Africa’s richest man, Aliko Dangote, has warned that no major new oil refinery is likely to be developed on the continent unless African leaders confront entrenched corruption and foreign interests that dominate the petroleum sector.
Speaking on Tuesday at the Global Commodity Insights Conference held in Abuja, which focused on West Africa’s refined fuel market, Dangote highlighted the powerful forces resisting domestic refining efforts.
The event was jointly organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Commodity Insights.
Delivering a presentation titled “Building an African Refinery Hub: Prospects and Challenges”, the President of the Dangote Group pointed to the massive floating storage terminal located off the coast of Lomé, Togo, as a major obstacle.
The offshore depot holds over two million tonnes of fuel and, according to him, has become a strategic dumping ground for imported petroleum products—controlled largely by international trading companies.
“This floating hub has become the main source of fuel for much of West and Central Africa, not because it offers better prices or efficiency, but because our region lacks local refining capacity,” Dangote said.
He argued that the existing system has created a lucrative rent-seeking environment that thrives on Africa’s reliance on imported fuel. “When a refinery is built, it threatens those who benefit from this system. You are not just creating competition—you are challenging a network of vested interests that will resist with full force,” he stated.
Dangote explained that his $20 billion Lekki refinery project has already begun to disrupt this status quo by driving down fuel prices, but warned that others may not have the same opportunity if nothing changes.
“The purpose of the Lomé offshore market is simple—to ensure that refineries cannot survive in sub-Saharan Africa,” he declared. “I don’t see any major refinery being built again unless this offshore monopoly is dismantled. That can only happen through strong political leadership, regional cooperation, and policy alignment.”
He emphasized that bold action is needed from African governments to break the dominance of foreign fuel suppliers and encourage investments in domestic refining infrastructure.
“Without unified political support across the continent, I can say confidently that no one here will live to see another large refinery emerge in Africa,” Dangote warned.
He further noted that beyond infrastructural challenges, corruption and sabotage from global oil traders remain key threats. “This industry has long been riddled with rent-seeking and corruption. Building a refinery disturbs that cycle, and those benefiting from it are not going to step aside easily.”
Dangote’s comments come amid ongoing debates about energy independence and the need for Africa to control its fuel production and pricing.