Aliko Dangote has alleged that influential players in Nigeria’s fuel import market attempted to obstruct the development of the $20 billion Dangote Petroleum Refinery, arguing that the project threatened long-standing profits tied to petroleum imports.
Speaking during an interview with Nicolai Tangen, Dangote said entrenched interests within the downstream oil sector resisted efforts to establish large-scale domestic refining capacity in Nigeria.
According to him, the refinery project was conceived to address decades of recurring fuel shortages and persistent queues at filling stations despite Nigeria’s status as one of Africa’s leading crude oil producers.
Dangote said the refinery, which was initiated in 2013, faced multiple setbacks, including delays linked to land acquisition and infrastructure development. He claimed some of the difficulties were driven by individuals and groups seeking to preserve the existing fuel import system.
“We launched the project in 2013. Land acquisition alone delayed us for five years,” he said, adding that vested interests in the oil business attempted to frustrate the initiative.
He explained that the project required the construction of major supporting infrastructure, including a dedicated port, roads, water treatment facilities and heavy equipment handling systems because existing facilities in Nigeria could not support the refinery’s operational requirements.
Dangote noted that the refinery consumes about 440 million litres of treated water and required extensive engineering works, with some imported equipment weighing as much as 3,000 tonnes.
He added that about 67,000 workers participated in the construction phase of the project, describing the scale of the development as one of the largest industrial undertakings on the continent.
The businessman said financing support came from several African and international financial institutions, including the African Export-Import Bank, African Finance Corporation, Zenith Bank, Access Bank, United Bank for Africa, Standard Bank and Standard Chartered.
Dangote stated that ongoing tensions in the Middle East had increased demand for some of the group’s products, particularly fertiliser, petrochemicals and aviation fuel.
He said urea fertiliser prices rose sharply during the crisis, while polypropylene prices also surged internationally. According to him, local polypropylene production helped sustain Nigeria’s plastic manufacturing sector during the supply disruptions.
He also disclosed that the group’s aviation fuel output had been fully committed through mid-July, despite daily production of around 20 million litres.
On crude sourcing, Dangote said the refinery currently obtains about 56 per cent of its crude supply from Nigeria, with additional volumes imported from Angola, Libya and the United States.
He added that the company plans to increase refining capacity to 1.4 million barrels per day within the next 30 months.
Dangote argued that resistance to the refinery was partly driven by beneficiaries of Nigeria’s former fuel subsidy system, which he said created significant profits for importers, traders and shipping operators.
According to him, billions of dollars were spent annually on fuel subsidy payments and petroleum imports, making the refinery a disruptive force within the downstream market.
He stated that some operators viewed the refinery as a direct threat to their businesses because it reduced dependence on imported refined products.
Dangote said the group is considering establishing additional refineries across Africa to strengthen regional energy security and reduce dependence on imported fuel supplies.
He identified countries including Uganda, Tanzania, Kenya and Rwanda as possible locations for future investments.
The businessman also disclosed that the group is pursuing broader investments valued at about $45 billion, including liquefied natural gas and gas infrastructure projects in Nigeria.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has previously stated that the Dangote refinery significantly altered Nigeria’s downstream petroleum sector in 2026 by reducing petrol imports and increasing domestic refining capacity.
According to regulatory data, the refinery supplied about 36.5 million litres of petrol daily in February 2026, while imports reportedly declined to around 3 million litres daily during the same period.
The regulator also noted that domestic refining utilisation improved substantially in 2026, driven largely by operations at the refinery, which has an installed capacity of 650,000 barrels per day.
Industry data indicated that the refinery accounted for a dominant share of petrol supply within Nigeria during the period, reducing pressure on foreign exchange demand previously linked to fuel imports.
Reacting to the refinery’s impact, NJ Ayuk said the project demonstrated Africa’s capacity to develop large-scale energy infrastructure and could serve as a model for other countries on the continent.
Similarly, Colman Obasi said the refinery had positively impacted Nigeria’s energy sector and called for increased domestic crude supply to support its operations.