Nigerian billionaire and industrialist Aliko Dangote has warned that Africa may never witness the construction of another major refinery unless entrenched rent-seeking practices in the petroleum sector are dismantled through decisive political action.
Dangote made the assertion at the Global Commodity Insights Conference on West African Refined Fuel Markets, currently taking place in Lagos.
Citing the Lomé Floating Storage Terminal, an offshore facility located near Togo, Dangote described the terminal as a key obstacle to Africa’s ambitions to refine its own petroleum products. The floating depot is reportedly managed by powerful international trading firms and often stores over two million tonnes of imported fuel.
“The whole essence of the Lomé floating market is to ensure that no refinery operates in sub-Saharan Africa,” Dangote said. “In fact, I don’t see any new major refinery project succeeding in the existing offshore domain market.”
He explained that the entrenched system of rent-seeking and corruption within the petroleum value chain, especially in countries with limited refining capacity, has long served as a barrier to industrial progress on the continent.
“When you build a factory and disrupt that system, you are not just invading you are going against powerful interests that will fight back aggressively,” he added.
Dangote, whose $20 billion refinery in Lagos recently began operations, said the facility has already forced down fuel prices. However, he cautioned that those profiting from offshore trading structures will continue to resist any new refinery projects.
He concluded with a stark warning:
“Let me be blunt: if strong political will is not mustered, nobody in this room myself included will live to see another major refinery built in sub-Saharan Africa.”
Dangote called for policy alignment, regional cooperation, and firm political support to break the cycle of dependency and unlock the continent’s refining potential.
