Dangote ventures into oil – to build refinery worth $8 billion

Aliko Dangote, President, Founder and CEO of The Dangote Group speaks during the final session of the World Economic Forum on Africa meeting in Cape Town June 6, 2008. PHOTO/Reuters/Mike Hutchings

Aliko Dangote, has announced plans to construct an US$8 billion refinery in Nigeria later this year.

The proposed refinery will be the first private refinery in Nigeria, owned and operated by a Nigerian.

Dangote made the announcement last week in Lagos during a breakfast meeting with some senior editors of various Nigerian media organizations.

The Dangote Group, will start work on the refinery as soon as the company secures final approval from the federal government and other related agencies.

In 2011, the Nigerian federal government granted approvals to 19 multinational corporations to set up private refineries in the country. At the present, the government subsidizes the downstream sector of the petroleum industry and dictates the price of fuel products, a move which Dangote says has impeded growth in the sector.

In addition, the Nigerian entrepreneur/philanthropist, through his charity organization – The Dangote Foundation has donated US$500,000 to UNICEF to support efforts at managing recent measles outbreak affecting many states in Nigeria.

Read more: Forbes