Dangote strikes deals in India to boost refinery, fertilizer plans

Aliko Dangote, Africa’s richest businessman and president of the Dangote Group, is pushing ahead with one of the most ambitious energy build-outs on the continent, signing new deals in India aimed at raising the capacity of his Lagos-based refinery to 1.4 million barrels per day. The agreement, sealed yesterday with the Honeywell Group, marks a major step in his effort to secure Africa’s fuel supply and reduce the region’s dependence on imports.

Honeywell, EIL deals support expansion

The Nigerian billionaire industrialist, who has spent more than 40 years building the Dangote Group from a small trading outfit into Africa’s most diversified manufacturing and industrial conglomerate, also finalized partnerships tied to fertilizer production in Ethiopia and held talks on possible investments in India’s data-center market. His group maintains a broad footprint across cement, food, petrochemicals and agriculture, with a 52-million-ton cement capacity.

In India, Dangote focused on two priorities: expanding his $20 billion refinery in Nigeria and advancing a major fertilizer project in Ethiopia. The new agreement with Honeywell includes licensing and engineering work and clears the way for a 750,000-barrels-per-day greenfield facility that will sit alongside the existing 650,000-barrels-per-day refinery now in operation. In Ethiopia, Engineers India Limited has been appointed project manager for the $3 billion expansion of the urea plant, which will grow to a 3-million-ton capacity.

His trip comes as trade between India and Africa is climbing. India’s exports to the continent rose above $51 billion last year, while total bilateral trade topped $100 billion in the 2024–2025 fiscal period. Even so, China remains Africa’s largest trading partner, shipping goods worth about $179 billion to the continent in 2024, with total two-way trade reaching nearly $296 billion.

Aliko Dangote details refinery upgrade, India ties

Speaking to CNBC TV18 in India, Dangote said the main purpose of his visit was to finalize long-planned agreements tied to the refinery upgrade. “We’re here mainly to sign the agreement for our refinery expansion to 1.4 million barrels per day,” he said. “We signed the licensing and engineering contracts with UOP, part of the Honeywell Group, this morning.”

Asked whether the group is eyeing more activity in India, he said ties between the two countries have grown steadily. “We already source a lot of equipment from India and work closely with many Indian companies,” he said. “We previously explored investing in cement here, but it didn’t work at the time. Now we’re looking at areas such as data centers. India and Nigeria have strong synergies.”

He added that the refinery upgrade should be completed by 2028, positioning the company to supply most of Africa’s fuel needs. “Our broader vision is to become the main supplier of petroleum products for Africa,” he said. Jet fuel, he noted, will likely continue to flow to Europe and the U.S., while gasoline and gas oil will serve African markets. “We want to make Africa self-sufficient in these products.”

Dangote also spoke about the continent’s prospects, pushing back against long-standing concerns among investors. “Africa will play a significant role,” he said. “We have a young population, vast arable land and abundant solid minerals, including critical minerals in large quantities. Much of the risk people talk about is perceived, not real. Over time, the world will understand this.”

Dangote plans funding mix for refinery expansion

His latest push follows earlier disclosures that the group plans to raise about $5 billion to support the refinery upgrade. George Elombi, the new president and chairman of the African Export-Import Bank, said in October that Dangote discussed the fundraising plan with him and that the bank would explore ways to participate.

At a briefing in Lagos, Dangote said the refinery expansion would be financed through internal cash flow, a possible public listing and investments from strategic partners. “This expansion reflects our confidence in Nigeria’s future, our belief in Africa’s potential and our commitment to energy independence for the continent,” he said.

When fully completed, the refinery is expected to become the world’s largest, overtaking India’s Jamnagar complex. The plant could bring in as much as $55 billion in annual revenue and help stabilize Nigeria’s foreign exchange reserves by sharply reducing fuel imports. The expansion will also boost polypropylene output to 2.4 million metric tons a year and bring production in line with Euro VI fuel standards. Power generation at the site is set to rise to 1,000 megawatts, supporting one of Africa’s most important industrial projects.