Aliko Dangote GCON

Report: 13. June 2024

Aliko Dangote is on a mission to build Africa's largest oil refinery, and he says, "I don't get scared of anything."

Aliko Dangote, the wealthiest individual in Africa, has overseen the construction of one of the world's largest oil refineries over the past eight years.

Situated in the Lekki Free Zone outside of Lagos, Nigeria, the facility commenced operations in May 2023. It boasts the capability to produce 650,000 barrels per day and aims to address Nigeria's historical reliance on imported fuel.

Dangote Industries Ltd., a sizable conglomerate responsible for operating cement plants, a fertilizer plant, and a sugar refinery, seeks to achieve not only self-sufficiency in oil refining for Nigeria but also provide petroleum products to other African countries.

Despite the completion of the $19 billion facility, Dangote expects that local oil producers will gradually shift away from relying on overseas refineries. In a recent interview with the media, Dangote emphasized the challenges of convincing some international oil companies to supply crude to the refinery. He noted that these companies prefer exporting crude rather than meeting domestic demand.

Dangote stated that if the NNPC puts all their refineries to work, Nigeria will be the largest exporter of petroleum products in Africa, and one of the biggest worldwide.

He also mentioned that 40% of the refining products from the Dangote Refinery will be exported outside Nigeria, after meeting the entire demand domestically.

The refinery is currently producing over 420,000 barrels per day, and it is expected to ramp up production to almost 550,000 barrels per day by July/August and reach about 650,000 barrels per day before the end of the year.

Dangote expressed optimism about the benefits of the African Continental Free Trade Area (AfCFTA), stating that his company stands to be among the top five beneficiaries of the free trade agreement. However, he also mentioned that he has not seen any improvement yet. He highlighted the potential for exporting 3 million tons of urea, petroleum products, and cement to African countries, emphasizing the need for the free trade agreement to be effective.

To boost trade between African countries, we need to focus on making regional markets fully operational. This means removing visa requirements and allowing free movement of people, goods, and services.

Without these changes, the success of the AfCFTA (African Continental Free Trade Area) is uncertain. As an example, I am traveling to Egypt tomorrow and require a visa, even though they offer visas on arrival to those with American passports. However, as an African passport holder, I feel excluded. This barrier makes it challenging to engage in trade when I'm not allowed into their country.