Dangote: Lenders Would Have Seized My Assets If Refinery Failed
Africa’s richest man, Aliko Dangote, has revealed the enormous financial risks he faced in building the $20 billion Dangote Refinery, disclosing that lenders would have taken over his assets had the ambitious project collapsed.
Speaking in recent interviews, Dangote said he ignored repeated warnings that such large-scale refinery projects were best handled by governments rather than private individuals. According to him, the decision to proceed was a bold gamble rooted in his belief in Nigeria’s and Africa’s economic future.
“Many people told me this kind of project is not for private investors,” he explained. “They said it was only for governments, and that I could lose everything. Truly, if it had failed, the banks would have taken over my assets. But I believed in the country and the continent.”
The Dangote Refinery, with a capacity of 650,000 barrels per day, is one of the world’s largest single-train facilities and the most ambitious industrial venture ever undertaken by a private African investor. It was financed through a combination of equity and debt, with an estimated $5.5 billion borrowed from local and international lenders. Reports indicate that Dangote has already repaid about $2.4 billion, with the remaining loans still being serviced.
The refinery has begun operations, cutting Nigeria’s dependence on imported fuel and easing the foreign exchange burden. It has also started exporting refined products, a development seen as a turning point for the country’s energy security. Dangote claims the plant has ended decades of petrol queues and helped stabilise fuel prices in parts of the country.
His disclosure underscores the risks private investors face in executing mega projects in Africa. Industry watchers say the statement highlights how close the refinery venture came to threatening Dangote’s empire, while also demonstrating the resilience of Nigeria’s most prominent industrialist.
With billions still to be repaid and operational challenges ahead, attention will remain on how Dangote sustains the refinery’s performance. But for now, his gamble appears to have paid off, transforming Nigeria’s refining landscape and further cementing his place as one of Africa’s most daring entrepreneurs.
