Renowned Nigerian industrialist, Aliko Dangote, has issued a stark warning that Africa may never witness the construction of another large-scale refinery unless deep-rooted rent-seeking practices in the petroleum sector are decisively addressed through political action.
Speaking at the Global Commodity Insights Conference on West African Refined Fuel Markets, Dangote cited the Lomé Floating Storage Terminal — an offshore oil hub near the coast of Togo — as a critical barrier to progress in Africa’s refining ambitions.
According to him, the terminal, operated by influential international trading firms, holds over two million tonnes of petroleum products and serves as a key storage point for imported fuel. He explained that this setup enables traders to sell products at inflated prices, taking advantage of the region’s limited refining capacity.
“The floating storage terminal off Lomé is a uniquely African phenomenon and a major obstacle. Its entire purpose is to ensure no refinery survives in sub-Saharan Africa,” Dangote stated.
He noted that since the Dangote Refinery began operations, it has started driving down fuel prices — a development that has unsettled powerful interests benefiting from the current offshore supply system.
“When you build a refinery, you disrupt a deeply entrenched value chain. You’re not just innovating; you’re challenging vested interests that will fight back fiercely,” he said.
Dangote emphasized that without strong political backing and regional cooperation, no new major refinery projects will succeed.
“Let me be blunt: if strong political will is not mustered, nobody in this room, myself included, will live to see another major refinery built in sub-Saharan Africa,” he warned.
He urged African governments to align policies, dismantle offshore market monopolies, and foster an environment where homegrown refining can thrive, describing such efforts as critical to achieving true energy independence on the continent.
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