Africa's Richest Man's Biggest Bet: The 23 Billion Investment In Dangote Refinery
- Aliko Dangote's 23 billion refinery project in Nigeria is reducing fuel imports and reshaping global energy markets, making Nigeria a net exporter of jet fuel.
- The refinery, Africas largest, now processes 500,000 barrels per day and is set to reach full capacity of 650,000 b/d by March 2025.
- Dangote financed the project through loans, equity stakes, and intercompany loans, despite challenges, with 3 billion in debt still outstanding.
Aliko Dangote, Africas richest man, has built his empire by taking bold risks, but none bigger than his 23 billion bet on the Dangote Refinery . The project was designed to end Nigerias dependence on imported fuel and break the monopoly of the state-owned Nigerian National Petroleum Company NNPCL. Now, its reshaping global energy markets. Reflecting on the decade-long journey to completion, Dangote told Forbes , If this didnt work, I was dead.
A vision turned realityFor Dangote, the refinery is more than just a business ventureits a statement. Africa has been a dumping ground for finished products, he says. We have to build our own continent by ourselves. What started as an ambitious idea took years of calculated moves, unexpected hurdles, and sheer determination to become reality.
In 2013, he announced plans to build Africas largest oil refinery in southwest Nigeria . He partnered with Honeywell UOP for technology and Engineers India Ltd for engineering expertise. His longtime associate, Edwin Devakumar, a former World Bank engineer, led the project. Initially estimated at 10 billion, costs skyrocketed due to unforeseen challenges.
Securing land was the first major hurdle. Dangote originally planned to build in Ogun State, but local resistance forced him to relocate to Lagos, where he bought land for 100 million. The swampy terrain required dredging 65 million cubic meters of sand and building a dedicated portdelays that added time and money. Construction displaced thousands of people, sparking local opposition. Then COVID-19 hit, compounding logistical and financial strains. I can spend the whole day telling you about these challenges, Dangote admitted, shaking his head.
A game changer for Nigerias energy sectorAfter 11 years of relentless effort, the 6,200-acre refinery in the Lekki Free Zone finally came online last year. By mid-2024, it was processing 350,000 barrels per day b/d. That figure climbed to 500,000 b/d in January 2025, and by next month, its expected to reach full capacity650,000 b/dmaking it the worlds seventh-largest refinery and Africas biggest.