Business
Dangote: The Monopoly We All Need By Mary Odoma
Dangote: The Monopoly We All Need
By Mary Odoma
There seems to be a huge partition between Nigerian industrialist Alhaji Aliko Dangote and other Nigerian economy drivers. His visionary gait and purposefulness are fixated on recreating the essentials required to prop up the depleting economic fortune of Nigeria amidst contending voices.
Since 1977, when he ventured into business, trading in agricultural commodities and engaging in business supplies such as sugar and cement, Alhaji Aliko Dangote has never looked back. In 1981, he incorporated his numerous businesses, which eventually became a conglomerate. Today, the Dangote Group of Companies is a household name in Nigeria and beyond.
The holding company’s interest became so massive that its positive economic impact within Nigeria and sub-Saharan Africa became profound, edging out numerous foreign products from the West African domestic market. A strong advocate of industrialization, Alhaji Dangote believes that dependence on the importation of finished products to Africa simply translates to the importation of poverty and the exportation of jobs.
So, when the idea of the Dangote refinery was first announced in 2013, it was indeed heartwarming news to Nigerians. Although construction of the world’s biggest single-train refinery began in 2017, there were prospects that its completion would end Nigeria’s energy crises and reliance on fuel importation.
In 2013, the refinery project was estimated to cost the Dangote Group a whopping $9 billion. However, by the time construction work began in 2017, the cost had risen to about $15 billion. Despite this disparity in estimated cost, the Dangote Group went ahead with the construction work, which was estimated to be completed in 2019. Regrettably, due to the COVID-19 pandemic, the completion date was further shifted, and the date for commissioning was scheduled for the first half of 2021, but the 2021 date could not work due to unforeseen circumstances.
In all, at commissioning in the second quarter of 2023, precisely on May 23, construction of the refinery had gulped nearly $20 billion. It is an understatement to assert that building an efficient oil refinery facility has been at the heart of the debate over energy, forex, and fiscal policies in Nigeria for the last 50 years. This is because Nigeria’s four government-owned refineries, with a cumulative capacity of about 445,000 barrels per day (bpd), have been moribund for decades.
This meant that Nigeria exports its oil in crude form and imports refined oil with scarce foreign exchange. The attendant implication, therefore, was the emergence of the fuel subsidy regime, which was bad for Nigeria’s economic prospects. The regime led to the worsening state of the nation’s budget deficits as Nigeria’s debt profile increased with gloomy economic growth indices.
Against this background, several analysts drew up conclusions that the backlash received by the Dangote Group for daring to embark on such a massive project was an attempt to monopolise the economic benefits of the oil sector. Those naysayers had labelled the magnificent single-train refinery complex as a needless monopoly.
They orchestrated attacks and employed subversive antics just because they felt that the coming onstream of the Dangote multi-billion-dollar single-train refinery complex, the largest in the world, would finally put an end to their sordid business activities, which have held the nation’s economic lifeline hostage for more than five decades.
These few individuals are the fuel subsidy racketeers who have had their hands soiled in humongous scale corruption, diversion of the nation’s resources from critical sectors of the economy, as well as sharing profits of such loots amongst themselves and cronies in an inequitable manner.
Good enough, the multi-million-dollar Dangote refinery is here to bring the Nigerian dream to fruition. The refinery would meet 100% of all refined products required in Nigeria and a surplus for export. Though designed to process Nigerian crude, the refinery can also process most other African crude grades as well as Middle Eastern Arab light and even US Light.
The target is that, with a capacity of 650,000 barrels of crude per day, 450,000 bpd will be dedicated to meeting Nigeria’s domestic requirement. This means a total rejuvenation of the nation’s economy. Although the refinery has started with the production of diesel and aviation fuel, the sorting news is that the waiting game is over, the jinx has been broken.
It is instructive to admit that the import of the Dangote refinery coming on stream at this time is beyond the potential positive changes Nigeria’s economic indicators would witness in a few months. The positive impact of the multi-billion-dollar refinery would ultimately reflect directly on Nigeria’s foreign exchange reserves by reducing the pressure on the nation’s balance of payment.
This means that under President Tinubu, Nigeria would save trillions of naira and billions of dollars. For instance, between 2022 to 2023 alone, Nigeria spent over $70 billion on the importation of petroleum products, fertilizer, and petrochemicals, according to Africa Economy Digest.
Whatever the perception may be, Nigeria is at a crossroads. The country’s gloomy economic indicators that have remained a burden over the years are set to fizzle out for the better as the massive Dangote single-train world’s largest refinery debuts in the oil and gas sector.
Unfortunately, the reactive response of subsidy racketeers almost swayed the government’s decision on policies concerning the sale of Nigerian crude to local refineries, but thank goodness, the tide has assumed a positive dimension with recent impressive turns of events.
The evolving trend in the petroleum sector is what Nigeria requires to move forward; significantly, the feared Dangote refinery monopoly is what Nigeria as a nation requires now to thrive economically. This assertion is made more profound because the multi-billion-dollar refinery would, aside from saving the naira, make available vital raw materials of a wide range for manufacturers in the plastic, pharmaceuticals, food, beverages, construction, and other industries with massive job opportunities.
Candidly, the Dangote refinery is an ambitious move that has highlighted Nigeria’s potential for economic self-reliance. The $20 billion single-train Dangote refinery was envisioned to revolutionize the Nigerian oil and gas sector. Expectedly, the journey has not been without the usual criticism, with people raising questions about the rationale behind embarking on such a massive project in a developing and tottering economy.
The aim was basically to demonize the good intentions of the Dangote Group and its vision for Nigeria’s future. The hurting criticism was targeted at labelling the Dangote Group as shrewd capitalists whose target is to monopolize the Nigerian oil-based economy and beyond. However, the Dangote Group’s objective is clear; its intentions are not ambiguous. It is rather a blessing to the nation with the sole aim of reducing Nigeria’s dependence on the importation of refined petroleum products.
By refining petroleum products domestically, the Dangote refinery aims to enhance energy sufficiency, creating jobs, and spurring economic growth. Dangote refinery stands as a testament to Nigeria’s industrial ambitions and the complex interplay of business strategy, economic policy, and national interest.
No doubt, the Dangote refinery would, in no small measure, offer dividends similar to those from the Nigerian Liquified Natural Gas (LNG) investment, which has consistently provided returns despite initial scepticism. Furthermore, aside from boosting economic activities in the country, there will be revenue accruing to the government through taxes, royalties, and levies as the refinery comes on stream.
At least 144 products out of about 6000 products will be extracted in the process of refining petroleum. This means the value chain of refined petroleum products is very long and can stimulate a lot of businesses. Also, the multi-billion-dollar refinery would serve as a foreign exchange earner.
Industry experts projected that Nigeria could spend up to $30 billion in one year if the country continues to rely on imported petroleum products, an outrageous amount that can cripple the nation economically. Therefore, to save the nation from drifting completely to the precipice, the multi-billion-dollar refinery will boost Nigeria’s foreign exchange rate stability through the export of refined products.
Succinctly put, the coming on stream of the Dangote refinery is a game-changer that Nigeria so needs at this time. The refinery would not only change the economic narratives in Nigeria but the entire continent of Africa. Aliko Dangote has turned the tide towards a prosperous future for the continent. Indeed, this is a monopoly we most need and desire.
Odoma is a public affairs analyst based in Abuja.
FirstBank Makes Home Ownership Possible for Nigerians with Single-Digit Interest Rate Loan
For millions of Nigerians, homeownership has long felt like an ambition deferred. Squeezed by rising property prices, persistent double-digit inflation and high commercial lending rates, the dream of owning a home has remained just that – a dream.
But that narrative is quietly changing. Thanks to FirstBank.
The N1 Trillion Intervention Reshaping Access
In partnership with the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), FirstBank has unveiled a mortgage opportunity that could redefine access to housing finance in Nigeria.
Backed by the Federal Government’s N1trillion mortgage fund, the initiative is designed to empower Nigerians with affordable, long-term credit to own their homes.
9.75% Interest Rate in a 30% Lending Environment
MREIF is priced at 9.75% per annum, dramatically lower than prevailing commercial loan rates. Eligible Nigerians can access up to N100 million and repay within 20 years. This translates into significantly more manageable monthly repayments and greater long-term financial stability.
Built for Salary Earners, Entrepreneurs and the Diaspora
The MREIF mortgage facility has been structured to be inclusive. It is available to salary account holders, business owners and diaspora customers. Whether you are a young professional aiming to exit the rent cycle, an entrepreneur building generational stability, or you’re a Nigerian abroad looking to secure assets locally, the product opens a pathway that has historically been out of reach for many.
Taking the First Step
For those who have been waiting for the right time, this is definitely it. The question is no longer whether homeownership is possible. The real question is: will you act before the window narrows?
Visit https://www.firstbanknigeria.com/personal/loans/mreif-home-loan/ and in no time you could be the latest homeowner in town.
Alpha Morgan Bank Deepens Presence in Abuja with New Branch in Utako
Marking another milestone in its expansion drive, Alpha Morgan Bank has opened a new branch in Utako, Abuja, reinforcing its strategy of building closer institutional ties within key business communities and bringing its financial expertise closer to individuals, and enterprises driving the city’s growth.
The new branch, located at Plot 1121 Obafemi Awolowo Way, Utako, Abuja is strategically positioned to serve individuals, entrepreneurs, and corporate clients within Utako and surrounding districts.
The expansion follows the Bank’s recently concluded Economic Review Webinar held in February 2026, as the bank continues to position as a thought-leader in the financial services industry.
Speaking on the opening, Ade Buraimo, Managing Director of Alpha Morgan Bank, said the move underscores the Bank’s commitment to accessibility and service excellence.
“Proximity matters in banking. As communities grow and commercial activity expands, financial institutions also evolve to meet customers where they are. The Utako Branch allows us to deliver our services to people in that community efficiently while maintaining the high standards our customers expect,”
The Utako location will provide a full suite of retail and corporate banking services, including account opening, deposits, transfers, business banking solutions, and financial advisory support.
Customers and members of the public are invited to visit the new Utako Branch to experience the Bank’s approach to satisfying banking.
Dangote Refinery Prioritises Domestic Supply Amid Global Energy Turbulence
By George Omagbemi Sylvester | Published by SaharaWeeklyNG
“Nigeria insulated from international fuel shocks as Dangote Petroleum commits to uninterrupted local delivery.”
Dangote Petroleum Refinery and Petrochemicals has reaffirmed its commitment to prioritising the domestic market, pledging to shield Nigerians from the ripple effects of ongoing global energy disruptions. The assurance, delivered in Lagos on 5 March 2026, comes as international refinery operations experience shutdowns or reduced output due to escalating Middle East geopolitical tensions, which have sent crude oil and petroleum product prices soaring worldwide.
“Our mandate remains clear: Nigeria’s local market takes precedence. In times of global supply shocks, we will continue to ensure that domestic availability of petrol, diesel, and kerosene is uninterrupted,” said Mr. Folorunsho Alakija, spokesperson for Dangote Petroleum Refinery.
The refinery’s declaration arrives amid mounting concerns over fuel scarcity, triggered by export restrictions imposed by major international producers, including China, and shipping delays that have further tightened global petroleum supply chains. Industry analysts have hailed the domestic focus as a critical buffer against volatility that could otherwise push Nigeria into deeper energy insecurity.
Domestic Shield Against Global Disruption
Dangote Refinery, Africa’s largest oil processing facility, has leveraged its multi-million-barrel refining capacity to mitigate Nigeria’s historical dependence on imported petroleum products. The company emphasised that prioritising local supply provides a strategic advantage in insulating the nation from international market shocks.
“Our refinery’s scale allows Nigeria to withstand short-term external disruptions. We have the infrastructure and capacity to meet local demand even when global supply chains falter,” explained Mr. Chijioke Okonkwo, Operations Director at Dangote Refinery.
The proactive approach is particularly significant as several international refineries have either reduced throughput or temporarily halted operations, causing a global scarcity of refined products. Experts warn that without domestic cushioning, fuel prices in Nigeria could have surged sharply, exacerbating inflationary pressures in a fragile economy.
Managing Costs While Prioritising Supply
In response to rising procurement costs for crude oil amid the international crisis, Dangote Refinery introduced a modest ₦100 per litre increase in the ex-depot price of Premium Motor Spirit (PMS), absorbing roughly 20 percent of the cost escalation to lessen the impact on consumers.
“We are balancing operational sustainability with affordability. While global prices have risen sharply, we have chosen to absorb a significant portion to protect Nigerian households and businesses,” noted Mr. Emmanuel Adeyemi, Chief Finance Officer.
This pricing strategy underscores the refinery’s dual focus: ensuring uninterrupted supply while cushioning the public from abrupt spikes that could destabilize economic activity. Industry observers have lauded the approach as pragmatic, considering the volatility in international oil markets.
Strategic Distribution Initiatives
Beyond refining, Dangote Petroleum has initiated Compressed Natural Gas (CNG) powered trucks to enhance nationwide distribution efficiency. The initiative seeks to reduce logistics costs and carbon emissions while ensuring a more reliable delivery network to petrol stations across urban and rural areas.
“Logistics is a critical part of the energy supply chain. By deploying CNG-powered trucks, we reduce dependency on expensive diesel, lower delivery costs, and improve supply reliability across the country,” explained Ms. Funke Adedoyin, Head of Logistics Operations.
This strategic move reflects a broader commitment to modernising Nigeria’s petroleum distribution infrastructure, reducing bottlenecks that have historically contributed to scarcity at retail outlets.
Implications for National Energy Security
Nigeria has historically struggled with fuel imports to meet domestic demand, making the country vulnerable to international market fluctuations. Dangote Refinery’s prioritisation of local supply mitigates this vulnerability by leveraging home-grown refining capacity, which allows for timely access to petroleum products and less reliance on foreign shipments.
“With Dangote Refinery leading local prioritisation, Nigeria is less exposed to global fuel shocks. The country is moving towards self-reliance in petroleum product supply,” commented Dr. Halima Suleiman, energy sector analyst.
Experts note that sustained operations at the refinery not only enhance energy security but also preserve foreign exchange, reduce import bills, and stabilise domestic market prices.
Corporate Social Responsibility and Market Stability
The refinery’s commitment is part of a broader corporate responsibility framework. Dangote Petroleum continues to engage with government agencies and regulatory bodies, ensuring that domestic supply is coordinated with Nigeria’s Petroleum Product Pricing and Regulatory Agency (PPPRA) to prevent panic buying and market distortions.
“We are in constant consultation with the government to ensure that our supply strategies align with national economic priorities,” said Mr. Alakija.
Such collaboration helps avert artificial shortages, stabilises pump prices, and maintains confidence in the domestic fuel market. Analysts argue that this approach exemplifies how private sector capabilities can complement governmental policies to enhance national resilience.
Navigating Global Uncertainties
The refinery operates in a complex global environment, where geopolitical crises, shipping constraints, and crude oil volatility can trigger disruptions. Dangote Petroleum’s domestic-first approach positions Nigeria to weather such crises more effectively.
“Global uncertainties are unavoidable, but our infrastructure and strategy ensure that Nigerians remain insulated from immediate shocks,” said Mr. Okonkwo.
This emphasis on resilience aligns with global best practices, where national refining capacity is leveraged to protect local markets from international supply disruptions.
Stakeholder Reactions
The government, civil society, and industry stakeholders have welcomed Dangote Petroleum’s strategy. Officials from the Federal Ministry of Petroleum Resources noted that prioritising local supply aligns with Nigeria’s energy security policies and reduces the burden of foreign exchange expenditures on crude imports.
“Dangote Refinery is demonstrating leadership. Its domestic prioritisation ensures that the Nigerian economy remains insulated during turbulent global markets,” said Dr. Tunji Olumide, Special Adviser on Energy.
Consumers have also expressed cautious optimism. Retail operators and commuters reported steadier fuel availability in Lagos and other cities, though concerns remain about sustained pricing and distribution efficiency.
The Road Ahead
While Dangote Refinery’s strategy provides immediate relief, experts argue that long-term stability requires further investments in alternative energy, diversified refining infrastructure, and strategic reserves. This ensures that Nigeria can withstand global shocks without relying excessively on imports or temporary supply adjustments.
“Short-term measures like prioritising local supply are critical, but long-term energy security demands diversification, renewables adoption, and consistent policy implementation,” said Dr. Suleiman.
The refinery is exploring additional initiatives, including expanding storage capacity, upgrading pipeline networks, and adopting technology-driven monitoring systems to ensure supply continuity across the country.
Final Take
By prioritising domestic fuel supply amid global market turbulence, Dangote Petroleum Refinery and Petrochemicals has demonstrated its role as a stabilising force in Nigeria’s energy sector. Through strategic logistics, modest pricing adjustments, and engagement with government regulators, the refinery is insulating the nation from international shocks while maintaining operational sustainability.
“Our responsibility extends beyond profitability; it’s about ensuring Nigerians have reliable access to essential fuel. We take that mandate seriously,” concluded Mr. Adeyemi.
The refinery’s actions offer a blueprint for how large-scale domestic capacity can protect national economies in times of global energy instability, underscoring the critical intersection of private sector resilience, public policy, and national energy security.
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