The Dangote Group has taken a major step forward in expanding its refinery operations by signing a $350 million contract with Indian engineering firm Engineers India Limited (EIL) to help upgrade the Dangote Refinery and Petrochemicals Complex to a processing capacity of 1.4 million barrels per day (bpd). This move signals a significant investment in Nigeria’s energy infrastructure and continues the refinery’s trajectory toward becoming a global powerhouse in petroleum processing. 

The contract, which was disclosed in a joint statement by Engineers India Limited and Dangote Group, positions EIL as the Project Management Consultant (PMC) and the Engineering, Procurement, and Construction Management (EPCM) consultant for the refinery expansion project. EIL previously served in a similar capacity during the development of the original 650,000 bpd facility, which was first commissioned in 2024. 

Under the agreement, the refinery will add a second processing train to its existing infrastructure. When fully completed, the upgraded complex will nearly double its refining capacity from 650,000 bpd to 1.4 million bpd, making it one of the largest single-site refineries in the world. This expansion will also include the production of Euro VI-compliant fuels, aligning the refinery’s output with the latest global environmental standards. 

In addition to increased fuel output, the expansion plans include a significant scale-up of petrochemical production. The refinery’s polypropylene output is set to rise dramatically, from about 830,000 tonnes per annum (kTPA) to 2.4 million metric tonnes per annum (MMTPA) after revamping the existing unit and installing additional high-capacity production lines. A world-scale 750 kTPA Oleflex unit will also be added to boost propylene feedstock supply, further consolidating the refinery’s role in the petrochemical value chain. 

Strategic Importance of the Expansion

The planned upgrade represents more than just an increase in capacity. It reflects a broader effort to reduce Nigeria’s long-standing dependency on imported refined petroleum products, which has strained the country’s foreign exchange reserves and contributed to domestic fuel shortages for decades. By producing a larger volume of refined fuels locally, Dangote Refinery aims to strengthen regional energy security, support intra-African fuel trade, and reduce import bills. 

Once the expansion is complete, Dangote Refinery is expected to surpass even the famed Jamnagar Refinery in India, currently one of the largest in the world, positioning Nigeria as a central hub for refined petroleum and petrochemical products. EIL has described the project as one of “global significance,” citing confidence in its technical and project delivery expertise. 

The expansion contract aligns with previous announcements from Dangote Group’s leadership about listing a portion of the refinery on the Nigerian Exchange (NGX), offering investors an opportunity to share in the facility’s growth and profitability. The company has indicated that the investment will not only drive domestic industry growth but also attract international capital into Nigeria’s energy sector. 

Nigeria has historically relied on imported fuels despite being Africa’s largest crude oil producer. The Dangote Refinery, located in the Lekki Free Zone, was initially designed to change this dynamic, with production of petrol, diesel, and aviation fuel beginning following its commissioning in 2024. The new expansion further cements the refinery’s long-term role in reshaping the country’s energy landscape. 

In addition to crude refining and fuel output, the expanded facility is expected to enhance domestic petrochemical production, supporting industries such as plastics, automotive manufacturing, and packaging sectors that depend heavily on polypropylene and other derivatives. Analysts suggest that the upgrade will create thousands of jobs, bolster export potential, and generate significant revenue streams for both Dangote Group and the Nigerian economy.