President of Dangote Group, Alhaji Aliko Dangote, has dismissed suggestions that he should buy one of Nigeria’s non-functional government-owned refineries instead of expanding the capacity of his $20 billion Dangote Refinery in Lekki, Lagos, from 650,000 to 1.4 million barrels per day.
Key Highlights:
- Dangote says he prefers expansion to avoid monopoly allegations.
- He urges wealthy Nigerians and DAPPMAN to buy or build refineries.
- Tinubu pledges crude oil support for local refining.
- Dangote insists NNPC refineries “may never work again.”
- NNPC CEO counters, vows Port Harcourt, Warri, and Kaduna refineries will return to operation.
Speaking to journalists in Lagos, Dangote, alongside billionaire investor Femi Otedola, said he would rather strengthen his existing facility than face claims of monopolising the oil sector.
“Buying those refineries? Once we touch them, you will hear a lot of noise. There are other people with a lot of money, maybe more cash than we have, who should go and try their own luck,” he said. “I think groups like DAPPMAN should go and buy some of the refineries or build theirs. We should all contribute to President Tinubu’s vision of a $1 trillion economy.”
Dangote noted that the President had promised steady crude supply to support the sector’s revival. “The President is backing this initiative. For us, we already have the infrastructure, so expanding to 1.4 million barrels per day makes more sense than starting elsewhere,” he added.
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The billionaire businessman revealed that plans for expansion were built into the original design of the refinery. “We are actually going beyond doubling. The idea was always to grow the capacity once conditions were right,” he said.
Dangote also revisited the failed 2007 sale of Nigeria’s refineries, saying he and his partners had purchased the assets under President Olusegun Obasanjo but were compelled to return them after President Umaru Musa Yar’Adua reversed the decision. “As of today, $18 billion has been spent on those refineries and they are still not working. I doubt they ever will,” he said.
However, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Bayo Ojulari, countered Dangote’s pessimism, insisting that the Port Harcourt, Warri, and Kaduna refineries will soon resume operations.
Ojulari disclosed that NNPC is conducting a “Technical and Commercial Review” to decide whether to overhaul or repurpose the facilities for sustainability. He said the review would determine the most viable route toward restoring the plants’ operational and commercial viability.
Calls for privatisation have intensified in recent months following repeated shutdowns of NNPC’s refineries despite heavy spending on their rehabilitation. Between 2021 and 2023, the government reportedly approved more than $2.8 billion for repairs, yet the facilities remain idle.
The NNPC maintains that the ongoing assessment will usher in “a new era” for the refining sector, with plans to engage international technical partners to transform the facilities into globally competitive assets.
Meanwhile, Dangote’s refinery, which began operations earlier this year, is expected to meet Nigeria’s total fuel demand and position the country as a net exporter of refined products within the next three years.
