Dangote plans refinery expansion to 1.4m bpd, eyes $55B revenue

Aliko Dangote plans to double the capacity of his multibillion-dollar petroleum refinery in Lagos, a move he says will help meet Africa’s growing demand for cleaner fuels and secure Nigeria’s place as a global refining hub.

Speaking at a media briefing in Lagos, the president of Dangote Industries Limited said the company will expand the Dangote Petroleum Refinery from its current capacity of 650,000 barrels per day to 1.4 million barrels over the next three years. He said the project will be funded through a combination of cash flow, public listing, and strategic investors.

“This expansion reflects our confidence in Nigeria’s future, our belief in Africa’s potential, and our commitment to building energy independence for our continent and the world,” Dangote said.

When completed, the refinery is expected to surpass India’s Jamnagar facility, currently the world’s largest. Dangote said the refinery could generate as much as $55 billion annually and strengthen Nigeria’s foreign exchange reserves by cutting its fuel import bill.

The expansion will also increase polypropylene production to 2.4 million metric tonnes a year and boost output of other industrial inputs like base oils and linear alkylbenzene. Dangote said the plant will move from Euro V to Euro VI standards, meeting stricter environmental regulations, and expand power generation capacity to 1,000 megawatts to ensure self-sufficiency.

More than 85% of the refinery’s workforce will be Nigerian, he said, with investments in technology transfer and training. “Our commitment to safety, sustainability and local participation remains unwavering,” Dangote added.

He also reaffirmed plans to list a significant portion of the refinery’s shares on the Nigerian Exchange, calling it an opportunity for ordinary Nigerians to share in the project’s value creation. “Our main listing will be here in Nigeria to give Nigerians value,” he said. “We want this to be a national asset in every sense.”

Dangote praised President Bola Tinubu’s economic reforms, saying they have boosted investor confidence and paved the way for large-scale industrial projects. He also commended government intervention in mediating labor disruptions and other challenges at the plant.

The refinery has already contributed to stabilizing local fuel supply, he said, adding that Nigeria’s pump price remains among the lowest in the region despite producing cleaner fuels. “Nigerians today buy petrol at roughly half the price of what our neighbors pay, and it’s even cheaper than in Saudi Arabia,” he said.

As the festive season approaches, Dangote assured Nigerians there would be no fuel scarcity or price spike. “For the first time in many years, Nigerians can look forward to a Christmas and New Year free of fuel anxiety,” he said.

Dangote called on other licence holders to invest in refinery projects and help position Nigeria as Africa’s energy hub. “When Africa builds its own capacity, it builds its own destiny,” he said.