Latest news with #AlikoDangote
Business Insider
8 hours ago
- Business
- Business Insider
Recent plan from Nigeria's richest man prompts fear of potential job losses
In June 2025, Africa's richest man, Aliko Dangote, via the Dangote Oil Refinery, announced a breakthrough initiative to provide fuel straight to petrol outlets across Nigeria beginning August 15. Africa's richest man, Aliko Dangote, plans to distribute fuel directly to Nigerian outlets starting August 2025 via Dangote Oil Refinery. The initiative was initially praised as transformative but faced criticism for potential monopolistic consequences. Groups like PETROAN and NOGASA voiced concerns over market control and job losses due to bypassing traditional intermediaries. While some hailed the move as a game changer for fuel distribution in the country, it quickly sparked widespread concern among key players in Nigeria's oil and gas industry. Immediately after the announcement, the Products Retail Outlets Owners Association of Nigeria (PETROAN) publicly criticized the initiative, calling it a dangerous overreach. PETROAN said that enabling Dangote to function as both producer and distributor would result in monopolistic control of the market, harming competition. Very recently, as reported by the Punch newspaper, another major industrial organization has joined the chorus of criticism. What NOGASA said The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has expressed severe misgivings about Dangote's planned distribution strategy. Traditionally, NOGASA members serve as middlemen, acquiring goods from refineries and distributing them to filling stations and end customers. With Dangote trying to completely skip these intermediaries, the organization believes that its members would be at risk of job cuts. Speaking on behalf of the association, NOGASA President Benneth Korie warned that the new agreement could have severe consequences for the downstream sector, including the destabilization of the country's petroleum supply chain. He elaborated on his initial concern, noting that the transition might result in the loss of thousands of jobs, primarily among those employed by independent merchants, transporters, and suppliers whose livelihoods rely on the current distribution framework. 'A lot of jobs are at stake, and we are kicking against this new way of supplying products to end users,' Korie stated. 'It will remove jobs from a lot of them and some of our staff will be redundant, some of our trucks will be redundant,' he added. Stakeholders are meeting to discuss the possible effects of the plan as the Dangote refinery gets ready to commence the plan. A National Executive Council meeting has been set for July 31 by NOGASA in order to address the problem and create a cohesive plan of action.
Business Insider
2 days ago
- Business
- Business Insider
Dangote refinery set to overtake world's sixth largest refinery, after expansion to 700,000 bpd
The $20 billion Dangote Petroleum Refinery in Lagos, Africa's largest single-train oil refinery, is undergoing a strategic upgrade to expand its production capacity from 650,000 barrels per day (bpd) to 700,000 bpd by the end of 2025. The Dangote Petroleum Refinery in Lagos is expanding production capacity from 650,000 to 700,000 barrels per day by the end of 2025. This enhancement aims to position the refinery among the largest globally, with modifications across critical refining units. The refinery has been leveraging global supply chains, including purchasing significant amounts of crude oil from the U.S. This development marks a new milestone in the billionaire's ambitious plan to continue to spearhead the continent's push for energy self-sufficiency. At launch, Dangote Refinery's 650,000 barrels per day (bpd) capacity ranked it as the seventh largest refinery in the world and Africa's largest. With its recent upgrade to 700,000 bpd, it now aims to surpass South Korea's Onsan Refinery, which holds the sixth spot with a capacity of 669,000 bpd. According to Punch ng, the upgrade is expected to be completed in the fourth quarter of the year and involves modifications across key refining units. Alhaji Aliko Dangote, President of the Dangote Group, disclosed the ongoing efforts during a media tour of the massive refinery complex in Lagos, Nigeria. ' Our RFCC is at 85 per cent. We are not up to 100 per cent because there are some modifications that we are doing. It will finish by the end of the year, and we believe we will get to 700,000 bpd, not even 650,000, because all the other components that we have and all the other departments have all (reached 100 per cent). Some are even doing up to 145 per cent. So, we've done very well in that area, " The billionaire explained. The RFCC unit plays a crucial role in converting heavy crude oil into higher-value products like gasoline, diesel, and liquefied petroleum gas. With progress in other units, Dangote remains optimistic about achieving full operational capacity. Dangote imports crude amid shortage In a move that underscores the global nature of energy supply chains, and inconsistency with local supply, Dangote revealed that the refinery purchased 19 million barrels of crude oil from the United States between June and July 2025. In July alone, 10 million barrels were sourced from the U.S., representing 55 per cent of the refinery's crude feedstock. The refinery's establishment was born out of a failed attempt by Dangote to acquire Nigeria's state-owned refineries during the administration of the late President Umar Musa Yar'Adua in 2007. That decision, he said, sparked a vision to build a world-class facility that would address Africa's chronic dependence on imported refined products. Dangote however warned that foreign players continue to undermine African industries through mass importation strategies, hindering local production. This highlights the challenges faced by African industries in competing with international suppliers. ' Apart from Algeria and Libya, which are self-sufficient in Africa, technically, everybody is an importer ' he said. ' If you go to Lome, you will see a massive number of ships. That's what they do to attack all the industries in sub-Saharan Africa. Even if you look at the refineries in South Africa, they are actually not operating. Only one is now operating in South Africa, but we were able to take this risk' he added. The billionaire candidly admitted that the refinery journey has been far more complex than anticipated. He said, " People believe building a refinery is like building a house, but if I knew what we were going to face, I wouldn't have started it at all." Despite the challenges, the Dangote Refinery is nearing full-scale operation, symbolizing industrial ambition and a bold attempt to reshape Africa's energy landscape, and reducing reliance on imported fuel and securing economic independence for oil-producing nations. Dangote also expressed optimism about the future, attributing the group's success to their willingness to take on seemingly impossible challenges. "The luck that we've had now as a group was because we didn't know what we were getting into, really, and we believe that nothing is impossible." He said.
Business Insider
5 days ago
- Business
- Business Insider
Dangote links power shortages in Nigeria to stolen funds hidden abroad
The richest man in Africa, Aliko Dangote, recently expressed concern about Nigeria's chronic power shortages, claiming that the country's energy generation is unjustifiably low considering its enormous potential and economic demands. Aliko Dangote, Africa's richest individual, criticized Nigeria's insufficient power generation capacity. Nigeria, with over 200 million citizens, produces only 4,500 to 5,000 MW of power, far below its potential. Dangote highlighted the success of his privately developed Dangote Refinery as an example for energy investment. During a recent tour of the Dangote Refinery in Lagos, the president of the Dangote Group, Aliko Dangote, highlighted how unreasonable it is for a country of over 200 million people to be limited to 4,500 to 5,000 megawatts (MW) of power. 'We as a company alone are producing, group-wide for our own consumption, over 1,500 MW,' he stated. "So, Nigeria should not be three times what we are producing as a country. Nigeria should be at about 50,000 MW to 60,000 MW,' Dangote added. The Nigerian business mogul, whose refinery and fertilizer plants are among Africa's largest, explained that his company's investment in energy demonstrates how private sector engagement in power generating can be game-changing. He encouraged Nigeria's government to further open up the industry to encourage private investment and involvement. Dangote, who has spent the last decade developing the $20 billion refinery project, also stated that, while establishing the refinery was extremely tough, increasing Nigeria's power generating capacity to 30,000 MW is far easier - provided the appropriate policies and commitments are in place. 'What we have done here just shows that there's nothing impossible. All this can be replicated in our power sector. There's no reason why Nigeria should be doing 5,000 MW,' Dangote asserted. 'What we have actually done here is much more difficult than making Nigeria 25,000 or 30,000 megawatts of power, with transmission and distribution. But it's not the work of the government alone,' he continued. Dangote's comments come as his refinery, which is projected to drastically cut Nigeria's dependency on foreign petroleum products, ramps up operations. Dangote links power shortages to a lack of investment and stolen funds hidden abroad Much like the fact that such a facility which is typically supposed to be a government initiative is now privately owned, the Nigerian philanthropist noted that the power sector is also privatized, which presents an opportunity for investors. 'We, the private sector, Nigerians, most especially us, should stop taking our money abroad and invest the money here to make sure that we develop our own country and continent, because without us showing the confidence that, yes, we have confidence in our own economy and the leadership of the country, foreigners will not come,' Dangote explained. 'We know our leaders; we have confidence in them. So, that money they're taking out of the country, they should leave it here so that it can benefit everybody.' As reported by the Punch newspaper, he criticized people who stole public assets and hid them overseas rather than utilizing them to help develop the country, as he connected capital flight to stunted growth. 'I keep saying this: there's nowhere that you will say that there's no corruption. There are lots of countries that have more corruption than we do, but they are growing. Our biggest problem and challenge is that people who have stolen money have taken the money abroad,' he said.
Business Insider
6 days ago
- Business
- Business Insider
Africa's richest man says the continent has become dumping ground for substandard petroleum products
Aliko Dangote, President of Dangote Industries Limited, has raised concerns about Africa becoming a dumping ground for substandard petroleum products due to its heavy reliance on imports. Aliko Dangote emphasized the importance of reducing Africa's dependency on imported petroleum products. The Dangote Refinery, operational since 2024, is the largest in Africa and processes 650,000 barrels daily. The refinery's establishment aims to inspire similar projects across Africa to bolster self-sufficiency. Aliko Dangote, President of Dangote Industries Limited, has raised concerns about Africa becoming a dumping ground for substandard petroleum products due to its heavy reliance on imports. Dangote, Africa's richest man, explained that his decision to build the Dangote Refinery was rooted in a deep desire to make Nigeria self-sufficient in refined petroleum products and inspire similar efforts across the continent. Dangote also revealed that many sceptics questioned the Dangote Group's ability to deliver a project of such magnitude. ' People think building a refinery is like building a house. But, as I always say, if I had known the scale of challenges we would face, I wouldn't have started at all,' the billionaire said. 'We were fortunate as a group because we didn't fully grasp what we were getting into, but we believed that nothing is impossible. We had to keep pushing to ensure delivery,' Dangote said. He expressed hope that the refinery will inspire other African nations to expand their refining capacity and invest in value-added sectors, rather than continuing the cycle of exporting raw materials. Dangote refinery disruption Since commencing operations in 2024, the $20 billion Dangote Refinery, the largest on the African continent with a processing capacity of 650,000 barrels of crude oil per day, has significantly disrupted Nigeria's oil market. Economists suggest the refinery could even bring an end to the decades-long gasoline trade from Europe to Africa, a market valued at $17 billion annually. Recently, Dangote announced plans to move ahead with the construction of a major seaport near his fertiliser and oil refinery plants. The project is expected to ease exports and fuel the continued growth of his vast industrial empire. Earlier this year, he projected that his conglomerate is on track to generate $30 billion in total revenue by next year, even as global concerns mount over the potential impact of U.S. President Donald Trump's trade tariffs.
France 24
7 days ago
- Politics
- France 24
Former Nigerian president Buhari buried at family compound
Thousands of Nigerians gathered for public prayers in the town of Daura before the former leader was laid to rest in private at his family compound, which had been bustling with mourners paying their respects since his death over the weekend. Buhari, who died at the age of 82 in a London clinic on Sunday, ruled Nigeria first as a military strongman in the 1980s and then later as a self-described "converted democrat", serving two terms as president from 2015 to 2023. Nigerian President Bola Tinubu, Africa's wealthiest billionaire Aliko Dangote, the president of Guinea-Bissau and prime minister of Niger, as well as former Niger president Mahamadou Issoufou were all in attendance, local media reported. The presence of Niger's Prime Minister Ali Lamine Zeine came after his country and Nigeria saw diplomatic relations deteriorate since a 2023 coup overthrew Niamey's civilian leaders. As Buhari's body made its way from England to Daura, less than 20 kilometres (about 10 miles) from the Niger border, a massive security presence of police, soldiers and plainclothes officers was deployed in the usually sleepy town. Nigeria, particularly in the north, has for years suffered attacks from insurgent jihadists and armed criminal gangs. Although he was elected on a mandate for change, Buhari's time in office failed to put an end to the violence. He made history in 2015 as the first opposition candidate to defeat an incumbent leader at the ballot box. But Buhari was accused of squandering both political opportunity and popular goodwill in his time at the helm. Economic woes further dogged the oil giant during his tenure, while poverty, corruption and inequality remain entrenched. He retained a reputation for personal austerity, however -- a rarity in cash-soaked Nigerian politics. "Baba will be remembered for his honesty," mourner Kabir Ibrahim told AFP. Military honours Images broadcast from inside the family compound showed a military band playing a final send-off for Buhari, whose remains were draped in the green-and-white Nigerian flag, as soldiers saluted and mourners dressed in colourful kaftans bowed their heads. Young men climbed trees overlooking the courtyard to catch a glimpse of the final rites. The flag was removed and his body, draped in white, was buried. Security ahead of the internment was so tight that Buhari's family members found themselves locked out of the family compound Tuesday afternoon, including Fatima Isah, who said she was the ex-president's 78-year-old niece. "Buhari was my provider, but he is no more. To add to my torment, they have refused me entry," said Isah, in between sobs. Muttaqa Mahmud Bebeji, a civil servant, travelled 150 kilometres from the city of Kano to pay his respects among the "sea of the people," calling Buhari "irreplaceable." Despite harsh criticisms of Buhari's presidency, Daura welcomed him home. "Buhari was an upright man who did his best for Nigeria, but he was human and prone to shortcomings," Nasiru Abdullahi, a 35-year-old tyre mechanic, told AFP on the eve of the funeral.
