Dangote Refinery Sets Global Record: Begins Expansion to 1.4 Million Barrels Per Day
Detailed Breakdown:
The Dangote Refinery, which began operations in 2024, has officially commenced construction for its expansion — increasing its refining capacity from 650,000 barrels per day (bpd) to an impressive 1.4 million bpd.
This new phase, announced by Aliko Dangote, President of the Dangote Group, at a press briefing in Lagos, will make the refinery the largest in the world, surpassing India’s Jamnagar Refinery. Dangote made this announcement alongside his longtime associate, Femi Otedola, Chairman of First Bank.
1. Expansion Overview
Dangote revealed that the company had already signed an agreement with a technology licensor to kick-start the expansion.
• The expansion is expected to be completed within three years.
• Once finished, Nigeria will boast the largest single-train refinery globally.
• The project will also double the refinery’s power generation capacity from 500 megawatts (MW) to 1,000 MW.
2. Government Support and Industrial Policy
Dangote expressed deep appreciation to President Bola Tinubu and the Federal Government for their continued support of local industrialisation.
He specifically praised policies such as:
• Nigeria First Policy – which prioritises local industries.
• Naira-for-Crude Policy – promoting domestic crude transactions.
• One-Stop Shop Policy – streamlining regulatory processes for investors.
According to him, these policies have provided a “revolutionary boost” to the downstream oil sector and encouraged the Group to take on this expansion project.
3. Economic and Social Impact
The expansion will create 65,000 jobs, with 85% of the workforce being Nigerians, thereby boosting local employment and skill development.
Beyond refining crude, the refinery will also expand its polypropylene production capacity from 900,000 metric tonnes to 2.4 million metric tonnes per annum.
This will strengthen the production of key petrochemical products such as linear alkylbenzene (for detergents) and base oils (for lubricants).
4. Environmental Standards and Technological Advancements
The upgraded refinery will transition from producing Euro V to Euro VI fuel — meeting the highest global environmental standards.
This shift ensures cleaner energy output and positions Nigeria as a leader in sustainable fuel production.
5. Strengthening Energy Independence
Dangote emphasised that this expansion reflects confidence in Nigeria’s economic potential and Africa’s future.
He reiterated that the refinery’s goal is to:
• Reduce fuel imports and conserve foreign exchange.
• Boost regional supply of refined petroleum products.
• Enhance Nigeria’s energy security and export potential.
6. Listing on the Nigerian Stock Exchange
In a strategic move towards public participation and transparency, Dangote announced plans to list 10% of the refinery’s shares on the Nigerian Stock Exchange (NGX) within the next year.
He described this as a “golden opportunity” for Nigerians to become part-owners of one of Africa’s most transformative energy projects.
7. Assurances to Nigerians
Addressing concerns about fuel scarcity during the festive season, Dangote assured citizens that the refinery will maintain steady petrol supply throughout the Yuletide period, preventing the usual price hikes and long queues.
He noted that despite global oil price fluctuations, Dangote Refinery is committed to ensuring stable and uninterrupted fuel availability.
8. Call to Other Investors
In closing, Dangote urged holders of the remaining 30 refinery licenses in Nigeria to “rise to the challenge” and support President Tinubu’s dream of turning Nigeria into Africa’s refining hub.
9. Broader Context
Since beginning operations in 2024, the Dangote Refinery has already reduced Nigeria’s dependence on imported fuel and positioned the country as a net exporter of refined petroleum products to nations including Saudi Arabia and the United States.
In Summary:
The Dangote Refinery’s expansion marks a historic milestone for Nigeria — not only setting a global record but also signalling a bold leap toward energy independence, industrial growth, and economic diversification.
With massive local employment, environmental upgrades, and a public listing on the horizon, this expansion underscores Nigeria’s rising influence in the global oil and gas market.
Detailed Breakdown:
The Dangote Refinery, which began operations in 2024, has officially commenced construction for its expansion — increasing its refining capacity from 650,000 barrels per day (bpd) to an impressive 1.4 million bpd.
This new phase, announced by Aliko Dangote, President of the Dangote Group, at a press briefing in Lagos, will make the refinery the largest in the world, surpassing India’s Jamnagar Refinery. Dangote made this announcement alongside his longtime associate, Femi Otedola, Chairman of First Bank.
1. Expansion Overview
Dangote revealed that the company had already signed an agreement with a technology licensor to kick-start the expansion.
• The expansion is expected to be completed within three years.
• Once finished, Nigeria will boast the largest single-train refinery globally.
• The project will also double the refinery’s power generation capacity from 500 megawatts (MW) to 1,000 MW.
2. Government Support and Industrial Policy
Dangote expressed deep appreciation to President Bola Tinubu and the Federal Government for their continued support of local industrialisation.
He specifically praised policies such as:
• Nigeria First Policy – which prioritises local industries.
• Naira-for-Crude Policy – promoting domestic crude transactions.
• One-Stop Shop Policy – streamlining regulatory processes for investors.
According to him, these policies have provided a “revolutionary boost” to the downstream oil sector and encouraged the Group to take on this expansion project.
3. Economic and Social Impact
The expansion will create 65,000 jobs, with 85% of the workforce being Nigerians, thereby boosting local employment and skill development.
Beyond refining crude, the refinery will also expand its polypropylene production capacity from 900,000 metric tonnes to 2.4 million metric tonnes per annum.
This will strengthen the production of key petrochemical products such as linear alkylbenzene (for detergents) and base oils (for lubricants).
4. Environmental Standards and Technological Advancements
The upgraded refinery will transition from producing Euro V to Euro VI fuel — meeting the highest global environmental standards.
This shift ensures cleaner energy output and positions Nigeria as a leader in sustainable fuel production.
5. Strengthening Energy Independence
Dangote emphasised that this expansion reflects confidence in Nigeria’s economic potential and Africa’s future.
He reiterated that the refinery’s goal is to:
• Reduce fuel imports and conserve foreign exchange.
• Boost regional supply of refined petroleum products.
• Enhance Nigeria’s energy security and export potential.
6. Listing on the Nigerian Stock Exchange
In a strategic move towards public participation and transparency, Dangote announced plans to list 10% of the refinery’s shares on the Nigerian Stock Exchange (NGX) within the next year.
He described this as a “golden opportunity” for Nigerians to become part-owners of one of Africa’s most transformative energy projects.
7. Assurances to Nigerians
Addressing concerns about fuel scarcity during the festive season, Dangote assured citizens that the refinery will maintain steady petrol supply throughout the Yuletide period, preventing the usual price hikes and long queues.
He noted that despite global oil price fluctuations, Dangote Refinery is committed to ensuring stable and uninterrupted fuel availability.
8. Call to Other Investors
In closing, Dangote urged holders of the remaining 30 refinery licenses in Nigeria to “rise to the challenge” and support President Tinubu’s dream of turning Nigeria into Africa’s refining hub.
9. Broader Context
Since beginning operations in 2024, the Dangote Refinery has already reduced Nigeria’s dependence on imported fuel and positioned the country as a net exporter of refined petroleum products to nations including Saudi Arabia and the United States.
In Summary:
The Dangote Refinery’s expansion marks a historic milestone for Nigeria — not only setting a global record but also signalling a bold leap toward energy independence, industrial growth, and economic diversification.
With massive local employment, environmental upgrades, and a public listing on the horizon, this expansion underscores Nigeria’s rising influence in the global oil and gas market.