Aliko Dangote refinery expansion continues as he rejects buying NNPC refineries, saying others should invest to avoid monopoly accusations

Aliko Dangote refinery expansion plans have taken centre stage as the President of Dangote Group dismissed suggestions that he should buy one of Nigeria’s moribund government refineries instead of increasing his facility’s capacity.

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Dangote made the remarks while confirming that his $20bn refinery in Lekki, Lagos State, would expand from 650,000 barrels per day to 1.4 million bpd within three years, a move that would make it the largest in the world.

Responding to critics who questioned why he opted to scale up his own plant instead of acquiring any of the dormant refineries under the Nigerian National Petroleum Company Limited (NNPC), Dangote said he would rather invest in his refinery than face monopoly accusations.

“Buying those refineries? Once we touch them, you will hear a lot of noise. There are other people with a lot of money, maybe more cash than we have, who should go and try their own luck,” he said.

He urged private groups such as the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and other wealthy investors to purchase or build their own refineries instead of expecting him to take on the challenge.

Dangote, accompanied by billionaire investor Femi Otedola, disclosed that President Bola Tinubu had assured full support for the domestic refining sector, particularly in ensuring local crude supply.

“The President is supporting this sector to refine all our crude into petroleum products. We already have the infrastructure, and it’s better for us to double our capacity rather than buy old refineries,” he explained.

The business magnate added that his expansion was part of a national effort to contribute to the president’s vision of achieving a $1 trillion economy, urging others to join in the industrial transformation.

Dangote has long expressed scepticism about the government-owned refineries, which have cost Nigeria billions of dollars without producing efficiently.

He recalled that after purchasing the refineries in 2007, he was forced to return them following the late President Umaru Yar’Adua’s intervention, despite having plans to revitalise them.

“They have spent about $18bn on those refineries, and they are still not working. I doubt very much if they will ever work,” he remarked in a previous statement.

Meanwhile, the NNPC Group Chief Executive, Bayo Ojulari, has reiterated that the Port Harcourt, Warri and Kaduna refineries will function again after technical and commercial reviews are completed.

He noted that the company was assessing the refineries’ operational viability to determine whether to overhaul or repurpose them for sustainable output and profitability.

Despite the optimism, public frustration persists as billions have been sunk into rehabilitation — including $1.4bn for Port Harcourt, $897m for Warri, and $586m for Kaduna — with little to show for it.

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As Dangote presses ahead with his refinery expansion, analysts say his strategy reflects both bold vision and calculated pragmatism, positioning his enterprise as a cornerstone of Nigeria’s long-awaited energy independence.