Billionaire industrialist Aliko Dangote has warned that about $7 billion in outstanding debt owed by a handful of Nigerian oil and gas companies has triggered a suspension of much of the domestic banking sector’s lending to the industry, raising concerns over access to capital for operators seeking to expand production.
Dangote disclosed this on Wednesday at the Nigerian Association of Petroleum Explorationists conference in Lagos, where he urged local banks to resume financing Nigerian-owned oil and gas businesses rather than leaving operators to depend heavily on foreign sources of capital.
He said the debt exposure had affected lending across the sector, although he did not identify the companies involved, provide a breakdown of the liabilities or clarify how much of the reported amount was overdue.
“A few companies, I believe, owe the banks about $7bn,” Dangote said. “As a result, most funding from our domestic banks is on hold.”
The warning comes as Nigeria seeks to increase crude oil production to 3 million barrels per day by 2030, a target that will require sustained investment in exploration, field development and production infrastructure.
However, the country’s crude output remains considerably below that ambition. Data released on Wednesday by the Nigerian Upstream Petroleum Regulatory Commission showed that production stood at 1.51 million barrels per day in October, compared with 1.53 million barrels per day in September.
Although the October figure was slightly lower than the previous month, Nigeria maintained production at or above its 1.5 million barrels-per-day OPEC quota for the sixth consecutive month.
Dangote, however, argued that the government's 2030 production ambition was insufficient, recalling an earlier national target of 4.2 million barrels per day by 2024, which Nigeria failed to achieve.
He called for stronger exploration activity and greater development of local technical capabilities, while also urging policymakers to provide a more predictable operating environment for investors.
The financing constraints come as the government and regulators pursue fresh efforts to attract investment into the upstream sector. The Nigerian Upstream Petroleum Regulatory Commission is offering 40 oil and gas blocks under its 2026 licensing round.
The regulator also said last month that 22 companies that recently secured oil block awards were expected to contribute at least 250,000 barrels per day to national production within five years.
Dangote believes domestic financial institutions have a critical role to play in supporting these ambitions, particularly by extending credit to locally owned operators that may otherwise have to seek funding from international lenders.
His comments also come against the backdrop of substantial borrowing by his own refining business. The 650,000-barrel-per-day Dangote Petroleum Refinery, located outside Lagos, reported debt of ₦7.9 trillion, equivalent to about $5.8 billion, at the end of June.
The refinery reduced its debt by ₦798 billion during the first half of the year, according to the figures cited in the report.
Meanwhile, its recent share offering attracted applications worth ₦5.85 trillion from nearly 3.8 million investors, reflecting significant demand for participation in the business.
Dangote did not clarify whether the refinery's outstanding borrowing formed part of the approximately $7 billion debt exposure he attributed to a few Nigerian oil and gas companies.
