Africa’s richest man, Aliko Dangote, receives approval for $97 million infrastructure project

Timilehin Adejumobi -
Key Points
  • Dangote Industries received Nigeria's Federal Executive Council approval for a N158 billion project to link Lekki Deep Sea Port and Shagamu-Benin Expressway.
  • The initiative aims to enhance transportation infrastructure and industrial growth in Lagos, alleviating traffic congestion and improving logistics.
  • Aliko Dangote, worth $13.2 billion, aims for ambitious revenue growth, targeting over $30 billion by 2024 after securing $105 million in forex.

Dangote Industries Limited, owned by Africa’s richest man, Aliko Dangote, has secured approval from Nigeria's Federal Executive Council (FEC) for a N158 billion ($97 million) road infrastructure project.

The project will link the Lekki Deep Sea Port to the Shagamu-Benin Expressway via Epe, enhancing transportation infrastructure in Lagos, Nigeria’s economic center.

This marks the tenth infrastructure project undertaken by the Dangote Group under the Federal Government’s infrastructure tax credit scheme, reinforcing the conglomerate's pivotal role in national road development.

The project’s funding is part of the Federal Government’s Road Infrastructure Development Fund and Refurbishment Investment Tax Credit Scheme, allowing private firms to finance public infrastructure projects in exchange for tax credits.

Boosting Lagos' logistics and industrial growth

The new service lanes are expected to alleviate congestion in Lagos, particularly around the Lekki Free Trade Zone, which hosts numerous industries.

The road development will streamline the flow of goods from the Lekki Deep Sea Port, easing pressure on internal road networks and improving connectivity to other regions of Nigeria.

The approval was announced following an FEC meeting chaired by President Bola Tinubu, with the news shared by Bayo Onanuga, Special Adviser on Information and Strategy, through a social media post.

Dangote's expansion amid challenges

Dangote Industries Limited, a leading diversified conglomerate in Africa, has continued to expand across multiple sectors, including cement, sugar, energy, and petrochemicals.

Recently, the conglomerate secured $105 million in a Central Bank of Nigeria (CBN) foreign exchange auction, bolstering its financial operations.

The group is also exploring the sale of a 12.5 percent stake in its newly launched refinery, a move reportedly driven by liquidity concerns and challenges related to its sulfur diesel output.

Despite shelving plans for a new steel plant in Nigeria, the group remains committed to infrastructure and industrial growth, with revenue targets set to surpass $30 billion by 2024.