Dangote To Extend Business Footprint To Power Sector, Targets 20,000MW Power Plant Expansion
Dangote unveils 20,000MW power plan to drive industrial growth and tackle Africa’s persistent electricity shortfalls.
Dangote unveils 20,000MW power plan to drive industrial growth and tackle Africa’s persistent electricity shortfalls.
Africa’s foremost industrialist, Aliko Dangote, has disclosed plans to expand into the power sector with a target of generating up to 20,000 megawatts (MW), as part of a strategy to accelerate industrialisation and economic transformation across the continent.
Dangote made this known during a high-level engagement with the Managing Director of the International Finance Corporation (IFC), Maktar Diop, at the institution’s headquarters, where he outlined his vision for Africa and the next phase of growth for his conglomerate.
Speaking during the session, Dangote said the move into power reflects a deliberate focus on addressing Africa’s most critical development gaps, noting that inadequate electricity remains a major constraint to industrial growth and competitiveness.
He explained that the planned 20,000MW capacity would complement existing investments by the Dangote Group, including its refinery, fertiliserplants, and ongoing infrastructure projects, creating an integrated industrial ecosystem capable of driving self-sufficiency.However, he did not mention where the plant will be located or the expected timeline for the completion of the project.
“We are opening up mines of potash and phosphate in Congo Brazzaville. We are now going into power, 20,000 megawatts. We are building the biggest deep-sea port of 18 meters depth.
We are doing LNG. So why? Because we are now actually free of assets, and we can actually raise more money. Our cash flow now is very strong,” he stated.
According to him, the group’s recently completed refinery, which has now stabilised at about 650,000 barrels per day, has already demonstrated the impact of large-scale local investment in reducing dependence on imports and strengthening domestic capacity.
Dangote noted that prior to the refinery, Nigeria exported crude oil but imported nearly all refined petroleum products, a situation he described as unsustainable. He said the success of the project has emboldened the group to take on even more ambitious ventures, including power generation.
Beyond Nigeria, he stressed the need for a continent-wide approach to development, identifying structural barriers such as visa restrictions, weak transport systems, and high logistics costs as key obstacles to intra-African trade and investment.
“When you look at Africa today, somebody like myself, I need 38 visas to move around. How do I now invest if I’m not able to move around? 38 visas doesn’t make sense. Nobody has time to go and apply for a visa, take your passport and whatever.
“And most of them don’t do visa on arrival. So we look at that on free movement of people, free movement of goods and services. These are critical areas. Without this, there’s no way we are going to have a very prosperous Africa because with this, I cannot move my goods from Nigeria, from Lagos to the Republic of Benin.
“And when you try to cross the border, you can be there for a week if you are lucky. If you are not lucky, you don’t know anybody, you’re going to be there for two weeks.
“And it costs us, for example, to go from Lagos port to Accra more than coming from Spain to Lagos. Then you talk about aviation. When you talk about aviation from Lome to Accra, somebody will charge you $600. How do you move around? People cannot afford this,” he lamented.
He revealed that the group is also investing heavily in other sectors critical to Africa’s growth, including fertiliser production, mining of key raw materials, liquefied natural gas, and the construction of a deep-sea port, all aimed at boosting value addition and reducing reliance on imports.
Dangote further disclosed plans to open up some of the group’s major assets to African investors through stock market listings, including the refinery, in a bid to deepen local participation and wealth creation.
He said the company intends to pay dividends in hard currency, allowing investors across the continent to benefit directly from its operations, while also encouraging capital retention within Africa.
“If we keep waiting for foreign investors, foreign investors are very smart. They are not going to come.
They will only come when they see our own commitment. So that’s why for us now, we have also changed. Because if you look at it, most of our companies, we own super majority, 89 per cent, 92 per cent, some 100 per cent.
“And we are saying that, for us to grow at scale, we need to make sure that we have partnerships, we should also collectively get Africans to buy shares. Like now, the refinery, we are going to list. When we list, we are going to ask Africans to do, and we want to derisk, also their own capital.
“So when we are paying a dividend, all our dividends will be in dollars. And you can choose either you want Naira, or you want dollars, or you want South African Rand. Whatever that you need, we’ll pay. But it is going to be calculated and paid for in dollars,” he added.
The businessman emphasised that private sector leadership is essential to unlocking Africa’s potential, arguing that local investors must demonstrate commitment by deploying capital within the continent to attract foreign investment.
He also highlighted agriculture and water infrastructure as key priorities, noting that improved irrigation systems could significantly boost food production, reduce poverty, and address insecurity, particularly in vulnerable regions.
Dangote reiterated that his long-term goal is to contribute to a more self-reliant and prosperous Africa, driven by industrialisation, job creation, and strategic investments in critical sectors.
