Nigerian billionaire Aliko Dangote has announced ambitious plans to double the capacity of the $20 billion Dangote Oil Refinery to 1.4 million barrels per day (b/d). This expansion would make the Lagos facility the largest single-train refinery in the world, surpassing India’s 1.36 million b/d Jamnagar refinery.
Expansion Details and Financing
- Current Capacity: The existing Dangote Refinery and Petrochemicals complex has a capacity of 650,000 b/d. The site was reportedly designed with space to accommodate a second refining system, allowing for seamless expansion.
- Petrochemical Growth: The new investment will not only boost refining but also support petrochemical ventures, including the production of linear alkylbenzene and base oils, while increasing annual polypropylene output from one million to 1.5 million metric tonnes.
- Financing: Dangote is actively seeking new financing and potential partnerships with Middle Eastern investors to fund the massive expansion.
- Recent Funding: The company recently secured a $4 billion financing deal in August 2025, which helped strengthen its balance sheet and supports its wider expansion strategy.
Future Plans and Strategic Vision
The refinery, which began operations in 2024, currently meets about 80 per cent of Nigeria’s fuel demand and has made the country a net exporter of diesel and jet fuel.
- Stock Market Listing: Dangote also revealed plans to list between 5 per cent and 10 per cent of the refinery’s shares on the Nigerian Stock Exchange (NSE), following the model used for his cement and sugar businesses.
- Energy Independence: Dangote reaffirmed his commitment to driving Africa’s energy independence, stressing the necessity of private sector investment to sustain large-scale industrial growth and reduce the continent’s reliance on imported fuel.
