Move Positions Lagos-Based Facility to Become World’s Largest as Industrial Capacity Scales Sharply….
Dangote Group has sealed a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd., a deal designed to fast-track the massive expansion of the Dangote Petroleum Refinery & Petrochemicals.
The agreement will support the refinery’s scale-up from 650,000 barrels per day to 1.4 million barrels per day, a leap that would position the facility as the largest refinery in the world once completed.
Three-Year Expansion Plan
The newly acquired fleet of advanced construction machinery will be deployed across ongoing and upcoming projects spanning refining, petrochemicals, agriculture, and large-scale infrastructure development.
According to the Group, the equipment will complement assets already on ground as work intensifies on the refinery expansion, which is expected to be completed within three years.
The refinery, widely regarded as one of Africa’s most ambitious industrial projects, is central to the conglomerate’s strategy of deepening domestic value addition and reducing reliance on imports.
Massive Boost to Petrochemicals and Fertiliser Output
Beyond crude processing capacity, the expansion will dramatically increase output across multiple industrial value chains:
- Polypropylene production will rise from 900,000 metric tonnes per annum (MTPA) to 2.4 million MTPA.
- Urea production in Nigeria will triple from 3 million to 9 million MTPA, in addition to 3 million MTPA capacity in Ethiopia consolidating the Group’s standing as the world’s largest urea producer.
- Linear Alkyl Benzene (LAB) capacity will expand to 400,000 MTPA, making Dangote the largest LAB producer in Africa and strengthening supply to detergent and cleaning product manufacturers.
- Additional base oil capacity also forms part of the broader industrial scale-up.
The expansion significantly widens Nigeria’s downstream and petrochemical footprint, reinforcing the country’s ambition to become a major manufacturing hub rather than a raw material exporter.
$100 Billion Vision
In a statement, the Group described the agreement as a strategic investment aligned with its ambition to build a $100 billion enterprise by 2030.
“The additional equipment we are acquiring under this partnership will significantly enhance execution across our projects. With this investment, we are positioning ourselves to become the number one construction company in the world,” the statement said.
The deal underscores Dangote Group’s accelerated push into regional market development and industrial consolidation as it expands its presence across energy, fertiliser, petrochemicals, and infrastructure.
If executed as planned, the refinery’s expansion combined with increased fertiliser and petrochemical capacity could reshape not only Nigeria’s industrial landscape but also global supply chains in key commodity markets.
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