Dangote Refinery Signs Deal with Technology Licensor to Raise Capacity to 1.4m bpd in Three Years
Dangote Refinery Signs Deal with Technology Licensor to Raise Capacity to 1.4m bpd in Three Years
*Reiterates listing on NGX next year
Peter Uzoho
Dangote Petroleum Refinery LFZ, has signed an agreement with its technology licensor to begin an expansion project that would raise the plant’s production capacity from the current 650,000 barrels per day to 1.4 million bpd within the next three years.
President of Dangote Petroleun Refinery and Petrochemical, Alhaji Aliko Dangote disclosed this Sunday in Lagos during a press conference, immediately after his meeting with the technology partners from abroad.
The disclosure confirmed recent THISDAY exclusive on the capacity expansion plan of the refinery.
The latest move will make the Nigerian oil refiner the world’s biggest refinery, displacing Reliance refinery in Jamnagar, India, which has 1.36 million bpd capacity.
Dangote said the decision demonstrates strong confidence in Nigeria’s economic future and Africa’s capacity for industrial transformation.
“The key announcement today is that we are expanding the Dangote Refinery. We are announcing it officially. We are expanding the Dangote refinery from 650,000 barrels per day to 1.4 million barrels per day.
“Actually, we are even a bit late because we had to sign the agreement with the technology licensor, which we are actually expanding in this moment. We have been doing that since 8 o’clock. So, upon completion of this, this will make it the largest refinery in the world ever”, Dangote said.
He added that the project aligned with President Bola Tinubu’s vision to make Nigeria one of the major exporters of refined petroleum products in Africa and beyond.
“This expansion reflects our confidence in Nigeria’s future, our belief in Africa’s potential, and our commitment to building energy independence for our continent and the world,” he said.
Responding to questions from journalists, Dangote confirmed that the expansion was scheduled for completion within three years, noting that much of the groundwork had already been prepared during the initial refinery construction.
“Timeline, we are looking at three years. This time, it will take us much less time than before because we already have the infrastructure, the port, the SPM (Single Point Mooring facility), the land. We don’t have to raise the land or dredge again.
Although he declined to disclose the exact investment figures for the new expansion, Dangote assured that the project had been costed internally.
The original 650,000 bpd refinery reportedly cost around $20 billion.
“We have our own costing, and we know what it will cost us,” he said.
Dangote explained that the new development would replicate an additional processing line within the existing complex, allowing for continuous production even during maintenance shutdowns.
“By replicating another line, it has given us a guarantee. Even if you are going to shut down for 40 days, it means that at least 50 percent of the refinery will still work,” he explained.
Asked about feedstock availability, Dangote acknowledged that securing crude oil had previously posed challenges but expressed optimism that new government policies would ensure a consistent domestic supply.
“At 650,000 barrels a day, you struggle to get feedstock,” he admitted. “But the President now has a clear policy. I’m sure the government will not sit back and allow our crude to go abroad while refineries here are idle.”
He likened the situation to Ghana’s cocoa processing industry, stressing that it would be counterproductive for Nigeria to export crude while importing refined products.
“It’s like Ghana saying they want to process all their cocoa, and someone saying they will still export the raw beans,” Dangote said. “I’m sure things will change, and they are already changing with Mr. President’s policy.”
Nigeria’s current crude production hovers around 1.8 million bpd, but Dangote said the government’s target of 2.4 million bpd would ensure enough supply for both local refiners and exports.
The expansion will create over 65,000 jobs during construction and double polypropylene production from 900,000 metric tonnes to 2.4 million tonnes annually.
The refinery will also transition from producing Euro 5 fuels to Euro 6 standards, meeting the world’s highest environmental benchmark.
“Over 85 percent of our workforce will be Nigerian, with ongoing investment in skills and technology transfer,” Dangote said. “Our goal has never been just to refine oil, but to refine opportunities for our people.”
The plant’s power generation capacity will also increase from 500 megawatts to 1,000 megawatts, ensuring energy reliability for operations and nearby industries.
Dangote called on other investors to participate in the federal government’s drive to expand local refining capacity, noting that competition will strengthen the sector.
“Once we touch the government refineries, there is a lot of noise,” he said. “There are other people with a lot of money, maybe more cash than we have. They should go and buy or build their own refineries so that there won’t be talk about monopoly.”
He added that some companies were already in talks with the Nigerian National Petroleum Company (NNPC) Limited to revive dormant refineries under partnership models.
“All of us must contribute our quota to achieve a $1 trillion economy. It doesn’t come easy. We are doing our own, and I believe others should do theirs,” Dangote said.
As part of its long-term strategy, Dangote confirmed plans to list the refinery and petrochemical complex on the Nigerian Exchange (NGX) within the next year to allow Nigerians to own shares in the facility.
“We want to give all Nigerians the opportunity of owning part of the refinery,” he said. “This refinery should belong to all Nigerians.”
He also assured that the refinery would help stabilise fuel availability and pricing across the country, especially during the festive season.
“For the first time in many years, Nigerians can look forward to a festive season free of fuel anxiety,” he said. “With this refinery, we’ve had stable pricing and great quality.”
Dangote thanked the federal and Lagos State governments, the host community, and financial partners for their support, describing the expansion as “a testament to confidence in Nigeria’s leadership and potential.”
“This expansion is not just about increasing capacity; it’s about confidence in our people, in the leadership of our country, and our continent,” he said. “Together, we’re building a stronger Nigeria and redefining what is possible for Africa.”
*Reiterates listing on NGX next year Peter Uzoho Dangote Petroleum Refinery LFZ, has signed an agreement with its technology licensor to begin an expansion project that would raise the plant’s
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