Nigeria’s Dangote Refinery is set to more than double its output to 1.4 million barrels per day (bpd), in a landmark expansion that will make it the largest oil refinery in the world, surpassing India’s Jamnagar Refinery.
Speaking at a press conference in Lagos on Sunday, Dangote Group President Aliko Dangote said the planned expansion underscores the company’s long-term confidence in Nigeria’s economy and its energy future.
“We are more than doubling the barrels… to 1.4 million from 650,000,” Dangote announced. “This will make it the largest refinery in the world, surpassing India’s Jamnagar Refinery.”
He added that the expansion reflects confidence in Nigeria, in Africa, and in our capacity to shape our own energy future.
Dangote praised the Federal Government for creating an enabling environment that has encouraged private investment in the downstream oil sector. He cited specific policy measures — including the Nigeria First Policy, the Naira-for-Crude Policy, and the One-Stop Shop Initiative — as instrumental in boosting investor confidence and removing bureaucratic bottlenecks in the industry.
He also lauded government efforts in mediating and resolving disruptions at the refinery caused by union disputes and alleged sabotage.
“The intervention was decisive and confidence-restoring,” Dangote said, noting that such stability is crucial for sustaining the refinery’s operations and expansion drive.
The refinery’s expansion project is expected to generate about 65,000 jobs during the construction phase alone, Dangote said, adding that local industries will benefit from new supply chain opportunities.
Beyond crude refining, the expansion will significantly enhance the country’s capacity in petrochemical production. The plant’s polypropylene output will increase from 900,000 metric tonnes to 2.4 million metric tonnes per annum, while new facilities will produce base oils and linear alkylbenzene, a key ingredient in detergent manufacturing.
According to the company, these additions will help establish Nigeria as a competitive player in the global chemicals and materials market, attracting investment and driving industrial growth.
With the year-end festive season approaching, Dangote assured Nigerians that there would be no fuel shortages or disruptions, despite recent fluctuations in global oil prices.
“For the first time in many years, Nigerians can look forward to a festive season free of fuel anxiety,” he said. “We are fully prepared to maintain consistent product flow and stable prices throughout the ember months.”
The refinery, which began phased production earlier in the year, is already refining diesel, aviation fuel, and kerosene, while petrol production for the domestic market is set to ramp up in the coming weeks.
Transformational Impact on Nigeria’s Economy
The planned expansion marks a major turning point in Nigeria’s decades-long struggle with fuel dependency. For years, Africa’s largest crude producer has relied on imported refined petroleum products due to the collapse of its state-owned refineries.
Once the expansion is completed, the 1.4 million bpd output could not only meet Nigeria’s domestic demand but also position the country as a net exporter of refined fuels, supplying West African markets and beyond.
Analysts say the refinery’s growth could save Nigeria billions of dollars in annual foreign exchange, ease pressure on the naira, and improve the country’s trade balance. It also aligns with the government’s push to localize energy processing and reduce the fiscal burden of fuel imports.
“When I said petroleum refining is not just about PMS, diesel and jet fuel, this is what I mean. As soon as the refinery adds a vacuum distillation unit, the RFOs (heavy distillates) will be processed into base oil, and the 300m liters of base oil imported into Nigeria yearly, for use in producing lubricants, will be a thing of the past,” energy expert, Kelvin Emmanuel, said.
The refinery’s expanded petrochemical capacity could become a key driver for Nigeria’s non-oil industrial base. Increased availability of polypropylene and base oils will support the domestic production of plastics, packaging materials, lubricants, and consumer goods, potentially reducing import dependence in these sectors.
Furthermore, the integration of linear alkylbenzene production is expected to boost Nigeria’s household goods manufacturing, strengthening industries such as detergents and cleaning products that rely heavily on imported inputs.
If the 1.4 million bpd target is achieved, Dangote’s facility will surpass India’s Jamnagar Refinery, owned by Reliance Industries, which has a refining capacity of around 1.24 million bpd. This would firmly place Nigeria on the global energy map as home to the largest single-site refinery complex.
The project also arrives at a time when several global refiners are cutting back on fossil fuel investments amid the energy transition. With the expansion, Nigeria now stands at the threshold of reshaping its energy narrative — from an oil exporter that imports fuel, to a refining and petrochemical powerhouse capable of supplying Africa and beyond.
