Lagos, Nigeria, In a landmark move set to reshape Nigeria’s energy sector, the Dangote Group has signed two major agreements totaling $750 million with global partners: China’s XCMG ($400 million) and India’s Engineers India Limited (EIL) ($350 million). The deals will significantly expand the group’s refinery and petrochemical operations, positioning Dangote as a dominant force in both the African and international markets.
The investment aims to nearly double the Dangote Refinery’s capacity, raising output from 650,000 barrels per day to 1.4 million barrels per day. This scale-up is expected to substantially reduce Nigeria’s dependence on imported fuel, enhance the country’s energy security, and support the government’s industrialization agenda.
Under the agreement, XCMG will supply advanced construction and heavy equipment for the expansion project. This includes machinery tailored to handle complex refinery operations efficiently, reflecting modern technological standards in global petrochemical construction. EIL, which played a central role in the refinery’s initial commissioning in 2024, will continue its partnership as the project management and engineering consultant, overseeing the development from design through execution.
The expanded refinery is not only expected to meet growing domestic fuel demand but will also diversify into high-value petrochemical products. Plans include production of polypropylene, urea, and Linear Alkyl Benzene (LAB), essential raw materials for plastics, fertilizers, and detergents. Analysts highlight that these products will open new revenue streams for Dangote Group and strengthen Nigeria’s position in regional and global supply chains.
Executives within Dangote Group describe the expansion as a “strategic milestone” that aligns with Africa’s broader industrial growth ambitions. The move is also expected to generate thousands of jobs during both construction and operational phases, contributing to local economic development.
Industry experts note that the refinery’s enhanced capacity and diversification could transform Nigeria into a regional hub for refined petroleum and petrochemical products. With global demand for these commodities rising, the Dangote Group’s strengthened capabilities position the company as a key driver of Africa’s industrial and energy future.
