Sujimoto Says Dangote ‘Failed Woefully’ to Meet Critics’ Pessimistic Predictions Over Refinery

Sujimoto Says Dangote ‘Failed Woefully’ to Meet Critics’ Pessimistic Predictions Over Refinery

LAGOS — Group Managing Director of Sujimoto, Dr. Sijibomi Ogundele, has revisited the scepticism that surrounded Aliko Dangote’s multibillion-dollar refinery project, arguing that the businessman’s emergence in Nigeria’s refining industry demonstrates how ambitious ventures can overcome entrenched professional doubts.

Ogundele, in a commentary on entrepreneurship, business leadership and innovation, said Dangote’s decision to venture into oil refining was initially viewed by some industry professionals as excessively ambitious, particularly given the scale of the project and the challenges associated with Nigeria’s petroleum sector.

According to him, Dangote faced doubts from professionals with extensive experience in the oil and gas industry, banking and downstream petroleum operations, who questioned whether the refinery could be completed and operate successfully.

He recalled that conversations among some business and industry professionals often centred on the project's enormous financial requirements, crude supply challenges, foreign exchange constraints, government policies and Nigeria’s history of unsuccessful attempts to establish functional refineries.

Ogundele said the scepticism was understandable given Nigeria’s long-standing dependence on imported petroleum products despite being a major crude oil-producing country.

For decades, Nigeria experienced recurring fuel shortages, petroleum subsidy pressures and disruptions associated with the operation of its state-owned refineries, making the development of a privately owned refinery on Dangote’s scale an unprecedented undertaking.

The Sujimoto chief executive said Dangote nevertheless proceeded with the project, assembling the technical expertise, financing and engineering capabilities required to develop the refinery.

He noted that Dangote himself had acknowledged that he had never seen crude oil when he embarked on the project, arguing that the businessman’s strength was his willingness to acquire the expertise necessary to execute projects outside his original area of competence.

Ogundele said his first visit to the Dangote refinery in Ibeju-Lekki several years ago changed his perception of what could be achieved through large-scale entrepreneurship.

“I went to see the enormity of a project and returned questioning the size of my own ambition,” he said, adding that the experience influenced his outlook on Sujimoto’s own development projects.

According to him, the lesson was not that entrepreneurs should disregard professional expertise, but that expertise should be deployed to strengthen ambitious projects rather than automatically limit them to what had previously been achieved.

“Great entrepreneurs do not succeed by ignoring expertise; they build enough competence to answer it,” Ogundele said.

He drew parallels between Dangote’s experience and the challenges Sujimoto encountered while developing LucreziaBySujimoto in Banana Island, Lagos, saying economic pressures, currency depreciation, rising construction costs and project delays had also generated doubts about the development’s viability.

Ogundele recalled that he was personally invited to the commissioning of the Dangote Refinery on May 22, 2023, where, according to him, he encountered some individuals who had previously expressed doubts about the project.

He said the experience reinforced his belief that professional criticism should be considered carefully but should not necessarily determine the limits of entrepreneurial ambition.

The Dangote refinery, located in the Lekki Free Zone, has since moved from construction and commissioning into commercial operations, becoming a major component of Nigeria’s petroleum refining landscape.

Ogundele cited the refinery’s reported expansion plans and financial performance as evidence of the scale the project has attained, while also highlighting Dangote’s proposed public offering of shares in the refinery as another stage in the evolution of the business.

He argued that the development represented a significant shift from the perception that the project could become an excessive financial burden on Dangote.

“Measured against the ending so confidently written for him, Alhaji Aliko Dangote has failed woefully,” Ogundele said.

He explained that his use of the phrase was deliberately ironic, arguing that Dangote had “failed” to conform to the pessimistic predictions that he should remain within the sectors where he had already established himself.

Ogundele acknowledged that critics had identified genuine risks surrounding the refinery, including its cost, complexity and exposure to Nigeria’s challenging business environment.

However, he argued that identifying risks should not automatically translate into concluding that an ambitious project cannot succeed.

“Their error was not in seeing the mountain; it was in believing that seeing the mountain gave them the authority to pronounce the climber’s fate,” he said.

Ogundele urged entrepreneurs to listen to professionals, learn from criticism and use expert advice to strengthen their plans while retaining responsibility for their strategic decisions.

“Africa needs professionals who challenge weak assumptions, bankers who reject reckless financing, engineers who refuse bad structures and mentors courageous enough to confront entrepreneurs with uncomfortable truths,” he said.

“But entrepreneurs must also understand where advice ends and ownership begins.”

He added that the experience of the Dangote refinery offered a broader lesson for African businesses seeking to move from dependence on imported products to local production and value addition.

“Experience should illuminate the road; it should never dictate the destination,” Ogundele said.

Ogundele is the Group Managing Director of Sujimoto, a luxury real estate development company with projects including LucreziaBySujimoto, Sujimoto Twin Tower, Queen Amina by Sujimoto and LeonardoBySujimoto.

Description: Sujimoto GMD Dr. Sijibomi Ogundele has revisited the criticism surrounding Aliko Dangote’s refinery project, saying its progress demonstrates the importance of ambition, expertise and execution.

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