•Dangote says expanded refinery will guarantee energy security; Afreximbank foresees expansion will halve petroleum prices in West Africa with expansion 

•Commends Tinubu’s industry- friendly policies 

•Company to increase power generation output to 1,000mw

James Emejo in Abuja and Peter Uzoho, Dike Onwuamaeze 

Africa’s richest man and President of Dangote Industries Limited, Alhaji Aliko Dangote, has projected that the revenue from his 650,000 barrels per day petroleum refinery in Lagos can exceed $55 billion annually, making it one of the most valuable industrial assets on the continent.

The assertion came as new Afreximbank President, George Elombi, announced that the bank was considering another $5 billion expansion credit to the refinery.

Dangote, who welcomed the proposed fresh capital injection reportedly committed by Afreximbank, said the expansion of the refinery will  guarantee energy security in the region.

While Afreximbank  believes the expansion will reduce by half petroleum prices in West Africa.

The development was also expected to resolve some of the macroeconomic challenges currently facing member countries.

The announcement came just as the refinery 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. Dangote disclosed this yesterday in Lagos during a press conference, immediately after his meeting with the technology partners from abroad. 

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 demonstrated strong confidence in Nigeria’s economic future and Africa’s capacity for industrial transformation.

He stated, “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 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, stating that much of the groundwork had already been prepared during the initial refinery construction.

He said, “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.

He said, “At 650,000 barrels a day, you struggle to get feedstock.” He added, “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.

Dangote said, “It’s like Ghana saying they want to process all their cocoa, and someone saying they will still export the raw beans.”

He 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 others.

Dangote added that 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.

He said 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,” he added.

He further revealed that the plant’s power generation capacity will increase from 500 megawatts to 1,000mw, 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, stating that competition will strengthen the sector.

He said, “Once we touch the government refineries, there is a lot of noise.”

Dangote stated, “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.”

When asked if he would be willing to buy off the four refineries owned by the Nigerian National Petroleum Company Limited (NNPC) and turn them around instead of building new one, Dangote declined taking such business decision.

He said he wanted to focus on his own and allow other investors to take such opportunity, saying some companies are already in talks with NNPC to revive dormant refineries under partnership models.

Dangote said, “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.”

As part of its long-term strategy, Dangote reconfirmed 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.

He said, “We want to give all Nigerians the opportunity of owning part of the refinery. 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 seasons.

“For the first time in many years, Nigerians can look forward to a festive season free of fuel anxiety,” he said, adding, “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”.

He said, “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, adding “Together, we’re building a stronger Nigeria and redefining what is possible for Africa.”

Highlighting the economic impact of the project, Dangote said the expansion would further strengthen Nigeria’s energy security, reduce foreign exchange outflows, and save the country billions of dollars annually that would otherwise have gone into importing refined products.

According to him, the expansion reflects the group’s belief in Africa’s potential to achieve energy security and transform its economy from being an exporter of raw crude to a hub for refined petroleum products.

Dangote revealed that the expansion project would be executed over the next three years and would be financed through a mix of cash flow, public listing, and strategic investors.

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