The Dangote Refinery: pioneering Africa’s energy independence amid challenges

Learning outcomes After completing this case, students will be able to: Case overview/synopsis The Dangote Refinery, Africa’s largest oil refinery, symbolizes a transformative effort to address Nigeria’s longstanding dependence on imported refined petroleum products while fostering economic growth and regional energy independence. Operational in 2024, the refinery was designed to process 650,000 barrels of crude oil daily, making Nigeria self-sufficient in refined petroleum products and generating surplus for export. Despite its ambitious goals, the project faced significant challenges, including high capital requirements, regulatory complexities, reliance on imported crude and environmental concerns. Additionally, the project encountered operational hurdles such as skill gaps, infrastructure inefficiencies and volatile global oil prices. Critics argued that a more integrated approach combining crude production and refining could have mitigated supply chain risks. However, the refinery’s potential to catalyze industrial growth, create jobs and contribute to regional trade underscores its importance in Nigeria’s energy sector. This case highlights the interplay of visionary leadership, financial resilience and strategic planning required for large-scale infrastructure projects to succeed in emerging markets. Complexity academic level Postgraduate graduate level (Strategy and Entrepreneurship courses) Supplementary material Teaching notes are available for educators only. Subject code CSS11: Strategy.