The Lagos State Government has revealed that a second private refinery could be established in the state as plans continue to take shape for another major investor to enter the sector.
The disclosure was made by the Commissioner for Physical Planning and Urban Development, Dr. Oluyinka Abiodun Olumide, during the Economic Roundtable Discussion organised by the Economic Intelligence Department of the Ministry of Economic Planning and Budget at Protea Hotel, Alausa, Ikeja.
Dr. Olumide explained that Lagos had become increasingly attractive for large-scale industrial and petrochemical investments, noting that private operators were beginning to explore opportunities beyond the existing Dangote refinery.
The commissioner revealed that conversations around establishing a second private refinery had already begun. He made the remark while emphasising the role of the private sector in driving major capital projects across the state.
What Dr. Olumide said
“These are things that are supposed to be channeled by the private sector. The government cannot go into everything, so these are opportunities that people can make money from. It’s so funny when people talk about the level of employment.
“The plans are rich enough that the private sector can come in, and you can see what Dangote has done in Lagos. Another operator—they’re also coming in—very soon, he is going to have a competitor. They have already started discussing that, that it should be another refinery, a private refinery.”
Olumide added that Lagos’ physical planning framework was deliberately structured to support capital-intensive projects, particularly those that can drive job creation, strengthen the energy sector and expand the state’s industrial base.
What you should know
Lagos State already hosts the largest single-train refinery, the Dangote Refinery, which was initially planned for the Olokola Free Trade Zone in Ogun State.
Aliko Dangote had revealed that his conglomerate lost $500 million due to delays in securing the Olokola site during the administration of former Governor Ibikunle Amosun, in addition to the $2.5 billion originally borrowed from banks.
- Unseen political interference reportedly stalled the project, prompting the move to Lagos, where the state government under then-Governor Babatunde Fashola provided an enabling environment that allowed the refinery to materialise.
- Multiple refinery licences have already been issued to other private operators, with active projects underway by BUA, Aradel, and Waltersmith.
Lagos’ business-friendly environment, infrastructure, and planning framework are now creating the conditions for a second private refinery to enter the state, reinforcing its position as a hub for industrial growth and private-sector-led energy investments.
