The President of the Dangote Group, Alhaji Aliko Dangote, has dismissed suggestions that he should buy one of Nigeria’s dormant government-owned refineries. Instead, he announced plans to expand the capacity of his $20 billion refinery in Lekki, Lagos, from 650,000 barrels per day (bpd) to 1.4 million bpd.
Dangote made this known while confirming the expansion of the massive facility, which he said would become the world’s largest refinery within the next three years.
Dangote Rejects Monopoly Claims
Responding to questions on why he chose to expand rather than buy one of the Nigerian National Petroleum Company Limited (NNPC) refineries, Dangote said he wanted to avoid being accused of monopolizing the sector.
“Buying those refineries? Once we touch them, you will hear a lot of noise,” he said. “There are other people with money, maybe more than we have. They should go and try their own luck so there won’t be talk about monopoly.”
He urged the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and other investors to buy or build new refineries to complement the government’s efforts. “If they are not for sale, then they should actually go and put up their own refinery,” Dangote added.
Tinubu’s Support for Refining Sector
Dangote revealed that President Bola Tinubu had assured him of continuous support, especially with local crude supply. “The President is supporting this sector to refine all our crude into petroleum products,” he said.
He noted that his company already had the infrastructure needed for expansion. “We want to double our capacity rather than go somewhere else. We already designed it that way,” he said. “We are actually more than doubling — we are going to 1.4 million from 650,000.”
Dangote also encouraged private investors to contribute toward achieving Nigeria’s goal of a $1 trillion economy, stressing that collective effort was key to realizing that vision.
Past Experience with Government Refineries
Dangote recalled his earlier attempt to acquire government-owned refineries in 2007, which was reversed after former President Umaru Yar’Adua took office. He said the facilities, sold under former President Olusegun Obasanjo, were reclaimed by the government after officials claimed they were undervalued.
“We bought the refineries in January 2007. Then we had to return them to the government because there was a change of government,” Dangote explained. “As of today, they have spent about $18 billion on those refineries, and they are still not working. I doubt very much if they will work.”
NNPC Defends Refinery Rehabilitation
Despite Dangote’s skepticism, NNPC Group Chief Executive, Bayo Ojulari, maintained that the Port Harcourt, Warri, and Kaduna refineries would resume operations. He said the company was reviewing the operational and commercial viability of the three facilities to determine whether to overhaul or repurpose them.
Ojulari described the review as part of a broader plan to reposition Nigeria’s refining sector for sustainability and profitability. He added that NNPC would soon engage Technical Equity Partners with global experience in refinery operations.
Mounting Calls for Refinery Privatization
Public frustration over the persistent failure of state refineries continues to grow. The Manufacturers Association of Nigeria (MAN) recently urged the Federal Government to privatize the facilities, calling them a financial drain.
Despite years of investment, Nigeria’s refineries remain unproductive. Between 2013 and 2017 alone, about $396 million was spent on turnaround maintenance. In 2021, another $1.4 billion was approved for Port Harcourt, $897 million for Warri, and $586 million for Kaduna.
Six months after being declared operational, the 60,000-bpd old Port Harcourt refinery was shut down again. The Warri refinery also stopped operations just a month after its reopening in December.
A New Era in Nigeria’s Refining Industry
According to Ojulari, the ongoing assessment marks the beginning of a new phase for the Nigerian refining sector. He emphasized that the NNPC’s goal was to create sustainable, revenue-generating assets that meet domestic fuel needs and align with global standards.
Meanwhile, Dangote remains focused on private-led industrial growth. “We are doing our part, and I believe others should do theirs too,” he concluded.
