Alhaji Aliko Dangote, the founder of the Dangote Group and Africa’s richest individual, has revealed ambitious plans for his conglomerate to reach over $30 billion in revenue by the end of 2024.
In an exclusive interview with CNN, Dangote said this milestone would place the Dangote Group among the top 120 companies globally.
Dangote attributed this optimistic projection to the recent strategic restructuring within the company.
“We have divided the company now into two main segments: myself as group president, the group president of oil and gas, and the group president of other businesses,” he explained.
This division aims to streamline operations and ensure that key personnel are effectively managing the various segments of the business.
A significant contributor to this projected revenue surge is the much-anticipated oil refining facility in Lagos. Dangote described the refinery as a game changer for Nigeria and the region.
“This refinery will change the game. By processing all of Nigeria’s crude oil domestically, it will reduce carbon emissions by up to 2 million tonnes,” he said.
The facility is expected to process about 21 million barrels of crude oil per month, eliminating the need for Nigeria to import petroleum products and significantly reducing the environmental impact of international shipping.
The environmental benefits of the refinery are substantial. Dangote highlighted that the reduction in shipping could save nearly 2 million tonnes of CO2 emissions annually.
“This will help in terms of reducing CO2 emissions significantly. Rather than ships bringing products from Europe or exporting crude from Nigeria, we will cut down on approximately 480 ships of 1 million barrels each per year,” he noted.
Revenue and Profitability Outlook
Regarding the financial viability of the refinery, Dangote is optimistic about the imminent profitability of the $19 billion investment.
“We will start making money soon from the refinery. Running businesses is about making money, but it also gives me great satisfaction that our activities are helping to make Africa great,” he affirmed.
Dangote acknowledged the challenges in securing adequate crude oil from producers. While the Nigerian National Petroleum Company Limited (NNPC) has been supportive, international oil companies (IOCs) are hesitant to redirect their crude from export markets to the local refinery.
“NNPC has been very helpful, but some IOCs are struggling to provide us with crude because they are used to exporting,” he explained.
Dangote also voiced his concerns about the low level of intra-African trade, which currently stands at only 16%.
He sees the African Continental Free Trade Area (AFCTA) as a potential catalyst for growth but emphasized the need for better integration and free movement within the continent.
“For AFCTA to work, we need to remove visa requirements, allow free movement of people, goods, and services. Without that, it is almost impossible to achieve prosperity,” he argued.
