Aliko Dangote, President of the Dangote Group and Africa’s richest businessman, has alleged that powerful fuel importers attempted to obstruct the establishment of the $20 billion Dangote Refinery.
According to him, the group he described as a “mafia” feared the refinery would disrupt the long-standing system that encouraged the large-scale importation of refined petroleum products into Nigeria, despite the country being one of Africa’s major crude oil producers.
Dangote explained that his determination to end decades of persistent fuel scarcity and endless queues at filling stations motivated him to embark on the project. He noted that it was unacceptable for Nigerians to spend hours and sometimes days trying to purchase petrol in an oil-producing nation.
He disclosed that the refinery project, which commenced in 2013, faced numerous setbacks, many of which he claimed were orchestrated by entrenched interests within the oil sector determined to frustrate the initiative.
He further stated that constructing the refinery required massive investment in supporting infrastructure, including a dedicated port, facilities for handling heavy equipment and a large-scale water treatment plant.
Despite the enormous financial burden and repeated discouragement, Dangote said he remained committed to completing the refinery in order to strengthen Nigeria’s energy independence and improve Africa’s overall energy security.
Speaking during an interview with Nicolai Tangen, Chief Executive Officer of Norway’s Sovereign Wealth Fund, monitored by Vanguard, Dangote explained that Africa exports crude oil while importing refined products, a trend that drains foreign exchange reserves across the continent.
He recalled that Nigerians had endured fuel shortages and queues for over five decades because government-owned refineries failed to function efficiently, prompting him to take what he described as a bold decision to establish a private refinery.
Dangote revealed that acquiring land for the project alone caused a five-year delay, while opposition from influential figures in the petroleum sector further complicated the process.
He said when construction started, the exchange rate stood at about N156 to the dollar, but later climbed as high as N1,900 during the course of the project. According to him, the company had to construct its own port because existing Nigerian ports could not accommodate some of the heavy equipment, with certain components weighing up to 3,000 tonnes.
He also disclosed that roads, water systems and other critical facilities had to be built from scratch, noting that the refinery consumes about 440 million litres of treated water, while the treatment section alone spans more than 30 hectares.
Dangote stated that approximately 67,000 people worked on the refinery project, adding that he might have been discouraged if he had fully understood the scale of the undertaking from the beginning.
He likened the experience to swimming across an ocean, saying once the project advanced beyond a certain point, there was no turning back.
The businessman acknowledged financial support from institutions including the African Export-Import Bank, African Finance Corporation, Zenith Bank, Access Bank, United Bank for Africa, Standard Bank and Standard Chartered Bank.
He added that the final outcome of the refinery exceeded expectations.
Dangote also disclosed that the ongoing crisis in the Middle East unexpectedly boosted demand for some of the group’s products, particularly fertiliser, petrochemicals and aviation fuel.
According to him, the price of urea fertiliser rose from around $400 per tonne before the crisis to nearly $850 per tonne, while demand also increased significantly.
He further revealed that polypropylene prices in the United Kingdom surged from about $900 per tonne to almost $3,000, adding that local production by the Dangote Group helped prevent the collapse of Nigeria’s plastic manufacturing industry.
Dangote stated that the group’s aviation fuel output, currently at 20 million litres daily, has already been sold out until the middle of July.
On crude supply, he explained that about 56 per cent of the refinery’s crude comes from Nigeria, while additional supply is sourced from Angola, Libya and the United States.
He noted that the refinery previously imported between seven and eight cargoes of American WTI crude monthly, but now relies more heavily on Nigerian crude supply.
According to him, the refinery currently requires about 21 cargoes of crude every month due to its massive operational scale.
Dangote also announced plans to increase refining capacity to 1.4 million barrels per day within the next 30 months.
He argued that resistance to the refinery largely came from individuals and groups who profited heavily from Nigeria’s former fuel subsidy regime.
According to him, Nigeria previously spent nearly $10 billion annually on fuel subsidies, creating opportunities for importers, traders and shipping operators to make enormous profits from importing petroleum products.
He alleged that some beneficiaries of the subsidy system earned billions of naira and viewed the refinery as a direct threat to their businesses.
Dangote also disclosed that the group is considering establishing additional refineries in other African countries such as Uganda, Tanzania, Kenya and Rwanda to reduce dependence on fuel imports from the Middle East.
He explained that a refinery with a capacity of 650,000 barrels per day could adequately serve markets stretching as far as Ethiopia.
The billionaire businessman further revealed that the Dangote Group currently has investment plans worth approximately $45 billion, including liquefied natural gas and gas infrastructure projects across Nigeria.
According to him, the company is also developing gas pipelines and treatment facilities to harness associated gas currently being flared in parts of the country for LNG production.
Dangote added that the group plans to attract more investors into some of its businesses to support expansion and accelerate growth.
He said the cement division aims to increase annual production capacity to 100 million tonnes, while the company’s long-term target is to generate about $200 billion in revenue by 2030.
He also projected that EBITDA could rise from about $3 billion recorded last year to more than $30 billion by the end of the decade.
On financing, Dangote maintained that the company only undertakes projects it can comfortably sustain financially and does not overstretch itself.
He stated that international financial institutions continue to support the group because of its proven ability to execute major projects successfully, including completing the refinery during the difficult COVID-19 period.
Dangote disclosed that the refinery has already processed crude volumes of about 661,000 barrels per day, strengthening investor and lender confidence.
He identified civil unrest, inconsistent government policies and poor infrastructure as some of the biggest risks facing businesses in Africa.
According to him, the group has invested more than $3 billion in road construction projects, with government policies allowing companies to recover such investments through tax credits over time.
Dangote stressed that businesses and government must work together through sound investment policies and proper regulation to achieve sustainable growth.
Meanwhile, Chairman of the African Energy Chamber, NJ Ayuk, praised the Dangote Refinery, describing it as the largest single-train refinery in the world.
Ayuk said the project sends a strong message about Africa’s industrial capability and should serve as a model for other African nations seeking to strengthen energy security.
He added that the entire continent is watching the refinery’s progress and called for stronger support for the project because of its significance to Africa’s economic development.
Dangote had earlier announced in April 2026 that preliminary work had already begun on another 650,000-barrel-per-day refinery in East Africa, with Kenya and Tanzania being considered as possible locations.