Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery to expand its refining and industrial operations across Africa.
The development was disclosed in a statement issued by the company on the partnership and its expansion plans.
The deal is expected to significantly scale up capacity at the group’s flagship refinery and strengthen execution across multiple large-scale industrial projects.
The agreement will support the expansion of the Dangote Petroleum Refinery & Petrochemicals and other strategic business units, with phased deployment of equipment over the next three years.
Once completed, the refinery’s output is projected to rise from 650,000 barrels per day to about 1.4 million barrels per day, positioning it among the largest refineries globally.
What they are saying
The company said the partnership is designed to boost execution speed and capacity across its expanding portfolio of mega projects. It noted that the additional equipment will play a critical role in delivering ongoing and future developments within the projected timelines.
- “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 group added that the machines will complement existing equipment already deployed across its refinery and industrial project sites.
Get up to speed
The refinery expansion forms part of the conglomerate’s broader industrial growth strategy aimed at deepening local production capacity and strengthening value chains across Africa.
The Lekki-based refinery was originally designed with a capacity of 650,000 barrels per day, making it one of the largest single-train refineries globally.
- The current expansion plan seeks to raise refining capacity to about 1.4 million barrels per day within three years.
- Polypropylene output is projected to increase from 900,000 metric tonnes per annum to about 2.4 million metric tonnes.
- Nigeria’s urea production capacity under the group is expected to triple from three million to nine million metric tonnes annually.
- The Ethiopian fertiliser facility will maintain its current three million metric tonnes per year capacity.
The expansion is expected to strengthen domestic supply of refined petroleum products, petrochemicals, and fertiliser while boosting export potential across African and global markets.
More Insights
Beyond crude refining, the investment also targets significant growth in downstream and allied product lines. The group plans to expand production of Linear Alkyl Benzene, a key raw material used in detergent and cleaning product manufacturing.
- Annual Linear Alkyl Benzene output will increase to 400,000 metric tonnes.
- The expansion will position the conglomerate as the largest Linear Alkyl Benzene producer in Africa.
- New base oil production capacity is also planned as part of the broader industrial scale-up strategy.
The phased deployment of the newly acquired construction equipment is expected to accelerate civil works, logistics operations, and plant installations across project sites.
What you should know
The agreement aligns with the group’s long-term “Dangote Vision 2030” strategy, which aims to build a 100 billion dollar pan-African industrial powerhouse.
The roadmap focuses on expanding operations across refining, petrochemicals, fertiliser, agriculture, and infrastructure.
The federal government said Dangote Petroleum Refinery delivered an average of 40.1 million litres of Premium Motor Spirit (PMS) per day in January 2026.
