Africa’s richest man, Aliko Dangote, has more than doubled his fortune to a staggering $27.8 billion, thanks to the successful launch of his highly anticipated 650,000 barrels-per-day oil refinery in Lagos, according to Bloomberg. The Dangote Refinery, the world’s largest single-train refinery, is set to transform Nigeria’s oil landscape, promising self-sufficiency in fuel production for the nation.
Dangote’s refinery is not only a monumental achievement but also a game-changer for Nigeria’s economy. As Africa’s top oil producer, the country has long faced the paradox of exporting crude oil while importing refined fuel due to its lack of functional domestic refineries. The refinery, 11 years in the making, cost $20 billion—more than twice the original budget—and overcame numerous challenges, including land disputes, environmental concerns, and the COVID-19 pandemic.
“I didn’t know what we were building was a monster,” Dangote, 67, remarked during a visit to New York, highlighting the immense pressure and skepticism that surrounded the project. Despite these hurdles, Dangote financed most of the refinery himself, battling delays and skyrocketing costs.
Read also: Coca-Cola unveils Wozzaah to celebrate African spirit, culture
However, not all has been smooth sailing. Since the refinery’s launch in January, Dangote has faced disagreements with the Nigerian government and the Nigerian National Petroleum Company (NNPC) over crude sourcing and refining costs. With a devalued naira, government fuel subsidies, and long-term oil contracts, the refinery had to import crude oil initially, further complicating operations.
Dangote’s bold vision includes addressing Nigeria’s fuel supply challenges while also navigating the complexities of the global oil industry. He struck a deal in 2021 to sell a 20% stake in the refinery to NNPC at a $13.8 billion valuation. Although this stake was later reduced to 7.2%, Dangote remains confident in his refinery’s long-term success.
Despite facing criticism and environmental concerns from local communities, Dangote continues to push forward, determined to solidify Nigeria’s energy independence.
