In this feature, GBENGA OLONINIRAN and OMOWUMI ABRAHAM analyse the controversy surrounding the purported funding of West Africa’s largest refinery
Business mogul, Aliko Dangote, has said the Dangote refinery was not built from borrowing from friends but did not say much about how it is being funded.
The Dangote Group recently issued a strong disclaimer, dismissing as false a viral publication claiming that its President, Aliko Dangote, distanced himself from fellow businessman Tony Elumelu.
The response followed a viral post on X, which alleged that Dangote sought financial assistance from prominent associates to complete the Dangote Petroleum Refinery.
The post claimed that Elumelu pledged $20m but later cut off communication, while other business figures, including Mike Adenuga, Abdulsamad Rabiu, and Femi Otedola, reportedly contributed significant sums.
In a statement released by the company and signed by the company’s Chief Branding and Communications Officer, Anthony Chiejina, the company described the report titled “Aliko Dangote Speaks Out on Why He Distanced Himself from Tony Elumelu” as “false, malicious, and baseless,” stressing that neither Dangote nor the organisation had made such remarks at any time.
The company also refuted claims regarding the financing of the Dangote Petroleum Refinery, rejecting assertions that the project was funded through personal borrowing from friends.
According to the statement, such allegations are “wholly inaccurate” and amount to a deliberate misrepresentation of facts.
It further clarified that Dangote does not finance his projects through personal loans from acquaintances and challenged anyone making such claims to provide verifiable evidence.
While the company did not mention its funding channels in that rejoinder, business mogul Femi Otedola tried to shed light on the issue.
Dangote never requested money from me – Otedola
The tide swung more in favour of Dangote when billionaire businessman Femi Otedola weighed in on the controversy, saying Dangote never requested financial help from him, Tony Elumelu, or Mike Adenuga.
In a post shared via his X handle on Monday, titled “Let’s set the record straight,” Otedola dismissed reports claiming that he financed the Dangote Petroleum Refinery, describing the allegation as completely false. He accused those behind the claim of spreading misinformation and attempting to create division among leading Nigerian business figures.
“I can categorically state that at no point did Alhaji Dangote request financing from Mr Elumelu, Mr Adenuga, and myself,” he stated.
According to Otedola, the Dangote Group remains financially structured and capable of independently sourcing capital for its operations.
“The Dangote Group is a well-structured organisation that is well versed in raising structured capital for its operations,” he said.
Otedola further described the report as a deliberate attempt to sow discord within Nigeria’s private sector leadership.
“This is calculated mischief and a deliberate attempt to create rifts and sow discord within Nigeria’s closely knit and respected private sector leadership.
“These are men who have built businesses, created jobs, and invested in this nation for decades. They deserve better than to be used as props in a social media fabrication.”
Like Dangote, Otedola, Adenuga, and Elumelu are big names in the business industry whose influence also transcends borders, but they have said they did not fund the Dangote refinery, according to Otedola.
Official information about the refinery’s funding is not fully public, but the refinery itself is a subsidiary of Dangote Industries. The Dangote Group has no doubt accumulated wealth over decades in cement, food, and other businesses.
According to a CNN report in 2023, when the refinery was launched, around 50% of the funds used to build it came from Dangote’s equity investment, while the other half came from debt financing from banks such as Access Bank and Zenith Bank.
We didn’t get any incentive from govt – Dangote
Two years ago, during a summit in Lagos, Dangote, through the company’s Group Executive Director, Mansur Ahmed, said that the refinery was built without any incentive from the government.
“We built the Dangote Refinery without a single incentive from the government. However, to achieve the vision of turning Nigeria into a refining hub, investors need to be incentivised,” he said.
Dangote himself also said in 2024 that the company paid $100m for land to the Lagos State Government.
He made this disclosure during a visit by the leadership of the House of Representatives, led by the Speaker, Tajudeen Abbas, and Deputy Speaker Benjamin Kalu, to the refinery.
Dangote said, “In the refinery, we did not, and I repeat, we did not collect one single incentive from the Federal Government of Nigeria or even Lagos State. Yes, Lagos State gave us a good deal, but we paid $100m for the land. It wasn’t free; we paid for it.”
But Dangote gets tax waivers
Apart from the fact that the $20bn refinery sits inside the Lekki Free Zone, a 16,500-hectare free trade area, Dangote companies generally benefit from tax waivers.
Dangote Fertilisers, a subsidiary of Dangote Industries Limited, was part of over 100 companies that received tax holidays in 2025.
According to a PUNCH report, the Federal Government, through the Nigerian Investment Promotion Commission, approved tax holidays for 22 new companies under the Pioneer Status Incentive scheme, raising the total number of beneficiaries to 105 in the final quarter of the year.
Findings by the media house also revealed that since the then-Chairman of the Presidential Tax Reform Committee, Taiwo Oyedele, announced in September 2023 that the committee would conduct a comprehensive review of tax waivers aligned with the roadmap set by the previous administration, a total of 25 companies had received regulatory approval for tax exemptions for the next three years.
Offered under the Industrial Development Income Tax Act, with tax reliefs for a three-year period, the incentive is generally regarded as an industrial measure aimed at stimulating investment in the economy.
The products or companies eligible for this pioneer status are those that did not already exist in the country.
Dangote Sinotrucks was also among 46 companies that enjoyed N16.76tn in tax reliefs and concessions granted to large companies by the Federal Government between 2019 and 2021.
Dangote got $1 billion loan – NNPC
Dangote Refinery got $1 billion loan, according to the Nigerian National Petroleum Company Limited.
According to media reports, the NNPCL said in 2024 that it secured a $1bn loan backed by crude oil to support the coming on stream of the 650,000 barrels per day capacity Dangote Petroleum Refinery.
It also stated that the firm facilitated the $3bn Gazelle loan as a critical intervention to help stabilise the federation’s foreign exchange crisis.
The Chief Corporate Communications Officer, Mr Olufemi Soneye, said these at the Energy Relations Stakeholders Engagement in Abuja, The PUNCH reported.
“Under the visionary leadership of Mele Kyari, NNPC Ltd has achieved groundbreaking milestones, redefining the trajectory of Nigeria’s oil and gas sector. Additionally, Kyari facilitated the $3bn Gazelle loan, a critical intervention that helped stabilise the federation during a challenging foreign exchange crisis,” Soneye stated.
Stressing on support for Dangote, he said, “A strategic decision to secure a $1bn loan backed by the NNPC’s crude was instrumental in supporting the Dangote refinery during liquidity challenges, paving the way for the establishment of Nigeria’s first private refinery.”
Dangote is still getting support
Earlier in April, African Export-Import Bank (Afreximbank) said it was proud to support the Dangote Group as it seeks to expand its operations and grow its turnover to $100 billion by 2030.
The Group’s leadership presented its long-term growth strategy, “Vision 2030: Supercharging Dangote Group for Long-Term Success,” to the Afreximbank Board of Directors and its executive team on Tuesday, March 31, 2026.
According to a statement on Afreximbank’s website published on April 8, 2026, Dangote Group outlined plans to scale and optimise its existing platforms and expand capacity across all active sectors.
Key initiatives include increasing the capacity of the Dangote Petroleum Refinery from 650,000 barrels per day to 1.4 million barrels per day.
Speaking at the forum, Aliko Dangote, President/Chief Executive of Dangote Industries Limited, said:
“Our partnership with Afreximbank is more than financial support; it is about a shared dream for the continent. When we set out to build a 650,000 barrel-per-day refinery—the largest of its kind in Africa—the bank believed in our vision when others were sceptical. Without their leadership and trust, the development of the African continent would not be where it is today.
“We are joined at the hip with the bank because we share the same mission: to drive local capacity, eliminate our dependence on imports, and ensure Africa’s industrial growth is led by Africans.”
On his part, Dr George Elombi, President and Chairman of the Board of Directors of Afreximbank, noted that the engagements demonstrated a strong convergence of purpose to free Africa from dependency and ensure the continent’s resources are used for the benefit of its people.
He further pledged the readiness of Afreximbank and its Board of Directors to support the realisation of Dangote Group’s aspirations.
“This is the very purpose for which our institution was created. As is deeply rooted in our DNA, we do not only listen—we execute and convert aspiration into action.”
The event also featured the signing of an agreement for a $2.5bn facility underwritten by Afreximbank as part of a $4bn senior syndicated term loan in favour of Dangote Petroleum Refinery and Petrochemicals FZE.
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