Moving beyond oil refining, petrochemicals, and fertilizer production, Africa’s richest man, Aliko Dangote, has revealed an ambitious plan to enter the electricity sector, targeting a power project capable of generating 20,000 Megawatts (MW).
The African industrialist confirmed this new plan during an interview with the Managing Director of the International Finance Corporation (IFC), Makhtar Diop.
“We are now going into power… 20,000 megawatts,” he stated while highlighting other major investment plans of the Dangote Group in Nigeria and Africa generally, including a deep-sea port, mining project and LNG production.
The power project is a core part of Dangote’s broader “Vision 2030,” which aims to address Africa’s most critical infrastructure gaps.
He said the company’s mission is to look at the critical needs of Africa and try to address them.
Dangote pointed out that reliable power is the “missing link” for Africa’s industrialization, noting that without energy security, manufacturing and economic transformation cannot be sustained.
While he didn’t give specific details regarding the power project’s location, financing, or completion date, Dangote stated that the strong cash flow from his recently stabilized refinery (now operating at 650,000 barrels per day) has given the company the financial flexibility to embark on such ambitious projects.
Nigeria’s current installed generation capacity is approximately 13,000MW, but only about 4,000MW to 4,500MW is available for distribution. This is coupled with frequent collapses of the national grid, which often disrupts the electricity supply. These highlight the significant challenge of electricity access in a country of over 200 million people.
Analysts note that the addition of a 20,000MW power plant would be a significant transformation of the country’s electricity supply, boosting industrialisation.
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Analysts at Comercio Partners, a financial services firm, said Dangote is leveraging the strength of his $20 billion Refinery (now scaling toward 1.4 million bpd), and the upcoming fertiliser plant to venture into the power sector on a massive scale.
It highlighted the significance of the project in reshaping Nigeria’s power landscape, which through years of electricity shortages, have “crippled manufacturing and economic growth.”
“By addressing what he identifies as the continent’s core needs (energy, fertilisers, and industrial inputs), Dangote is positioning his group as a vertically integrated industrial powerhouse spanning refining, petrochemicals, agriculture inputs, ports, and now power generation,” the firm stated.
It added that the success of the projects could “catalyse re-rating of Nigerian assets and underscore private-sector leadership in solving Africa’s infrastructure gaps.”
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in Mass Communication. He can be reached via @VICTOREZEJA on X