Nigeria and Ethiopia listed among countries to benefit from Dangote’s $1 billion plan

Dangote Cement, controlled by Africa’s richest man, Aliko Dangote, currently boasts an estimated production capacity of 55.17 million tons.

With the $1 billion investment, the cement manufacturer, in the span of four years, intends to boost production capacity by 45% to 80 million tons.

This information was disclosed by the company’s Chief Financial Officer (CFO), Gbenga Fapohunda, on Wednesday, during an investor conference call in the country’s commercial hub, Lagos.

He noted that the fund would be channeled in “Nigeria, Ethiopia, and some other countries.”

In February, the company disclosed that it had signed a $1 billion agreement with China’s Sinoma International Engineering to construct new plants and expand existing facilities across Africa.

The landmark deal, signed in Lagos, covers 12 projects across seven African countries and is part of DCP’s plan to raise production capacity to 80 million tonnes per annum by 2030.

This new initiative follows a similar plan established by Dangote to increase exports of cement and clinker to 10 million tons by 2030, in contrast to 1.4 million tons in 2025.

Dangote Cement recently reported an 18.6 per cent rise in cement and clinker exports from Nigeria, dispatching 34 shiploads of clinker to Cameroon and Ghana during the year.

As seen on Bloomberg, the company’s CFO noted that the expansion plan would be financed with operating cash flow, supplier credit, commercial papers, bonds, and bank loans.

This initiative had earlier been spoken about by the company's Group Managing Director, Arvind Pathak, who noted that the cement company would continue to commission new capacity and advance projects across several African markets.

“We are confident in our growth trajectory and our ability to capitalise on Africa’s robust cement demand fundamentals,” Mr Pathak said in an earnings release filed with the Nigerian Exchange.

“We will continue commissioning new capacity, including the transformational 6 metric tonne per annum (Mta) Itori plant, while advancing expansion projects in Ethiopia, Cameroon, South Africa, Zambia, and Senegal.”

A few days back, Dangote Cement reported its highest profit on record.


Dangote Cement's recent milestones

The company disclosed that net profit for 2025 increased to N1 trillion, or almost $730 million at an exchange rate of N1,369.06 to $1, more than doubling the previous year's performance.

Revenue increased by 20.3% to N4.3 trillion, or nearly $3.14 billion, thanks mostly to stronger pricing and solid domestic demand.

The record earnings come despite a minor drop in sales volumes, highlighting the group's pivot toward margin protection, cost efficiency, and export growth as it positions Nigeria as a regional manufacturing hub.

In February 2026, Dangote Cement Plc became the first company to list Commercial Papers (CPs) on Nigerian Exchange Limited (NGX).

The listing follows the opening of a Commercial Paper window by NGX on December 3, 2025, after gaining approval from the Securities and Exchange Commission.

Dangote Cement's Series 1 and Series 2 Commercial Papers were admitted to its N500 billion Commercial Paper Issuance Programme.

The 181-day Series 1 CP for N19.95 billion will mature on May 20, 2026. The N99.92 billion Series 2 CP has a tenor of 265 days and will mature on August 12, 2026.

Both instruments were issued at a discount and will be repaid at their par value of N1,000 upon maturity. Series 1 and Series 2 provided indicated yields of 17.50% and 19%, respectively.

In October last year, the cement company commissioned a $160 million plant in Attingué, about 30 kilometres north of Abidjan, Côte d’Ivoire’s commercial hub.

The 50-hectare facility can produce three million metric tonnes per year, making it one of the company's largest sites outside Nigeria.

By Chinedu Okafor, Business Insider Africa

Dangote Cement posts record profit of over $700m, targets expansion in South Africa, Ethiopia, and other markets

Nigeria’s Dangote Cement, Africa’s largest cement maker, delivered a historic financial performance in 2025 with profit after tax more than doubling to approximately ₦1.01 trillion naira, or about $743 million at prevailing exchange rates.

This result, released in its audited financials for the year ended 31 December 2025, marks the first time the company has crossed the trillion naira profit milestone, underscoring strong operational performance amid ongoing capacity expansions.

Group revenue climbed more than 20 per cent to ₦4.31 trillion (roughly $3.17 billion), driven by resilient demand across key markets and proactive cost management. Earnings before interest, tax, depreciation, and amortisation expanded by more than 40 per cent to ₦1.98 trillion, about $1.45 billion, lifting the company’s EBITDA margin to 46 per cent.

In its home market of Nigeria, EBITDA jumped over 60 per cent to about 1.76 trillion naira, or $1.29 billion, with a margin close to 60 per cent.

The board has proposed a 50 per cent increase in the dividend to ₦45 per share, a move that reflects both confidence in the company’s cash generation and returns to investors. Dangote Cement’s performance comes even as total production volumes edged down marginally to 27.5 million tonnes.

Export volumes, however, rose significantly with Nigerian cement and clinker shipments up nearly 19 per cent to 1.4 million tonnes, including 34 sea shipments to destinations such as Ghana and Cameroon.

Chief Executive Officer Arvind Pathak described 2025 as a “landmark year” for the business, highlighting the strength of the company’s strategic model in the face of modest volume declines.

“Profit after tax crossed the ₦1tn milestone for the first time in our history, more than doubling 2024 performance,” he said, noting that disciplined margin focus and operational efficiency were key drivers.

Pathak also pointed to strategic infrastructure projects that are beginning to pay off. In the third quarter of 2025, Dangote Cement commissioned a three‑million‑tonne‑per‑annum grinding plant in the Ivory Coast, which is part of a broader network that expands the group’s annual capacity to 55 million tonnes.

This facility will boost production capabilities in West Africa and position the group to better meet regional demand through an integrated supply chain.

The company’s export terminals at Apapa and Onne in Nigeria have emerged as strategic assets, underpinning its ambition to reach a combined export target of 10 million tonnes by 2030.

Pathak said progress on logistics efficiency, particularly the adoption of compressed natural gas technology in the company’s transport fleet, is enhancing cost leadership.

The addition of more than 3,000 CNG trucks has reduced fuel costs by more than 60 per cent compared with diesel, embedding structural advantages into the cost base and supporting margin expansion.
Dangote Cement Targets More African Markets

Looking ahead, Dangote Cement plans further capacity roll‑outs and geographical expansion. The company is advancing the 6 million tonnes per annum Itori plant while progressing projects in Ethiopia, Cameroon, South Africa, Zambia, and Senegal.

Pathak described a confident growth trajectory, buoyed by stable macroeconomic conditions, structural reforms, and the operational benefits of the African Continental Free Trade Area.

He said the focus on excellence, margin improvement, and export scaling will sustain performance and value creation for stakeholders.

This strong set of results comes at a time when Nigeria’s broader economic indicators show signs of stabilisation, including easing inflation and relatively steady foreign exchange markets, themes that executives say support the cement maker’s long‑term growth outlook.

By Segun Adeyemi, Business Insider Africa

Nigerians are 5 months away from owning a piece of Dangote's fortune

 

Aliko Dangote, President of the Dangote Group and Africa’s richest man, has announced that Nigerians, in the next four to five months, will have the opportunity to invest directly in the Dangote Refinery.

Dangote made the announcement on Saturday while giving members of the press a tour of the refinery.

Bayo Ojulari, Group Chief Senior Officer of Nigerian National Petroleum Company Limited (NNPC), was among those who paid the visit, as were members of the NNPC board and senior management team.

Dangote said arrangements are already in place to allow individuals to buy shares in the refinery over the next four to five months.

“Individually, Nigerians too will have an opportunity… in the next maximum four or five months, they will actually be able to buy their shares,” Dangote said.

He mentioned that the NNPC already owns shares in the company for Nigerians, as seen in the Punch.

“They are holding 7.25 per cent of the shares that we have here… and they are holding that on behalf of Nigerians,” Africa’s richest man stated.

“People will have a choice either to get their dividends in naira or to get their dividends in dollars because we earn dollars,” he added.

This initiative builds on Dangote's proposal to list the refinery on the stock market, which he announced in July 2025, after being accused of favoring foreign investors over local financiers.

Dangote’s real reason for listing his refinery

In a follow-up conversation with the press in December, Dangote commented on the reasons for opening the refinery to public investors.

He emphasized that the listing was not mainly about maintaining control, but rather about leaving an enduring legacy.

“At the moment, our main interest is to list on the exchange, so that every living Nigerian can own part of the refinery,” he said at the time.

“Somebody asked me a question, is it 5 or 10 percent you want to sell, and I said that when we are going to sell the shares, we will not put a cap, if they happen to buy 55% and I own 45%, so be it,” he added.

When asked explicitly if the offer extended beyond Nigerians living in the country, Dangote simply said, "Yes."

The Dangote Refinery, valued at over $20 billion, represents a significant milestone in Nigeria’s energy sector.

Once fully operational, it has the potential to produce around 1.4 million barrels of oil per day, which would make it one of the largest refineries in the world.

By Chinedu Okafor, Business Insider Africa

Related story: Dangote cement makes history as first to list commercial papers on Nigerian exchange NGX

Dangote cement makes history as first to list commercial papers on Nigerian exchange NGX

 

Dangote Cement Plc has become the first company to list Commercial Papers (CPs) on Nigerian Exchange Limited (NGX), marking a structural shift in Nigeria’s short-term debt market.

The listing follows NGX’s introduction of a Commercial Paper window on December 3, 2025, after receiving approval from the Securities and Exchange Commission (SEC), expanding the Exchange’s product suite and deepening Nigeria’s domestic debt capital market.

Details of the Issuance

According to BusinessDay, Dangote Cement’s Series 1 and Series 2 Commercial Papers were admitted under its N500 billion Commercial Paper Issuance Programme.

The N19.95 billion Series 1 CP has a tenor of 181 days and will mature on May 20, 2026. The N99.92 billion Series 2 CP carries a tenor of 265 days and is scheduled to mature on August 12, 2026.

Both instruments were issued at a discount and will be redeemed at par value of N1,000 upon maturity. Series 1 and Series 2 offered implied yields of 17.50 percent and 19 percent, respectively.

David Adonri, Vice Chairman of Highcap Securities Limited, described the development as a milestone for the domestic debt market. “Dangote Cement’s Commercial Paper listing on NGX signals growing sophistication in Nigeria’s short-term debt market. The attractive yields of these instruments highlight strong investor appetite for high-quality, short-tenor corporate debt, and provide a benchmark for future issuances,” he said.

NGX’s Strategic Expansion

Temi Popoola, Group Managing Director and Chief Executive Officer of NGX Group, said the launch aligns with the Exchange’s broader strategy to strengthen capital formation.

“The introduction of Commercial Paper listings is a pivotal step in our strategy to position NGX as a comprehensive capital-markets infrastructure that accelerates capital formation across Africa,” Popoola said.

“As we continue strengthening the foundations of a transparent, technology-driven and inclusive marketplace, our focus remains on building a system that supports sustainable growth, enhances market resilience and unlocks new opportunities for the broader economy.”

Commercial Papers are unsecured short-term debt instruments used by corporates to finance working capital and immediate funding needs. Historically, Nigeria’s CP market has operated largely over-the-counter, limiting transparency and secondary market liquidity.

By admitting CPs to trading, NGX introduces greater visibility, structured price discovery and improved tradability for short-term instruments.

How Nigeria Compares Across Africa

While Commercial Paper markets are established in several African economies, Nigeria’s move formalises a segment that had largely operated outside exchange visibility.

South Africa operates one of the continent’s most mature CP markets, with active issuance among banks and corporates.

Kenya also maintains a robust short-term debt market under the Capital Markets Authority, with regular CP issuances by financial institutions and major corporates.

Morocco and Egypt similarly support structured corporate short-term instruments.

Within West Africa, short-term corporate instruments are available through the BRVM regional exchange, covering markets such as Ivory Coast and Senegal, though with comparatively lower liquidity.

Nigeria’s development narrows the structural gap between its market and those of more advanced African economies.

Implications for Issuers and Investors

The listing comes amid elevated interest rates and tighter credit conditions, prompting corporates to seek flexible funding options.

Short-tenor instruments such as CPs offer quicker access to liquidity, while investors benefit from competitive yields relative to traditional fixed-income products.

Dangote Cement’s transaction reinforces NGX’s ambition to position itself as a full-spectrum capital-raising platform, supporting funding across equities, bonds and short-term instruments.

By Olamilekan Okebiorun, Business Insider Africa

Related story: Aliko Dangote calls for emergency power summit as blackouts threaten Nigeria’s $500bn economy

Aliko Dangote calls for emergency power summit as blackouts threaten Nigeria’s $500bn economy

 

Speaking at the national launch of the National Industrial Policy 2025 in Abuja, Dangote called for an urgent one or two-day national retreat dedicated solely to resolving the country’s long-running power crisis.

The event, themed “From Policy to Productivity: Implementing Nigeria’s Industrial Future”, brought together senior government officials, development partners, and business leaders. President Bola Tinubu was represented by Vice President Kashim Shettima.

“One of the things that I want to advise Your Excellency… is to call a national forum where we will resolve the issues of power,” Dangote said.

“Because without power, there is no way in any country you can create growth or create jobs. So, power means growth. No power, no growth.”

His remarks come at a delicate moment for Africa’s largest economy, valued at roughly $500 billion based on current World Bank estimates. Nigeria is seeking to reposition itself as a manufacturing hub under its new industrial policy, yet erratic electricity supply continues to undermine productivity and investor confidence.

A recent five-day electricity supply disruption across parts of the country underscored the urgency of Dangote’s intervention. Between 12 and 15 February 2026, several power plants experienced gas constraints after maintenance work by Seplat Energy temporarily reduced supply, leading to nationwide generation shortfalls and load shedding.

Manufacturers say such episodes are not isolated incidents but part of a persistent structural problem. Many factories now rely heavily on diesel generators to remain operational, sharply raising production costs. Dangote, whose conglomerate spans cement, fertiliser, and oil refining, acknowledged the irony.

“I would have loved to sell more diesel, but that is not the right way. The right way is to make sure there is power,” he said, noting that some businesses spend more on generating electricity than on producing goods.

Beyond electricity, Dangote argued that Nigeria must also strengthen protection for domestic industries if it hopes to industrialise at scale. While he praised the government’s policy incentives as “very good”, he insisted that incentives alone are not enough.

“If you give us zero-interest loans, free land and power, if there is no protection, there is no way any industry will thrive here. Importation of anything is importation of poverty and exportation of jobs,” he said.

His comments reflect broader concerns within Nigeria’s organised private sector about the impact of heavy import dependence, high interest rates, and infrastructure deficits. Stakeholders warn that cheap imports and dumping, combined with local structural constraints, are squeezing domestic manufacturers and contributing to inflationary pressures.

Dangote also highlighted the scale of private sector influence in Nigeria’s economy. According to him, the private sector accounts for nearly 90 per cent of gross domestic product, compared with about 10 per cent for government activity.

“Nigeria is the only country in Africa where the private sector is bigger than the government,” he said, urging closer collaboration between policymakers and business leaders.

At the same time, he stressed that businesses must fulfil their obligations. “When we do our business, we must pay our taxes. It is a joint venture. The government is the major shareholder in every business,” he said, noting that tax revenues from large industrial operations ultimately strengthen public finances.

Dangote expressed cautious optimism about recent economic reforms, pointing to improved currency stability and renewed investor interest. He suggested that reducing import dependence and expanding local manufacturing would further strengthen the naira and generate employment.

Experts say the success of the National Industrial Policy 2025 hinges on resolving the electricity bottleneck. Without reliable power, ambitions to boost exports, reduce imports, and position Nigeria as a manufacturing gateway to African markets may remain out of reach.

For Dangote, the message was clear and urgent: fix the power sector first. Only then can policy translate into productivity, and ambition into sustainable growth.

By Segun Adeyemi, Business Insider Africa

Related story: Nigeria turns to China for a new $2 billion loan to rebuild ailing power grid

Video - Dangote refinery aiming for a dual listing on the London and Lagos bourses

Aliko Dangote plans to list his Lagos-area refinery on the Nigerian Exchange next year. He says the initial public offering would allow investors to purchase stakes in naira but receive returns in hard currency, a rare hedge for both local and foreign investors.

CGTN Africa

Dangote says that he wants every Nigerian to make money off him

 

In an interview with the press, Dangote gave an impassioned breakdown of the motives behind listing the $20 billion oil.

He noted that he intends to make every Nigerian a direct owner of the multi-billion-dollar facility.

According to Dangote, the listing is less about control and more about legacy, ensuring that ordinary Nigerians benefit from the refinery’s long-term success.

What Dangote said

“At the moment, our main interest is to list on the exchange, so that every living Nigerian can own part of the refinery,” he stated.

“Somebody asked me a question, is it 5 or 10 percent you want to sell, and I said that when we are going to sell the shares, we will not put a cap, if they happen to buy 55% and I own 45%, so be it,” he added.

When asked explicitly if the offer extended beyond Nigerians living in the country, Dangote simply said, "Yes."

Dangote described the refinery as a legacy project, emphasizing that widespread ownership will give Nigerians a direct stake in its success.

“The thing is about legacy, I want Nigerians to own this, and I want every single Nigerian, when the refinery does well, for them to always be able to rely on the profit of that refinery,” he said.

“The main point is for us to sell to every living Nigerian who has something, even if it's ten shares you buy or 20,” he continued.

Dangote provided another crucial assurance to potential investors by revealing that dividends will be paid in US dollars.

To him, this ensures that Nigerians in the diaspora also get a piece of the pie.

“We are going to make sure that we pay the dividend in dollars, because a major chunk of ourselves is in dollars.”

Dangote’s original plan to list the refinery

In July, Nigeria’s top billionaire announced during the Global Commodity Insights Conference on West African Refined Fuel Markets in Abuja, which was co-hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Insights, that he intends to sell shares of his 650,000 barrels per day refinery.

According to the billionaire businessman, plans are already underway to list the refinery on the stock exchange, allowing Nigerians, both people and institutions, to participate in and profit from the facility's potential long-term growth.

“Very soon, the refinery will be listed to give all Nigerians the opportunity to become shareholders. We are open to partnerships with African governments, private investors, and regional institutions. Our vision is simple but ambitious,” Dangote said at the time.

“Africa should refine all the petroleum products it consumes right here on the soil of Africa.”

By Chinedu Okafor, Business Insider Africa

Nigeria’s richest man Dangote escalates oil fight with regulator, seeks corruption probe

Nigeria’s richest man Aliko Dangote escalated his fight with regulators on Sunday, accusing them of enabling cheap fuel imports that threaten local refineries.

Nigeria is Africa’s biggest oil producer but relies heavily on imports and Dangote’s refinery was meant to change that.

Dangote said if imports continue unchecked, they will threaten jobs, investment and energy security.
Speaking at his 650,000-barrel-per-day oil refinery in Lagos, Dangote said imports were being used “to checkmate domestic potential”, creating jobs abroad while Nigeria struggles to industrialise.
“You don’t use imports to checkmate domestic potential,” he told reporters.

Dangote called for an official inquiry into Farouk Ahmed, head of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, citing concerns over his management of the sector and allegations of private expenditures exceeding legitimate earnings.

Ahmed did not immediately respond to a request for comment, but he has previously said Dangote refinery wants a monopoly on petroleum products sales, but the refinery's output can not meet local demand.

Last month, the regulator urged the president to drop plans to ban imports of refined petroleum products because local output cannot meet the national demand of 55 million litres daily.

Dangote disputes this, saying the regulator was distorting the refinery's actual capacity by reporting offtake statistics instead of the true production data.

The refinery, designed to end Nigeria’s reliance on imported fuel and save billions in foreign exchange, says it has been unable to secure all the required crude it needs because the regulator has failed to implement a rule that guarantees crude supply to local refiners before exports.

Dangote said the refinery imports 100 million barrels of crude oil annually — a figure expected to double after expansion of the refinery and limited domestic supply.

Despite these hurdles, Dangote vowed to continue with expansion plans for the facility and safeguard his investment, which he said is "too big to fail".

He also reiterated plans to list the company on the local stock market and pay dividends in U.S. dollars so “every Nigerian can own a piece of the economy.”

Nigeria, Africa’s top oil producer, has long depended on imports due to mothballed state refineries.

By Isaac Anyaogu, Reuters

Dangote announces $700m education fund for Nigerians

Aliko Dangote, chairman of the Dangote Group, says his foundation will invest $700 million in the education of Nigerians over the next ten years.

Speaking on Sunday at the 2025 Doha Forum in Doha, Qatar, the business magnate committed to supporting over 155,000 Nigerians who will be drawn across secondary schools and universities in the country.

Dangote, during a panel session that featured Bill Dates and Sheikha Al Mayassa, discussed how innovation, philanthropy, and cultural investment are reshaping opportunity across Africa and beyond.

He said the investment is poised to reduce the number of children who are out of school in Nigeria and provide more man-power with the technical capacity to advance the economy of Nigeria.

“In Africa, we have a population of about 1.4 billion people, so partnership is important,” he said.

“Partnership also matters, that is why we partnered with the Bill and Melinda Gates Foundation to eradicate polio in Nigeria.

“We have a lot of children that are out of school so what we are going to launch next week is a $700 million fund to fund education.

“We will run it for ten years then we review.

“We are doing that because we have a lot of challenges in Africa, one of which is training.”

Dangote noted that the Dangote Petrochemical has trained more than 50,000 Nigerians to ensure the smooth operation of the 160,000-barrel-per-day refinery.

He said the skilled workforce will be redeployed as part of the refinery’s ongoing expansion, while his investment in education will increase talents for industries in Nigeria.

By Daniel Nnamani, The Cable

Video - Nigeria’s Dangote Refinery announces output boost

The Dangote Refinery says it reached a deal with Honeywell to increase daily oil production capacity to 1.4 million barrels per day within the next three years. Officials say the move will ease fuel shortages, reduce foreign exchange losses and strengthen Nigeria's energy security.

CGTN Africa

Nigerian billionaire Aliko Dangote eyes US $1billion industrial expansion in Zimbabwe

Nigerian billionaire and Africa’s richest man Aliko Dangote is gearing up for a significant investment drive in Zimbabwe as plans advance for a colossal cement, coal mining and power generation complex worth about US$1 billion.

The visit, expected soon, signals a renewed commitment from the Dangote Group, which previously explored Zimbabwe opportunities in 2015 and 2018.

According to organisers familiar with the itinerary, momentum is building for the project, which they believe will bolster Zimbabwe’s standing as a destination for high-value foreign direct investment while creating jobs and driving industrial growth.

Initial engagement between Dangote’s representatives and Zimbabwean officials reportedly took place during the Afreximbank Annual Meetings in Abuja in June.

Paul Tungwarara, President Emmerson Mnangagwa’s investment adviser, confirmed that preparations are underway for a high-level meeting between the president and the Nigerian tycoon as per The Zimbabwean.

“The richest man in Africa is coming to Zimbabwe at the invitation of President Mnangagwa,” Tungwarara told journalists. “The two have been in constant communication and we are presently working on the logistical aspects of the visit."

“We are keen to ensure that he makes a significant investment in Zimbabwe and avoid what happened during his previous visit in 2015, when he came but did not return.”

Upon arrival, Dangote is expected to meet President Mnangagwa and senior government officials to discuss key terms, including mining concessions, tax incentives, investment security, and regulatory approvals.

Dangote’s influence across Africa’s energy and industrial future

The Dangote Group operates in 17 African countries across cement, fertiliser, refinery and logistics infrastructure, positioning it as one of the continent’s most transformative corporate forces.

Its landmark US$20 billion refinery in Nigeria aims to drastically reduce Africa’s dependence on imported fuels. Cement production in several countries has already disrupted former import heavy markets while its fertiliser operations are enhancing food security and reducing reliance on overseas supply chains.

In countries including Ethiopia, Senegal, Zambia, Côte d’Ivoire and Tanzania, the Group’s investments have reshaped construction material pricing and availability. Expansion into petrochemicals and refined petroleum supply is giving African airlines and industries the prospect of more reliable and competitive energy input.

The move toward Zimbabwe aligns with that long term African industrialisation strategy. Sources say Dangote is considering a vertically integrated complex consisting of a cement factory, limestone quarry and grinding plant supported by a coal mine and a power station. This structure would reduce operational costs, guarantee energy supply and strengthen raw material efficiency.

A delegation from Bard Santner Markets Inc, led by Chief Executive Officer Senziwani Sikhosana, recently visited Dangote’s operations abroad to study the potential scale and adaptability of such an undertaking on Zimbabwean soil.

If talks succeed, the planned project would become one of Zimbabwe’s largest privately led industrial investments in more than a decade. It could reposition the country as a regional supplier of construction materials and energy, helping accelerate its manufacturing revival ambitions.

By Solomon Ekanem, Business Insider Africa

Related story: Nigeria refinery aims to be world's biggest with expansion

Nigeria refinery aims to be world's biggest with expansion

Nigeria's Dangote oil refinery, already the largest in Africa, aims to become the biggest in the world in three years' time with an expansion doubling its capacity, its owner said on Sunday.

"We are more than doubling the barrels (per day)... to 1.4 million from 650,000," said Aliko Dangote, a Nigerian businessman who is Africa's richest person.

"This will make it the largest refinery" globally, surpassing India's Jamnagar Refinery, he told a news conference in Lagos.

The privately run Dangote refinery, which started operations last year, is a gamechanger for Nigeria, which previously had to import almost all its petrol despite being a major oil producer.

After years of neglect and mismanagement of public refineries, Dangote has shaken up the corruption-marred players in Nigeria and driven down prices of petrol for consumers.

"This expansion reflects our confidence in Nigeria's future, our belief in Africa's potential and our commitment to building energy independence for our continent," and reduce import dependence, Dangote said, adding there was "quite a lot of demand" from west Africa and east Africa.

Dangote also exports aviation fuel, mainly to the United States, Europe and Brazil.

The Dangote refinery, which has sparked monopoly fears as it becomes a powerful player itself, plans to list on the Nigerian Stock Exchange next year.

"That is a step towards broader ownership and market transparency," said Dangote.

A second privately owned refinery, BUA, is under construction by another Nigerian billionaire, Abdulsamad Rabiu.

Recent strikes

Recent moves by the Dangote refinery to bring its own, natural gas-powered trucks to distribute petrol in the country in September sparked a strike by a fuel tanker drivers' union, which accused the company of hiring new drivers on the condition they didn't join a union.

The refinery denied the allegations.

The refinery suffered a two-day strike that ended October 1 after government mediation.

The PENGASSAN oil and gas workers' union accused the refinery of firing 800 local workers because they unionised, and replacing them with 2,000 workers from India.

The refinery called the allegation false, and said it had fired an unspecified number of workers over "acts of sabotage".

Dangote on Sunday thanked the federal government for its role "in mediating our recent disruptions at the (refinery), linked to union activities and some sabotage attempts".

Nigeria pumps an average of 1.5 million barrels of oil per day, according to OPEC, but it is still short of its two million bpd target.

AFP

The Dangote Refinery Strike Cost Nigeria 600,000 Barrels of Oil Output

A three-day national strike prompted by layoffs at the Dangote refinery has led to production losses of 600,000 barrels, the chief executive of the Nigerian National Petroleum Company has said.

"I think it was unfortunate that the Dangote and PENGASSAN issue led to strike and whenever there is strike and critical staff manning critical facilities are not available and optimum production is almost impossible. In this particular case, we actually lost significant production of over 200,000 bpd that was deferred," Bayo Ojulari told media.

The main Nigerian oil union launched a nationwide strike last month after the Dangote refinery fired as many as 800 workers. The strike lasted for three days, threatening to reduce fuel supply in the country relying on the new processing facility and in several neighboring countries, which import fuels from Dangote.

The Nigerian oil workers' union, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said that the Dangote refinery, owned by Africa's richest man Aliko Dangote, has fired the workers for unionizing. The Dangote management, for its part, said that the dismissals were part of staff restructuring and those dismissed engaged in "acts of sabotage".

The strike came at a time when Nigeria's oil industry is staging a recovery, with oil production on the rise and investments climbing. Production as of September-before the strike-averaged between 1.7 million barrels daily and 1.83 million barrels daily, with active rigs rising from 31 at the start of the year to 50 by July, according to a report from the oil ministry.

According to NNPC's Ojulari, the September average was 1.68 million barrels, which was an increase from August. In natural gas, Nigeria produced 7 billion cubic feet daily last month, the top executive also told media, adding that by the end of the year, oil production should rebound to 1.8 million barrels daily.

By Irina Slav, Oilprice.com

Dangote links power shortages in Nigeria to stolen funds hidden abroad

During a recent tour of the Dangote Refinery in Lagos, the president of the Dangote Group, Aliko Dangote, highlighted how unreasonable it is for a country of over 200 million people to be limited to 4,500 to 5,000 megawatts (MW) of power.

“We as a company alone are producing, group-wide for our own consumption, over 1,500 MW,” he stated.

"So, Nigeria should not be three times what we are producing as a country. Nigeria should be at about 50,000 MW to 60,000 MW,” Dangote added.

The Nigerian business mogul, whose refinery and fertilizer plants are among Africa's largest, explained that his company's investment in energy demonstrates how private sector engagement in power generating can be game-changing.

He encouraged Nigeria's government to further open up the industry to encourage private investment and involvement.

Dangote, who has spent the last decade developing the $20 billion refinery project, also stated that, while establishing the refinery was extremely tough, increasing Nigeria's power generating capacity to 30,000 MW is far easier - provided the appropriate policies and commitments are in place.

“What we have done here just shows that there’s nothing impossible. All this can be replicated in our power sector. There’s no reason why Nigeria should be doing 5,000 MW,” Dangote asserted.

“What we have actually done here is much more difficult than making Nigeria 25,000 or 30,000 megawatts of power, with transmission and distribution. But it’s not the work of the government alone,” he continued.

Dangote's comments come as his refinery, which is projected to drastically cut Nigeria's dependency on foreign petroleum products, ramps up operations.

Dangote links power shortages to a lack of investment and stolen funds hidden abroad

Much like the fact that such a facility which is typically supposed to be a government initiative is now privately owned, the Nigerian philanthropist noted that the power sector is also privatized, which presents an opportunity for investors.

“We, the private sector, Nigerians, most especially us, should stop taking our money abroad and invest the money here to make sure that we develop our own country and continent, because without us showing the confidence that, yes, we have confidence in our own economy and the leadership of the country, foreigners will not come,” Dangote explained.

“We know our leaders; we have confidence in them. So, that money they’re taking out of the country, they should leave it here so that it can benefit everybody.”

As reported by the Punch newspaper, he criticized people who stole public assets and hid them overseas rather than utilizing them to help develop the country, as he connected capital flight to stunted growth.

“I keep saying this: there’s nowhere that you will say that there’s no corruption. There are lots of countries that have more corruption than we do, but they are growing. Our biggest problem and challenge is that people who have stolen money have taken the money abroad,” he said.

“So, the money has no use to them; it has no use to their family because they cannot show their family that they have stolen money. And they are not investing here to grow the domestic economy.”

By Chinedu Okafor, Business Insider Africa

Related story: Solar power producer Sun King targets triple growth in Nigeria

Dangote plans construction of Nigeria’s largest seaport

Aliko Dangote is forging ahead with a proposal to build a seaport in Ogun State to facilitate exports, including liquefied natural gas.

The move is expected to accelerate an expansion of Mr Dangote’s conglomerate, Bloomberg reported on Monday, citing an interview with Africa’s richest man.

An application to authorities last month, according to the outlet, sought “to build the biggest, deepest port in Nigeria” in Olokola.

The free trade zone was initially considered as the host of Mr Dangote’s mega oil refinery and petrochemical plant, now situated on the outskirts of Lagos, before an impasse with the government thwarted the plan.

The port is conceived to connect the Dangote group’s logistics and export operations in Lagos, including Lekki Deep Sea Port, through which it currently ships petroleum products and fertilisers overseas.

“It’s not that we want to do everything by ourselves, but I think doing this will encourage other entrepreneurs to come into it,” Bloomberg quoted Mr Dangote as saying.

Betting on LNG exports requires the laying of pipelines from the Niger Delta, all the way to Lagos, an ambitious pursuit intended to overtake Nigeria LNG Limited (NLNG) as Africa’s biggest LNG exporter.

“We want to do a major project to bring more gas than what NLNG is doing today,” said Devakumar Edwin, a vice president of the group.

“We know where there is a lot of gas, so run a pipeline all through and then bring it to the shore,” he added.

The group exports fertiliser to the US, Brazil, Mexico, India, and recently disclosed an aspiration to set up a fertiliser plant in Ethiopia, which will help Africa’s second most populous nation develop production capacity.

The ambition is, nevertheless, far bigger than that, given plans to topple Qatar as the foremost manufacturer of urea in the next 40 months and to also make Africa self-sufficient in fertiliser within the same time frame.

The 650,000 barrel-per-day refinery, the continent’s largest, began operations in 2024 after years of construction delays.

Construction of storage tanks to hold a minimum of 1.6 million litres of petrol and diesel in Namibia is in the works.

Mr Dangote hopes to list the petrochemical business on the local stock exchange in Lagos this year and the refinery on the bourse next year.

By Ronald Adamolekun, BBC

Billions wasted on broken refineries - Africa's richest man tells his side of the story

Dangote, CEO of the Dangote group recently called into question the likelihood of the state-owned Port Harcourt, Warri, and Kaduna refineries being operational again.

He did this at his own oil refinery, where he gave members of the Global CEO Africa from the Lagos Business School a tour of the facility while highlighting the ludicrous amount already spent on reviving the state-owned refineries.

Dangote specified that his refinery, which he initiated after the country's 16th head of state, the late President Umar Yar'adua's cancelled his plans to acquire government refineries, now produces more than 50% of its output in the form of Premium Motor Spirit (petrol), while even government refineries only devote 22% of their output to this product.

“The refineries that we bought before, which were owned by Nigeria, were doing about 22 per cent of PMS. We bought the refineries in January 2007. Then we had to return them to the government because there was a change of government,” he stated.

“And the managing director at that time convinced Yar’adua that the refineries would work. They said they just gave them to us as a parting gift or so.

And as of today, they have spent about $18bn on those refineries, and they are still not working. And I don’t think, and I doubt very much if they will work,” he added.

The Nigerian billionaire emphasized that the refineries' turnaround maintenance was similar to attempting to update a car that was manufactured forty years ago, even though technology had since evolved, as reported by the Punch.

“(The turnaround maintenance) is like you trying to modernize a car that was built 40 years ago, when technology and everything have changed.

Even if you change the engine, the body will not be able to take the shock of that new technology engine,” he elaborated.

Dangote's statement corroborated the claims of Yar’adua predecessor, former president Olusegun Obasanjo last year on the refineries, two of which were closed when Mele Kyari, the former NNPC Group Managing Director, declared them open.

The NNPC understood it was unable to handle the refineries, according to Obasanjo, who further stated that when he asked foreign oil corporations like Shell to run the facilities, they refused.

Aliko Dangote and other Nigerians had invested $750 million to gain control of the refineries, but his successor Yar'adua annulled the agreement, according to Obasanjo.

What Obasanjo had said

“So, why do we do this kind of thing to ourselves? NNPC knew that they could not do it, but they knew they could eat and carry on with the corruption that was going on in NNPC. When people were there to do it, they put pressure. In a civilized society, those people should be in jail,”

Obasanjo had stated. Again, in January, Obasanjo said, “I was told not too long ago that since that time, more than $2bn have been squandered on the refineries and they still will not work.

“If a company like Shell tells me what they told me, I will believe them. If anybody tells you now that it (the refinery) is working, why are they now with Aliko (Dangote)? And Aliko will make his refinery work; not only make it work, he will make it deliver.”

By Chinedu Okafor, Business Insider Africa

Dangote set to Export Coal From Nigeria

Aliko Dangote, Africa’s richest man, announced that he will begin exporting coal from Nigeria soon, another source of income for Dangote Industries Limited’s (DIL) growing revenue base.

Dangote also revealed the company aims to generate between $6.05 million and $7 million daily from fertilizer exports over the next two years. As some of you who visited our cement factory in Itori may know, we already export cement from Nigeria.

“We have a six million-ton cement export factory,” he stated. “We will begin exporting coal from Nigeria in the coming weeks. We will export nearly eight cargoes of fertilizer.

The refinery operations will export less than 25 million tons of various products. Dangote claims that once the export program begins, the company will become a significant source of foreign exchange.

Dangote continues to expand its influence in the Nigerian market. The billionaire Aliko Dangote’s conglomerate is focusing on agriculture after significant investments in cement, sugar, and oil. Soon, a new rice mill will be built on a 30-hectare plot of land in Wushishi, Niger State.

The Wushishi project represents an additional step toward increased environmental sustainability. Moreover, it can enhance rural economies, create local jobs, and provide opportunities for regional paddy producers. Thus, concerning food security and agricultural transformation, the Dangote Group intends to support the goals of the Nigerian government.

Dangote aims to control the entire ecosystem by specializing in agriculture, from the field to the processing facility. This whole-chain strategy strengthens the nation’s economy.

By Olumide Adesina, FXLeaders

Related story: Nigeria's Dangote refinery agrees to export polypropylene with Vinmar

Nigeria's Dangote refinery agrees to export polypropylene with Vinmar

The Dangote Petroleum Refinery and Petrochemicals said it will partner with Vinmar Group, an international petrochemicals distribution company, to bring Dangote polypropylene to global markets.

Dangote’s $2 billion Petrochemical Plant in Lagos with 830MT tonnes capacity, began producing polypropylene in March, in 25kg bags for the local market.

"We’re pleased to partner Vinmar to introduce Dangote Polypropylene to the global markets," said Fatima Aliko Dangote, an executive director at Dangote Group at the launch of the facility on Wednesday.

Nigeria currently imports 90% of its annual polypropylene requirements amounting to 250,000 metric tonnes per year. The Dangote facility seeks to not only meet local demand but become a net exporter
Fully operational, the facility is set to become Africa’s largest polypropylene production site, producing from two polypropylene units with capacities of 500,000 mt/year and 330,000 mt/year.

By Isaac Anyaogu, Reuters

Dangote could have made $120b from big tech, but he chose to build for Nigeria

 

The Nigerian government has praised billionaire industrialist Aliko Dangote for prioritising national development over potential windfalls from global tech investments, in a tribute that stresses the importance of the $19 billion Dangote Refinery.

Speaking at the opening of the Taraba International Investment Summit 2025 in Jalingo, Vice President Kashim Shettima, who represented President Tinubu, stressed that business mogul Aliko Dangote could have chosen to channel his resources into lucrative international companies like Microsoft, Amazon, or Google.

“I want to celebrate the greatest black man in the last 300 years, who single-handedly established the largest single train refinery in the world..."

“He started this project in 2007/2008. If he had invested the $19 billion that it took him to set up the Dangote Refinery in Microsoft, in Amazon, in Google, he is going to be worth $120 billion now,"

“But he decided to invest in his own country. Alhaji Aliko Dangote, we are mightily proud of you,” he said.

He emphasised that Nigeria’s economic transformation must start at the grassroots level and be powered by locally sourced resources.

Dangote Refinery

The Dangote Refinery, the largest single-train oil refinery globally and the biggest in Africa, marks Aliko Dangote’s most ambitious project yet. Dangote’s net worth doubled to $28 billion last year following the launch of the Refinery. This milestone not only boosted his wealth from about $13 billion but also solidified his position as Africa’s richest man.

Designed to process 650,000 barrels of crude oil per day, the refinery is expected to significantly reduce Nigeria’s dependence on imported refined petroleum products, a long-standing issue in Africa’s biggest oil-producing nation.

Although delayed for several years, the Dangote Refinery, Africa’s largest, built by the continent’s richest man, Aliko Dangote, officially began production of diesel, naphtha, and jet fuel in January last year, followed by petrol production in September.

The massive facility surpasses the capacity of Europe’s 10 largest refineries. According to the Organisation of the Petroleum Exporting Countries (OPEC), Dangote's oil push in Nigeria is already starting to disrupt the European oil market.

Economists suggest that the Dangote refinery could potentially end the long-standing gasoline trade from Europe to Africa, which is valued at $17 billion annually.

By Adekunle Agbetiloye, Business Insider Africa

Related story: Dangote’s fight for Nigeria’s oil future continues as he vows to defeat the cabal

Dangote’s fight for Nigeria’s oil future continues as he vows to defeat the cabal

The Nigerian billionaire, alluded to again, his a fight against some individuals in Nigeria's long-standing oil importation system, who have reaped enormous benefits from government subsidies on imported petroleum.

He noted that they are still deliberately attempting to destroy his oil refinery, as he stated, “those groups have funded resistance to the Bola Tinubu government’s removal of petrol subsidies and are opposed to the refinery operating easily in the country.”

He, nonetheless, like he did a few months back, noted that he would eventually win.

“We’re fighting, and the fight is not yet finished. But I have been fighting all my life, and I am ready and 100 per cent sure I will win at the end of the day,” Dangote added.

Alhaji Aliko Dangote, Africa's richest individual, has a history of taking large-scale risks, but even he admits that his $23 billion oil refinery project is the most daring and difficult enterprise of his life.

While the Dangote Refinery has been hailed as a game-changing project for Nigeria's energy sector, its journey from concept to reality has shown the country's oil industry's profound intricacies and vested interests, notably in refining.

The Dangote Refinery, located on a 6,200-acre site in the Lekki Free Zone, is the world’s largest single-train refinery.

The plant officially began operations in 2023, after more than a decade of construction and investment. However, the refinery's real challenge began after its launch.

Dangote's current remarks coincided with Nigeria's efforts to expand its capacity to store petroleum products in anticipation of shocks to the world oil market after US President Donald Trump disrupted international commerce by threatening to impose tariffs, as reported by the Punch newspaper.

Dangote refinery vs players in the oil market

One of Dangote's most notable conflicts has been with the Nigerian National Petroleum Corporation (NNPC). The NNPC initially offered to invest $1 billion for a 20% ownership interest in the refinery.

That offer was eventually reduced to 7%, with requests to reclaim a portion of the funds previously deposited.

Outside of this, the group had also complicated the process of the refinery sourcing crude as it initially mandated that the refinery purchase crude oil in dollars.

This was later mitigated by the Naira-for-Crude initiative, which allowed the refinery to purchase crude in the country’s local currency for six months, thereby reducing the cost of operation.

After six months, the initiative was halted again before being reintroduced, highlighting the complex market structure of the Nigerian oil sector.

Dangote is unreserved in his condemnation of the group, as he, in February, in an interview with Forbes, accused the group of being a part of the country's "oil mafia."

“The oil mafia is more deadly than the one in drugs because, with the oil mafia, there are so many people that are involved,” Dangote had said at the time.

“I’ve been fighting battles all my life, and I have not lost one yet.

You might be wining and dining with them, but these are the guys that are the masters of moving things around.”


Support from IPMAN

As Dangote stays ongoing fighting the 'cabal', the Independent Petroleum Marketers Association of Nigeria declared their support for him.

“Well, this is business. Competition abounds. There is no businessman whom people will not fight if he is doing well, especially when it is only your goods that are being produced, and the others are not being patronised because of the price.

So, it is evident that every businessman wants to survive. It’s not an issue. What we can do is encourage him,” IPMAN Publicity Secretary, Chinedu Udadike, stated.

“We independent marketers are happy with him for his price slashes, although sometimes it’s against our own business strategy and projections. But that is part of the business, it is profit and loss.

So, if he’s talking about how people want to sabotage him, he has told us that he’s ready to fight the oil cabals, and he is in this business to ensure that Nigerians don’t suffer.

So, we encourage him not to lose hope, and we independent marketers support him in all ramifications,” Ukadike added.

By Chinedu Okafor, Business Insider Africa

Related story: Nigeria's richest man Aliko Dangote takes on the 'oil mafia'