Why it seems like we have a monopoly in refining, cement - Dangote
By Olakunle Oke
Africa’s richest man, Aliko Dangote, has clarified why it appears like his companies have a monopoly in cement production and crude refining.
Responding to criticisms levelled against him abd his companies, Dangote explained that his companies operate in capital intensive sectors which not just anyone can play in.
He however called for more participation by willing investors with the scale and resources to compete in capital-intensive industries in the country.
Speaking on the $20bn Dangote Refinery, the industrialist stressed that profitability is key to attracting investors.
“If we don’t make money, nobody will come into this business. Then you end up with only one supplier. We don’t want to be a monopoly; we want other players in the business. But other players cannot come to a soccer field and want to play cricket, you will wound somebody,” he said.
Dangote recalled that his entry into the cement industry was inspired by former President Olusegun Obasanjo, who challenged him to reduce Nigeria’s dependence on imported cement. Although his initial plan to site a factory in Benue State met community opposition, he eventually built the Obajana plant in Kogi State, which has since become Africa’s largest cement facility.
Turning to the challenges in Nigeria’s petroleum imports, Dangote pointed to corruption in the system.
According to him, many fuel-importing ships discharge less than declared quantities, with officials compromised by bribes.
“The majority of those fuel-importing ships, when they come, don’t discharge all. The person checking is collecting a salary of N100,000, so it’s easy for him to accept an envelope of $10,000 and sign whatever documents you give him,” he revealed.
He also criticised the Nigerian National Petroleum Company Limited (NNPC), arguing that its refining model is unsustainable.
While the Dangote Refinery yields 54 per cent gasoline from crude, NNPC plants produce only 18 per cent, mostly low-value fuel oil. “The more they operate, the more money they lose,” he said.
Responding to claims by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) that his refinery lacks capacity, Dangote insisted otherwise.
“If we don’t have the capacity, why are we exporting? It’s the same way they used to kill textiles that they want to use to kill us,” he stated.
The $20 billion Dangote Petroleum Refinery in Lagos is the world’s largest single-train refinery with a capacity of 650,000 barrels per day. Since beginning operations in 2024, it has been positioned to drastically cut Nigeria’s dependence on imported fuel, save up to $25 billion annually in foreign exchange, and create thousands of jobs across the oil and gas value chain.