Dangote Group has signed a $350 million deal with Indian engineering firm Engineers India Ltd (EIL) to expand its flagship refinery and petrochemicals complex in Lagos, a move aimed at boosting Nigeria’s industrial capacity and reducing Africa’s dependence on imported refined fuels.
According to Business Insider Africa, EIL confirmed on Saturday that it has renewed its contract with Dangote Group to support the expansion of the Lagos refinery and petrochemicals complex.
Dangote plans to add a second train to the facility, increasing its refining capacity from 650,000 barrels per day to 1.4 million barrels per day, producing Euro VI fuels.
As part of the deal, EIL will serve again as Project Management Consultant (PMC) and Engineering, Procurement, and Construction Management (EPCM) consultant, repeating the role it played during the refinery’s original construction in 2024.
Once completed, the expanded facility will rank among the world’s largest refinery complexes at a single location.
The refinery, located in the Lekki Free Zone, is estimated to have cost around $19 billion, making it one of the most expensive industrial projects ever undertaken in Africa.
The complex was officially inaugurated in May 2023 and has been ramping up operations in phases due to its scale and technical complexity.
By early 2024, the refinery began producing diesel and aviation fuel, followed later by petrol, marking a turning point for Nigeria, which has long relied on imports for refined fuels despite being Africa’s largest crude oil producer.
Its existing 650,000 barrels-per-day integrated refinery and petrochemical complex is already the world’s largest single-train refinery, producing Euro-V quality gasoline, diesel, jet fuel, and polypropylene.
Dangote Group is also expanding its petrochemicals output. Polypropylene production will increase from 830,000 tonnes per annum (TPA) to 2.4 million TPA through revamping its existing Polypropylene Unit (PPU) and installing an additional 1.2 million TPA PPU, alongside a world-scale 750 kTPA UOP Oleflex unit to supplement propylene feedstock.
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“Dangote Group has once again joined hands with EIL in this endeavour and has signed a contract agreement of value more than $350 million to engage EIL as project management consultant (PMC) and engineering, procurement and construction management (EPCM) consultant for this project,” EIL said.
“This contract is a strong affirmation of the trust reposed in EIL’s capabilities to deliver projects of exceptional scale and complexity. As we move into this next phase, EIL will bring its decades of experience, multidisciplinary strengths and global execution model to support Dangote in creating one of the world’s most advanced and fully integrated energy complexes.”
Dangote Group is Nigeria’s largest multinational conglomerate and one of Africa’s most influential industrial players.
With operations spanning oil and gas, mining, petrochemicals, fertilisers, cement, sugar, and food processing, the Group operates across 17 African countries and is among the continent’s largest private-sector employers.
The Dangote Refinery now sits at the centre of Nigeria’s energy transition.
While challenges around crude supply, pricing, and regulation persist, the facility has already begun easing fuel shortages, reducing import dependence, and positioning Nigeria as a potential exporter of refined products across West and Central Africa, highlighting its significance for the continent’s industrial future.
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Image Credit: RJ Associates Media
