Dangote Group, EIL seal $350m deal to expand Lagos refinery

By James Ike

Dangote Group has entered into a $350 million partnership with Indian engineering company, Engineers India Limited (EIL), to expand its refinery and petrochemical operations in Lagos.

The agreement is aimed at significantly increasing the processing capacity of the Dangote Refinery from its current 650,000 barrels per day to about 1.4 million barrels per day.

With the planned expansion, the facility is projected to rank among the largest single-location refinery complexes in the world, reinforcing its strategic importance in the global energy industry.

Industry experts say the scale of the project underscores Dangote Group’s ambition to consolidate its position as a major player in refining and petrochemical production.

Beyond crude oil processing, the partnership also targets a substantial expansion of petrochemical output, particularly polypropylene production.

Under the plan, polypropylene capacity is expected to rise sharply to about 2.4 million tonnes per annum, boosting Nigeria’s downstream manufacturing potential.

The refinery is located in the Lekki Free Zone, a major industrial hub designed to attract foreign investment and promote large-scale industrial activities.

The Dangote Refinery has already been described as a game-changer for Nigeria’s oil and gas sector, reducing the country’s long-standing dependence on imported refined petroleum products.

With the expansion, Nigeria is expected not only to meet domestic fuel demand but also to strengthen its position as an exporter of refined products to regional and international markets.

The partnership with Engineers India Limited is seen as a strategic move that could accelerate Nigeria’s transition towards energy self-sufficiency, job creation, and broader economic growth.