Business

Dangote: Why We Had to Import 150,000 Containers Through Lome Port for Refinery

Published by admin on July 22nd, 2025.

Dangote: Why We Had to Import 150,000 Containers Through Lome Port for Refinery

Aliko Dangote, President of the Dangote Group, has shared new insights into the sheer scale and difficulty of building the continent’s largest oil refinery, revealing that the project required the importation of 150,000 containers—most of which passed through Lome Port in Togo due to Nigeria’s limited port capacity.

Speaking at the Global Commodity Insights Conference on West Africa’s refined fuel market in Abuja, Dangote explained that the Dangote Refinery, which has a processing capacity of 650,000 barrels per day, faced serious logistical and infrastructure hurdles from the outset.

He noted that Nigeria’s ports were simply not equipped to handle more than 60% of the heavy equipment and machinery needed for the refinery, prompting the company to develop its own seaport.

“We didn’t just construct a refinery—we had to build a port too,” Dangote said. “Imagine importing 150,000 containers, many of which had to be routed through Lome and transported into Nigeria.”

Beyond logistics, Dangote described the technical challenges of the site itself. The refinery spans over 2,700 hectares, with about 70% of the land originally being swampy terrain. This required extensive sand-filling and land preparation to create a stable foundation.

Construction efforts involved the installation of millions of meters of pipes and cables, and the project had to accommodate massive machinery, including components weighing up to 3,000 tons. COVID-19 disruptions and equipment issues added to the complexity.

At the height of the project, more than 67,000 workers—representing hundreds of different nationalities—were employed to bring the refinery to life.

However, logistical difficulties weren’t the only barriers. Dangote also highlighted the challenges of sourcing crude oil domestically. Despite Nigeria’s oil reserves, local suppliers prioritized export markets, forcing the refinery to import crude from countries such as the U.S., Brazil, Angola, and Algeria. These international purchases came with added financial pressure, especially with the volatility of exchange rates.

He also took aim at Nigeria’s high port and regulatory fees, which he said are considerably higher than those in nearby countries. These increased costs, coupled with inconsistent fuel standards across African nations, continue to hamper trade in refined petroleum products within the region.

According to Dangote, the lack of uniform regulations and the influx of cheap and sometimes substandard imported fuels pose a serious threat to local refineries’ survival.

He called on African governments to step in and support industrialization efforts by harmonizing fuel standards, reducing unfair competition, and promoting domestic refining.

Despite all the hurdles, Dangote expressed optimism. The refinery has already started exporting to several West African nations and plans to broaden its supply chain and distribution networks.

He concluded with a strong message: “Without the right political backing, we won’t see another large refinery built in Africa anytime soon.”

Dangote’s experience, he noted, reflects the broader challenges facing Africa’s industrial growth—but also the incredible potential that lies ahead if

the right steps are taken.