Aliko Dangote has revealed plans to double the
capacity of his $20 billion oil refinery in Lagos to 1.4 million barrels per
day (b/d), positioning it to become the world’s largest refining
facility. Speaking with S&P Global, the Nigerian billionaire
said the expansion—up from the current 650,000 b/d—will be supported by new
financing and partnerships with Middle Eastern investors.
The expansion would surpass India’s 1.36 million b/d
Jamnagar refinery, with engineers confirming that the Lekki complex was
originally designed to accommodate a second refining system. The project will
also boost petrochemical production, increasing polypropylene output to 1.5
million tonnes annually and adding new product lines such as linear
alkylbenzene and base oils.
Dangote Industries recently secured a $4 billion
financing deal to strengthen its balance sheet and fund new projects,
including a planned petrochemicals venture in China. The company also
plans to list 5–10% of the refinery’s shares on the Nigerian Stock Exchange
(NSE), while retaining majority ownership of 65–70%.
Despite operational challenges in 2025, the
refinery—now meeting around 80% of Nigeria’s fuel demand—continues to
stabilize. Dangote reaffirmed his goal of driving Africa’s energy
independence, stressing that private investment is crucial as most African
governments lack the capacity to build large-scale refineries due to high
interest rates and poor infrastructure.
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