Faith Nyasuguta
Nigeria’s Dangote Group has signed a renewed $350 million agreement with Indian state-owned engineering firm Engineers India Ltd (EIL) to significantly expand the Dangote Refinery and Petrochemicals Complex in Lagos, a move expected to transform Nigeria’s energy sector and strengthen Africa’s industrial base.
The deal will see EIL support the expansion of the Lekki-based refinery, increasing its processing capacity from 650,000 barrels per day to an estimated 1.4 million barrels per day. Once completed, the project will position the Dangote facility among the largest single-location refinery and petrochemicals complexes in the world, further cementing its global significance.
Under the renewed contract, EIL will act as both Project Management Consultant (PMC) and Engineering, Procurement and Construction Management (EPCM) consultant. This mirrors the role the Indian firm played during the initial development of the refinery, which was officially commissioned in 2024 after years of construction.
Located in the Lekki Free Zone near Lagos, the Dangote Refinery is already a landmark project for Nigeria. Estimated to have cost about $19 billion, it ranks among the most expensive industrial developments ever undertaken in Africa. The complex was formally inaugurated in May 2023 and has since been ramping up operations in phases due to its size and technical complexity.
By early 2024, the refinery began producing diesel and aviation fuel, followed later by petrol. This marked a major turning point for Nigeria, which for decades relied heavily on imported refined petroleum products despite being Africa’s largest crude oil producer. The refinery’s output has already started easing fuel supply pressures and reducing the country’s import bill.
The existing facility is the world’s largest single-train refinery, producing Euro V-quality gasoline, diesel, jet fuel and polypropylene. With the planned expansion, Dangote Group aims not only to meet domestic demand but also to position Nigeria as a key exporter of refined fuels to West and Central Africa.
Beyond refining capacity, the expansion includes a major boost to petrochemical production. Dangote Group plans to increase polypropylene output from 830,000 tonnes per annum to 2.4 million tonnes per annum. This will be achieved by revamping the existing polypropylene unit and installing an additional 1.2 million-tonne-per-year unit, alongside a world-scale 750,000-tonne-per-year UOP Oleflex unit to strengthen propylene feedstock supply.
In a statement, EIL described the agreement as a strong endorsement of its long-standing partnership with Dangote Group. The company said it would deploy its decades of experience, multidisciplinary engineering strengths and global execution model to support the delivery of one of the world’s most advanced and fully integrated energy and petrochemicals complexes.
Dangote Group, Nigeria’s largest multinational conglomerate, has operations spanning oil and gas, petrochemicals, fertilisers, cement, sugar, mining and food processing. Active in 17 African countries, the Group is one of the continent’s largest private-sector employers and a central driver of industrial development.
Today, the Dangote Refinery sits at the heart of Nigeria’s energy transition ambitions. While challenges around crude oil supply, pricing mechanisms and regulatory frameworks remain, the facility has already begun reshaping the country’s downstream sector. Its expansion is expected to deepen Nigeria’s industrial capacity, cut reliance on fuel imports, and strengthen its role as a regional energy hub – showcasing the refinery’s broader importance for Africa’s economic and industrial future.
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