President/Chief Executive of Ɗangote Industries Limited, Aliko Ɗangote, has said international traders are deliberately frustrating the establishment of new refineries and the efficient operation of existing ones in Africa, to protect their own interests.
Ɗangote made these remarks as a keynote speaker at the ‘West African Refined Fuel Conference’ in Abuja, organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and S&P Global Commodity Insights.
According to Ɗangote, international traders maintain the offshore Lomé floating market, where over one million tonnes of petroleum products are stored in vessels offshore and sold to African countries at inflated prices.
Highlighting that this phenomenon is unique to Africa, Ɗangote argued that building a refinery threatens powerful vested interests entrenched within the petroleum value chain across many African nations.
He noted that petroleum products were sold at inflated prices due to the lack of local refining capacity, but prices plummeted once the Ɗangote Refinery became operational.
“When you build a refinery and disrupt that system, you are not just innovating – you are threatening powerful interests that will seriously fight back”, he stated, adding, “Without political support I don’t think any new large refinery will be built any time soon”.
Ɗangote further stated that the offshore Lomé floating market exists solely to prevent any refinery from operating in sub-Saharan Africa.
“But make no mistake – those who profit from this system will do everything they can to prevent other refineries from emerging. The whole essence of Lomé is to ensure that no refinery operates in sub-Saharan Africa. In fact, I don’t see any new major refining project succeeding with the offshore Lomé market in existence”, he warned.
He also cautioned that another tactic used to undermine domestic refiners is the increasing dumping of cheap, often toxic petroleum products in Africa, some blended to substandard levels that would never be allowed in Europe or North America.
Ɗangote stressed that a vast economic opportunity for Africa to replicate the success achieved in the cement sector. He noted that, from a modest capacity of 2 million tonnes per annum, Nigeria now produces over 50 million tonnes, becoming a net exporter. He reaffirmed his commitment to working collaboratively with African governments, private sector investors, and regional institutions to advance the continent’s refining capacity.
“Our vision is simple, but ambitious: Africa should refine all the petroleum products it consumes – right here on African soil”, Ɗangote emphasised.
