Why No New Refineries May Be Built in Africa – Dangote

Aliko Dangote, Africa’s richest businessman and head of the Dangote Group, warned that the continent will not see another large refinery unless governments break up the powerful groups who profit from importing fuel. 

He spoke at the Global Commodity Insights Conference on West Africa’s fuel market in Abuja, held by the NMDPRA and S&P Global Commodity Insights.

Dangote pointed to the Lomé Floating Storage Terminal off Togo’s coast as a key barrier. This offshore depot holds over two million tonnes of petrol and diesel at any time.

He said it acts like a fuel “dumping ground” run by big international trading firms. Because local refineries are rare, many countries buy fuel from this terminal, even if it costs more or is less efficient.

In his talk, titled “Building an African Refinery Hub: Prospects and Challenges,” Dangote said the Lomé terminal supplies much of West and Central Africa. He explained, “Beyond missing pipelines and old plants, the biggest problem is rent‑seeking in the petroleum sector.

This area has long been a source of corruption. When you build a refinery and upset that system, you face powerful interests who will fight back hard.”

He described how the Lomé market exists to keep new refineries out. “Their floating fleet of over two million tonnes ensures no refinery can operate in sub‑Saharan Africa,” he said. “They sell fuel at high prices because there is no local alternative.

When our Lekki refinery started cutting costs, they worked to block us. Without strong political will, no other big refinery will be built in our lifetime.”

Dangote urged regional cooperation and bold policy changes. He insisted governments must unite to break the Lomé monopoly and back local refining. “We need aligned policies, clear rules and real political power on this issue,” he said. “If leaders do not act, none of us here will see another major refinery built in sub‑Saharan Africa.”

He also shared the struggles his $20 billion Lekki refinery faced. Corruption, rent‑seeking and even covert efforts by traders tried to stop the plant from running smoothly. “This sector has long been a breeding ground for graft,” he added. “Building a refinery disrupts vested interests that make money from our dependence on imported fuel.”

Dangote’s warning sends a clear message: unless African governments break the hold of international traders and curb corrupt practices in the oil value chain, new refineries will remain a dream. Only a united, politically courageous push can free the region from costly imports and secure its energy future.