Aliko Dangote has announced plans to build a new oil refinery in Tanzania that will be identical to his flagship facility in Lagos, as part of a broader push to expand refining capacity across Africa.
He made this known on Thursday during a panel session at the Africa Finance Corporation summit held in Nairobi, where he spoke alongside Kenyan President William Ruto and Ugandan President Yoweri Museveni.
The proposed refinery, to be located in Tanga, is expected to process crude from countries including the Democratic Republic of Congo and South Sudan, positioning it as a regional energy hub for East Africa.
What Dangote is saying
Dangote said discussions are already underway with regional leaders to establish a shared facility that benefits multiple countries.
- “We are discussing that we are going to have a joint refinery in Tanga to benefit all of us,” he said.
- “My commitment today here is that we will lead the refinery. We’ll make sure that that refinery is built within the next four to five years.”
He further assured the leaders present of his willingness to replicate the scale and capacity of his Nigerian refinery in the new project.
- “I can give commitment to the two presidents that were here, if they will support the refinery, we’ll build the identical one that we have in Nigeria,” Dangote said.
Get up to speed
The planned Tanzania refinery comes as the Dangote refinery in Lagos, which is now operating at full capacity, increasingly positions itself as a regional supplier of refined products.
In early April, Dangote disclosed that the 650,000 barrels per day facility shipped about 17 cargoes of gasoline to other African countries. Exports of urea fertiliser have also risen in recent days as buyers search for alternative supply sources amid disruptions to global energy markets caused by tensions in Iran.
- “What I can do is assure Nigerians … and most of West Africa, Central Africa, and East Africa, we have the capacity to supply them,” he said at the time.
He added that the refinery, which can produce up to 3 million metric tonnes of urea annually, is now redirecting more shipments within Africa, rather than exporting primarily to the United States and South America.
What you should know
Dangote’s plan to build another refinery in Tanzania comes as he pursues a major expansion of the Lagos facility, aiming to increase its capacity from 650,000 barrels per day to 1.4 million barrels per day — a move that could make it the largest refinery globally.
- To support this expansion, the African Export-Import Bank has underwritten $2.5 billion as part of a $4 billion senior syndicated term loan.
- Earlier in February, the group also signed a $400 million agreement with XCMG Construction Machinery Co., Ltd. to accelerate construction and expansion activities.
Beyond fuel production, the expansion is expected to significantly boost polypropylene output from 900,000 metric tonnes per year to 2.4 million metric tonnes annually, further strengthening the refinery’s role in Africa’s industrial supply chain.
You will see that those country will support Dangote to a successful standpoint and before you know, the refinery will takeover African market. Unlike that in Nigeria that even the government are frustrating it and all agencies are looking forward to making it fail.