Dangote targets 20,000MW to help close Nigeria’s power deficit

By Samuel Ogunsona

Africa’s richest businessman, Aliko Dangote, has announced plans to enter large-scale power generation, aiming to produce up to 20,000 megawatts as part of broader efforts to address Nigeria’s long-standing electricity shortfall.

“We are now going into power — 20,000 megawatts,” Aliko Dangote said during an interview with Makhtar Diop, managing director at the International Finance Corporation, on Wednesday.

Nigeria’s power sector has struggled for decades with a wide gap between demand and supply. The country currently generates about 4,000–4,500MW of electricity, well below its installed capacity of over 13,000MW.

The shortfall has forced businesses and households to rely heavily on private generators, raising operating costs and limiting industrial growth.

Dangote linked the new power investment to other major projects under the Dangote Group, including fertiliser production, liquefied natural gas, and port development.

“At the time when I started this refinery… I have never ever seen crude oil in my life,” he said, recalling the doubts that surrounded the $20 billion Dangote refinery at inception. “People openly said this refinery will never happen.”

The refinery is now operational with a capacity of 650,000 barrels per day. Dangote said the experience has shaped his approach to continental investment.

“How do we open up Africa? We will open Africa by demonstrating that we believe in Africa, by investing our money in Africa,” he said.

“Because if I don’t invest my own money, I can never go to any conference and convince people that Africa is a good place to come and invest. But right now, I have a voice, I have demonstrated that these things are possible.”

He added that the group is expanding fertiliser capacity to about 12 million tonnes annually and pursuing projects in mining, agriculture, LNG, and a deep-sea port with an 18-meter draft.

“And the needs of Africa are petroleum products, fertilisers,” Dangote said.

“Today, in about two and a half years, we will be the largest fertiliser company in the world. We are putting up 12 million tons of urea. We are opening up mines of potash and phosphate in Congo and Brazil. We are building the biggest deep-sea port with an 18-meter draft. We are doing LNG.”

Dangote attributed the expansion to stronger finances, noting, “We are now actually free of assets, and we can actually raise more money. Our cash flow now is very, very strong.”

He said the projects are intended to address critical infrastructure and industrial gaps across Africa, adding that such investments will only make sense “if Africa addresses its structural trade barriers.”