Business A.M
No Result
View All Result
Saturday, October 17, 2026
  • Login
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • ONLINE & DIGITAL CONTENT PACKAGE
Subscribe
Business A.M
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • ONLINE & DIGITAL CONTENT PACKAGE
No Result
View All Result
Business A.M
No Result
View All Result
Home Energy

Dangote bets big on LNG dominance with ambitious Olokola project

by Onome Amuge
July 21, 2025
in Energy, Company & Business, Energy, Energy, Energy
Dangote to use cash flow, bonds, IPO to fund proposed $17bn Kenya refinery 

Aliko Dangote, Africa’s wealthiest man and president of Dangote Industries Limited, has set his sights on the Nigerian liquefied natural gas market, a sector long dominated by state-backed Nigeria LNG Limited (NLNG). The ambitious move is anchored by a vision for a vast, integrated industrial and energy ecosystem centred around a new deep-sea port in Olokola, Ogun State.

In a recent LinkedIn post titled ‘Relaunching Olokola: My Vision for an Industrial and Connected Nigeria’, Dangote revealed the submission of an application for the development of this large-scale seaport. He indicated that the Olokola site, which he originally envisioned over a decade ago for his refinery and fertilizer complex, is now once again central to his strategic aspirations.

 “I have just taken another step in building our industrial future. I have submitted an application for the development of a large-scale seaport in Olokola, in Ogun State, southwest Nigeria. This site, which I envisioned more than ten years ago to house our refinery and fertilizer complex, is now once again at the heart of our strategy.

“A port to support our energy ambition. Our ambition is clear: to build Nigeria’s largest deep-sea seaport to facilitate the export of our industrial and energy products. This port will become an anchor for our liquefied natural gas (LNG), fertilizers, and fuels, while streamlining the supply chain that supports our growth,” he said. 

The move into LNG signifies a direct challenge to NLNG’s entrenched position, which has historically been the sole major player in Nigeria’s liquefaction and export sector. Dangote, however, expressed confidence in offering a strong and competitive alternative, believing it can generate even greater value for Nigeria.

Beyond the port, the integrated strategy involves the construction of a gas pipeline directly connecting the gas-rich Niger Delta to Olokola. This pipeline, he noted, will leverage the abundant gas resources already utilised by his fertilizer plant and ammonia production facilities. Dangote described this pipeline as potentially becoming a truly beneficial energy backbone for the country, dependent on resources from the South to international markets.

Addressing potential criticisms of market dominance, Dangote stated that he is not pursuing this project with the aim of creating a monopoly. Instead, he expressed hope that his initiative would inspire and pave the way for other African entrepreneurs. He also acknowledged the critical need for infrastructure in Nigeria and asserted the responsibility of the private sector to step in when the state alone cannot provide it.

Dangote Industries is slated to launch a massive fleet of 4,000 tanker trucks in August 2025,designed for the direct distribution of its refined fuels across Nigeria. This, the Dangote Industries Limited president explained, is not an attempt at hegemony but a logistical necessity, making strategic sense given his substantial investment in Africa’s largest refinery. Mastering the logistics, he argues, is crucial to ensuring an efficient and stable supply of petroleum products nationwide.

“We are building a gas pipeline that will connect the Niger Delta to Olokola. This region is abundant in gas, a resource we already use for our fertilizer plant and ammonia production. This pipeline could become a truly beneficial energy backbone for the country, dependent on resources from the South to international markets.

“Yes, I want us to occupy our place in the LNG market, currently dominated by Nigeria LNG Ltd. But I am convinced that we can offer a robust and competitive alternative, capable of creating even more value for Nigeria,” he added.

This strategic expansion into LNG and integrated logistics follows Dangote’s successful ventures in cement, sugar, and fertilisers, culminating in the recent commissioning of his multi-billion-dollar refinery. He views the Olokola port as the missing piece of a puzzle the company  has been assembling for years, aiming to consolidate his industrial empire’s self-sufficiency and export capabilities.

Dangote assured that the Olokola project is poised to transform Nigeria’s coastline into a formidable logistics and energy hub. This development, he believes, will reduce the country’s dependence on already congested existing ports and attract a new wave of international investors.

Onome Amuge

Onome Amuge serves as online editor of Business A.M, bringing over a decade of journalism experience as a content writer and business news reporter specialising in analytical and engaging reporting. You can reach him via Facebook ,X and  LinkedIn

Previous Post

Idu tasks aviation ministry on airport land use assessment

Next Post

Nigeria’s global cassava dominance threatened by industrial constraints

Next Post
Nigeria’s global cassava dominance threatened by industrial constraints

Nigeria’s global cassava dominance threatened by industrial constraints

  • Trending
  • Comments
  • Latest

How UNESCO got it wrong in Africa

May 30, 2017

CBN to issue N1.5bn loan for youth led agric expansion in Plateau

July 29, 2025
MMA2 enters new commercial era after 20-year concession dispute

MMA2 enters new commercial era after 20-year concession dispute

August 28, 2026
NGX taps tech advancements to drive N4.63tr capital growth in H1

Insurance-fuelled rally pushes NGX to record high

August 8, 2025

6 MLB teams that could use upgrades at the trade deadline

Top NFL Draft picks react to their Madden NFL 16 ratings

Paul Pierce said there was ‘no way’ he could play for Lakers

Arian Foster agrees to buy books for a fan after he asked on Twitter

Rivers, China's CNCECC sign deal for $3.5bn methanol, fertiliser plant

Rivers, China’s CNCECC sign deal for $3.5bn methanol, fertiliser plant

October 17, 2026
Methane rules spread across 67% of global production as Nigeria faces compliance test 

Methane rules spread across 67% of global production as Nigeria faces compliance test 

October 17, 2026
Onafriq, a pan-African payments company, is set to discontinue its Baxi agent banking business in Nigeria after five years, citing naira depreciation, rising operating costs and intensifying competition that have weakened the segment’s profitability. The planned shutdown will affect the agent banking operations conducted through Baxi under Onafriq Nigeria Payments Limited. However, the decision does not signal the company’s withdrawal from Nigeria, as it intends to retain its cross-border payments network and card issuing services in the country. In a statement, Onafriq said changes in Nigeria’s operating environment since 2024 had significantly altered the economics of its offline agent banking business, making the existing model unsustainable. The move marks a strategic shift for the company, which entered Nigeria’s agent banking market to expand access to financial services through a network of agents providing transaction services outside traditional bank branches. Onafriq attributed the decision to a combination of macroeconomic pressures and structural changes in the country’s payments industry. According to the company, naira depreciation and inflation have affected transaction volumes, increased operating expenses and undermined the sustainability of its agent banking operations. The growing adoption of instant account-to-account transfers has also changed the mix of transactions handled by agents, while heightened competition among payment service providers has put further pressure on margins. These developments have made it increasingly difficult for the business to remain viable under its existing operating structure, prompting the company to reassess its long-term strategy. Dare Okoudjou, founder and chief executive officer of Onafriq, said the decision to close the business was difficult, particularly given the efforts of employees, agents and business partners who helped build the Baxi network. “We entered Nigeria with conviction and commitment, but did not achieve the outcome we set out for. Closing this business was a difficult decision to arrive at, one that affects colleagues, agents, and business partners across Nigeria who poured their hearts and soul into building out the Baxi network,” Okoudjou said. Despite the closure, he reaffirmed the company’s commitment to the Nigerian market, noting that the group would continue to serve customers through its payments network and card issuing operations. Onafriq entered Nigeria’s agent banking market in 2021 through the acquisition of Baxi, also known as Capricorn Digital Limited. The company said it continued investing in the business through 2023, with efforts focused on expanding and strengthening its agent network. However, a subsequent review of the business’s long-term prospects and financial sustainability led to the decision to wind down the operation. As part of the transition, Onafriq said agents onboarded through the Baxi platform had been moved to another principal bank, a step intended to facilitate continuity for the affected agents. The company has also directed agents to transfer their funds to their preferred principal bank within 30 days, adding that its teams would provide support throughout the transition process. Employees whose roles are linked to the agent banking business will also be consulted and supported during the wind-down, with Onafriq pledging to treat affected workers fairly.

Onafriq winds down Baxi as Nigeria’s agent banking economics worsen

October 17, 2026
LCFE links petroleum trading to capital market in pricing transparency drive

LCFE links petroleum trading to capital market in pricing transparency drive

October 17, 2026

Popular News

  • How UNESCO got it wrong in Africa

    0 shares
    Share 0 Tweet 0
  • CBN to issue N1.5bn loan for youth led agric expansion in Plateau

    0 shares
    Share 0 Tweet 0
  • MMA2 enters new commercial era after 20-year concession dispute

    0 shares
    Share 0 Tweet 0
  • Insurance-fuelled rally pushes NGX to record high

    0 shares
    Share 0 Tweet 0
  • Glo, Dangote, Airtel, 7 others prequalified to bid for 9Mobile acquisition

    0 shares
    Share 0 Tweet 0
Currently Playing

CNN on Nigeria Aviation

CNN on Nigeria Aviation

Business AM TV

Edeme Kelikume Interview With Business AM TV

Business AM TV

Business A M 2021 Mutual Funds Outlook And Award Promo Video

Business AM TV

Recent News

Rivers, China's CNCECC sign deal for $3.5bn methanol, fertiliser plant

Rivers, China’s CNCECC sign deal for $3.5bn methanol, fertiliser plant

October 17, 2026
Methane rules spread across 67% of global production as Nigeria faces compliance test 

Methane rules spread across 67% of global production as Nigeria faces compliance test 

October 17, 2026

Categories

  • Frontpage
  • Analyst Insight
  • Business AM TV
  • Comments
  • Commodities
  • Finance
  • Markets
  • Technology
  • The Business Traveller & Hospitality
  • World Business & Economy

Site Navigation

  • Home
  • About Us
  • Contact Us
  • Privacy & Policy
Business A.M

BusinessAMLive (businessamlive.com) is a leading online business news and information platform focused on providing timely, insightful and comprehensive coverage of economic, financial, and business developments in Nigeria, Africa and around the world.

© 2026 Business A.M

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • ONLINE & DIGITAL CONTENT PACKAGE

© 2026 Business A.M