Beneficiaries of fuel importation hindering refinery development in Africa- Dangote

By Innocent Raphael

Africa’s richest man and owner of the $20 billion Dangote Refinery, Aliko Dangote has said that individuals profiting from fuel importation are hindering the construction of refineries across the continent.

In an exclusive interview with CNN’s Eleni Giokos at his refinery in Lagos, Dangote highlighted the alarming lack of new refineries in Africa, despite the continent’s status as a major oil producer.

“There has not been a new refinery in Africa in the last 35 years,” Dangote stated, emphasizing the dire need for infrastructural development.

He also pointed out that financial obstacles, such as the unavailability of loans from weak financial institutions, and the vested interests of those benefiting from fuel importation are significant barriers.

“There are so many issues regarding this, such as money, political will, and also people who are benefitting from this whole system of importing petroleum products into Africa are actually discouraging their governments from building refineries.

“Also, they won’t get loans anyway because they don’t have very strong banks. The international banks will not support anything like this,”Dangote explained.

Dangote further stressed the importance of African self-reliance in the interview, urging entrepreneurs and leaders to collaborate in developing the continent. He dismissed the idea of waiting for foreign investors, labeling it as an unrealistic expectation.

“We Africans have to make sure that we focus and realize that we are the only ones that can deliver. We Africans are the only people that can develop Africa. If we are waiting for foreign investors to come and develop Africa, it will never happen,” he asserted.

Africa’s Energy Paradox –
Despite having some of the largest oil and gas reserves globally, Africa struggles with energy insufficiency. The continent remains heavily dependent on imported energy, primarily from Europe and America.

Statistics reveal that about 75% of oil produced in Africa is exported, while the region imports most of its energy needs. This import dependence leaves significant portions of the population without access to clean energy; approximately 1.49 billion Africans lack clean energy for cooking and other domestic uses, and about 600 million people do not have access to electricity.

Nigeria, a leading oil producer, exemplifies this paradox. Despite its oil wealth, the country imports nearly all its petroleum products, and the Dangote Refinery aims to address this gap, reducing import dependency and bolstering local energy production.