Africa's wealthiest man, Aliko Dangote 'plans Nigeria refinery'

Africa's wealthiest man, Aliko Dangote, says he aims to invest up to $8bn in a major new oil refinery that would almost double Nigeria's oil output.


The tycoon, who made his fortune in cement, flour and sugar, is worth an estimated $16bn (£10bn; 12bn euros) and has topped the Forbes list of Africa's richest men for the past three years.

Nigeria is Africa's biggest oil producer but lacks refining capacity and has to import most of its fuel.

Work on constructing the refinery would begin this year and it would eventually have the capacity to produce 450,000 barrels per day, he said.

He stressed that a new refinery was vital for Nigeria: "It has to be done."

"In five years, when our population is over 200 million, we won't have the infrastructure to receive the amount of fuel we use."

Fuel in Nigeria is sold at a subsidized price. A government attempt to remove the subsidy in 2012 led to nationwide protests. The plan was subsequently dropped.

Last year an investigation revealed that in two years, over $6bn was lost in a fuel subsidy scam.

"The people who were supposed to invest in refineries, who understand the market, are benefiting from there being no refineries because of the fuel import business," he said.

source: joy online