Dangote Signs $400m Equipment Deal to Double Refinery Capacity to 1.4m bpd
The Big Move
Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd..
The deal is aimed at fast-tracking the expansion of the:
Dangote Petroleum Refinery & Petrochemicals
from 650,000 barrels per day (bpd) to 1.4 million bpd.
If completed as planned, the refinery will become the largest in the world.
️ What the $400m Deal Covers
The agreement allows Dangote to acquire:
• Advanced construction machinery
• Heavy-duty infrastructure equipment
• Additional assets to support refinery and petrochemical expansion
• Equipment for agriculture and large-scale infrastructure projects
The new equipment will complement existing assets deployed at the refinery site.
Timeline: Expansion expected to be completed within three years.
️ Refinery Expansion: What Changes?
Current Capacity:
• 650,000 bpd
Target Capacity:
• 1.4 million bpd
This would:
• Significantly boost Nigeria’s refining capacity
• Reduce reliance on fuel imports
• Increase export potential
Beyond Refining: Massive Industrial Scale-Up
The expansion goes beyond crude refining.
Polypropylene Production
• From 900,000 metric tonnes per annum
• To 2.4 million metric tonnes per annum
This strengthens supply to plastics and manufacturing industries.
Urea Production
• Nigeria capacity: From 3 million to 9 million metric tonnes per annum
• Ethiopia capacity: 3 million metric tonnes per annum
This cements Dangote’s position as:
The largest urea producer globally
Linear Alkyl Benzene (LAB)
• Capacity increasing to 400,000 metric tonnes per annum
• Positions Dangote as the largest producer in Africa
• Supports detergent and cleaning product manufacturers
️ Base Oil Production
Additional base oil capacity will also form part of the expansion programme.
Strategic Vision: $100bn Enterprise by 2030
Dangote described the agreement as a strategic step toward:
• Deepening its construction footprint
• Accelerating project execution
• Supporting multi-sector expansion
• Achieving its ambition of becoming a $100 billion enterprise by 2030
The Group also stated it aims to become:
“The number one construction company in the world.”
Economic Implications
Energy Security
Expanded refining capacity reduces foreign exchange pressure from fuel imports.
Industrialisation Boost
Higher petrochemical and fertilizer output supports agriculture and manufacturing.
Export Earnings
Surplus production could strengthen Nigeria’s non-oil export profile.
Job Creation
Large-scale infrastructure and industrial expansion typically generate employment across value chains.
InvestingPort Insight
This is not just a refinery upgrade — it is a scale transformation.
By doubling refining capacity and tripling urea production, Dangote is:
Deepening vertical integration
Strengthening Africa’s industrial base
Expanding export competitiveness
Positioning Nigeria as a global refining hub
However, long-term impact will depend on:
• Crude supply consistency
• Pricing competitiveness
• Infrastructure stability
• Global oil demand dynamics
If execution stays on schedule, this expansion could redefine Africa’s energy and petrochemical landscape.
The Big Move
Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd..
The deal is aimed at fast-tracking the expansion of the:
Dangote Petroleum Refinery & Petrochemicals
from 650,000 barrels per day (bpd) to 1.4 million bpd.
If completed as planned, the refinery will become the largest in the world.
️ What the $400m Deal Covers
The agreement allows Dangote to acquire:
• Advanced construction machinery
• Heavy-duty infrastructure equipment
• Additional assets to support refinery and petrochemical expansion
• Equipment for agriculture and large-scale infrastructure projects
The new equipment will complement existing assets deployed at the refinery site.
Timeline: Expansion expected to be completed within three years.️ Refinery Expansion: What Changes?
Current Capacity:
• 650,000 bpd
Target Capacity:
• 1.4 million bpd
This would:
• Significantly boost Nigeria’s refining capacity
• Reduce reliance on fuel imports
• Increase export potential
Beyond Refining: Massive Industrial Scale-Up
The expansion goes beyond crude refining.
Polypropylene Production
• From 900,000 metric tonnes per annum
• To 2.4 million metric tonnes per annum
This strengthens supply to plastics and manufacturing industries.
Urea Production
• Nigeria capacity: From 3 million to 9 million metric tonnes per annum
• Ethiopia capacity: 3 million metric tonnes per annum
This cements Dangote’s position as:
The largest urea producer globally
Linear Alkyl Benzene (LAB)
• Capacity increasing to 400,000 metric tonnes per annum
• Positions Dangote as the largest producer in Africa
• Supports detergent and cleaning product manufacturers
️ Base Oil Production
Additional base oil capacity will also form part of the expansion programme.
Strategic Vision: $100bn Enterprise by 2030
Dangote described the agreement as a strategic step toward:
• Deepening its construction footprint
• Accelerating project execution
• Supporting multi-sector expansion
• Achieving its ambition of becoming a $100 billion enterprise by 2030
The Group also stated it aims to become:
“The number one construction company in the world.”
Economic Implications
Energy SecurityExpanded refining capacity reduces foreign exchange pressure from fuel imports.
Industrialisation BoostHigher petrochemical and fertilizer output supports agriculture and manufacturing.
Export EarningsSurplus production could strengthen Nigeria’s non-oil export profile.
Job CreationLarge-scale infrastructure and industrial expansion typically generate employment across value chains.
InvestingPort Insight
This is not just a refinery upgrade — it is a scale transformation.
By doubling refining capacity and tripling urea production, Dangote is:
Deepening vertical integration Strengthening Africa’s industrial base Expanding export competitiveness Positioning Nigeria as a global refining hubHowever, long-term impact will depend on:
• Crude supply consistency
• Pricing competitiveness
• Infrastructure stability
• Global oil demand dynamics
If execution stays on schedule, this expansion could redefine Africa’s energy and petrochemical landscape.