Dangote Group has signed a contract valued at over $350 million with India’s state-owned Engineers India Limited (EIL) to manage a major expansion of the Dangote Refinery, a move that will significantly boost Nigeria’s refining capacity and deepen the country’s role in the global energy market.
The agreement, disclosed by EIL in a recent statement, appoints the Indian engineering firm as Project Management Consultant (PMC) and Engineering, Procurement and Construction Management (EPCM) consultant for the expansion project. This mirrors EIL’s role in the delivery of the existing 650,000 barrels-per-day refinery, which was commissioned in 2024.
Scope of the expansion
The expansion will be executed through the addition of a second processing train, lifting total refining capacity to 1.4 million barrels per day. The project will also focus on the production of Euro VI–compliant fuels, aligning the refinery with the most stringent global fuel quality standards.
Beyond refining, Dangote plans a significant scale-up of its petrochemical operations. Polypropylene production is set to increase from 830,000 tonnes per annum to 2.4 million tonnes per annum. This will be achieved by revamping the existing polypropylene unit, installing an additional 1.2 million-tonne unit, and adding a 750,000-tonne UOP Oleflex unit to boost propylene feedstock supply.
What they are saying
EIL said the renewed partnership reflects Dangote Group’s confidence in its engineering expertise and project delivery capabilities.
“Believing in EIL’s Engineering and Project Management excellence, Dangote Group has once again joined hands with EIL in this endeavor and has signed a contract agreement of value more than US $350 million to engage EIL as PMC and EPCM consultant for this project,” the company said.
EIL added that once completed, the expansion would position Dangote as the world’s largest petroleum refinery, strengthening fuel production within Africa, reducing reliance on imports, and supporting regional energy security. The proposed scale-up to 1.4 million barrels per day, it noted, is a project of global significance that will rank among the largest refinery complexes at a single location.
Backstory
The Dangote Refinery and Petrochemicals Complex, 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 size and technical complexity.
By early 2024, the refinery began producing diesel and aviation fuel, followed later by petrol. The start of petrol production marked a major milestone for Nigeria, which has historically depended on fuel imports despite being Africa’s largest crude oil producer.
EIL previously played a similar PMC and EPCM role during the construction of the original refinery, which was commissioned in 2024.
Why this matters
The planned expansion has far-reaching implications for Nigeria and the wider African energy market. Increasing capacity to 1.4 million barrels per day would significantly reduce Nigeria’s dependence on imported fuel, strengthen energy security across West Africa, and support intra-African fuel trade.
The project also positions Nigeria as a global refining hub at a time when fuel quality standards are tightening worldwide. Once completed, the expanded facility is expected to surpass India’s 1.36 million barrels-per-day Jamnagar refinery to become the largest single-site refinery in the world.
What you should know
Nairametrics earlier reported that Aliko Dangote disclosed plans to double the refinery’s capacity in an interview with S&P Global, noting that the company is exploring new financing options and potential partnerships with Middle Eastern investors to support the expansion.
In December 2025, Dangote also announced plans to list a 10% stake in the refinery on the Nigerian Exchange in 2026. He revealed that discussions are ongoing with regulators to enable dividend payouts in US dollars, offering investors a hedge against currency volatility.
Together, these developments signal a new phase in the evolution of Africa’s largest industrial project, with implications that extend well beyond Nigeria’s borders.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
