Nigerian billionaire Aliko Dangote broke his government’s oil monopoly by building the largest petroleum refinery in Africa. After 11 years and $23 billion in investment, the Dangote Refinery began operating last year. Located in Nigeria’s Lekki Free Zone, the refinery processed around 350,000 barrels of crude per day in the second half of 2024 and 500,000 b/d in January. At full capacity, it will process 650,000 b/d, making it the seventh largest refinery in the world. The adjacent petrochemical complex has an annual production capacity of 3 million metric tons of urea. The refinery is already impacting global energy markets, with imports of gasoline into Nigeria on pace for an eight-year low. Dangote is now worth an estimated $23.8 billion, almost double what he was worth last year. The refinery faced numerous challenges, including sourcing crude oil from the Nigerian National Petroleum Corporation (NNPC). Dangote aims to make Nigeria a producer of refined petroleum products, reducing reliance on imports. However, gas prices in Nigeria have increased 60% over the last six months, partly due to the elimination of the fuel subsidy. Dangote has sued the NNPC, citing a 2021 law requiring domestic producers to supply enough oil to local refineries. Despite the challenges, Dangote is determined to make the refinery a success and plans to take it public in the next year or two. — news from Forbes
