Dangote becomes world’s 65th richest person as refinery boosts fortune to over $27 billion
Key Points
- Aliko Dangote's net worth hits $27.8 billion, cementing his position as Africa's richest person and the world's richest Black man.
- His $20-billion refinery, the world’s largest single-train oil plant, will reduce Nigeria’s dependence on fuel imports amid rising costs.
- Aliko Dangote aims to secure energy independence for Nigeria. He is looking to commit $10 billion to philanthropy and global partnerships for future investments.
Nigerian billionaire Aliko Dangote's mega-refinery, Dangote Oil Refienry has propelled his net worth to $27.8 billion, securing his position as the 65th richest individual on Bloomberg’s Billionaires Index.
This increase of $18.6 billion cements his position as Africa's richest person, surpassing South Africa's Johann Rupert and as the world's richest Black man ahead of American tech billionaire, David Steward.
Dangote describes the refinery project as a "harrowing" experience, akin to building a dream home only to find the roof leaking. Located just outside Lagos, the $20-billion facility is now the world’s largest single-train oil processing plant—aiming to end Nigeria’s reliance on costly fuel imports, despite being Africa's largest oil producer.
Reflecting on his success and competition with Rupert, Dangote quipped, “Sorry, it’s better than selling bags.” His journey highlights a commitment to Africa’s industrialization, ambition, and resilience amid ongoing challenges.
Dangote's Refinery: A journey of navigating complex challenges
Budgeted at $6 billion, his refinery project faced unforeseen challenges, causing costs to triple due to land disputes, COVID-19 disruptions, and local resistance—to sustain construction, he absorbed hefty annual interest payments of $50 million to $60 million on a $5.5 billion loan. “I didn’t know what we were building was a monster,” he said, highlighting the relentless pressure and skepticism surrounding the project.
Since May 2023, when the refinery was inaugurated, Dangote has navigated disputes over crude supply and gas prices despite operational advancements—securing domestic crude has proven difficult, with much of Nigeria’s oil output tied up in long-term contracts, forcing Dangote to buy foreign crude at a premium.
In 2021, Dangote sold a 20 percent stake in the refinery to the Nigerian National Petroleum Corp (NNPC) for $13.8 billion, a stake later reduced to 7.2 percent, reflecting the complexities of state involvement. “In this industry, if you fight the system, you’ll fail,” he cautioned, likening the entrenched interests to a "mafia."
His Lagos-based diversified conglomerate, Dangote Group, plans to commence crude oil production by the end of 2024, targeting 20,000 barrels per day from its oil assets in the Niger Delta. According to S&P Global Commodity Insights, these assets, Oil Mining Leases (OMLs) 71 and 72, are projected to contain 300 million barrels of recoverable oil.
Dangote’s future plans include global co-investments
Despite criticisms regarding Nigeria's petroleum market monopolization, Dangote remains focused on enhancing Nigeria’s manufacturing capacity through his diversified businesses in cement, sugar, and flour.
His $20 billion refinery project aims to secure the nation's energy independence, though political corruption threatens to undermine his efforts. Zainab Usman, director of the Africa Program at the Carnegie Endowment for International Peace, noted, “He made this investment to help the country, but corrupt politicians seem intent on frustrating him.”
With the naira losing over two-thirds of its value, the leading Africa, anticipates generating significant foreign exchange, stating that 80 percent of his operations are dollar-based.
His future plans include co-investments with global partners and expanded philanthropy, earmarking $10 billion for donations over time. His Dubai-based family office, led by his daughter Halima, will spearhead new investments.