Africa’s richest man, Aliko Dangote, has described Nigeria’s current refining sector, where the country imports petroleum products while the Dangote Refinery exports, as a “paradox” that must be urgently addressed to enable sustainable growth in the sector.
“This is a huge cost benefit for Nigerians,” Dangote said. “Even though the cost-benefit may not be immediately obvious, because before the advent of the Dangote refinery, subsidies were used to mask the real market price, still, we find ourselves in a situation where Nigeria imports petroleum products, while at the same time, the Dangote refinery is exporting. This is a paradox that we must address for this sector to grow.”
Dangote made the remarks in Abuja on Monday during the Inaugural Annual Downstream Petroleum Week, organised by the House of Representatives Committee on Petroleum Resources (Downstream). Represented by Aliyu Suleiman, the Group Chief Strategy Officer of Dangote Industries Limited, he called for balanced policies that promote competition, innovation, and productivity rather than stifle investment through misplaced claims of monopoly.
He cautioned that unfounded monopoly allegations could discourage local investors from venturing into capital-intensive industries, particularly in refining and energy, at a time when Nigeria needs domestic production to drive economic transformation.
“Too many people with the means to build industries chose instead to invest abroad,” he said. “We have chosen differently. We have chosen to build here, to employ here, to produce here. Let us not use the cry of monopoly to stall growth. No one is prevented from investing, we welcome others to build their own refineries, and we will offer support in whatever way we can.”
Highlighting the refinery’s contribution to Nigeria’s self-sufficiency, Dangote said the facility has the capacity to meet the nation’s demand for diesel, premium motor spirit (PMS), and jet fuel, with excess volumes available for export. He also disclosed plans to list the refinery on the Nigerian stock exchange, allowing citizens to become shareholders in the multibillion-dollar project.
Speaking on Africa’s underdeveloped refining capacity, Dangote lamented that while Europe and Asia refine over 95% of their petroleum products, Africa refines only about 40%, leaving the continent heavily dependent on imports. He attributed this to the capital-intensive and technologically complex nature of refining, which has discouraged both private investors and governments from taking bold initiatives.
“In building our refinery, we took on one of the most challenging industrial projects anywhere in the world,” he said. “We acquired over 2,700 hectares of land, pumped 65 million cubic metres of sand to stabilise the site, installed 250,000 foundation bars, and laid millions of metres of pipes and cables. At peak, we had over 60,000 people on site, 50,000 of whom were Nigerians.”
Dangote concluded by urging policymakers to enact and enforce laws that protect local industries and incentivise long-term investments. “Nigeria holds a natural competitive advantage in refining. We must work together to build this sector, protect our industries, and deliver the economic transformation our country deserves,” he said.
