Dangote plans 10,000MW power intervention

Says $20b petrochemical investment can generate $30b revenue

President/Chief Executive, Dangote Industries Limited, Aliko Dangote, has disclosed plans to increase the group’s investment programme in Africa from $50 billion to about $70 billion under its Vision 2030, with a major intervention in electricity generation to support industrial growth, totalling10,000 megawatts.

Addressing creative industry stakeholders from Northern Nigeria, including content creators, journalists, bloggers, entertainers, and Kannywood stars, Dangote said that expanding production, creating jobs, and providing reliable electricity were essential to unlocking Nigeria’s economic potential.

Also speaking at an Executive Session during the 44th Annual International Conference and Exhibition of Nigerian Association of Petroleum Explorationists (NAPE), Dangote called for urgent measures to address the estimated $7 billion debt owed by oil and gas operators to Nigerian banks,

He warned that the mounting financial exposure could undermine domestic financing for the industry and constrain efforts to increase crude oil production.

Identifying inadequate power supply as a major obstacle to the survival of Small and Medium-sized Enterprises (SMEs), Africa’s richest man warned that businesses dependent on petrol and diesel generators would struggle to remain profitable.

Dangote said the group was considering a 10,000-megawatt power programme across Africa, potentially including Nigeria, alongside an expansion of the generating capacity dedicated to its own operations.

“We initially planned to invest $50 billion. We are now looking at increasing that to about $70 billion in Africa,” he said.

Explaining the rationale behind Vision 2030, Dangote said African businesses must take greater responsibility for investing in the continent and addressing the infrastructure constraints that discourage other investors.

According to him, inconsistent government policies and unreliable electricity remain significant barriers to investment. He said the group had largely addressed the power challenge within its operations by generating its own electricity.

SPEAKING as a keynote speaker at the Executive Session of the NAPE conference in Lagos, Dangote advised the Central Bank of Nigeria (CBN) and commercial banks to work together to restore confidence in the petroleum sector and unlock funding for operators.

He identified trust, transparency and good corporate governance as critical conditions for resolving the financing challenges and attracting fresh capital into the industry.

According to him, Nigerian banks should be able to provide more funding for indigenous oil and gas operators rather than leave them excessively dependent on foreign sources of capital.

He maintained that rebuilding confidence in the sector would be essential to encouraging financial institutions to reconsider their lending appetite, particularly as operators require substantial long-term funding to develop discovered fields, expand production and invest in new exploration activities.

Beyond the immediate financing challenge, the industrialist made a strong case for Nigeria to accelerate investments in petrochemicals, declaring that a $20 billion investment in the chemical industry could generate yearly revenue of at least $30 billion, with a substantial proportion translating into profit.

He argued that Nigeria’s economic transformation should not be anchored solely on crude oil production and refining but should extend to petrochemical manufacturing and other industrial activities capable of generating higher value from the country’s hydrocarbon resources.