Aliko Dangote, Africa’s richest man, chairman of Dangote Group, and the continent’s most diverse manufacturing conglomerate, has revealed details about his refinery project. Despite substantial cautions and hurdles, Dangote persisted with the initiative, driven by a desire to prove detractors wrong.
Dangote, a 67-year-old billionaire, admits that he was cautioned against starting the refinery project. He assumed the warnings were intended to discourage him. Reflecting on the hurdles he faced, Dangote stated that if he had known the degree of the challenges, he would not have pursued the project.
“If I do this now, I’ll do it better since I’ve gained experience. But if I had known what I was about to go through, I would not have tried. People warned me about doing this, but I assumed they were just trying to dissuade me,” he stated.
Dangote underlined the greater issues that African countries confront while establishing refineries. He stated that no new refineries had been built in the previous 35 years due to budgetary constraints, a lack of political will, and opposition from those who gain from the importation of petroleum products.
“There hasn’t been a refinery in 35 years, and the reasons include money, political will, and people who benefit from importing petroleum products into Africa, all of which discourage governments from building refineries. They (the governments) will not receive the loans because they lack strong banks; foreign banks would not support something like this,” he stated.
Dangote emphasized the necessity of self-reliance in Africa’s growth. He suggested that Africans should take ownership of their own development rather than relying on foreign investment.
“If Africans are waiting for foreign investors to come and develop Africa, it will never happen,” said Dangote. He feels that focusing on industrialization and connection within Africa is critical for the continent’s future.
Dangote presented his refinery ambitions in September 2013, stating that he had obtained $3.3 billion in financing for the project. The refinery was initially predicted to cost roughly $9 billion, with the Dangote Group investing $3 billion and the rest coming from commercial financing, and it was planned to start production in 2016.
However, a change of location to Lekki slowed construction, which began in 2016 with excavation and infrastructural preparation. The intended completion date was then pushed back to late 2018.
The refinery was inaugurated in May 2023 during the government of former President Muhammadu Buhari. It is expected to allow Nigeria to attain self-sufficiency in refined products and generate a surplus for export, dramatically impacting the country’s economy and reducing its reliance on imported petroleum products.
The site includes not just a world-class refinery, but also a polypropylene factory that produces 1 million metric tonnes per year and two of the world’s largest fertilizer trains, with a combined capacity of 3 million tonnes of urea per year. It has a closed-loop process water system that produces 50MW of clean power via waste heat recovery.
The plant generates cleaner Euro-V fuels and uses innovative carbon capture equipment to reduce CO2 emissions. Additionally, it reduces the environmental impact of moving crude oil by sea, however the particular procedures used are unknown. With the world’s greatest single-train capacity (650,000 barrels per day), the $20.5-billion refinery aspires to become a significant exporter of refined products across Africa, potentially reaching as far as Brazil.
Dangote recently updated the refinery’s output capacities, announcing that the plant would begin producing diesel and gasoline in June. The refinery also intends to import 24 million barrels of crude oil from the United States over the next year, demonstrating its global operational scope.
Dangote, whose net worth is $15 billion, emphasized the importance of recent restructuring initiatives and strategic leadership appointments within the firm.
“We’ve now divided the corporation in two. We have myself as group president, the group president for oil and gas, and the group president for other businesses,” he explained. “When all of these are combined, by the end of the year, we will have a group with $30 billion in revenue, which is significant. It signifies that we will be one of the top 120 corporations in the world.”
The Dangote Oil Refinery has begun jet fuel exports to Europe, with the first shipment bound for Rotterdam, Netherlands. Furthermore, the refinery has announced intentions for a dual listing on the London Stock Exchange (LSE) and the Nigerian Exchange (NGX), demonstrating its commitment to driving Nigeria’s industrial development while strengthening its position in the global oil and gas markets.
The Dangote Group’s activities not only represent a big step forward for Nigerian industrial development, but also show promise for Africa’s economic environment. As activities develop and evolve, the company is poised to leave an indelible impact on the global oil and gas industry, reinforcing Africa’s potential for economic growth and self-sufficiency.
With its visionary leadership, smart investments, and commitment to innovation, the Dangote Group is at the vanguard of Africa’s industrial revolution, positioned to change the continent’s economic landscape and establish itself as a worldwide powerhouse in the coming years.
Dangote’s refinery project is a colossal endeavor to industrialize Africa, and it demonstrates his trust in the continent’s ability to drive its own growth. His experiences and ideas offer vital lessons for future African industrial endeavors.
