Dangote to Extend Business Footprint to Power Sector, Plans 20,000MW Plant
• Move set to tackle Africa’s chronic power deficit, boost industrial output
•Says dividends from Dangote refinery to be paid in dollars
•Oil prices slide below $100 as hope rises for US, Iran declares
Emmanuel Addeh in Abuja
Africa’s foremost industrialist, Aliko Dangote, has disclosed plans to expand into the power sector with a target of generating up to 20,000 megawatts (MW), as part of a strategy to accelerate industrialisation and economic transformation across the continent.
Dangote made this known during a high-level engagement with the Managing Director of the International Finance Corporation (IFC), Maktar Diop, at the institution’s headquarters, where he outlined his vision for Africa and the next phase of growth for his conglomerate.
Speaking during the session, Dangote said the move into power reflects a deliberate focus on addressing Africa’s most critical development gaps, noting that inadequate electricity remains a major constraint to industrial growth and competitiveness.
He explained that the planned 20,000MW capacity would complement existing investments by the Dangote Group, including its refinery, fertiliser plants, and ongoing infrastructure projects, creating an integrated industrial ecosystem capable of driving self-sufficiency.
However, he did not mention where the plant will be located or the expected timeline for the completion of the project.
“We are opening up mines of potash and phosphate in Congo Brazzaville. We are now going into power, 20,000 megawatts. We are building the biggest deep-sea port of 18 meters depth.
We are doing LNG. So why? Because we are now actually free of assets, and we can actually raise more money. Our cash flow now is very strong,” he stated.
According to him, the group’s recently completed refinery, which has now stabilised at about 650,000 barrels per day, has already demonstrated the impact of large-scale local investment in reducing dependence on imports and strengthening domestic capacity.
Dangote noted that prior to the refinery, Nigeria exported crude oil but imported nearly all refined petroleum products, a situation he described as unsustainable. He said the success of the project has emboldened the group to take on even more ambitious ventures, including power generation.
Beyond Nigeria, he stressed the need for a continent-wide approach to development, identifying structural barriers such as visa restrictions, weak transport systems, and high logistics costs as key obstacles to intra-African trade and investment.
“When you look at Africa today, somebody like myself, I need 38 visas to move around. How do I now invest if I’m not able to move around? 38 visas doesn’t make sense. Nobody has time to go and apply for a visa, take your passport and whatever.
“And most of them don’t do visa on arrival. So we look at that on free movement of people, free movement of goods and services. These are critical areas. Without this, there’s no way we are going to have a very prosperous Africa because with this, I cannot move my goods from Nigeria, from Lagos to the Republic of Benin.
“And when you try to cross the border, you can be there for a week if you are lucky. If you are not lucky, you don’t know anybody, you’re going to be there for two weeks. There’s no way you can trade with your neighbours like this. Then we look at the sector of transportation. When you look at it, most of the people who own ships that move goods around, they are owned by other nationalities, not Africans.
“And it costs us, for example, to go from Lagos port to Accra more than coming from Spain to Lagos. Then you talk about aviation. When you talk about aviation from Lome to Accra, somebody will charge you $600. How do you move around? People cannot afford this,” he lamented.
He revealed that the group is also investing heavily in other sectors critical to Africa’s growth, including fertiliser production, mining of key raw materials, liquefied natural gas, and the construction of a deep-sea port, all aimed at boosting value addition and reducing reliance on imports.
Dangote further disclosed plans to open up some of the group’s major assets to African investors through stock market listings, including the refinery, in a bid to deepen local participation and wealth creation.
He said the company intends to pay dividends in hard currency, allowing investors across the continent to benefit directly from its operations, while also encouraging capital retention within Africa.
“If we keep waiting for foreign investors, foreign investors are very smart. They are not going to come. They will only come when they see our own commitment. So that’s why for us now, we have also changed. Because if you look at it, most of our companies, we own super majority, 89 per cent, 92 per cent, some 100 per cent.
“And we are saying that, for us to grow at scale, we need to make sure that we have partnerships, we should also collectively get Africans to buy shares. Like now, the refinery, we are going to list. When we list, we are going to ask Africans to do, and we want to derisk, also their own capital.
“So when we are paying a dividend, all our dividends will be in dollars. And you can choose either you want Naira, or you want dollars, or you want South African Rand. Whatever that you need, we’ll pay. But it is going to be calculated and paid for in dollars,” he added.
The businessman emphasised that private sector leadership is essential to unlocking Africa’s potential, arguing that local investors must demonstrate commitment by deploying capital within the continent to attract foreign investment.
He also highlighted agriculture and water infrastructure as key priorities, noting that improved irrigation systems could significantly boost food production, reduce poverty, and address insecurity, particularly in vulnerable regions.
Dangote reiterated that his long-term goal is to contribute to a more self-reliant and prosperous Africa, driven by industrialisation, job creation, and strategic investments in critical sectors.
Meanwhile, oil prices fell sharply to two-week lows yesterday as optimism grew about a possible end to the war in the Middle East, with reports that the United States and Iran were nearing an initial peace deal.
Brent crude futures were more than $8.31, or 10.5 per cent lower at $98.56 a barrel, for the first time since April 22 while U.S. West Texas Intermediate (WTI) crude lost over $6.86, or 6.71 per cent, to $95.1. Brent later moved slightly to $100.1 per barrel.
A source from mediator Pakistan told Reuters that the United States and Iran were closing in on an agreement on a one-page memorandum of understanding.
Also, Iran said on Wednesday it was reviewing a new U.S. proposal. An Iranian foreign ministry spokesperson, cited by Iran’s ISNA news agency, said Iran would convey its response soon via Pakistan. Iran had said earlier that it would only accept a fair and comprehensive agreement.
U.S. media outlet Axios reported that the U.S. expects Iranian responses on several key points in the next 48 hours, citing sources saying this was the closest the parties had come to an agreement since the war began.
Both crude contracts hit their lowest in two weeks, with Brent hitting an intra-session low of $96.75 before paring losses after U.S. President Donald Trump said it was “too soon” to consider face-to-face talks with Tehran, and as a senior Iranian parliament member said the U.S. proposal was more of a wish list than a reality.
The U.S. military said on Monday that it destroyed several Iranian small boats as part of efforts to help stranded ships exit the Strait of Hormuz.
“A deal announcement would move futures further immediately, in fact even the potential of a deal is already triggering a decline in oil prices,” said Rystad Energy chief oil analyst Paola Rodriguez-Masiu.
However, the global oil flow would take time to normalise even if the strait is restored. “The six-to-eight-week lag between credible access conditions and real flow normalisations is not a conservative estimate, it is a structural feature of how shipping markets work,” Rodriguez-Masiu added.
Crude oil supply losses from halted marine traffic through the strait since the war began in February have driven up prices, with Brent trading last week at its highest since March 2022.
The Strait of Hormuz closure has resulted in a drawdown in global oil and fuel inventories as refineries try to offset production shortfalls.
“A partial deal may be enough for Strait of Hormuz shipping to gradually normalise,” said Raymond James analyst Pavel Molchanov, adding that if the decline holds, prices at the pump could cool over the next one to two weeks for U.S. consumers.
Later on Wednesday morning, Trump expressed optimism in a brief telephone call with PBS about an Iran deal, while acknowledging it had previously proven elusive. “I felt that way before with them,” he said. “So we’ll see what happens.”
Trump also told PBS it was “unlikely” he would send US envoys for a second round of Iran peace talks in the Pakistani capital Islamabad.