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Business Insider
31-07-2025
- Business
- Business Insider
Africa's richest man, Aliko Dangote, reveals that Nigerians can own a piece of his oil fortune
Aliko Dangote announced plans to list the Dangote Refinery on the stock exchange to enable Nigerians to become shareholders. Speaking at a conference in Abuja, he emphasized fostering partnerships with African governments and institutions to refine petroleum locally. Dangote highlighted the company's LPG production as an initiative to promote clean cooking in Nigeria. Dangote made the announcement while speaking at the Global Commodity Insights Conference on West African Refined Fuel Markets in Abuja, which was co-hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Insights. According to the billionaire businessman, plans are already in the works to list the refinery on the stock exchange, allowing Nigerians, both individuals and institutions, to participate and profit from the facility's potential long-term gains. 'Very soon, the refinery will be listed to give all Nigerians the opportunity to become shareholders. We are open to partnerships with African governments, private investors, and regional institutions. Our vision is simple but ambitious,' Dangote stated. 'Africa should refine all the petroleum products it consumes right here on the soil of Africa.' As reported by the Punch, Dangote emphasized the company's liquefied petroleum gas investment, claiming it was done to promote clean cooking in Nigeria. 'With our LPG production of 2,500 tons per day, we're working to encourage more homes to increase the LPG consumption or utilization, and we're just getting started,' he stated. Recent criticism of the Dangote Oil Refinery This move is coming a few days after Nigerian shipowners expressed concern that the Dangote refinery is using ships from Angola to transport its crude and finished products, rather than Nigerian-owned vessels. Prior to that, some other players in Nigeria's oil sector cited the refinery's restrictive sale method s as a reason why there are complications in the supply chain. This issue was touched on by Olufemi Adewole, Executive Secretary of DAPPMAN, who stated that Dangote's business practices do not help most local marketers, particularly small enterprises that rely on flexible coastal supply networks. However, the Punch's report notes that Dangote, who chose to operate in Nigeria, called out those with the means to invest in the country but choose to take their investments elsewhere. 'Let me take this opportunity to address concerns around monopoly and dominance. The reality is that too many people who have the means and the opportunity to contribute meaningfully to our nation's growth choose instead to criticize from the sidelines while investing their wealth abroad. Adding little to Nigeria's real economy or Africa's economy,' he said. 'We have chosen to bet on Nigeria and will continue to do so. So, we should not allow dumping to destroy our manufacturing base like what it did in so many other industries, like textiles and others,' he added. The Nigerian billionaire further explained that if investors are serious, they ought to be permitted to construct refineries.
Business Insider
31-07-2025
- Business
- Business Insider
Africa's richest man reveals that Nigerians can own a piece of Dangote's oil fortune
Aliko Dangote announced plans to list the Dangote Refinery on the stock exchange to enable Nigerians to become shareholders. Speaking at a conference in Abuja, he emphasized fostering partnerships with African governments and institutions to refine petroleum locally. Dangote highlighted the company's LPG production as an initiative to promote clean cooking in Nigeria. Dangote made the announcement while speaking at the Global Commodity Insights Conference on West African Refined Fuel Markets in Abuja, which was co-hosted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Insights. According to the millionaire businessman, plans are already in the works to list the refinery on the stock exchange, allowing Nigerians, both individuals and institutions, to participate and profit from the facility's potential long-term gains. 'Very soon, the refinery will be listed to give all Nigerians the opportunity to become shareholders. We are open to partnerships with African governments, private investors, and regional institutions. Our vision is simple but ambitious,' Dangote stated. 'Africa should refine all the petroleum products it consumes right here on the soil of Africa.' As reported by the Punch, Dangote emphasized the company's liquefied petroleum gas investment, claiming it was done to promote clean cooking in Nigeria. 'With our LPG production of 2,500 tons per day, we're working to encourage more homes to increase the LPG consumption or utilization, and we're just getting started,' he stated. Recent criticism of the Dangote Oil Refinery This move is coming a few days after Nigerian shipowners expressed concern that the Dangote refinery is using ships from Angola to transport its crude and finished products, rather than Nigerian-owned vessels. Prior to that, some other players in Nigeria's oil sector cited the refinery's restrictive sale method s as a reason why there are complications in the supply chain. This issue was touched on by Olufemi Adewole, Executive Secretary of DAPPMAN, who stated that Dangote's business practices do not help most local marketers, particularly small enterprises that rely on flexible coastal supply networks. However, the Punch's report notes that Dangote, who chose to operate in Nigeria, called out those with the means to invest in the country but choose to take their investments elsewhere. 'Let me take this opportunity to address concerns around monopoly and dominance. The reality is that too many people who have the means and the opportunity to contribute meaningfully to our nation's growth choose instead to criticize from the sidelines while investing their wealth abroad. Adding little to Nigeria's real economy or Africa's economy,' he said. 'We have chosen to bet on Nigeria and will continue to do so. So, we should not allow dumping to destroy our manufacturing base like what it did in so many other industries, like textiles and others,' he added. The Nigerian billionaire further explained that if investors are serious, they ought to be permitted to construct refineries.
Business Insider
24-07-2025
- Business
- Business Insider
Lifting fuel from Dangote refinery costs more than importing from Togo, Dangote reveals
In a scathing indictment of the country's port infrastructure and pricing structure, Dangote revealed that lifting refined petroleum products from the Lekki-based refinery is now more expensive for oil marketers than buying from offshore storage depots in neighboring countries, such as Togo. Speaking bluntly at the just-concluded Global Commodity Insights Conference on West Africa's refined fuel market, regarding the economic inefficiencies afflicting the local market, Dangote cited a slew of port-related fees and regulatory constraints that local merchants confront. At the event, which was jointly hosted by the NMDPRA and S&P Global Commodity Insights in Abuja, Dangote noted that multiple fees at the refinery's loading point and discharge at domestic terminals, which are essentially absent when marketers import gasoline from offshore facilities such as the Lomé Floating Storage Terminal, were to blame. 'In terms of port charges, it is currently more expensive to load a domestic cargo of petroleum products from the Dangote Refinery, as customers pay both at the point of loading and the point of discharge. But when they load from Lome, which competes with us, they pay only at the point of discharge. This is simply unfair and unsustainable,' the Nigerian billionaire relayed. As reported by the Punch, after their findings, marketers who source fuel from the Dangote Refinery have to pay these charges. This was also reiterated by the Independent Petroleum Marketers Association of Nigeria National Publicity Secretary, Chinedu Ukadike. 'We don't load in Lomé, but for Nigerian distribution through the coastal route, it is easier to use the vessels here in Nigeria because it is interstate. Most of the international clearance and the rest is not applicable, because you would be able to avoid a lot of charges, both international and local charges,' he stated. 'It is better to load from Dangote via both means. But if you are loading coastal from another country, it is more difficult than when you are loading from Nigeria,' he added. However, some other players have cited the refinery's restrictive sale methods as a reason why there are complications in the supply chain. This point was elaborated on by Executive Secretary of DAPPMAN, Olufemi Adewole, who noted that the way Dangote conducts business does not benefit most local marketers, particularly small businesses that rely on flexible coastal supply chains. 'Since the advent of Dangote refinery, it has not been smooth sailing at all. We had preliminary meetings with their management. We received promises and assurances that we would be accommodated. We are ready and still willing to patronise Dangote. But the issue is, is Dangote ready to give us the product we want?' he stated. 'You don't get the price upfront,' Adewole explained. 'It is only after you've been cleared that a proforma invoice is issued. Meanwhile, there appears to be a select group Dangote prefers to trade with,' he added.
Business Insider
23-07-2025
- Business
- Business Insider
Dangote exposes black market fuel cartels undermining refinery development in Africa
Speaking at the Global Commodity Insights Conference on West Africa organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in partnership with S&P Global in Abuja, Dangote warned that these shadow networks are undermining efforts to build local refinery infrastructure by manipulating prices and supply chains with emphasis on the maritime fuel trade centered around Lome, Togo. He explained that international traders have long exploited the lack of refining capacity in Africa by storing and selling imported refined petroleum products offshore at inflated prices. ' The market is a uniquely African phenomenon, ' he said. ' International traders maintain floating storage of about two million tonnes of petroleum products just offshore. These were being sold at inflated prices, given the lack of local refining capacity. Immediately, the Dangote Refinery became operational, they decided to crash the prices.' Dangote argued that the move was deliberate. ' Make no mistake, those who profit from this system will do everything they can to prevent other refineries from emerging." "The whole essence of Lome is to ensure that no refinery operates in Sub-Saharan Africa. In fact, I don't see any new major refining project succeeding with the offshore Lome market in existence.' He warned that these shadow networks manipulate supply chains and undercut prices, ultimately deterring investment in large-scale refining infrastructure. ' We cannot continue to allow a parallel oil economy to dictate the fate of Africa's energy self-sufficiency, ' Dangote said. Africa's push for fuel sufficiency Dangote's comments come amid renewed efforts by African leaders to attract private capital into local refining infrastructure in order to reduce dependency on foreign fuel imports and retain more value within the continent. Despite efforts to expand refining capacity, Nigeria and other West African nations still import nearly 69% of their gasoline, according to Farouk Ahmed, head of Nigeria's Midstream and Downstream Petroleum Regulatory Authority. In 2025, West Africa trades approximately 2.05 million metric tonnes of gasoline each month, yet only 31% is supplied by local refineries. Despite the region's position as a major hydrocarbon producer and a growing refining hub, it continues to depend heavily on fuel imports from Europe, the Middle East, and Asia. Africa's push for fuel self-sufficiency is driven by strategic reforms, infrastructure investments, and policy changes aimed at reducing reliance on imported petroleum products. . Aliko Dangote pointed to a major challenge undermining progress: the lack of harmonised fuel standards across African countries. Unlike Europe's unified system, each African nation maintains its own specifications.
Business Insider
22-07-2025
- Business
- Business Insider
1 million tons of petrol shipped overseas as Dangote refinery takes Nigerian fuel global
The Dangote Refinery, which this year began exporting Premium Motor Spirit (PMS), also known as petrol, to markets beyond Africa, recently highlighted a major milestone with regards to the initiative. According to the chairman of the business, and Africa's richest man, Aliko Dangote, the refinery exported up to 1 million tons of petrol. The Dangote Refinery has commenced the export of Premium Motor Spirit (PMS) beyond Africa, marking a transformative step in regional energy trade. In June and July 2025, the refinery successfully exported one million tonnes of PMS, signaling an increase in its operational scope. The facility achieved its first gasoline export to Asia in June 2025, followed by earlier low-sulfur fuel oil shipments to Singapore and multiple consignments of jet fuel to global markets. Alhaji Aliko Dangote, President of the Dangote Group, made the revelation on Tuesday at the Global Commodity Insights Conference on West African Refined Fuel Markets, which was organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in collaboration with S&P Global Insights. As reported by The Punch, the Nigerian billionaire noted that the refinery exported up to a million tons of fuel during June and July 2025. 'Today, Nigeria has actually become a net exporter of refined products. Before I came on the podium, I asked my people how many tonnes of PMS we have actually exported. From June beginning to date, we have exported about 1 million tonnes of PMS, within the last 50 days,' he said. This is a new milestone for the $19 billion, 650,000-barrel-per-day complex, which had hitherto concentrated its exports in West Africa since starting gasoline shipments in 2024. Dangote's young history with fuel exports Concerning Dangote's business of exporting fuel, a noteworthy breakthrough occurred in June 2025, when 90,000 metric tons of gasoline were sent to Asia, marking the refinery's first petrol export outside of West Africa. Mercuria, the trading powerhouse, was set to load the shipment on June 22. This move comes after an earlier April shipment of low-sulfur straight-run fuel oil (LSSR) to Singapore, indicating a deliberate push into Asian markets. The Dangote Refinery's global development has not stopped with fuel. It has also successfully exported two consignments of jet fuel to Saudi Aramco, the world's largest oil firm, and supplied nearly 1.7 million barrels of jet fuel to US ports via six boats. These moves underscore the refinery's growing stature and competitiveness in the global energy sector. This growth has begun to shake established markets. In January 2025, the Organization of Petroleum Exporting Countries (OPEC) stated that Dangote's oil push was beginning to disrupt Europe's refined fuel market. For decades, Europe maintained a profitable $17 billion annual gasoline export business to Africa. Experts now fear that Dangote's efforts may bring a stop to this long-standing trading partnership. As of April 2025, the refinery has more capacity than the top 10 biggest plants in Europe. Crude supply to Dangote On the supply side, the Dangote Refinery is making strategic moves towards self-sufficiency. According to Devakumar Edwin, Vice President of Dangote Industries, the refinery plans to rely solely on Nigerian crude by the end of 2025. In June, local producers supplied 53% of the crude processed, with the remaining 47% coming mostly from the United States. The factory now refines about 550,000 barrels of oil per day. Historically, the refinery has received crude from Brazil, Angola, Ghana, and Equatorial Guinea. However, greater cooperation among Nigerian oil producers, the federal government, and the refinery is expected to increase the share of locally sourced crude in the coming months. As the Dangote Refinery expands its reach and consolidates its supply chain, it is redefining Nigeria's role in global energy markets while simultaneously speeding Africa's economic self-determination.
