The Dangote Refinery has announced plans to expand its capacity from 650,000 barrels per day (bpd) to 1.4 million bpd, making it the largest refinery in the world when completed.
The President of Dangote Group, Alhaji Aliko Dangote, made the announcement at a press briefing in Lagos on Sunday. Flanked by his friend, Mr Femi Otedola, Chairman of First Bank, Dangote said the construction work for the expansion would begin without delay.
“We are expanding the Dangote Petroleum Refinery from 650,000 barrels per day to 1.4 million barrels per day. Upon completion, this will make it the largest refinery in the world, surpassing the Jamnagar Refinery in India,” he said.
Dangote explained that 65,000 workers would be engaged during the construction phase, with 85 per cent of them being Nigerians, as part of efforts to boost local content and skill development. He added that the project is expected to be completed in three years.
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Below are 15 key takeaways from the announcement and broader expansion plan:
- Historic Expansion:
The refinery’s capacity will rise from 650,000 bpd to 1.4 million bpd, placing it ahead of India’s Jamnagar Refinery as the world’s largest single-train refinery. - Government Support:
Dangote expressed gratitude to President Bola Ahmed Tinubu and the Federal Government for supportive policies such as Nigeria’s First, Naira-for-Crude, and the One-Stop Shop initiative, which he said have strengthened industrialisation and local investment. - Policy Impact:
He credited these policies for driving growth in Nigeria’s downstream oil sector by promoting domestic refining and exports of petroleum products. - Crisis Resolution:
The Federal Government’s intervention was said to have been crucial in resolving recent disruptions linked to labour and operational challenges. - Vision Alignment:
The expansion aligns with President Tinubu’s economic vision of positioning Nigeria as a leading global supplier of refined petroleum products. - Economic Benefits:
The project is expected to save billions in foreign exchange, reduce fuel import dependence, and strengthen Nigeria’s energy security. - Job Creation:
About 65,000 jobs will be created during the construction phase, creating ripple effects across local industries and service providers. - Showcasing Africa’s Capability:
The expansion highlights Africa’s growing ability to build and operate large-scale industrial infrastructure, demonstrating regional self-sufficiency. - Petrochemical Growth:
Polypropylene production will increase from 900,000 metric tonnes to 2.4 million metric tonnes per annum, supporting sectors such as detergent and base oil manufacturing. - Environmental Standards:
The refinery will upgrade to Euro VI fuel standards, an improvement from the current Euro V specification, in line with global environmental benchmarks. - Energy Self-Sufficiency:
Power generation capacity will double from 500 megawatts to 1,000 megawatts, ensuring uninterrupted operations and grid independence. - Local Content Commitment:
Over 85% of the workforce will be Nigerian, with significant investment in training, technology transfer, and skill development. - Public Listing Plan:
Dangote confirmed that 10% of Dangote Refinery & Petrochemical shares will be listed on the Nigerian Stock Exchange by 2026 to encourage public ownership and transparency. - Fuel Supply Assurance:
He assured Nigerians of a stable fuel supply during the ember months despite global market volatility, promising an end to fuel scarcity and price hikes during the festive season. - Continental Vision:
Dangote urged holders of the other 30 refinery licenses in Nigeria to collaborate in making the country the refining hub of Africa, stating:
“When Africa builds its own capacity, it builds its own destiny.”