Dangote Group to Build World’s Largest Single-Site Refinery with $350 Million Expansion
Nigeria’s Dangote Group has taken a major step toward transforming the country into a regional petroleum powerhouse by awarding a $350 million contract to Engineers India Limited to expand its Lekki refinery. The expansion will double the refinery’s current output to 1.4 million barrels per day, making it the world’s largest single-location refinery. The new deal includes a second processing train, fuel output upgrades to Euro VI standards, and a tripling of polypropylene production capacity to 2.4 million metric tons annually.
Engineers India, the Indian state-owned consultancy that managed the original 650,000-barrel-per-day complex, will serve as project management and engineering consultant for the expansion. Located in the Lekki Free Zone outside Lagos, the refinery currently holds the record as the world’s largest single-train facility. The company will oversee engineering, procurement, construction management, and commissioning for the new units, integrating them with the existing infrastructure while maintaining ongoing operations.
The expansion addresses Nigeria’s long-standing energy paradox: despite producing around 1.3 million barrels of crude oil daily, the country has historically imported most of its refined petroleum products. This dependence has strained foreign exchange reserves and contributed to fuel shortages. By increasing domestic refining capacity, the Dangote Group aims to reduce import reliance and stabilize the local market, creating surplus products for export to West African nations.
Aliko Dangote, Africa’s richest person and chairman of the Dangote Group, emphasizes the project’s strategic importance for Nigeria’s economic transformation. Beyond refining, the conglomerate operates across 17 African countries in sectors from cement to sugar and is a major private employer in West Africa. Analysts say the refinery expansion could reshape regional petroleum markets, while the upgrade to Euro VI fuels aligns with stricter global emissions standards.
The broader implications for Nigeria’s energy sector are significant. The government has pushed for local refining to lower fuel imports and ease political pressures tied to subsidies, which were removed in 2023. Meanwhile, Dangote’s ambitions extend beyond refining into upstream oil exploration and fertiliser production, cementing the Lekki complex as a cornerstone of Nigeria’s energy future. The $350 million investment marks the largest single capital commitment in the group’s energy portfolio to date.
source: Business day