Aliko Dangote risk his $23 billion for refinery project
Billionaire industrialist Aliko Dangote has candidly described his $23 billion refinery project as the most significant risk of his career, emphasizing the profound personal and financial stakes involved. In an exclusive interview with Forbes, Dangote stated, “It was the biggest risk of my life. If this didn’t work, I was dead.”
The Dangote Refinery, boasting a capacity of 650,000 barrels per day, stands as Africa’s largest refinery. Despite its monumental scale, the journey to operational status was laden with challenges, including securing financing, navigating complex regulatory landscapes, and establishing reliable supply chains. These obstacles led to an eight-year delay in the refinery’s opening and escalated costs to $20 billion.
Aliko Dangote underscored his commitment to African industrialization, asserting the necessity for self-reliance in building the continent’s infrastructure. He remarked, “We have to build our own nation by ourselves. We have to build our own continent by ourselves, not [rely on] foreign investment.”
The refinery’s inauguration has reignited discussions surrounding Nigeria’s longstanding petrol subsidy program. Historically, the country has subsidized fuel prices, a practice that has strained government finances and hindered investments in social services.
While President Bola Tinubu initially eliminated these subsidies, the policy was reversed following currency devaluation and rising import costs. The Dangote Refinery’s local production is poised to reduce dependence on imports, yet the government faces critical decisions regarding fuel pricing and subsidy sustainability.
Beyond the refinery, Dangote is spearheading additional ventures, including the construction of a subsea pipeline to transport natural gas from the Niger Delta to Lagos and the expansion of the refinery’s fertilizer production capacity. Despite establishing a family office in Dubai and involving his daughters in the family business, his primary focus remains on Nigeria.
He continues to oversee operations closely, with plans to take the refinery public within the next two years. Reflecting on his entrepreneurial journey, Dangote stated, “I’ve been fighting battles all my life and I have not lost one yet.”
The Dangote Refinery represents a pivotal step toward Nigeria achieving energy self-sufficiency and economic diversification. As the nation transitions from a net importer to a net exporter of refined petroleum products, the refinery is expected to play a central role in reshaping Nigeria’s position in the global energy market.