Nigerian billionaire and industrialist Aliko Dangote has warned that Africa may never witness the development of another large-scale refinery unless deep-rooted rent-seeking practices in the petroleum sector are addressed through firm political action.
Speaking at the Global Commodity Insights Conference focused on West African Refined Fuel Markets, Dangote identified the Lomé Floating Storage Terminal—a massive offshore oil facility off the coast of Togo—as a critical barrier to progress in African refining.
The terminal, which reportedly stores over two million tonnes of petroleum products, is controlled by powerful international trading firms and serves as a major hub for imported fuel sold at inflated prices due to the continent’s limited refining capacity.
“Beyond infrastructure deficits, the most formidable challenge we face is entrenched rent-seeking in the petroleum value chain. This sector has long been a hotspot for corruption,” Dangote stated.
He emphasized that efforts to build refineries face stiff resistance from entrenched interests that benefit from the status quo.
“When you build a refinery, you’re not just introducing competition—you’re threatening the profits of powerful players. The Lomé terminal is specifically designed to maintain dependency and block refinery growth in sub-Saharan Africa.”
Dangote claimed that the launch of his own refinery in Nigeria already began to drive down prices, disrupting the offshore trading cartel’s grip. But he warned that any new refinery project will be met with fierce resistance.
“Let me be clear: unless governments across Africa unite through strong political will and coordinated policies, we will never see another major refinery come to life on this continent. Not in my lifetime, or yours.”
He called for urgent policy alignment, regional collaboration, and bold political leadership to dismantle these barriers and secure Africa’s energy future.
“Without that support, Africa’s refining dreams will remain just that—dreams.”
