₦airaland Forum

Billionaire Dangote says $23 billion Refinery project was the biggest risk of his life.

Aliko Dangote, Africa’s wealthiest individual, has reflected on the immense risk he undertook in building the Dangote Refinery, a project that has not only redefined his fortune but also reshaped Africa’s energy landscape.

The 67-year-old billionaire described the refinery venture as “the biggest risk of my life,” revealing that the final investment exceeded $20 billion, more than double the original budget.

In an exclusive interview with Forbes, Dangote shared the complexities behind the massive undertaking. Initially, the refinery’s projected cost was $10 billion, but the price escalated as Dangote insisted on expanding its scope beyond the original plans.

“If this didn’t work, I was dead,” he admitted to Forbes, acknowledging the enormity of the gamble he took when he first announced the refinery in 2013.

Dangote initially planned to build the facility in southwest Nigeria but faced delays due to disputes with local officials. In a dramatic pivot, he relocated the project to the Lekki Free Zone, just outside Lagos, paying $100 million to secure the land. The move, however, came with its own set of obstacles, as the swampy terrain required dredging 65 million cubic meters of sand and constructing a port to facilitate transport.

Despite these setbacks, the Dangote Refinery began operations in 2024. Situated on a 6,200-acre site, the refinery initially processed 350,000 barrels of crude per day (b/d), reaching 500,000 b/d by January.

With full capacity slated for next month, the refinery will process a staggering 650,000 b/d, positioning it as the seventh-largest refinery globally by production and the largest in Africa. Adjacent to the refinery is a petrochemical complex that produces 3 million metric tons of urea annually, making Dangote the continent’s largest fertilizer producer.

How Dangote raised funds for his refinery project

The financing of the refinery was no less ambitious. To fund the project, Dangote secured $5.5 billion in bank loans and divested stakes in his cement business, raising $600 million from investors including Dubai’s investment corporation and an Australian sovereign wealth fund.

Additionally, his holding company, which oversees Dangote’s cement, flour, and sugar businesses, provided a $10 billion intercompany loan to cover the project’s rising costs. The total bill for the refinery ultimately reached nearly $23 billion, significantly surpassing the initial estimates.

However, the refinery still faces financial challenges. With $3 billion in outstanding debt, the project’s liquidity came under scrutiny, leading to a downgrade from Fitch in August.

This was attributed to the under-utilization of the refinery in its early months and the severe depreciation of Nigeria’s Naira, which has lost over 70% of its value since the currency was floated in June 2023.

Despite these hurdles, Dangote remains confident in the refinery’s financial stability, citing its dollar-based revenue model from foreign clients as a buffer against the Naira’s volatility.

Looking ahead, Dangote has plans to build a subsea pipeline to transport natural gas from the Niger Delta to Lagos and to expand production at the refinery’s fertilizer plant.

Furthermore, Dangote is eyeing a public listing for the refinery within the next few years, signaling his long-term vision for the project’s success.

Source: https://nairametrics.com/2025/02/17/billionaire-dangote-says-23-billion-refinery-project-was-the-biggest-risk-of-his-life/

LAGOS will do to you what they did to GLO Mobile.

You will pay settlement tire .

The only way to avoid this is to influence LAGOS State Politics.

Klear!!

Tinubu for Kee you

He could have gone for Arsenal that time, by now all Nigerians will be cursing him for Arsenal performance instead of small headache the NNPC cabal are giving him.

Plus his food product would become more popular in Africa and Europe

Thief! Money of the people, for the people and by the people.

AmazingGenius:
[b]Billionaire Dangote says $23 billion Refinery project was the biggest risk of his life.


Source: https://nairametrics.com/2025/02/17/billionaire-dangote-says-23-billion-refinery-project-was-the-biggest-risk-of-his-life/

Lies.

When you have always been with every govt in power

Dangote don try well for Nigeria.

Your head dey there.

I applaud his courage and doggedness to be honest.

Despite the odds. Good investment.

Any investment in Nigeria is a risk. Government policies kills businesses.

God bless Dangote the risk taker.

God bless Nigeria.

Lesson: risk is part of the game.

No risk no rewards

Big risk, big returns.

That's the motto

No be Lie,

Even me I been fear for him o

Nigeria na Business and Dream killer, Our FG is best in bad economic policies

Dangote initially planned to build the facility in southwest Nigeria but faced delays due to disputes with local officials.

I no get. Where e come build am

Dangote's admission about the $23 billion refinery project being the biggest risk of his life is a testament to the immense challenges and bold vision required to transform industries. This project not only highlights his entrepreneurial courage but also has the potential to significantly reduce Africa's dependence on imported fuel, boosting economic growth and self-sufficiency. It’s a reminder that great rewards often come with great risks. A true game-changer for the continent.

Hmmm…. One thing is to be rich, another thing is to be Dangote. The quest for Money has no endpoint,

Where your money stop, na another man Tithe and 10%. If at this rate, the richest man in Africa fear grip am, Only God knows how much fit put Elon Musk for Dangote situation ?

The only people that can relate what Dangote was going through those period are

Bet9ja players
Forex Traders (Gamblers)


Those are the biggest risk takers, the odds are never in their favour

Life itself is a risk

NO RISK.. NO REWARD

Very big risk man....he completed it and Nigeria is still importing fuel.. Something that would not have happened under buhari... Buhari wey close border and other west African president came physically to Abuja to beg him to open it... Baba no hear oh

Ok

Sure

Lol person wey use him last 2k to play 2odds for Sportyy also took a risk so at one time everybody's a risk taker.....

Mike adenuga is my best billionaire in Nigeria

Was. Man hit a jackpot

.

Dangote the Greedy Capitalist.

He does not know Tinibu can still frustrate the operation of this refinery.

Lagos has a good environment for investment to thrive especially when you don't site your business in unapproved location.

He's said that before severally.....what's the big deal?

Rich people no need make noise

elvisdaniels:
Dangote's admission about the $23 billion refinery project being the biggest risk of his life is a testament to the immense challenges and bold vision required to transform industries. This project not only highlights his entrepreneurial courage but also has the potential to significantly reduce Africa's dependence on imported fuel, boosting economic growth and self-sufficiency. It’s a reminder that great rewards often come with great risks. A true game-changer for the continent.

As you have outsourced your mental capacity to AI this evening, what have you achieved?

betnedge:
Dangote will only keep getting richer with this project

I'm telling you