Nigeria’s Dangote Refinery is targeting a major expansion that could propel the facility to the position of the world’s largest refinery, as the company moves to more than double its processing capacity.
The refinery, located in Lekki, Lagos State, currently has a capacity of about 700,000 barrels per day (bpd). Founder Aliko Dangote has said the planned expansion will raise capacity to 1.4 million bpd, potentially putting the facility ahead of India’s Jamnagar refinery.
Recent reports indicate Dangote has expressed confidence that the expansion could be delivered by 2028. However, the company’s latest IPO prospectus gives 2029 as the expected completion date for the $14.3 billion expansion programme.
Dangote’s management described the expansion as a construction exercise that could transform the refinery into the world’s largest integrated refining complex.
The development is significant for Nigeria because the refinery has already changed the country’s petroleum market since beginning operations. Its increased production capacity could strengthen domestic fuel supply, reduce dependence on imported refined products and expand Nigeria’s role as a fuel exporter.
The refinery has also benefited from disruptions in global energy markets. Its first-half 2026 after-tax profit reached $1.82 billion, compared with a $476 million loss recorded for the whole of 2025, according to its IPO prospectus.
The company is simultaneously preparing an initial public offering expected to raise about ₦2.15 trillion ($1.63 billion). The IPO involves 4.1 billion shares priced at ₦525 each and is expected to open on September 14.
The expansion is part of Dangote’s broader strategy to build a major energy and petrochemicals business. The group is also planning a new 700,000-bpd refinery in Kenya, although that project faces challenges including crude supply and financing.
Built at an estimated cost of about $20 billion, the Dangote Refinery began operations in 2024 and is already Africa’s largest refinery. Its planned expansion could further cement Nigeria’s position in the global refining industry.
