Business

How mafia fought to frustrate $20bn Dangote Petroleum Refinery—Aliko Dangote

Published

2 months ago

May 15, 2026

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Dangote

•Middle East crisis boosts demand, prices •Meet beneficiaries of subsidy regime •Plans expansion plans across Africa •We sell stakes to attract investors •We are not overstretching financially •Civil unrest, policy inconsistency, other risks

By Udeme Akpan, Energy Editor

Africa’s richest man and President of the Dangote Group, Aliko Dangote, has alleged that some influential fuel importers fought hard to frustrate the establishment of the $20 billion refinery.

He said the “mafia” feared that the refinery would alter the trade flows that encouraged massive importation of refined petroleum products into Nigeria despite the country’s status as a major crude oil producer and exporter.

According to him, he was determined to end the prolonged fuel queues in Nigeria, noting that it was worrisome that Nigerians sometimes spent hours and even days trying to buy fuel at filling stations.

He said the refinery project, launched in 2013, encountered many obstacles, some allegedly created by entrenched interests in the oil business.

He added that the cost of building critical infrastructure such as a port, heavy equipment facilities and a treated water plant was enormous.

Dangote stated that despite the challenges and discouragement, he pushed ahead with the project in order to strengthen Nigeria’s and by extension Africa’s energy security.

In an interview with the Chief Executive Officer of Norway’s Sovereign Wealth Fund, Nicolai Tangen, monitored by Vanguard, Dangote said: “We looked at oil. Africa produces oil, but many countries don’t refine it. They export crude and import refined products, which drains foreign reserves.“In Nigeria, we had fuel queues for more than 50 years. People queued for days during Christmas just to buy petrol in an oil-producing country. Government refineries were not functioning properly, so I decided to take the bold step of building a refinery.“We launched the project in 2013. Land acquisition alone delayed us for five years. Some of these obstacles were created by entrenched interests in the oil business what you might call a mafia trying to stop us from solving these problems. But we stayed focused.“When we started, the naira exchange rate was N156 to the dollar. At one point it went as high as N1,900, but we still continued. We had to build our own port because no existing Nigerian port could handle the heavy equipment. Some individual pieces weighed up to 3,000 tonnes. We built roads, water infrastructure and other facilities from scratch. The refinery alone uses 440 million litres of treated water. Our water treatment section covers more than 30 hectares.“About 67,000 people worked on the refinery project. That’s the size of the town where I grew up. Honestly, we were lucky we didn’t fully understand the enormity of what we were building at the beginning. If I had seen the full scale immediately, I might have chickened out.“It was like swimming across the ocean. Once you’re in the middle, you can’t go back, so you keep moving forward. “We got support from African Export-Import Bank, African Finance Corporation, Zenith Bank, Access Bank, United Bank for Africa and other Nigerian banks. We also had strong support from Standard Bank and Standard Chartered. We were very lucky. And when we completed the refinery, the results exceeded our expectations.”Middle East crisis boosts demand, pricesAccording to Aliko Dangote, the crisis in the Middle East has unexpectedly benefited some of the group’s businesses, especially fertiliser, petrochemicals and aviation fuel.He said fertiliser prices surged sharply following the crisis, noting that urea fertiliser, which sold for about $400 per tonne before the crisis, had risen to about $850 per tonne, while demand had also increased significantly.Dangote added that polypropylene prices also jumped from about $900 per tonne to nearly $3,000 in the United Kingdom, stressing that local production by the group had helped prevent a shutdown of Nigeria’s plastic manufacturing industry.“If not because of the polypropylene we are producing today, all the plastic industry in Nigeria, which they are very huge, they are almost like number two or number three in terms of employment, they would have shut down because there’s no way you can even get it,” he said.He disclosed that the group’s aviation fuel business was oversold up to the middle of July despite producing 20 million litres daily.On crude supply, Dangote said the refinery sources about 56 percent of its crude from Nigeria, while additional volumes come from Angola, Libya and the United States. He noted that at one point the refinery imported between seven and eight cargoes of WTI crude monthly from the US, but now relies more heavily on Nigerian crude.“We have to buy now 21 cargos every month. That’s how big we are,” he said.He further revealed plans to expand refining capacity to 1.4 million barrels per day within the next 30 months, describing the scale as massive.

Meet beneficiaries of subsidy regimeDangote argued that some groups opposed the refinery because they benefitted immensely from Nigeria’s former fuel subsidy system.According to him, Nigeria spent nearly $10 billion annually on subsidy payments, creating opportunities for traders, shippers and fuel importers to make huge profits from importing refined petroleum products into the country.He also alleged that some individuals who received fuel import allocations earned billions of naira and viewed the refinery as a threat to their businesses.“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 stated.Plans expansion plans across AfricaDangote said the group is considering building additional refineries across Africa to reduce dependence on fuel supplies from the Middle East.He listed countries such as Uganda, Tanzania, Kenya and Rwanda as potential locations for future investments, adding that a refinery with a capacity of 650,000 barrels per day could serve markets as far as Ethiopia.The businessman disclosed that the group currently has investment plans worth about $45 billion, including LNG and gas infrastructure projects in Nigeria.According to him, the company is developing gas pipelines and treatment facilities aimed at harnessing associated gas currently flared in southern and eastern Nigeria for LNG production.We sell stakes to attract investorsDangote also revealed plans to bring more investors into parts of the business in order to support expansion and accelerate growth.He said the cement business was targeting production of 100 million tonnes annually, noting that the sector already generates strong cash flows and attracts financing easily.He projected those ongoing investments could eventually raise the group’s revenues to about $100 billion, with a long-term target of $200 billion revenue by 2030.Dangote further stated that the group aims to increase EBITDA from about $3 billion recorded last year to over $30 billion by 2030.We are not overstretching financiallyOn financing, Dangote maintained that the group does not overstretch itself financially and only undertakes projects it can comfortably fund.He said international financial institutions continue to support the company because of its strong project delivery record, including the successful completion of the refinery and petrochemical complex during the COVID-19 period.“We built during the most difficult times, which is COVID. We built in a very difficult environment, which is Nigeria. We’re able to deliver,” he said.He added that the refinery has already processed crude volumes of about 661,000 barrels per day, demonstrating operational capability and boosting lender confidence.Civil unrest, policy inconsistency, infrastructure pose risksDangote identified civil unrest, policy inconsistency and infrastructure challenges as major risks to business operations.He disclosed that the group had invested more than $3 billion in road infrastructure and explained that government policies allow companies to recover such investments through tax credits spread over several years.According to him, government earns substantial revenues from the group through VAT, minimum taxes and other levies, especially from the cement business.“It is a partnership where government will now give very good investment policies, good regulation, and making sure that we also don’t abuse the system,” he said.Model should be replicated across Africa — AyukIn a telephone interview with Vanguard yesterday, the Chairman of the African Energy Chamber, NJ Ayuk, said African nations should replicate the feat in order to enhance the continent’s energy security.He said: “The Dangote Petroleum Refinery is the largest single-train refinery in the world. It has sent a strong message. I am proud that it was built by Africa’s richest man, Alhaji Dangote.“This model can be replicated across Africa to strengthen energy security. The entire continent is watching Nigeria to see how this unfolds. The refinery deserves all the support it can get — not just for Nigeria’s sake, but for Africa’s.”Meanwhile, Aliko Dangote announced in April 2026 that preliminary work has begun for a new 650,000-barrel-per-day oil refinery in East Africa, adding that the refinery would be located in either Kenya or Tanzania to boost regional energy security.

The post How mafia fought to frustrate $20bn Dangote Petroleum Refinery—Aliko Dangote appeared first on Vanguard News.

Business

Stanbic IBTC, Abia State partner to deepen MSME growth

Published

2 minutes ago

July 15, 2026

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By Peter Egwuatu

Stanbic IBTC Bank has affirmed its commitment to accelerating the growth of Micro, Small and Medium Enterprises (MSMEs) across Nigeria through strategic partnerships with state governments and institutions committed to creating enabling environments for businesses to thrive.

The bank made this commitment during its Nigeria Business Summit Regional Tour held in Aba, in partnership with the Abia State Government, to deliver business enlightenment sessions, funding masterclasses, enterprise advisory services and capacity-building programmes for entrepreneurs.

Speaking at the event, the Commissioner for Industry and SMEs, Mazi Michael Enyinnaya Akpara, reiterated Abia State Government’s commitment to building one of Nigeria’s most competitive enterprise ecosystems through deliberate policy reforms and strategic initiatives.

According to him, the State is currently developing a comprehensive MSME Policy to provide a clear framework for enterprise development, while also establishing a statewide MSME Directory to improve business visibility and access to investment opportunities. He further announced plans for the National Brands Development and Made-in-Nigeria Project (Abia Expo 2026), an initiative designed to showcase the ingenuity of Nigerian businesses, strengthen locally manufactured products and position Abia as Nigeria’s preferred destination for quality local production.

“Abia State is intentionally building an ecosystem where businesses can start, grow, compete and access markets both locally and internationally. Through the development of the State MSME Policy, the MSME Directory, the National Brands Development and Made-in-Nigeria Project, we are laying the foundation for sustainable enterprise growth. Partnerships with organisations like Stanbic IBTC are critical to achieving this vision because government cannot build a thriving MSME ecosystem alone,” he said.

Commenting on Stanbic IBTC’s broader role in supporting Nigerian businesses, Chuma Nwokocha, Chief Executive, Stanbic IBTC Holdings, said: “Businesses do not scale in isolation. They scale when they have access to capital; to intelligence; and to the platforms that connect them to wider markets.”

Nwokocha further stated: “We will accelerate MSME graduation through value chain finance, structured lending, and the credit and advisory capability that turns promising businesses into durable ones. And we will invest in the sectors that will define Nigeria’s next decade.”

Also speaking, Executive Director, Business and Commercial Banking, Stanbic IBTC Bank, Remy Osuagwu, noted that the company is taking a more deliberate, nationwide approach to supporting entrepreneurs by bringing practical business support closer to where businesses operate.

Business

Nigeria, Benin Customs strengthen border security with geospatial tech

Published

12 minutes ago

July 15, 2026

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By Godwin Oritse

The Nigeria Customs Service (NCS) and its counterpart in the Republic of Benin have strengthened their partnership on the deployment of geospatial technology to enhance economic security, improve border surveillance, and facilitate legitimate trade along their shared border corridor.

The collaboration was highlighted during a meeting held at the ECOWAS Conference Hall, Seme-Krake Joint Border Post.

Speaking at the event, the Customs Area Controller of the Seme Area Command, Comptroller Abdullahi Kaila, described the initiative as a significant milestone in improving border management, boosting trade, and addressing the security challenges confronting one of West Africa’s busiest trade corridors.

According to him, the deployment of geospatial technology will provide Customs authorities with better intelligence and operational capabilities to tackle smuggling and other cross-border crimes.

Also speaking, the Head of Geospatial at the Nigeria Customs Service, Deputy Comptroller of Customs Labaran Ahmed, said the initiative is designed to pilot the Service’s border management application using the World Customs Organisation (WCO) satellite platform.

“With this new tool, we will not only identify vulnerable points along the border but also strategically deploy our field officers to those locations for targeted operations and more effective results,” he said.

Business

POWER FAILURE: Nigeria loses 3,100 GWh to gas flaring

Published

24 minutes ago

July 15, 2026

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•NUPRC, NOSDRA disagree on volume

By Ediri Ejoh

There are indications that the Federal Government’s ambition to transform Nigeria into a gas-driven economy by 2030 is facing significant challenges, as the country lost an estimated 3,100 gigawatt-hours (GWh) of electricity generation potential to persistent gas flaring by oil companies in May 2026.

This came as figures released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) differed from those of the National Oil Spill Detection and Response Agency (NOSDRA) on the volume of gas flared during the period.

While the NUPRC recorded 17.6 million standard cubic feet (MMSCF) of gas flared in May 2026, NOSDRA put the figure at 30.7 million standard cubic feet (MSCF).

Data obtained from NOSDRA’s latest report showed that the monetary value of the gas flared during the period stood at $107.5 million.

According to the agency, the defaulting companies, including International Oil Companies (IOCs), are liable to penalties amounting to $61.4 million.

Providing a breakdown of flaring across oilfields, NOSDRA disclosed that gas flaring by companies operating onshore rose by 62.3 per cent to 22.3 MSCF, compared to 8.4 MSCF flared offshore.

The agency further stated that the volume of gas flared during the review period translated into carbon dioxide emissions estimated at 1.6 million tonnes.

NOSDRA lamented that despite efforts to curb the practice, gas flaring has persisted in Nigeria since the 1950s, releasing carbon dioxide and other harmful gases into the atmosphere.

The Federal Government has repeatedly stated its commitment to the “Decade of Gas” initiative.

Under the initiative, launched in 2021, Nigeria aims to become a gas-powered economy by 2030 through improved power supply, industrial utilisation and increased gas exports.

A government report obtained by Vanguard stated that “increasing gas utilisation for power generation and incentivising investments in the gas value chain” remain top priorities.

Vanguard gathered that gas flaring has remained persistently high despite increased investments in the gas sector, suggesting that inflows into the industry have not translated into proportional improvements in gas production and utilisation.

Checks by Vanguard also indicated that Nigeria’s inability to consistently generate more than 4,000 megawatts (MW) of electricity for households and businesses is partly linked to inadequate gas supply to Electricity Generation Companies (GenCos).

Meanwhile, the Renevlyn Development Initiative, RDI, has urged the Federal Government to impose an outright ban on gas flaring, arguing that oil companies operating in the Niger Delta are more comfortable paying penalties than ending the practice.““RDI’s position followed recent data from the Nigerian Oil Spill Monitor covering March 2012 to 2025, which showed that oil companies operating in Nigeria paid an estimated $646 million in gas flaring penalties in 2025, the highest in the last five years.