Dangote Industries Limited has unveiled plans to expand its flagship refinery project as part of a broader strategy to deepen its footprint in Nigeria’s oil and gas sector and reshape the country’s industrial landscape.
In a fireside chat with Aliko Dangote, the chairman and president of the group at BusinessDay’s 17th CEO Forum on Thursday, it was revealed that the refinery, which has commenced operations, marks not the end of the conglomerate’s journey in petroleum refining, but rather the beginning of wider expansion plans.
“In the area of oil and gas, which of course is the largest and a major focus, we will expand the refinery, as a project exists, and also continue to invest in petrochemicals,” said Aliyu Suleiman, the group chief strategy officer of Dangote Industries, who represented Dangote at the event. He noted that the Group also plans to more than double its fertiliser production capacity.
The multi-billion-dollar refinery, located in Lagos, has already begun to shift the dynamics of the global fuel market. With the capacity to process large volumes of crude oil domestically, it is reducing Nigeria’s historical reliance on imported refined petroleum products.
According to the Group, the refinery currently processes around 15 cargoes of crude per month and is expected to handle up to 20 by next year.
“Historically, those cargos would have left Nigeria to be refined abroad and then return as imports,” Suleiman explained. “Now, they go directly to the refinery here. This is changing both the flow of crude oil and petroleum products globally, while also pushing prices down.”
Read also: FX reforms makes local production cheaper than imports, says Dangote
The impact of this disruption has already been felt internationally. Margins for global refineries and shipping companies have shrunk, and the price of refined petroleum products has dropped by as much as $50 per tonne, with savings benefiting Nigerian consumers.
Despite the progress, the Group acknowledged that building and commissioning the refinery was anything but smooth. Construction of the megaproject was delayed by logistical and infrastructural challenges, compounded by Nigeria’s complex regulatory environment.
“Any project of this size is inherently challenging, but in Nigeria, the lack of infrastructure and skills made it even more difficult,” the executive noted. “We had to pump 65 million cubic meters of sand and install 250,000 piles just to stabilise the land.”
In addressing these hurdles, the Group credited the strong leadership of Aliko Dangote and a resilient team that adapted quickly to unforeseen issues. However, the executive also called on the Nigerian government to establish dedicated liaison teams—akin to “relationship managers”, to guide investors through Nigeria’s regulatory maze.
“When a company announces its intent to invest, the government should immediately appoint a team to assist them from conception to completion,” he said, citing Singapore as an example of best practice in investment facilitation.
Looking ahead, Dangote Industries plans to focus its expansion across three strategic sectors: food and agriculture, cement and building materials, and oil and gas. The Group is pushing deeper into backwards integration in sugar, rice, and tomato production, especially now that FX reforms have made local production more competitive.
In cement, the company is also building a new plant in Togo targeted at exports. “We supply clinker to Cameroon, Ghana, and Congo. Now we aim to serve third-party markets that currently import clinker from outside Africa,” Suleiman added.
But it is the expansion of the refinery and petrochemical infrastructure that is set to make the biggest splash, transforming Nigeria not only into a hub for crude refining but also a competitive player in the global downstream sector.
“The Dangote refinery is not just a Nigerian success story, it’s a global disruptor,” the executive said. “And it’s only the beginning.”
