Aliko Dangote, the owner of Africa’s largest refinery and the continent’s wealthiest individual, is considering the establishment of a trading firm to manage crude supply for his newly operational mega refinery in Lagos.
The Dangote Refinery, Africa’s largest, commenced fuel production in January 2024, ending years of delays and setbacks.
With a processing capacity of 650,000 barrels per day (bpd), the Dangote refinery aims to meet 100% of Nigeria’s demand for refined petroleum products while creating a surplus for export.
The $20 billion refinery project, initially estimated at $12 billion to $14 billion, is seen as a critical solution to Nigeria’s persistent fuel shortages, which have forced the country, Africa’s leading oil producer, to rely on fuel imports due to insufficient refining capacity.
Despite the mega refinery’s potential, Dangote has faced challenges securing deals with major oil trading houses and supermajors for possible loans to facilitate crude purchases.
In response, Dangote is reportedly exploring the creation of a trading arm to handle the refinery’s crude supply independently.
The trading firm, expected to be based in London, will likely be led by Radha Mohan, the director of International Supply and Trading at Dangote Group.
Mohan, a former trader at Essar who joined Dangote Group in 2021, is anticipated to play a critical role in managing the crude supply for the refinery.
The initiative’s success could further solidify Dangote’s influence in Africa’s energy landscape and contribute to Nigeria’s efforts to achieve energy self-sufficiency.