Aliko Dangote has revealed his plans to emulate fellow billionaire Mukesh Ambani by reinvesting profits from Africa’s largest oil refinery into new sectors. This announcement comes after Dangote successfully completed the ambitious project despite multiple challenges.
Thank you for reading this post, don't forget to subscribe!In a recent interview in New York, Dangote discussed his visit to Reliance Industries Ltd.’s Jamnagar plant in India, the world’s largest refining complex. He sought inspiration for his own 650,000-barrel-per-day facility, located outside Lagos, which began production this year.
Ambani, ranked as Asia’s richest individual by the Bloomberg Billionaires Index, revolutionized India’s telecom sector with his Reliance Jio service, swiftly becoming the largest carrier by undercutting competitors. He has attracted significant investments from major companies like Google and Meta Platforms for his digital ventures and is now establishing India’s biggest non-bank lender.
While Dangote has already expanded beyond his traditional sectors of cement and food, he remains cautious about detailing his future plans. With the refinery now operational and ramping up production, he is set to negotiate fuel pricing in upcoming discussions, with full capacity expected in about four months, according to Vartika Shukla, chairperson of Engineers India Ltd., the project manager for the refinery.
Despite facing warnings from a senior Saudi minister about the scale of his project, Dangote pressed on, navigating delays caused by bankrupt suppliers and the COVID-19 pandemic. “The pressure was coming from different directions, the pressure of people confusing us, disturbing us every day,” he explained.
With the refinery’s completion, Nigeria stands poised to become one of the few countries on the continent not reliant on fuel imports. While South Africa has long discussed enhancing its refining capabilities, progress has been slow.
Ghana recently announced plans for a petroleum complex with a capacity of 300,000 barrels a day, but Dangote is confident that his refinery, the largest in Africa, remains unmatched. “Ghana will never ever do it,” he stated. “No one else could’ve done this.”
