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Nigerian business tycoon Aliko Dangote is seeking to raise billions of dollars to step up production at his $20bn oil refinery on the outskirts of Lagos.

The industrialist is in talks with commercial lenders, development banks, oil traders and other industry participants to raise funds for crude supplies to turn into refined products, according to people familiar with the matter.

His company Dangote Industries has bought crude from the US and Brazil, and in July was in talks with African suppliers such as Libya and Angola, according to Devakumar Edwin, a senior executive at the group.

Africa’s richest man needs to secure more crude to reach the refinery’s capacity of 650,000 barrels per day for a project he has said is a “game changer” for the country.

The billionaire told the Financial Times last month that he expected the refinery to be at capacity by the second quarter of next year, although previous targets have often slipped.

Dangote added that Nigeria’s biggest infrastructure project in decades and the largest of its kind in the world is already producing 420,000 b/d.

He wants to resolve what he describes as an “absurd” situation in which Africa’s biggest oil producer imported all of its refined petroleum products because of a lack of refining capacity.

The plant began producing jet fuel and naphtha at the start of the year and petrol in September, raising hopes that Nigeria could finally end decades of reliance on imported fuel.

It would cost about $2bn every 90 days to secure a minimum supply of 300,000 b/d, people familiar with the matter say.

Investors have expressed frustration at Dangote’s inability to gain a steady supply of crude, according to one banker involved in the fundraising. Another added that there was also a major concern among potential financiers over exposure to Nigeria’s currency, the naira, which has fallen sharply following two devaluations over the past year.

“The refinery may never make a profit in real terms,” said the second banker. “It was built over-budget and the naira, which is a major currency of future revenue, has devalued massively.”

Dangote last month attended an emergency meeting with President Bola Tinubu and Mele Kyari, head of Nigeria’s state oil company NNPC, to talk about crude supplies.

The billionaire told the FT the meeting was to discuss “the modalities” by which NNPC would supply 365,000 b/d of crude to his plant to be paid for in naira.

Dangote Industries declined to comment further on the fundraising or the industrialist’s talks with the president.

NNPC did not respond to requests for comment on the fundraising or meeting.

NNPC has a 7.2 per cent stake in the refinery, which was watered down from 20 per cent after it failed to pay the balance of a deal worth $2.7bn. NNPC paid $1bn upfront in cash in 2021 and the other $1.76bn was supposed to be paid for in crude supplies. 

Many, including Dangote, have questioned NNPC’s ability to supply the crude the refinery needs because it has sold significant quantities of oil on forward contracts.

Even if NNPC comes through with the crude, Dangote would need another 185,000 b/d, or more than 5mn barrels a month, to meet his target of 550,000 b/d by January and more still once the refinery reaches full capacity. 

The Africa Finance Corporation, a pan-African development lender based in Nigeria that is already an investor in the project, is one of the institutions involved in the talks to raise money.

The AFC led a financing round in December for funds to source the initial capital to get the refinery up and running as a commercial operation.

The AFC declined to comment on the discussions over fundraising.

Dangote plans to use the refinery to meet the country’s entire petrol demand, which he estimates at 30mn-35mn litres a day. Some critics have accused him of seeking to replicate a quasi-monopoly he already enjoys in cement.

Refineries make money on the spread or difference between the price of crude and the money they make on the refined products they produce.

President-elect Donald Trump said on Saturday he picked oil executive Chris Wright to be the secretary of energy, a role in which he’s likely to promote fossil fuel development and reverse many Biden-era initiatives.

“As Secretary of Energy, Chris will be a key leader, driving innovation, cutting red tape, and ushering in a new ‘Golden Age of American Prosperity and Global Peace,’” Trump said in a statement.

Trump added that Wright will also serve as part of a new Council of National Energy, which the president-elect unveiled on Friday, saying that it “will consist of all Departments and Agencies involved in the permitting, production, generation, distribution, regulation, transportation, of ALL forms of American Energy.”

Trump selected North Dakota Gov. Doug Burgum as the head of the Council of National Energy as well as his pick to be interior secretary.

Wright heads an oil fracking company

Wright is the chief executive of oil and natural gas fracking services company Liberty Energy and sits on the board of a nuclear reactor company, according to his biography on Liberty’s website.

He has strongly advocated for the need for more fossil fuels, putting him in line with Trump’s repeated call for more oil production.

Wright has also expressed doubts about whether climate change is driving extreme weather events.

“There is no climate crisis, and we’re not in the midst of an energy transition either,” Wright said in a video uploaded to LinkedIn.

“We have seen no increase in the frequency or intensity of hurricanes, tornadoes, droughts or floods despite endless fear mongering of the media, politicians and activists,” he also said in the video. “The only thing resembling a crisis with respect to climate change is the regressive, opportunity-squelching policies justified in the name of climate change.”

That contradicts the U.S. government’s own National Climate Assessment, which concluded that climate change is increasing “the frequency and severity of many types of extreme weather events,” including contributing to more intense hurricanes, heat waves and flooding.

A major environmental advocacy group sharply criticized Trump’s pick of Chris Wright to head the Department of Energy.

“Given the devastating impacts of climate-fueled disasters, DOE’s core mission of researching and promoting cleaner energy solutions is more important now than ever,” said the Natural Resources Defense Council in an emailed statement. “Putting a champion of dirty fossil fuels in as the leader of the department would be a disastrous mistake.”

Trump is likely to reverse Biden’s energy policies

The Department of Energy was founded in 1977, in the aftermath of the oil crisis, bringing nuclear weapons programs and energy-related programs under one umbrella. Its network of national laboratories conducts a wide array of scientific research.

Under Biden, the DOE has pushed for the decarbonization of the entire U.S. economy, with ambitious goals for using 100% carbon-free electricity by 2035. The agency has also promoted energy efficiency, zero-carbon transportation and power grid improvements.

The DOE has deployed billions of dollars to pursue those goals — money approved by Congress, but actually distributed by the department.

Trump and his allies have opposed many of these spending measures, calling them wasteful, and either dismissed or deprioritized efforts to fight climate change, suggesting a radically reshaped DOE in the future.

One major question to be answered in the coming months is how much of this congressionally allocated spending the incoming administration may be able to nix or claw back — and which types of funding might have enough Republican support to survive.

The nomination will require confirmation from the Senate, where Republicans are poised to hold a majority of seats next year.

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Elon Musk has thrown his support behind Howard Lutnick over fellow Wall Street investor Scott Bessent in the race to be Donald Trump’s new Treasury secretary, as the world’s richest man flexes his status as close confidant to the president-elect. 

Musk, who Trump this week chose to co-lead an effort to cut government spending, on Saturday wrote on X that “Bessent is a business-as-usual choice, whereas @howardlutnik will actually enact change”. 

“Business-as-usual is driving America bankrupt, so we need change one way or another,” he added. 

The comments from the head of Tesla inject new drama into the jockeying for Trump’s treasury secretary, one of the most high profile jobs in his cabinet that has yet to be staffed. Within the past week, Trump has announced a string of nominees in foreign policy, law enforcement, healthcare and other areas. 

A representative for Bessent said he could not be reached for comment and a Lutnick spokesperson declined to comment.

Bessent, a former chief investment officer at George Soros’s family office, and Cantor Fitzgerald chief executive Lutnick, who is also co-chair of the Trump transition team, are the top contenders to lead the Treasury department. Hedge fund billionaire John Paulson dropped out of the race for the job on Tuesday. 

Paulson said that “complex financial obligations would prevent” him from entering the administration “at this time” but he would continue advising Trump’s economic team.

Bessent and Lutnick have been spotted around Palm Beach and Mar-a-Lago, Trump’s Florida home and resort, since the former president won the 2024 general election last week.

Lutnick promoted Musk and his “department of government efficiency” at a Madison Square Garden rally for Trump last month.

Backers of Bessent, meanwhile, include Larry Kudlow, a key economic adviser to Trump in his first term, Steve Bannon, and his former boss and mentor, investor Stan Druckenmiller.

Musk wrote that “Courage during tough times is a great virtue,” in response to an X post by the CEO of Rumble praising Lutnick’s choice to support the business. Rumble went public via a special acquisition company led by the Wall Street investor.

Bessent has been criticised by some Trump allies for not being aligned with the president-elect on tariffs. However, Bessent wrote a Fox op-ed published Friday saying that tariffs are a “useful tool” to accomplish foreign policy objectives and raise revenue.

“The truth is that other countries have taken advantage of the US’s openness for far too long, because we allowed them to,” he wrote. “Tariffs are a means to finally stand up for Americans.”

Musk’s social media posts will be a test of his growing influence over Trump. The entrepreneur became one of the ex-president’s most vocal cheerleaders and prominent funders during his campaign — loyalty that Trump has rewarded by appointing Musk and Vivek Ramaswamy to lead the cost-cutting drive.

Musk has said he can cut $2tn out of government spending.

The billionaire also joined Trump during a call with Volodymyr Zelenskyy, president of Ukraine, last week to discuss the war there.

In response to Musk backing Lutnick, investor James Fishback, a Bessent fan, asked the entrepreneur on X to moderate an interview with the pair.

“I’m open to that,” replied Musk.