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Africa’s richest man Aliko Dangote has vowed to push his $20 billion oil refinery in Nigeria towards full operational capacity, despite what he said were challenges from oil importers seeking to undermine his venture to retain their dominance in the country’s energy sector.
The billionaire’s 650,000-barrel-per-day refinery in Lagos state began rolling out fuel to Nigerians last September. It is widely seen as a way for Africa’s biggest crude oil producer to end its reliance on the costly importation of refined fuel.
The refinery’s entry has helped push down pump prices, often to the frustration of retailers. But the company has faced several challenges, particularly in obtaining local crude oil for the refinery. The refinery has been plagued by uncertainty surrounding purchase agreements with the state-owned Nigerian National Petroleum Company.
Dangote, speaking on Thursday at an investor conference in Lagos, renewed his criticism of groups who “for a very, very long time” have “made a lot of money from” government-subsidized oil imports into Nigeria. Those groups have funded resistance to the Bola Tinubu government’s removal of petrol subsidies and are opposed to his refinery operating easily in the country, Dangote claimed.
“We’re fighting and the fight is not yet finished,” he said. But I have been fighting all my life and I am ready and hundred percent sure I will win at the end of the day.”
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Dangote’s latest comments come as Nigeria plans to increase its capacity to stockpile petroleum products, to prepare against shocks to the global oil market following US President Donald Trump’s shake-up of international trade with the threat of tariffs.
Nigeria’s government hopes the Dangote refinery, which is Africa’s largest, as well as local plants being revitalized will play a role in boosting that stockpile.
After a wave of tensions with government agencies last year, which included the raiding of the Dangote Group’s offices in Lagos by an anti-corruption outfit, the Tinubu administration has appeared more keen to attend to the refinery’s needs. The government resolved last month to continue selling Nigerian crude oil to local refineries in the naira currency.
Step Back
Dangote said his conglomerate’s cement business, which established its founder as a leading African industrialist, is set to raise its production capacity to 62 million tonnes per year following increased investment. He projected that Nigeria will export more cement than Egypt by 2026, becoming the continent’s top exporter.
Notable
- Dangote told The Wall Street Journal in February that building his refinery has put him “through hell.”