Dangote Refinery Launches Construction For 1.4 million Barrels-Per-Day Expansion

The Dangote Refinery has commenced construction on a major expansion project that will increase its refining capacity from 650,000 barrels per day to 1.4 million barrels per day.

President of the Dangote Group, Aliko Dangote, made the announcement during a press briefing in Lagos, where he was joined by First Bank Chairman Femi Otedola. Dangote explained that upon completion, the expansion would make the facility the largest refinery in the world, surpassing India’s Jamnagar Refinery.

He disclosed that the company had signed an agreement with its technology licensor to facilitate the upgrade, which is expected to be completed within three years.

Dangote expressed appreciation to President Bola Tinubu and the Federal Government for their policies promoting industrialisation, such as the Nigeria First, Naira-for-Crude, and One-Stop Shop initiatives. According to him, these measures have strengthened confidence in domestic refining and encouraged major investments in local production.

Despite ongoing crude supply challenges, he expressed optimism that the government would ensure adequate crude availability for the refinery. He also acknowledged the government’s intervention in resolving recent disruptions at the facility caused by union disputes and sabotage attempts.

Dangote stated that the expansion underscores the company’s confidence in Nigeria’s future and its vision for Africa’s energy independence.

“This is about believing in Nigeria, in Africa, and in our ability to define our own energy future,” he said.

The project is expected to create 65,000 construction jobs, with 85 per cent of the workforce to be Nigerians. It will also see an increase in power generation capacity from 500 megawatts to 1,000 megawatts and an expansion of polypropylene production from 900,000 metric tonnes to 2.4 million metric tonnes annually.

Dangote added that the refinery will transition from Euro V to Euro VI fuel standards, meeting the world’s highest environmental benchmarks and boosting local industrial opportunities.

Within the next year, the company plans to list 10 per cent of the refinery’s shares on the Nigerian Stock Exchange, a move aimed at promoting transparency and broader ownership.

He encouraged other refinery licence holders to support the government’s vision of making Nigeria the refining hub of Africa.

Dangote also assured Nigerians of steady fuel supply during the festive season, pledging to maintain stable prices and prevent shortages.

“We are committed to ensuring uninterrupted petrol supply across the country throughout the festive period,” he said.

Since commencing operations in 2024, the Dangote Refinery has significantly reduced Nigeria’s reliance on imported fuel and turned the country into an exporter of petroleum products to nations including Saudi Arabia and the United States.