By Peter Omopo
Abuja | July 22, 2025 — Africa’s richest man and President of the Dangote Group, Alhaji Aliko Dangote, has warned that no new large-scale refineries are likely to be developed in Africa unless governments across the continent dismantle entrenched rent-seeking interests in the petroleum sector through decisive political will.
Speaking at the Global Commodity Insights Conference on West Africa’s refined fuel market — jointly organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Commodity Insights in Abuja — Dangote identified systemic corruption, offshore fuel dumping, and powerful international trading cartels as major barriers to refining growth on the continent.
In a presentation titled “Building an African Refinery Hub: Prospects and Challenges,” Dangote specifically cited the Lomé Floating Storage Terminal off the coast of Togo — a massive offshore depot housing over 2 million tonnes of petroleum products — as a strategic bottleneck to Africa’s domestic refining ambitions.
“This floating market is not about efficiency or lower prices. It exists to maintain Africa’s dependency on imported fuel,” Dangote said. “As soon as the Dangote Refinery began operations, prices started falling. That’s exactly what the entrenched interests want to prevent.”
He described the Lomé terminal as a uniquely African phenomenon controlled by international fuel traders, accusing them of dumping fuel into West and Central African markets at inflated prices while resisting efforts to localize refining.
“The entire purpose of the Lomé floating depot is to ensure that no refinery can thrive in sub-Saharan Africa,” he warned. “Unless this system is dismantled, I do not believe any major new refinery will be built in our lifetime.”
Dangote’s remarks come just weeks after his $20 billion Lekki refinery — the largest in Africa — began exporting refined petrol. However, he cautioned that the challenges his team faced may deter future investors unless urgent reforms are enacted.
“If governments fail to align policies, cooperate regionally, and confront these monopolistic practices head-on, Africa will remain at the mercy of foreign supply chains,” he said. “Without strong political will, no one in this room will live to see another major refinery rise in Africa.”
He described the petroleum sector as a breeding ground for corruption and rent-seeking, warning that new entrants must be prepared to face aggressive resistance from those benefiting from Africa’s energy dependence.
“When you build a refinery in Africa, you’re not just filling a gap — you’re disrupting a cartel. And they will fight back,” Dangote concluded.
The industrialist called on African leaders to take urgent collective action to break the dominance of offshore trading hubs and prioritize domestic refining to ensure long-term energy security and economic independence.
