Dangote Group has unveiled an ambitious refinery expansion plan that will see its US$20 billion Lekki facility increase output to 1.4 million barrels per day within the next three years. This strategic move would make the Lagos-based refinery one of the largest single-site refining facilities in the world, significantly expanding its influence across the global energy landscape. The refinery, which began commercial operations in 2024, is already ramping toward its initial nameplate capacity of 650,000 barrels per day.
To support this transformation, the company plans to list between 5% and 10% of the refinery on the Nigerian Exchange, marking a historic shift from private ownership to partial public participation. This listing is expected to attract institutional investors, increase liquidity in the Nigerian capital market, and unlock fresh capital to fuel the expansion drive. The move signals confidence in the domestic financial market and underscores the refinery’s importance as a national strategic asset.
In tandem with the listing announcement, Dangote Group signed a $5 billion facility agreement with Afreximbank to co-finance the expansion project. This agreement follows a US$4 billion syndicated loan secured in August, including US$1.35 billion from Afreximbank, demonstrating strong institutional confidence in the refinery’s long-term viability. These financing arrangements are among the largest in African history and highlight the critical role multilateral financial institutions are playing in industrial transformation on the continent.
Once the expansion is complete, the refinery is projected to dramatically reduce Nigeria’s reliance on imported petroleum products. The country has long depended on fuel imports due to the underperformance of its state-owned refineries, resulting in heavy foreign exchange expenditure. The increased capacity is expected to stabilize domestic supply, reduce fuel costs, and position Nigeria as a major refining hub for West and Central Africa.
If the refinery successfully reaches its 1.4 million bpd target, it will become a cornerstone of regional energy security and a leading contributor to Africa’s industrial self-sufficiency. It would also place Nigeria at the center of global refining capacity growth, reinforcing Dangote Refinery as a flagship project for economic transformation, job creation, and infrastructure development across the continent.
