Aliko Dangote, Africa’s richest person, yesterday pushed to expand his refining footprint beyond Nigeria, unveiling plans to build a refinery of comparable scale in East Africa in partnership with governments in the sub-region.

The proposed project is expected to be completed within four years, especially if East Africa’s regional leaders cooperate, Dangote stressed, kicking against Africa’s long-term practice of exporting raw materials abroad.

Speaking at a presidential panel at the “Africa We Build” summit in Nairobi, alongside Kenyan President, William Ruto, as well as Ugandan President, Yoweri Museveni, Dangote said his group was ready to build in East Africa a refinery comparable to the 650,000 barrels-per-day facility in Nigeria, provided there was strong policy backing and alignment from governments across the sub-region.

The move comes amid rising intra-African energy trade, with Dangote’s refinery already exporting about 1.1 billion litres of aviation fuel to Europe.

Meanwhile, strong oil import demand lifted South Africa–Nigeria trade volumes to $2.16 billion. This was revealed in a new data released at the fourth edition of the South Africa Week held in Lagos.

The event was hosted by the South African Consulate General in Lagos, in partnership with Brand South Africa and Development Bank of Southern Africa (DBSA)

Dangote stated that by exporting raw materials and importing finished products, Africa was further impoverishing its population of over 1.4 billion people. As part of efforts to reverse the trend, he planned the new move, which could reshape fuel supply, deepen regional integration, and accelerate the continent’s push towards industrial self-sufficiency,

Dangote stated, “I can give commitment to the two presidents (Ruto and Museveni) that are here. If they will support the refinery, we’ll build the identical one that we have in Nigeria, 650,000 barrels. It will (work). There’s nothing that can stop it. We have done the one in Nigeria, and that’s why we’re taking the bold move, which we have started already.

“Piling has started. We’re building that one to a scale. 1.4 million barrels a day will be the largest refinery in the world. That’s number one. Number two, we’ll have 10 per cent of the entire United States of America’s refining capacity. And this is coming with a lot of petrochemicals.”

When completed, the joint refinery is expected to serve Tanzania, Kenya, Uganda, South Sudan, and the Democratic Republic of Congo. The facility is expected to process crude from across the region, supported by shared pipeline infrastructure to improve efficiency and reduce costs.

According to Dangote, consistency in government policy and strong institutional support would be critical to unlocking such large-scale investments. He stressed that uncertainty and reversals in policy had over the years discouraged long-term capital deployment across Africa.

He said Dangote Group planned to invest $40 billion across sectors, including refining, petrochemicals, fertiliser, and manufacturing, by 2030.

Dangote said, “I want to just go into the market, and where I stand, that all Africans should invest (in the Dangote refinery). And we’ll be paying dividends in dollars. But my commitment today here is that if we agree with the three, four governments here about the refinery, we will lead and we’ll make sure that that refinery is built within the next four or five years.”

He also reiterated his position on free movement across Africa, urging leaders across the continent to accelerate visa-free movements, and explaining that the current heavily restricted system hinders trade.

He stated, “Today, with a foreign, with a European passport, you can move faster in Africa than being an African, which I think we must really stop.

“Why can’t we allow visa-free for all Africans? Please, we need to do that, because if we don’t really do that, it will be difficult to trade with somebody that you cannot get in and out easily.”

Kenyan President, Ruto, said Africa could no longer afford to export raw materials while importing finished products, describing the practice as a drain on jobs and long-term prosperity.

“Why would we fail? We have the raw materials, we have the market, we have the capital, and we have the industrialists to run these projects,” he stated.

According to the Kenyan president, discussions are already underway for a regional refinery model that pools resources and demand across borders, rather than duplicating infrastructure in individual countries.

He said such collaboration would allow Africa to fully utilise its assets while building economies of scale.

In his remarks, Ugandan President, Yoweri Museveni, reinforced the need for Africa to move from raw materials export to export of finished products. He pointed to the significant value lost when raw materials were exported without processing.

Museveni stated that as much as 100 per cent gain was lost when African nations exported only raw materials.

“We cannot continue exporting raw materials. It is near criminal to export unprocessed resources when we have the capacity to add value,” he emphasised.

Beyond refining, leaders at the summit emphasised the need to build integrated industrial ecosystems, linking energy, mining, manufacturing, and logistics across the region. The proposed refinery is expected to serve as a catalyst for such development, particularly in petrochemicals and related industries.

Africa Finance Corporation (AFC) Chief Executive, Samaila Zubairu, stated that the continent held trillions of dollars in pension and insurance assets, much of which was currently invested in low-yield instruments rather than infrastructure.

Dangote: No Investor Will Come to Africa Without Local Leadership

Dangote said without local leadership and domestic commitment to development and growth investors would not be attracted to Africa.

He said Africa’s development had been undermined for decades by overreliance on foreign investors, who, in many cases, were not primarily interested in building local economies.

Dangote stated, “In the past, many international financial institutions were not focused on developing Africa; their priority was their own interests. Today, however, we have institutions that are willing to listen to African entrepreneurs.”

Dangote insisted that the era of waiting for external salvation must end, reiterating that no meaningful investment would come without domestic leadership and commitment.

He stated, “We have made serious mistakes by relying too heavily on foreign investors. No investor will come without local leadership and domestic commitment. We must take the risk ourselves and build our own continent rather than wait for outsiders.”

Dangote framed the move for expansion by his group as not merely a business idea, but as a statement of intent, an assertion that Africa must finally take ownership of its industrial future.

“With the cooperation of the two heads of state here, we will build refineries in Kenya and Uganda within three to four years,” he said, drawing immediate attention from an audience that included policymakers, financiers and development partners.

His declaration came against the backdrop of a broader, urgent conversation about Africa’s persistent infrastructure deficit and its long-standing dependence on external capital, issues that dominated deliberations at the session.

650,000 Bpd Refinery Exports 1.1bn Litres of Aviation Fuel to Europe

Airline Operators of Nigeria (AON) described Dangote Petroleum Refinery and Petrochemicals as a critical pillar of support for Nigeria’s aviation industry.

AON disclosed that the refinery currently supplied over 95 per cent of the Jet A1 fuel consumed nationwide, while also exporting 1.1 billion litres of aviation fuel to Europe between March and April 20.

Director General of Raw Materials Research and Development Council (RMRDC), Professor Nnanyelugo Ike Muonso, also said the $20 billion Dangote refinery had showcased the power of domestic value addition.

Ike Muonso declared that Nigerians owed the visioner, Dangote, a profound debt of gratitude for investing in the world class refinery.

Speaking during a televised interview, AON spokesperson, Obiora Okonkwo, said the refinery’s output had played a vital role in sustaining domestic airline operations at a time of global supply disruptions arising from tensions in the Middle East and rising fuel costs.

“It is a matter of fact that over 95 per cent of aviation fuel supplied across the country comes from the Dangote refinery. To airline operators in Nigeria, Dangote is not just a refinery; it is a game changer and, indeed, a lifesaver,” Okonkwo said, according to a statement by Dangote Group.

Okonkwo stated that despite the refinery’s consistent supply, airlines continued to face severe operational strain due to escalating Jet A1 prices, which he attributed to sharp practices within the downstream distribution chain.

According to Okonkwo, some fuel marketers are allegedly creating artificial scarcity in spite of available supply from the refinery, leading to disproportionate price increases.

He disclosed that airline operators had recorded Jet A1 price hikes of up to 300 per cent since the onset of the Middle East crisis.

He stated, “We consider this exploitation. The refinery has not indicated any shortage, yet we are witnessing artificial scarcity and unjustifiable price increases. What airlines pay does not reflect depot prices.”

Echoing similar concerns after a closed door meeting between AON and the federal government, Chairman and Chief Executive Officer of Air Peace, Allen Onyema, described the situation as deeply troubling, particularly given that the Dangote refinery sold its products at comparatively lower rates.

Onyema said, “The truth is that marketers must be called to account. How do prices rise by as much as 300 per cent when Dangote’s supply remains the cheapest and some marketers source directly from the refinery?

“So, why the astronomical increase?”

The Dangote refinery continues to expand its footprint in the international aviation fuel market as industry data indicate that the facility exported approximately 876,000 metric tonnes of jet fuel to Europe within the period under review—about 456,000 tonnes in March and an additional 420,000 tonnes by April 20.

Those export volumes underscore the refinery’s growing capacity and improved logistics, further reinforcing Nigeria’s emerging role in the global downstream oil and gas market, even as it strengthens domestic energy security.

RMRDC: $20bn Refinery Showcases Power of Domestic Production

Director General of Raw Materials Research and Development Council (RMRDC), Ike Muonso, said the $20 billion Dangote Refinery was a testament to the power of domestic value addition. Ike Muonso stated that Nigerians owed Dangote a profound debt of gratitude for investing in the world class refinery.

He spoke in Lagos at the 2026 Bullion Lecture, powered by Centre for Financial Journalism. Other public policy analysts, government officials and stakeholders at the event also praised Dangote for his high impact investment in Nigeria.

They hailed the strategic foresight and industrial courage of President and Chief Executive of Dangote Industries Limited (DIL), Dangote, describing the Dangote Petroleum Refinery as a transformative national asset deserving of collective appreciation by Nigerians.

Delivering the keynote lecture at the event, themed, “From Resources to Prosperity: How Raw Materials Development, Value Addition and Innovation Can Catalyse Nigeria’s Industrial Renaissance,” Ike Muonso said the refinery represented a decisive break from Nigeria’s long standing dependence on crude oil exports with minimal domestic value addition.

According to the RMRDC chief, Nigeria has historically exported crude oil only to re import refined petroleum products, such as Premium Motor Spirit (PMS), with little economic benefit beyond crude sales.

He said, “That narrative has now changed. Instead of exporting crude and importing PMS alone, the Dangote Petroleum Refinery processes crude locally to produce PMS, diesel, dual purpose kerosene (DPK), and valuable by products for petrochemicals, such as polypropylene.

“This represents complete domestic value addition.”

Ike Muonso described the refinery as Nigeria’s most concrete example yet of how strategic industrial investment could unlock the full value of the country’s natural resources.

Against the backdrop of ongoing instability in the Middle East and its implications for global energy supply and price volatility, the RMRDC boss said Dangote Petroleum Refinery had emerged as a stabilising force and an African led solution to global energy challenges.

He stated, “With the far reaching consequences of the Middle East crisis on global energy markets, the Dangote Petroleum Refinery stands today as a monumental demonstration of strategic foresight, industrial courage and African self reliance.

“Nigeria should, in fact, be praying for Aliko Dangote at this time.”

Ike Muonso also presented comparative data on raw material value addition across countries, including the United States, India, Brazil, South Africa, and Kenya, revealing that Nigeria records the lowest percentage of value addition.

He disclosed that the country lost an estimated $29 billion annually due to the export of raw materials without processing, partly, due to the energy deficit.

“Rather than exporting raw materials, Nigeria should be exporting processed raw materials and finished products,” he stated.

Identifying obstacles to achieving full value addition, the RMRDC director-general highlighted key structural challenges, such as private infrastructure tax, resulting from companies’ reliance on self generated power; Logistics gaps. He said only about 30 per cent of Nigeria’s road network was paved; and there were capability gaps within the industrial ecosystem.

Ike Muonso stressed that sustained industrialisation remained Nigeria’s most viable pathway to broad based economic prosperity, citing Dangote Industries’ investments as a model for the country.

Earlier, in his remarks, Chairman of Economic Research and Ethics Committee and former President of the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Otunba Kelvin Dele Oye, also commended Dangote’s industrial contributions.

He decried what he described as an imbalance in the exploitation of Nigeria’s raw materials by foreign investors, often without meaningful value addition to the local economy.

Oye called for deliberate government policies and stricter regulatory vigilance to ensure that raw material exploitation benefited Nigerians, while enabling local investors to compete favourably with foreign players.

The event, which marked the 10th anniversary of the Bullion Lecture, also featured the unveiling and launch of a commemorative book, titled, “Pathways to Nigeria’s Socio Economic Transformation.”

The book, authored by Chief Executive of Centre for Financial Journalism, Mr. Ray Echebiri, documents all lectures delivered since the inception of the Bullion Lecture series.

High Oil Import Pushes S’Africa-Nigeria Trade Volumes to $2.16bn

The 2025 economic relationship between Nigeria and South Africa emerged as one of Africa’s most strategically significant partnerships, with bilateral trade topping $2.16 billion despite a headline trade deficit for the Southern African nation.

New data released at the end of the fourth edition of the South Africa Week held in Lagos, showed the country exported $468.48 million worth of goods and services to Nigeria last year, while importing products worth $1.69 billion — leaving a $1.22 billion deficit.

The forum was hosted by the South African Consulate General in Lagos, in partnership with Brand South Africa and the Development Bank of Southern Africa (DBSA). It is a strategic initiative aimed at fostering social cohesion between South Africans and Nigerians while positioning South Africa as a preferred destination for business, tourism, and education.

A statement by the organisers said, “The 2025 economic relationship between South Africa and Nigeria reflects a strategically significant, multi-dimensional partnership anchored in trade, energy security, investment flows, and strong institutional cooperation.

“While bilateral trade remains structurally imbalanced – with South Africa exporting US$468.48 million and importing $1.69 billion, resulting in a $1.22 billion deficit – this dynamic is largely driven by South Africa’s reliance on Nigerian crude oil, positioning the relationship as one of strategic interdependence rather than imbalance alone.

“This partnership is further elevated by the relative economic weight of both countries”,

According to the International Monetary Fund (IMF) projections, South Africa’s economy is valued at approximately $443.6 billion, while Nigeria’s stands around $334.3 billion in nominal terms for 2026.

As two of the largest economies on the continent, their bilateral engagement constitutes a central axis of African economic activity, with disproportionate influence on the success of continental integration efforts.

Beyond trade, the statement said the relationship was reinforced by deep two-way investment linkages – South African firms -including MTN Group, Shoprite, and Standard Bank – maintained a strong presence in Nigeria, while Nigerian companies, such as Access Bank and Paystack, established a growing footprint in South Africa.

Although investment flows were asymmetrical and some Nigerian firms had faced operational challenges, the organisers said these exchanges reflected an emerging bi-directional economic corridor that extended beyond goods trade into services, finance, and digital innovation.

Aligned with Brand South Africa’s mandate to build the country’s global reputation and competitiveness, the week-long programme would convene leaders from government, business, civil society, academia, and the media.

S’Africa Positions Nigeria as Primary Source of Fuel Supply

South Africa positioned Nigeria as its primary source of imports amid escalating geopolitical tensions in the Middle East. Director, Africa Bilateral Economic Relations, Department of Trade, Industry and Competition, South Africa, Mr. Calvin Phume, disclosed this at South Africa Energy Week 2026 in Lagos, with the theme, “Repositioning and Promoting Energy Investments Between South Africa and Nigeria.”

Phume said the shift was already underway for refined products, driven by the Dangote refinery.

He said, “Due to the US Israel-Iran war, there are discussions that most of our oil will come from here (Nigeria). But the discussions are at the highest level. We get a huge amount of refined petroleum oil. So, it’s because of the Dangote Refinery. It has been helping us a lot in South Africa and the continent as a whole.”

Phume said bilateral trade between Africa’s two largest economies had surged since Nigeria gazetted its provisional schedule of tariff concessions under the African Continental Free Trade Area (AfCFTA) on April 15, 2025.

He stated, “You will recall that I did indicate Nigeria gazetted its provisional schedule of terminal concession of the AfCFTA on 15th April, 2025, last year. So, we were able to add Nigeria into the list of the countries that will benefit under the AfCFTA in August last year.

“So, since then, up until now, we have seen that there’s a huge increase of trade between South Africa and Nigeria, but it’s heavily skewed to South Africa now.”

He said between 2023 and 2025, South Africa’s exports to Nigeria rose 24 per cent, from $355 million to $442 million. Last year alone, Phume said exports jumped 16 per cent, from $380 million in 2024, “which can be attributed to a rise in exports of goods, vehicles and fresh apples.”

According to him, in 2025, South Africa’s top exports to Nigeria included goods, vehicles, fresh apples, polypropylene, mixtures of odoriferous substances, and food preparations.

Phume said, “Iron and steel, because of our industrialised economy, we are able to manufacture the pipes that are required for the oil in Nigeria. So, it’s number three. And we also do some miscellaneous chemical products that are very important in the Nigerian market.”

Conversely, South Africa’s imports from Nigeria fell 33 per cent, from $2.3 billion to $1.5 billion between 2023 and 2025. “This could be attributed to the drop in Nigeria’s overall crude oil exports in 2025,” he stated.

Despite the decline, he said crude remained dominant, explaining that in 2025, South Africa’s top imported products from Nigeria were petroleum crude oil, urea, refined petroleum oil, natural rubber, aluminium containers, and aeroplanes.

He pointed out that AfCFTA had reshaped the balance of trade between the two nations, thwarting the historical advantage Nigeria used to have due to crude oil shipments.

Phume stated, “Before, it was very skewed to Nigeria because of the crude oil. But since we have started trading under the AfCFTA, number one is oil and seeds, and the oligosaccharides, fruits, malaise, grains, seeds, fruit, industrial and medicinal plants, straw and fodder.”

He added, “While Nigeria enjoys a trade surplus in general, its trade with South Africa under the AfCFTA preference is heavily skewed in South Africa’s favour.

“Both countries would need to increase efforts to encourage and support valued-added exports under the AfCFTA and maximise the new market.”

In her keynote address, Deputy Minister of International Relations and Cooperation, South Africa, Ms. Thandi Moraka, emphasised the importance of strategic collaboration between Nigeria and South Africa to promote investment in energy infrastructure to catalyse production and guarantee energy security for their citizens.

Moraka pointed out that a noteworthy example of Africa’s potential lay in the energy and industrial development showcased in the Dangote Refinery. According to her, as one of the largest oil refineries in the world, Dangote Refinery is a pivotal player in the Nigerian oil and gas industry.

She said the refinery was not only a project that benefited Nigeria by reducing dependence on imported petroleum products but it also continued to position Africa as a significant role player in the global energy market.

Moraka stated, “In the context of our current geopolitical tension, the ever-changing energy insecurity that we continue to find ourselves in, such as the ongoing war in the Middle East and its adverse impact on global oil and gas security, the Dangote refinery offers a strategic advantage for the continent of Africa and Nigeria as a country.

“It, therefore, enhances Africa’s energy security and also provides a buffer against global supply disruptions and helps us to create opportunities for regional integration at an economic level.

“We need to start working towards scaling up these kinds of initiatives within the African continent.”

(This Day News)

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