Amanze Chinonye
Africa’s foremost industrialist, Aliko Dangote, has announced plans to expand his Lagos-based petroleum refinery from its current 650,000 barrels per day (bpd) capacity to 1.4 million bpd within three years, a move set to make it the world’s largest single-site refining facility.
Dangote revealed that the multi-billion-dollar expansion will be financed through a combination of internal funds and strategic investments, with preparations underway to list the refinery on the Nigerian Exchange by 2026.
The public offering, according to the company, is aimed at broadening ownership, attracting institutional investors, and deepening the Nigerian capital market.
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The refinery’s upgrade will see significant enhancements, including an increase in power generation capacity from 500 megawatts to 1,000 megawatts and a transition from Euro V to Euro VI fuel standards, aligning with global best practices for cleaner energy production.
In addition, petrochemical output is expected to expand substantially, with polypropylene production projected to rise from around 900,000 to 2.4 million tonnes annually.
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Once completed, the facility’s 1.4 million bpd output will surpass that of India’s Jamnagar Refinery, currently the world’s largest at 1.36 million bpd, positioning Nigeria as a major force in the global downstream oil market.
Dangote emphasised that the expansion aligns with President Bola Tinubu’s economic agenda to achieve energy security and industrial self-sufficiency, while also boosting export revenues and domestic employment.
The project is projected to create over 65,000 jobs, with about 85 per cent expected to be filled by Nigerians.
At present, the Dangote Refinery operates below its initial nameplate capacity of 650,000 bpd, owing to crude supply limitations and ongoing technical modifications. However, officials insist that the facility will soon ramp up production to meet Nigeria’s fuel demands and export surplus products to regional and global markets.
Industry analysts say the refinery’s planned expansion and stock market listing could redefine Nigeria’s oil sector by reducing dependence on imported fuels, attracting foreign investment, and establishing the country as a net exporter of refined petroleum products.
If realised, the project will mark a new phase in Nigeria’s industrialisation drive, cementing Dangote’s position as a pivotal player in Africa’s energy transformation.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
