Dangote Secures $350 Million Deal to Build World’s Largest Single-Site Refinery
- Dangote Group secures $350 million contract to expand Lekki refinery's capacity to 1.4 million barrels daily
- Expansion aims to end Nigeria's dependence on fuel imports and boost local refining capacity
- New project positions Nigeria as a potential net exporter of refined petroleum products in West Africa
Nigeria’s push to end decades of fuel import dependence has received a major boost as Dangote Group awarded a $350 million engineering contract to India’s Engineers India Limited to expand its Lekki refinery to an unprecedented scale.
The deal will add a second processing train to the refinery, lifting total capacity to 1.4 million barrels per day, more than double the current 650,000 barrels per day.
Source: UGC
Once completed, the facility will become the world’s largest single-site refinery complex, consolidating Nigeria’s ambition to emerge as a regional petroleum hub.
The agreement was signed with Engineers India Limited, a state-owned engineering consultancy under India’s Ministry of Petroleum and Natural Gas, which also played a key role in delivering the original refinery that began operations in 2024.
From single train to a global refining giant
Located in the Lekki Free Zone outside Lagos, the existing Dangote refinery already holds the title of the world’s largest single-train facility.
The expansion cements its position as a global heavyweight, transforming the complex into a multi-train refinery of unmatched scale.
Beyond increased crude processing, the project includes upgrading fuel output to Euro VI standards, meeting stricter emissions and environmental benchmarks than the Euro V products currently produced.
Polypropylene production will also triple to 2.4 million metric tons annually, strengthening Nigeria’s petrochemical value chain.
Engineers India will oversee project management, engineering, procurement, construction support, and commissioning, ensuring the new units integrate seamlessly with ongoing operations.
Ending Nigeria’s costly import paradox
The expansion directly targets Nigeria’s long-standing contradiction of exporting crude oil while importing nearly all refined petroleum products.
Despite producing around 1.3 million barrels of crude daily, the country has relied on imports for decades due to non-functional state-owned refineries.
This dependence has drained foreign exchange reserves and exposed the economy to global price shocks and fuel supply disruptions.
Analysts say the enlarged Dangote refinery could reverse that trend by meeting domestic demand and supplying refined products to neighbouring West African countries.
Economic stakes and political significance
The refinery’s growth aligns with federal government efforts to boost local refining capacity and stabilise fuel supply following the removal of petrol subsidies in May 2023.
While the subsidy removal triggered inflationary pressures, it freed up fiscal resources and underscored the urgency of domestic refining.
The Dangote complex already produces petrol, diesel, jet fuel, and polypropylene.
With the expansion, Nigeria could become a net exporter of refined petroleum products, reshaping regional energy trade that currently depends heavily on European suppliers.
Dangote’s bigger energy vision
Aliko Dangote, Africa’s richest man, has positioned the refinery as the cornerstone of his group’s energy ambitions.
The conglomerate operates in 17 African countries and remains one of West Africa’s largest private employers.
Alongside refining, Dangote Group has investments in fertiliser production, petrochemicals, and upstream oil and gas.
Source: Getty Images
The Lekki expansion represents its largest capital commitment since completing the original refinery and signals a long-term bet on Nigeria’s industrial future.
While timelines and financing details were not disclosed, industry watchers say the project could redefine Africa’s refining landscape and place Nigeria firmly at its centre.
Investors urge Dangote to list refinery on NGX
Legit.ng earlier reported that Investors have appealed to Aliko Dangote, president of the Dangote Group, to fast-track the listing of the Dangote Petroleum Refinery on the Nigerian Exchange Limited (NGX), urging that it would enable ordinary Nigerians to own shares and benefit from dividends and capital appreciation.
The call was made by the President of the Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, who spoke on behalf of investors while highlighting the broader economic impact of Dangote’s investments in Nigeria, PUNCH reported.
According to Umar, Dangote’s business activities across key sectors have consistently demonstrated a strong commitment to Nigeria’s development, ranging from capital market participation to large-scale job creation and the nationwide spread of manufacturing facilities.
Source: Legit.ng
