Africa’s richest man, Aliko Dangote, has revealed that he used all his assets as collateral and provided a personal guarantee to secure the initial $3.7 billion loan for his refinery and fertiliser projects.
Dangote made the disclosure during an exclusive interview with Arise News, describing the investment as the biggest financial risk he had taken in nearly five decades of doing business.
When asked about the biggest risk of his entrepreneurial career, Dangote pointed to the refinery and fertiliser projects.
“The biggest decision was the risk of the refinery and fertiliser,” he said.
According to him, financing the projects required him to commit virtually everything he had built at the time.
“We gave all our assets as collateral. And apart from that, I gave a personal guarantee,” Dangote said.
He explained that the initial financing was based on a $3.7 billion loan, even though the eventual cost and completion timeline of the projects remained uncertain.
The Dangote Refinery ultimately cost about $20 billion to build, making it one of Africa’s largest privately funded industrial projects.
The 700,000-barrel-per-day refinery commenced production of petroleum products in 2024 and has since expanded its output to include petrol, diesel, aviation fuel and other refined products.
The facility has become a major part of Nigeria’s efforts to reduce its dependence on imported petroleum products.
Dangote is also planning a further $14.3 billion expansion that would increase the refinery’s capacity from 700,000 barrels per day to 1.4 million barrels per day by 2029.
The refinery this week opened a landmark public offer, allowing retail and institutional investors to acquire shares in the company, which has largely remained privately owned.
Dangote described the move as a “People’s IPO” and said his long-term ambition is to have at least 10 million shareholders across Africa.
He explained that his willingness to take significant financial risks is driven by his belief that Africa cannot achieve meaningful industrialisation without entrepreneurs prepared to commit substantial capital to large-scale projects.
According to Dangote, the refinery investment represents not only a major business undertaking but also a long-term commitment to Africa’s industrial development.
