Dangote refinery expansion to create 90,000 jobs

By Abubakar Yunusa

Africa’s richest man, Aliko Dangote, has said his refinery, petrochemical and fertiliser expansion projects in Lagos will employ more than 90,000 people by next year.

Dangote, President and Chief Executive of Dangote Industries Limited, disclosed this while outlining the group’s ambitious investment plans, which could reach $65bn over the next four years.

He said the expansion was driven largely by the need to create employment opportunities for Africa’s growing youthful population and strengthen the continent’s industrial capacity.

“The refinery expansion is huge. By next year, we expect to have almost 90,000 people working on the refinery and fertiliser projects in Lagos,” Dangote said.

The billionaire businessman also announced plans to establish 20 fertiliser blending plants across strategic locations in Africa to improve farmers’ access to agricultural inputs and ensure a steady supply throughout the year.

Under the refinery expansion programme, the company plans to add another 700,000 barrels per day to its existing processing capacity, bringing the facility’s planned total capacity to about 1.4 million barrels per day.

The expansion will also involve additional petrochemical facilities and supporting infrastructure.

Dangote said job creation remained a major concern for him, warning that Africa was not generating enough employment opportunities to absorb its rapidly growing population.

“My biggest concern is job creation in Africa. We have a very youthful population, and we are not creating enough jobs. We must push harder to create opportunities and keep our young people productively engaged,” he said.

On agriculture, he said the group was working towards increasing its urea production capacity to nine million tonnes, alongside plans for 1.2 million tonnes of diammonium phosphate and one million tonnes of NPK blending capacity in Lagos.

He added that the company intended to begin mining potash and phosphate in Congo-Brazzaville as part of efforts to strengthen fertiliser production across the continent.

According to him, the proposed blending plants would enable farmers in countries where the company operates, as well as neighbouring markets, to access fertiliser without depending heavily on lengthy import and transportation processes.

“What we want is for the countries where we operate, and their neighbours, to have fertiliser available 365 days a year. Farmers should be able to buy it when they need it, without worrying about supply,” he said.

Dangote cited Ethiopia as an example of the logistical challenges facing African farmers, explaining that imported fertiliser often passed through Djibouti before being transported inland.

He said such arrangements could delay supplies and affect farmers who needed fertiliser during specific planting seasons.

“With local production, the fertiliser will be available there. We will also have one million tonnes of NPK capacity attached to the project,” he added.

The industrialist recalled how the African Union approached Russia for fertiliser supplies following the outbreak of the Russia-Ukraine war, describing the experience as evidence of the continent’s dependence on external markets.

“At the beginning of the Russia-Ukraine crisis, the African Union went to Russia to plead for fertiliser. I said then that, within four years, Africa should never again have to go anywhere to beg for fertiliser,” he said.

He expressed confidence that access to sufficient natural gas would enable the continent to meet its fertiliser requirements through local production.

“If Africa needs 30 million tonnes and we can secure enough gas, we can produce and supply it,” Dangote said.

Beyond refining and agriculture, he disclosed that the group’s investment programme included an initial plan to develop 10,000 megawatts of electricity capacity in partnership with some African countries.