President of the Dangote Group, Aliko Dangote, has disclosed that the Dangote refinery faced strong resistance from powerful interests within Nigeria’s oil sector during its development phase. He said some fuel importers and entrenched business groups attempted to frustrate the $20 billion refinery project because it threatened existing import-dependent trade structures.
Dangote made the remarks during an interview with Chief Executive Officer of Norway’s Sovereign Wealth Fund, Nicolai Tangen, monitored by Vanguard. According to him, the project encountered prolonged delays, operational obstacles, and infrastructure challenges after its launch in 2013.
He stated that the resistance came from groups benefiting from Nigeria’s long-standing dependence on imported refined petroleum products despite being one of Africa’s largest crude oil producers. Dangote said the Dangote refinery was conceived partly to address decades of fuel scarcity and long queues at filling stations across the country.
According to Dangote, “Some of these obstacles were created by entrenched interests in the oil business — what you might call a mafia, trying to stop us from solving these problems.”
He explained that land acquisition issues alone delayed the project for nearly five years. The businessman also disclosed that the company had to construct critical infrastructure independently because existing public facilities could not support the refinery’s operational requirements.
Dangote said the refinery project required the construction of a dedicated port, road network, water treatment facilities, and logistics infrastructure. He noted that some imported industrial equipment weighed up to 3,000 tonnes, making existing port infrastructure unsuitable for the operation.
The billionaire businessman further stated that the refinery consumes about 440 million litres of treated water and operates a treatment facility covering more than 30 hectares. He added that about 67,000 workers participated in different phases of the project’s construction.
The Dangote refinery, located in Lekki, Lagos State, was commissioned in May 2023 and began petroleum product operations in 2024. With a refining capacity of 650,000 barrels per day, the facility is regarded as the world’s largest single-train refinery.
Dangote explained that the project continued despite severe economic pressures, including major exchange rate fluctuations during construction. According to him, the naira moved from about ₦156 to the dollar when the project started to as high as ₦1,900 during later stages of development.
He credited several African and international financial institutions for supporting the refinery project. These included Afreximbank, Africa Finance Corporation, Zenith Bank, Access Bank, United Bank for Africa, Standard Bank, and Standard Chartered Bank.
Dangote also said the project was driven by a broader objective of strengthening Nigeria’s and Africa’s energy security. He noted that many African countries export crude oil but import refined products, creating pressure on foreign exchange reserves and exposing economies to global fuel supply disruptions.
Industry analysts say the refinery has become increasingly significant within Nigeria’s energy sector as authorities seek to reduce dependence on imported fuel products. The facility has also expanded exports of diesel, aviation fuel, and other refined products to African and international markets.
The comments come amid broader discussions about refining capacity, fuel pricing, and energy independence across Africa. Dangote recently disclosed plans to expand refining operations and explore new refinery investments within East Africa.
