- Aliko Dangote said powerful groups benefiting from Nigeria’s fuel subsidy and import system tried to stop the construction of his $20 billion refinery
- He explained that traders, shippers, and other beneficiaries of the subsidy regime feared losing billions of naira in profits if the refinery succeeded
- Dangote also revealed that the refinery is now reducing Nigeria’s dependence on fuel imports and is expected to expand to 1.4 million barrels per day
Legit.ng journalist Victor Enengedi has over a decade’s experience covering energy, MSMEs, technology, banking and the economy.
Africa’s richest businessman, Aliko Dangote, has opened up about the strong opposition he faced while building his $20 billion refinery in Nigeria.
According to him, powerful individuals who benefited from the country’s long-standing fuel import and subsidy system tried to stop the project from succeeding.
Source: Getty Images
Speaking during an interview with Nicolai Tangen, Dangote described the group as an oil “mafia” made up of traders, shippers, and others who profited heavily from petrol subsidies and fuel imports.
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Dangote claims oil mafia wanted the project stopped
Dangote explained that these vested interests feared the refinery would disrupt a system that generated billions of naira for a small circle of beneficiaries.
He said they used different tactics to delay the project, including making it difficult for him to secure land for construction.
According to him, obtaining land for the refinery took about five years. One proposed site was delayed for three and a half years, while another faced setbacks for more than a year because of efforts to frustrate the development.
“All this would have been blocked by what you call the mafia in oil business to make sure that we don’t come and address these issues.”
Despite the obstacles, Dangote said he remained determined to complete the refinery project.
Billions spent on subsidy and fuel imports
Dangote also criticised Nigeria’s long-running dependence on imported petroleum products, despite being one of Africa’s largest crude oil producers. He stated that the fuel subsidy programme alone consumed nearly $10 billion every year.
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He explained that several groups — including fuel traders, shipping companies, and individuals receiving product allocations — made enormous profits from the arrangement and therefore resisted any change that could threaten their business interests.
“So these are the people that are not agreeing for us to settle down because they believe that no, we are coming here to displace them. Of course, that’s what we have done now,” he said.
According to him, the refinery has now significantly reduced the influence of those who relied on imports and subsidy payments to make money.
Refinery expansion and growing crude supply
The billionaire businessman revealed that constructing the refinery required massive supporting infrastructure, including a new port, roads, and water systems. At the peak of construction, the project reportedly employed around 67,000 workers.
He admitted the refinery became far more complex than originally expected but said abandoning it was never considered.
Source: Facebook
Dangote added that the refinery currently sources more than half of its crude oil from Nigeria, while additional supplies come from countries such as Angola, Libya, and the United States.
He said the refinery now purchases about 21 cargoes of crude monthly in Nigeria and plans are already underway to expand operations further.
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According to Dangote, the facility is expected to reach a refining capacity of 1.4 million barrels per day within the next 30 months.
Source: Legit.ng