…Says refinery to be listed soon for Nigerians to own shares
…Insists refinery meets Nigeria’s fuel demand, surplus for export
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The Founder of Dangote Group, Alhaji Aliko Dangote, has warned against using the cry of monopoly to discourage indigenous investment and industrial growth in Nigeria, insisting that no one is prevented from investing in the country.
Dangote gave the caution on Monday while speaking at the 2025 Inaugural Annual Downstream Petroleum Week organised by the House of Representatives Committee on Petroleum Resources (Downstream) in Abuja.
He was represented by the Group Chief Strategy Officer of Dangote Industries Limited, Aliyu Suleman.
Addressing concerns about monopoly in the downstream sector, Dangote said many wealthy Nigerians have chosen to invest abroad rather than build industries locally.
“Too many people with the means to build industries chose instead to invest abroad. We decided from afar while adding little value to our economy. We have chosen differently. We have chosen to build here, employ here, and produce here.
“So let us not use the cry of monopoly to stop growth. No one is prevented from investing. We welcome others to build their own refineries, and we will offer support in whatever way we can.”
He urged stakeholders to focus on policies that promote productivity, innovation, and healthy competition, saying Nigeria holds a natural competitive advantage in refining due to its proximity to crude oil and gas supplies.
“We should work together to develop this sector and enact laws that will help it prosper. Let us protect our industries and deliver the economic transformation this country deserves,” he said.
Dangote disclosed that the Dangote Refinery, the largest single-train refinery in Africa, will soon be listed on the Nigerian Stock Exchange, allowing citizens to become shareholders.
He noted that the refinery can meet all of Nigeria’s demand for diesel and jet fuel, with a surplus available for export, while also meeting 90 percent of the nation’s PMS (petrol) requirements.
“Today, the Dangote Refinery can meet all of Nigeria’s demand for diesel and jet fuel and still have a surplus for exports,” he said.
“This is based on official consumption figures of 50 million litres per day, though our own estimates put it closer to 40 million litres. In either case, we should be able to meet national demand.”
Dangote lamented that Africa refines only 40 percent of its petroleum products, compared to over 95 percent in Europe and Asia, due to capital intensity and low profit margins that discourage investors.
“Refining is capital-intensive, technologically complex, and often low-margin, so many entrepreneurs and governments have stayed away. But at Dangote, we are known for taking bold steps,” he said.
He explained the massive scale of the refinery project — involving 2,700 hectares of land, 65 million cubic meters of sand filling, and over 60,000 workers, including 50,000 Nigerians.
Dangote emphasized that refined products from the refinery are of higher quality yet priced below import parity, offering cost benefits to Nigerians.
“Across Africa, PMS and diesel sell for around $1 per litre. In Nigeria, it’s below $0.60. This is a huge cost benefit for Nigerians, even though subsidies previously masked the true market prices,” he said.
He, however, described as a paradox the situation where Nigeria continues to import petroleum products while the Dangote Refinery exports the same, stressing the need to correct policy distortions to allow local refineries to thrive.
According to Dangote, domestic refining offers broader economic benefits — from job creation and industrial linkages to skill development and foreign exchange stability.
He noted that between the Dangote Group, NNPC, and modular refineries, Nigeria has over one million barrels per day of domestic refining capacity that should be enabled to operate fully.
“Historically, marketers source products from abroad and supply the country via coastal storage terminals. Today, there is a domestic alternative. We must find an optimal split of off-take between trucks loading directly at the refinery and vessels for coastal transportation,” he said.
He also disclosed that Dangote Group is working with the Nigerian Ports Authority (NPA) and NIMASA to reduce coastal transport costs, which add to fuel prices passed on to consumers.
Drawing parallels with Nigeria’s transformation in cement production, Dangote said the country moved from being an importer of less than two million tonnes annually to an exporter producing over 60 million tonnes across Africa.
“Nigeria is now a leading exporter of cement. By 2027, we plan to export $500 million worth of cement and clinker annually. The same transformation is happening in refining,” he said.
He revealed that Nigeria is now a net exporter of refined petroleum products, polypropylene, and urea, and urged protection for local refineries against unfair competition.
“The current import licensing regime exposes domestic refineries to unfair competition, especially from cheap Russian imports produced with $25-per-barrel crude due to sanctions. This is like dumping, and it hurts domestic refineries,” he warned.
The Speaker of the House of Representatives, Rt. Hon. Abbas Tajudeen, represented by his deputy, Rt. Hon. Benjamin Kalu, commended the operational take-off of the Dangote Refinery, describing it as a turning point in Nigeria’s energy self-sufficiency drive.
He called on stakeholders to collaborate in repositioning the downstream sector for sustainable growth, transparency, and innovation.
Chairman of the House Committee on Petroleum Resources (Downstream), Hon. Ikenga Imo Ugochinyere, said the summit represents a national dialogue on reforming the sector to drive industrial growth and competitiveness.
He announced plans for a Refinery Protection and Promotion Bill that will classify refineries as strategic national assets, grant them the first right of refusal on crude allocations, and streamline regulatory processes.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, also called for sustained collaboration between the executive, legislature, and private sector, saying consistency in policy implementation was vital for energy security and industrialisation.
“Together, we can build a downstream sector that truly supports industrialization, creates jobs, and delivers prosperity across our nation,” Ekpo said.
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