The Dangote Petroleum Refinery has announced a major expansion project that will see its production capacity more than double, a move set to create over 65,000 jobs and significantly boost the Nigerian economy.
The President of Dangote Group, Aliko Dangote, made the announcement in Lagos on Sunday following a meeting with international technology partners.
He revealed that an agreement had been signed to increase the refinery’s capacity from its current 650,000 barrels per day to 1.4 million barrels per day within the next three years.
“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.
The project, which will make the Lagos-based facility the largest refinery in the world, is expected to have a substantial economic impact. Beyond the 65,000 jobs created during the construction phase, the expansion will also double the production of polypropylene, a key plastic component, from 900,000 metric tonnes to 2.4 million tonnes annually.
Dangote stated that the decision demonstrates strong confidence in Nigeria’s economic future and Africa’s capacity for industrial transformation. He added that the project aligned with President Bola Tinubu’s vision to make Nigeria a major exporter of refined petroleum products.
“The key announcement today is that we are expanding the Dangote Refinery. We are announcing it officially. We are expanding the Dangote refinery from 650,000 barrels per day to 1.4 million barrels per day,” Dangote told journalists.
He confirmed that the expansion was scheduled for completion within three years, noting that much of the necessary groundwork had already been prepared during the initial construction phase. “Timeline, we are looking at three years. This time, it will take us much less time than before because we already have the infrastructure, the port, the SPM (Single Point Mooring facility), the land. We don’t have to raise the land or dredge again,” he explained.
While Dangote declined to disclose the exact investment figure for the new expansion, he assured that the project had been costed internally. The original 650,000 bpd refinery was reported to have cost around $20 billion. “We have our own costing, and we know what it will cost us,” he said.
Addressing the crucial issue of crude oil supply, Dangote acknowledged that securing feedstock had previously posed challenges but expressed optimism that new government policies would ensure a consistent domestic supply. “At 650,000 barrels a day, you struggle to get feedstock. But the President now has a clear policy. I’m sure the government will not sit back and allow our crude to go abroad while refineries here are idle”, admitted.
He likened the situation to Ghana’s cocoa processing industry, stressing that it would be counterproductive for Nigeria to export crude while importing refined products. “It’s like Ghana saying they want to process all their cocoa, and someone saying they will still export the raw beans,” Dangote said. “I’m sure things will change, and they are already changing with Mr. President’s policy.”
The expansion will also bring environmental upgrades, with the refinery transitioning from producing Euro 5 fuels to the world’s highest environmental benchmark, Euro 6 standards. The plant’s power generation capacity will also increase from 500 megawatts to 1,000 megawatts, providing more reliable energy for its operations and nearby industries.
In a significant move for public investment, Dangote confirmed plans to list the refinery and petrochemical complex on the Nigerian Exchange (NGX) within the next year. “We want to give all Nigerians the opportunity of owning part of the refinery,” he said. “This refinery should belong to all Nigerians.”
He concluded by thanking the federal and Lagos State governments for their support, describing the expansion as “a testament to confidence in Nigeria’s leadership and potential.”
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