Dangote Group has signed a contract valued at over $350 million with India’s state-owned Engineers India Limited (EIL) to oversee the expansion of its flagship refinery and petrochemicals complex in the Lekki Free Zone, Lagos.
Under the agreement, EIL will serve as Project Management Consultant (PMC) and Engineering, Procurement, and Construction Management (EPCM) consultant, replicating the role it played in delivering the original 650,000 barrels-per-day refinery commissioned in 2024.
The expansion will include the addition of a second processing train and a focus on producing Euro VI–compliant fuels, meeting global low-sulfur standards. In addition, the project will substantially scale up petrochemical output. Dangote plans to increase polypropylene production from 830,000 tons per year to 2.4 million tons by revamping its existing unit, installing a 1.2 million-ton new facility, and adding a 750,000-tonne UOP Oleflex unit to boost propylene feedstock supply.
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EIL stated that the renewed engagement reflects Dangote Group’s confidence in the firm’s technical and project delivery capabilities.
“Believing in EIL’s Engineering and Project Management excellence, Dangote Group has once again joined hands with EIL in this endeavor and has signed a Contract Agreement of value more than US $350 Million,” the company said. “Once completed, this expansion will position Dangote as the world’s largest petroleum refinery, strengthening fuel production within Africa, reducing reliance on imports, and supporting regional energy security.”
The Dangote Refinery and Petrochemicals Complex, one of Africa’s costliest industrial projects at an estimated $19 billion, has already achieved several milestones:
- 2019–2020: Groundbreaking and initial construction of the refinery began at the Lekki Free Zone, Lagos.
- May 2023: Official inauguration of the refinery after years of engineering and construction.
- Early 2024: Commencement of diesel and aviation fuel production as part of a phased ramp-up strategy.
- Mid-2024: Start of petrol production, marking Nigeria’s first substantial reduction in fuel import dependence despite being Africa’s largest crude oil producer.
- October 2025: Dangote disclosed plans to double the refinery’s capacity to 1.4 million barrels per day. EIL, having served as PMC and EPCM on the initial refinery, was invited to lead the expansion.
- December 2025: Dangote announced plans to list a 10% stake in the refinery on the Nigerian Exchange in 2026 and discussed future U.S. dollar dividend payouts to mitigate currency risk.
Expansion Plans and Regional Impact
The expansion to 1.4 million barrels per day would make Dangote Refinery the largest single-site refinery globally, surpassing India’s Jamnagar refinery. The project is expected to drastically reduce Nigeria’s dependence on imported refined products, strengthen West African energy security, and facilitate intra-African fuel trade.
Analysts note that as global fuel quality standards tighten, the refinery positions Nigeria as a key player in international energy markets.
Beyond refining, the expansion aims to bolster Nigeria’s petrochemical output. Polypropylene production will more than double, while the addition of the UOP Oleflex unit will secure sufficient propylene feedstock for downstream applications. The project also promises to generate thousands of direct and indirect jobs, providing a boost to local employment and skills development in Nigeria’s industrial sector.
Financing and Strategic Partnerships
Aliko Dangote is exploring financing options and potential partnerships with Middle Eastern investors to support the expansion. The 10% planned listing of the refinery on the Nigerian Exchange is part of broader efforts to mobilize investment while enabling access to global capital markets. Discussions are ongoing to allow future dividend payouts in U.S. dollars, providing investors with a hedge against currency volatility.
Once operational, the expanded refinery will cement Dangote Group’s leadership in Africa’s energy sector, making Nigeria a net exporter of refined petroleum products and a major supplier of petrochemicals across the continent. The combination of global engineering expertise through EIL, a phased expansion plan, and strategic financial measures underlines Dangote’s ambition to transform Africa’s energy infrastructure while creating long-term economic benefits for Nigeria and the broader region.