What You Need to Know
Aliko Dangote announced plans to construct an oil refinery in East Africa, mirroring his successful Lagos facility. This project aims to provide the region with reliable fuel and reduce dependence on costly imports. Dangote seeks support from East African leaders to realize this vision, which could significantly impact local economies.
Africa-Press – Tanzania. Nigeria’s Billionaire industrialist, Aliko Dangote, has plans to build a replica of his Lagos oil refinery in East Africa, a move designed to provide the region with reliable fuel.
Dangote made this commitment directly to two East African presidents, President William Ruto and President Yoweri Museveni of Uganda, during the Africa We Build Summit 2026 in Nairobi on April 23, attended by captains of industry within and beyond Africa.
According to Dangote, the refinery will be located in the Tanga area of Tanzania, and the project will include a pipeline that links the refinery with Mombasa, allowing for the use of Kenya Pipeline Corporation’s network to further transport the crucial commodity in the country.
However, this commitment from the Nigerian billionaire comes with a condition. Dangote said he needs serious support from both President Ruto and Museveni for the project to work.
“Even now, I can give commitment to the two presidents who were here. If they will support the refinery, we’ll build an identical one to the one we have in Nigeria,” stated Dangote.
The proposed facility would mirror the Dangote Oil Refinery in Lagos, a $20 billion plant located in the Ibeju-Lekki Free Zone, commissioned in May 2023 and became fully operational in February 2026, processing over 650,000 barrels of crude oil per day.
According to Dangote, if built, the East African refinery would produce diesel, petrol, and jet fuel locally, ending the region’s costly reliance on fuel imports that currently squeeze household budgets and push up business operating costs.
His group, The Dangote Group, has already outlined a USD40 billion investment plan, roughly Ksh5.17 trillion, across multiple sectors between now and 2030, covering petrochemicals, fertilizers, and industrial raw materials used daily on the continent.
Dangote made it clear that he is at the moment expanding his Nigerian refinery, which could scale to 1.4 million barrels a day, making it the largest refinery in the world. With this move, he was not shy to make his intentions to beat the United States in the refining-capacity ambitions.
“We are building that one to a scale. 1.4 million barrels a day will be the largest refinery in the world. That’s number one. Number two, we’ll have 10 per cent of the entire United States of America’s refining capacity,” highlighted Dangote.
Dangote was also vocal about Africa’s broken economic model, arguing the continent loses out by exporting raw materials instead of finished goods. “We are a continent of imports, and we’re not really exporting much,” he said, highlighting that this pattern is also portrayed in brain drain, where Africans are shipped to work abroad.
He added that the intention of the East Africa facility is, in the grand scheme of things, to counter this problem by achieving full African fertilizer self-sufficiency by 2028, with 20 blending plants in the works, 12 million tonnes of urea planned, and large-scale potash and phosphate sourcing lined up from Congo and Brazil.
This comes at a time when President Ruto announced that the Kenyan government is moving to invest in Uganda’s oil refinery industry as part of a strategic regional energy play following the successful privatisation and partial regional uptake of the Kenya Pipeline Company (KPC).
The Ugandan refinery project will be based in Hoima City and is estimated to cost about USD4 billion, roughly Ksh500 billion, making it one of the largest industrial energy investments in the East African region.
Aliko Dangote is a prominent Nigerian businessman known for his significant investments in various sectors, including oil and gas. His Lagos refinery, which began operations in 2026, has set a precedent for local fuel production in Africa. The proposed East African refinery aims to replicate this success, addressing the region’s reliance on fuel imports and enhancing economic self-sufficiency. This initiative aligns with broader efforts in East Africa to develop local energy resources and reduce dependency on foreign oil.
