The race to cement Nigeria as Africa’s energy powerhouse just hit a new gear. Dangote Group has inked a $350 million contract with India’s state-owned Engineers India Limited (EIL) to double the refinery’s capacity to 1.4 million barrels per day (bpd) a move set to redefine Africa fuel landscape.
Doubling Nigeria’s Refining Capacity
EIL will serve as Project Management Consultant (PMC) and Engineering, Procurement, and Construction Management (EPCM) consultant, replicating its role in the original 650,000 bpd refinery commissioned in 2024.
The expansion includes a second processing train to produce Euro VI-compliant fuels and a major boost in petrochemical output. Polypropylene production will rise from 830,000 tonnes to 2.4 million tonnes annually through a revamped existing unit, a 1.2 million-tonne addition, and a 750,000-tonne UOP Oleflex unit to increase propylene feedstock supply.
Boosting Energy Security and Trade
The upgrade is a strategic move to reduce Nigeria’s fuel imports and enhance regional energy security. Once completed, the refinery will surpass India’s Jamnagar plant (1.36 million bpd), making Dangote Refinery the largest single-site refinery in the world.
This growth positions Nigeria as a global refining hub, strengthens intra-African fuel trade, and aligns with tightening global fuel quality standards.
Economic and Investor Impacts
Located in the Lekki Free Zone, the $19 billion Dangote Refinery has been ramping up operations since its May 2023 inauguration. Diesel and aviation fuel production began in early 2024, followed by petrol.
Dangote is exploring Middle Eastern partnerships to fund the expansion and plans a 10% stake listing on the Nigerian Exchange, with future dividends potentially paid in US dollars, offering investors a hedge against currency volatility.
This expansion is set to drive industrial growth, employment, and technological advancement, proving Nigeria’s potential as a global energy leader