-style’ measures?

In a stark assessment of the potential disruption, Mr. Dangote suggested that some nations might be forced to return to remote working models or reduced work weeks to conserve fuel.

He pointed to international examples, noting that some countries have already considered four-day work weeks or “work from home” mandates similar to those seen during the pandemic. However, he warned of the devastating human cost such a move would have on the continent’s massive informal economy.