• Targets $55bn annual revenue

Sopuruchi Onwuka

President of Dangote Industries Limited, Alhaji Aliko Dangote, has announced plans to expand the Dangote Petroleum Refinery from its current capacity of 650,000 barrels per day (bpd) to 1.4 million bpd.

He said the move is driven by rising regional demand for cleaner fuels, growing opportunities across Africa, and Nigeria’s evolving policy environment that now favours large-scale local refining.

Oracle Intelligence reports that the new capacity upgrade would further push the moribund refineries of the Nigerian National Petroleum Company (NNPC) Limited commercial difficulty if they ever return online.

An with 1.4 mbd capacity refinery operating at optimum capacity, Nigeria’s annual fiscal plans may have to alter from crude oil sales revenue to tax based petroleum income as government’s equity production in all operated ventures in the upstream petroleum industry may be absorbed into domestic crude supply obligation that would earn tons of Naira and little foreign exchange income to tame inflation.

Alhaji Dangote declared to journalists in Lagos Sunday that the expansion would be a demonstration of confidence in Nigeria’s future, Africa’s industrial potential, and the reforms of President Bola Ahmed Tinubu’s administration.

The $20 billion refinery, which is already the largest single-train facility in the world, will more than double its capacity within the next three years, making it the largest refining complex globally and a key driver of Africa’s industrial transformation.

Dangote said the expansion project reflects the company’s belief that Africa can achieve energy independence and transition from being a raw crude exporter to a refined products hub. He explained that the new phase of the project would be financed through a mix of cash flow, public listing, and strategic investors. When completed, the refinery is expected to surpass India’s Jamnagar Refinery and position Nigeria as a major refining centre in the global energy market.

He revealed that the refinery would also expand its polypropylene production capacity from 900,000 metric tonnes to 2.4 million metric tonnes per year, in addition to boosting the output of base oils and linear alkylbenzene used in detergent production.

With the expansion, the facility will move from producing Euro V to Euro VI fuel standards, meeting the world’s highest environmental benchmarks. Dangote added that the refinery’s power generation capacity will also be increased to 1,000 megawatts, guaranteeing self-sufficient operations.

According to him, more than 85 percent of the refinery’s workforce are Nigerians, and the company continues to invest heavily in skills development, safety, and technology transfer. He noted that the expansion would deepen industrial participation, create thousands of jobs, and enhance local value addition.

Dangote projected that the refinery’s total revenue could exceed $55 billion annually when the expansion is completed, making it one of the most valuable industrial assets on the African continent.

He reaffirmed plans to list a portion of the refinery’s shares on the Nigerian Exchange (NGX) within the next year, describing it as part of efforts to democratize ownership and allow Nigerians to participate directly in the company’s value creation.

“Our main listing will be here in Nigeria to give Nigerians value,” he said. “We want the Dangote Refinery to be the golden stock of the Exchange. Listing outside Nigeria is secondary.”

He praised President Tinubu’s economic reforms and industrial policies, including the Nigeria First, Naira-for-Crude, and One-Stop Shop initiatives, which he said have encouraged investors to commit to long-term projects. He also commended the Federal Government for intervening in resolving recent disruptions at the refinery, describing the move as evidence of strong collaboration between the public and private sectors.

Despite not yet recovering the investment made in the 650,000 bpd phase, Dangote said the group remains focused on long-term growth rather than short-term profit.

“Refining is a long-term business,” he said. “We are expanding because we believe in Africa. Without this refinery, Nigeria would still be burning scarce foreign reserves to import fuel.”

He assured Nigerians that there would be no fuel scarcity or price hikes during the festive season despite recent global oil price increases.

“In the last three days, global oil prices have risen by about eight percent,” he said. “But I want to assure Nigerians that the Dangote Refinery will maintain uninterrupted fuel supply throughout the festive period. For the first time in many years, Nigerians can look forward to a Christmas and New Year free of fuel anxiety.”

Dangote added that petrol prices in Nigeria remain among the lowest in West Africa, even as the refinery produces cleaner, higher-quality fuel that has eliminated the dumping of toxic products in the domestic market.

He expressed appreciation to the Federal and Lagos State Governments, the refinery’s host community in Lekki, and the company’s financial and technical partners for their continued support.

He called on other investors holding refinery licences to follow suit, urging collaboration in achieving President Tinubu’s vision of making Nigeria the refining hub of Africa. “This expansion is not just about capacity,” Dangote said. “It is about confidence — in our people, in our government, and in our continent. When Africa builds its own capacity, it builds its own destiny.”