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Olugbemi. Adeyinka Ogunleye
1 month ago
Overview
Dangote Refinery blueprint for African Self-Sufficiency LBS
Africa’s richest man, Aliko Dangote, is seeking regulatory approval to construct Nigeria’s deepest and largest seaport near his multi-billion-dollar refinery and fertiliser plants a bold move aimed at transforming export logistics and accelerating industrial expansion.
According to Bloomberg, Dangote submitted applications in late June to begin work on a proposed Atlantic seaport at Olokola, Ogun State, roughly 100 kilometres from his Lagos-based industrial hub. The port, once completed, is expected to rival major ports like the Chinese-backed Lekki Deep Sea Port which opened in 2023.
“We’re not trying to do everything by ourselves,” Dangote said, “but this kind of investment can inspire more entrepreneurs to step up.”
Currently, Dangote exports urea and fertiliser through a private jetty built beside the refinery site. The same jetty also supports heavy-duty equipment deliveries for his operations.
The billionaire industrialist revealed plans to expand his $2.5 billion fertiliser plant in Lagos, a move that could see Africa become self-sufficient in fertiliser production within the next 40 months. With the continent importing over 6 million metric tonnes of fertiliser annually, the expansion would significantly ease foreign exchange pressure and strengthen food security.
Beyond fertiliser, Dangote also intends to enter the liquefied natural gas (LNG) export market. This would involve constructing pipelines from Nigeria’s gas-rich Niger Delta to Lagos, where the LNG will be processed and shipped.
“We want to bring in more gas than what Nigeria LNG is doing today,” Dangote said, referencing the country’s top LNG exporter, Nigeria LNG Ltd., a joint venture with Shell, TotalEnergies, and Eni.
Dangote’s fertiliser plant currently has a capacity of 3 million tonnes per year, 37 percent of which is exported to the United States. His goal: double output and surpass Qatar to become the world’s top urea exporter within four years.
Speaking at the Afreximbank Annual Meetings in Abuja, Dangote said his group is on track to generate $30 billion in revenue by 2026, and confirmed plans to list both the refinery and fertiliser plants on the Nigerian Stock Exchange.
Analysts say the market outlook for fertiliser is strong, but warn of challenges. Infrastructure remains a key barrier, with regular delays due to port congestion and logistical bottlenecks.
“Any new fertiliser plant or expansion project faces cost overrun risks,” said Seth Goldstein of Morningstar Research.
Control Risk’s Mikolah Judson added, “Transport infrastructure and port capacity are critical — and these are the areas where Nigeria frequently struggles.”
Despite past delays with the 650,000 bpd Dangote Refinery, Dangote is known for delivering large-scale projects. With a history of resilience and ambition, his vision for an integrated industrial-export corridor may once again redefine Africa’s economic landscape.
Credit: Nigerian News Direct
