The Nigerian billionaire Aliko Dangote, Africa's richest man, has expanded his business operations into Cameroon's oil sector. His company, Dangote Oil & Gas Cameroon SA, was established in October and has signed an agreement with the state-owned Société nationale de raffinage (Sonara) to supply 50% of Cameroon's refined oil products for 30 months. This development comes as Cameroon, a central African country with nearly 30 million inhabitants, has been heavily reliant on imported refined products since a 2019 fire at its Limbe refinery.
The agreement, signed on October 29, is expected to bring significant benefits to Cameroon, including cost savings, improved product quality, and reduced losses for the state. According to Harouna Bako, Sonara's general manager, the deal will ensure a steady supply of products, with 12 shipments planned over the 30-month period. The agreement also eliminates the need for intermediaries, resulting in estimated annual savings of $180 million for the state.
Dangote's company will supply the products from its Lekki refinery in southwest Nigeria, which has a capacity of 700,000 barrels per day, the largest on the African continent. The products will be transported by sea to Sonara's facilities in Limbe, approximately 700 km away. Dangote's expansion into Cameroon is part of a broader strategy to increase its presence in the region, including a cement plant in Douala and plans for a second industrial unit.
The development comes as Africa continues to rely heavily on imported refined products, with the continent importing over 70% of its needs. Dangote's Lekki refinery recently completed a stock exchange listing, raising funds to double its capacity and potentially become the world's largest refinery. The company's expansion plans also include a $16 billion refinery project in Kenya, set to be completed on Lamu Island.
Cameroon's reliance on imported products has been exacerbated by a decline in domestic production. According to the Société nationale des hydrocarbures, the country's oil production fell by 9.4% in 2025, from 21.377 million barrels in 2024 to 19.374 million barrels. The agreement with Dangote is expected to help alleviate some of the pressure on the country's import-dependent economy.
The deal could also have implications for Cameroon's oil import market, with Sonara acquiring the right to supply 50% of the market. However, existing importers, known as "marketers," will still have the opportunity to bid for the remaining 50%. The new arrangement may lead to reduced volumes for some importers who have developed their businesses in response to Sonara's past inefficiencies.
Aliko Dangote's net worth is estimated to be over $35.7 billion, making him one of Africa's most influential business leaders. His company's expansion into Cameroon and other regional markets is likely to have a significant impact on the continent's oil and gas sector. As Africa continues to grapple with the challenges of meeting its refined product needs, Dangote's investments are poised to play a major role in shaping the industry's future.
Key points
- Dangote's company will provide 50% of Cameroon’s refined oil products for 30 months.
- The agreement is expected to generate annual savings of $180 million for the state.
- Dangote's expansion plans also include a $16 billion refinery project in Kenya.
