Aliko Dangote, Africa’s richest man, is celebrating the financial windfall from his long-awaited Nigerian oil refinery, which has doubled his fortune to $28 billion. Yet his expression reveals the weight of hard-earned success, akin to building a towering skyscraper only to discover cracks in its foundation.
According to the Bloomberg Billionaires Index, the Dangote Refinery –the world’s largest single-train oil refinery is one of the most complex globally. It can process a wide range of crude oils and holds the promise of making Nigeria fuel-independent, marking a monumental leap for the nation’s economy.
However, the road to success has been fraught with difficulties. Reflecting on the journey, Dangote remarked, “I didn’t know what we were building was a monster,” during a recent trip to New York. “The pressure was coming from different directions, people confusing us, disturbing us every day with different media stories that it will never work, it will never work, it will never work.”
Since the refinery became operational in January, tensions have emerged with the Nigerian government and the state oil company, alongside environmental concerns. Dangote’s tone darkened as he discussed the hurdles, his enthusiasm giving way to frustration.
An Unmatched Industrial Achievement
At 67, Dangote has built an empire largely centered on commodities like cement, sugar, and flour, with the refinery marking the boldest move of his 46-year career. What started as a $9 billion project ballooned to $20 billion and took 11 years to complete. Financing most of the venture himself, Dangote’s personal stakes have never been higher.
Critics label him a monopolist with close political connections, but Dangote takes pride in the industrial revolution he has spearheaded in Nigeria. Before he entered the cement market, Nigeria was an importer. Now, thanks to his efforts, it exports the commodity. He envisioned a similar transformation for the oil industry.
However, the challenges quickly piled up. Land disputes led to the scrapping of the initial site after four years. Relocating to Lagos, he encountered more obstacles, including community resistance and environmental concerns. The chosen location, mostly swamp, required extensive dredging and flood prevention measures. Dangote’s company had to construct a dam, a port, and even a granite quarry to meet the demands of the massive project.
Then, COVID-19 struck. The global pandemic halted construction and drove several of his suppliers into bankruptcy. Dangote was left footing the bill for a $5.5 billion loan, paying up to $60 million annually in interest.
Despite these obstacles, his vision remained clear: to break Nigeria’s reliance on foreign refineries. Though the refinery opened earlier this year, it has faced the irony of importing crude oil due to long-term export contracts tied to Nigeria’s own output.
Tough Negotiations and Corruption Battles
Dangote has had to navigate a storm of economic and political issues. Nigeria’s currency, the naira, has plummeted in value, and fuel subsidies continue to disrupt market stability. Heated negotiations with the Nigerian National Petroleum Corporation (NNPC) over foreign exchange rates, gas prices, and crude supply are ongoing, and these tensions have only intensified since President Bola Tinubu took office.
At a recent conference, Dangote did not mince words, condemning the corruption in the oil sector. “It’s an industry which you know is full of games,” he remarked. “It’s an industry where people are very corrupt.” His disdain for the state-run NNPC is no secret, though he struck a deal in 2021 to sell them a 20% stake in the refinery. However, that stake has since shrunk to 7.2%.
Political economist Zainab Usman noted that Dangote’s increased outspokenness has bolstered his public standing. “He made this $20 billion investment to help the country, and there’s this sense that a cabal of corrupt politicians, who saw the refinery as a threat, are trying to frustrate him,” Usman said.
Planning for the Future
Despite Nigeria’s economic turbulence, Dangote remains optimistic. He proudly states that 80% of his business is dollarized, and he plans for Dangote Group to become Nigeria’s largest supplier of dollars by next year. “Our strategy is whatever we do, we generate as much foreign exchange as possible,” he explained, which will insulate the business from further currency devaluation.
Though his assets are diversified across global holdings, including a Cayman Islands-based entity and an upcoming family office in Dubai, Dangote’s connection to Nigeria remains strong. He has lived in the same Lagos mansion for 34 years and is now transitioning leadership to his children, particularly his daughter Halima, who has recently relocated to Dubai to manage his fortune.
Though strained by the refinery’s challenges, Dangote remains committed to building a lasting legacy. “I’m passionate about it because you’re going to leave a real legacy, especially in Africa,” he said. “I’m making my country and continent self-sufficient in things that they never ever dreamed of.”
In a moment of reflection, Dangote couldn’t resist comparing his legacy to that of South African billionaire Johann Rupert. “Sorry, it’s better than selling bags,” he chuckled. “Some people have done really well by that too, but it’s not the same.”
