Dangote Group has entered into a contract valued at more than $350 million with Engineers India Limited (EIL) for the expansion of its Lekki-based refinery, a move that will significantly increase Nigeria’s refining capacity and deepen its role in global energy markets.
The agreement, disclosed by EIL, appoints the Indian state-owned engineering firm as both Project Management Consultant (PMC) and Engineering, Procurement and Construction Management (EPCM) consultant for the upgrade of the Dangote Refinery and Petrochemicals Complex.
EIL previously served in the same capacity during the construction of the existing 650,000 barrels-per-day (bpd) refinery, which was commissioned in 2024.
Expansion to 1.4 Million Barrels Per Day
The new phase of development will involve the installation of a second processing train, lifting total refining capacity to 1.4 million barrels per day.
The expansion is designed to focus on the production of Euro VI–compliant fuels, aligning output with increasingly stringent global fuel quality standards.
Once completed, the Dangote Refinery is expected to overtake India’s 1.36 million bpd Jamnagar refinery, becoming the largest single-site petroleum refinery in the world.
According to EIL, the renewed partnership reflects Dangote Group’s confidence in the company’s engineering expertise and global project delivery track record.
Major Petrochemical Capacity Upgrade
Beyond refining, the project includes a substantial scale-up of petrochemical production.
Dangote plans to raise polypropylene output from 830,000 tonnes per annum to 2.4 million tonnes per annum.
This will be achieved through:
- The revamp of the existing polypropylene unit
- Installation of a new 1.2 million-tonne polypropylene unit
- Addition of a 750,000-tonne UOP Oleflex unit to boost propylene feedstock supply
The expanded petrochemical capacity is expected to strengthen Nigeria’s position in plastics and industrial materials manufacturing, reducing reliance on imports and supporting downstream industries.
Strategic Importance for Nigeria and Africa
Located in the Lekki Free Zone, the Dangote Refinery and Petrochemicals Complex is estimated to have cost around $19 billion, making it one of the largest and most capital-intensive industrial projects in Africa.
The facility was inaugurated in May 2023 and has been ramping up production in phases. By early 2024, it began producing diesel and aviation fuel, followed later by petrol—marking a major milestone for Nigeria, which has historically depended on imported refined petroleum products despite being Africa’s largest crude oil producer.
The planned expansion is expected to:
- Significantly reduce Nigeria’s fuel import bill
- Enhance energy security across West Africa
- Support intra-African fuel trade
- Position Nigeria as a global refining and petrochemical hub
Financing and Future Plans
Dangote Group Chairman Aliko Dangote has previously confirmed plans to double the refinery’s capacity, noting that the company is exploring new financing options and potential partnerships, including with Middle Eastern investors.
In December 2025, Dangote also announced plans to list a 10% stake in the refinery on the Nigerian Exchange in 2026, while discussions continue with regulators on enabling US dollar-denominated dividend payouts to attract foreign investors and hedge against currency volatility.
What This Means
The $350 million expansion contract marks a turning point for Nigeria’s oil and gas industry and strengthens Dangote Refinery’s position in the global energy market.
First, expanding capacity to 1.4 million barrels per day significantly reduces Nigeria’s dependence on imported refined petroleum products. For decades, Africa’s largest crude oil producer has relied on foreign refineries for petrol, diesel, and aviation fuel.
This expansion moves Nigeria closer to fuel self-sufficiency and helps conserve foreign exchange.
Second, the upgrade enhances regional energy security.
With increased output, Dangote Refinery is positioned to become a major supplier of refined fuels across West and Central Africa, supporting intra-African trade under the African Continental Free Trade Area (AfCFTA).
Third, the focus on Euro VI–compliant fuels aligns Nigeria with global environmental and fuel-quality standards.
This improves export competitiveness, allows access to premium international markets, and reduces vehicle emissions domestically.
Fourth, the large-scale petrochemical expansion—particularly the tripling of polypropylene production—creates opportunities for downstream manufacturing.
Industries such as packaging, textiles, automotive components, and consumer goods stand to benefit from cheaper and more reliable local raw materials.
Finally, the project strengthens Nigeria’s status as a global refining hub.
Once completed, the Dangote Refinery is expected to become the largest single-site refinery in the world, elevating Nigeria’s influence in global energy supply chains and making the country more attractive to foreign investors.
In summary, the expansion is not just about scale—it represents a structural shift in Nigeria’s energy economy, with long-term implications for trade, industrialization, foreign exchange stability, and economic growth.
Looking Ahead
With EIL’s involvement and Dangote Group’s aggressive expansion strategy, the refinery’s upgrade represents a new phase in the evolution of Africa’s largest industrial project—one with global implications for fuel supply, trade, and energy security.
