Aliko Dangote, Africa’s richest man and President of Dangote Industries, has raised alarm over what he describes as deliberate sabotage by international oil traders against the development and operations of refineries in Africa. Speaking at the West African Refined Fuel Conference in Abuja, Dangote claimed that powerful global interests are actively undermining local refining efforts to protect their lucrative hold on the continent’s petroleum supply chain. According to him, these traders manipulate pricing and distribution through mechanisms like the offshore Lomé floating market, which stores over a million tonnes of fuel offshore and sells it to African countries at inflated prices.
Dangote emphasized that the challenge is not just economic but deeply political. He warned that building a refinery in Africa is considered a direct threat to entrenched interests who have profited from the continent’s lack of refining capacity. The billionaire highlighted that fuel prices dropped significantly once the Dangote Refinery began operating, causing backlash from those who previously benefitted from inflated rates. “You are not just innovating—you are threatening powerful interests,” he said, calling for strong political backing to sustain any major refining project on the continent.
A particularly insidious tactic, according to Dangote, is the dumping of low-quality, often toxic petroleum products in African markets. These fuels—some blended from Russian crude under Western price caps—are sold cheaply, undercutting local refiners who source crude at full-market prices. Dangote stated these practices not only harm the economy but also raise serious health and environmental concerns. He urged for regional alignment and regulatory reforms to combat this threat.
Despite the challenges, Dangote pointed to the transformative impact of policy alignment and determined execution in other sectors. He referenced Nigeria’s cement industry, which expanded from a 2 million-tonne capacity to over 50 million tonnes in under two decades, turning the country into a net exporter. He believes Africa’s energy sector can replicate this trajectory, provided there is government support and long-term investment from both public and private stakeholders.
Concluding his remarks, Dangote reiterated his vision for Africa to refine all of its petroleum products domestically. He disclosed that Nigeria is already a net exporter of refined petroleum, polypropylene, and urea, thanks to the operations of his refinery. Additionally, the facility is now producing 2,500 tonnes of LPG daily and plans to expand further. Dangote revealed the refinery would soon be listed on the stock exchange to allow broader Nigerian participation, expressing hope that a collaborative approach will secure the continent’s energy future.
Source: Business day