The renewed agreement covers project management consultancy (PMC) as well as engineering, procurement and construction management (EPCM) services for the expansion, mirroring EIL’s responsibilities during the refinery’s initial development. The refinery’s first phase was commissioned in 2024.
The expansion plan centres on the addition of a second processing train, which will lift total refining capacity from 650,000 barrels per day to about 1.4 million barrels per day. Production from the expanded facility is expected to focus on Euro VI–compliant fuels, aligning with increasingly stringent global emissions standards.
Once completed, the enlarged complex is expected to rank among the world’s largest single-site refinery and petrochemicals facilities, further cementing its strategic importance within global energy and downstream markets.
Project Scale and Operations
Located in the Lekki Free Zone, the Dangote Refinery is estimated to have cost approximately $19 billion, making it one of the most capital-intensive industrial projects in Africa’s history. Officially inaugurated in May 2023, the facility has been ramping up operations in phases, reflecting the scale and technical complexity of the project.
By early 2024, the refinery began producing diesel and aviation fuel, with petrol production following later. This marked a significant shift for Nigeria, which despite being Africa’s largest crude oil producer, has historically relied heavily on imported refined fuels.
The existing 650,000-barrel-per-day integrated refinery and petrochemicals complex is already recognised as the world’s largest single-train refinery, producing Euro V-quality gasoline, diesel, jet fuel and polypropylene.
Petrochemicals Expansion
In parallel with the refining expansion, Dangote Group is scaling up its petrochemicals operations. Plans include increasing polypropylene capacity from 830,000 tonnes per annum to 2.4 million tonnes per annum through the revamp of an existing polypropylene unit and the installation of an additional 1.2 million-tonne unit. The programme also includes a world-scale 750,000-tonne-per-annum UOP Oleflex unit to boost propylene feedstock supply.
Announcing the agreement, EIL said the contract reaffirmed Dangote Group’s confidence in its ability to deliver projects of exceptional size and complexity. The company noted that it would deploy its decades of experience, multidisciplinary expertise and global execution model to support the development of what is envisioned as one of the world’s most advanced integrated energy complexes.
Regional and Continental Significance
Dangote Group remains Nigeria’s largest multinational conglomerate and one of Africa’s most influential industrial groups, with interests spanning oil and gas, petrochemicals, fertilisers, cement, sugar and food processing across 17 African countries.
At the centre of Nigeria’s evolving energy landscape, the Dangote Refinery has begun easing domestic fuel shortages and reducing reliance on imports. Despite ongoing challenges related to crude supply, pricing and regulation, the facility is increasingly viewed as a potential hub for refined fuel exports across West and Central Africa, underscoring its broader role in the continent’s industrial and energy transformation.