Dangote Group has signed a US$350 million contract with Indian state-owned engineering firm Engineers India Limited (EIL) to significantly expand its flagship oil refinery and petrochemicals complex in Lagos, a move that could reshape Nigeria’s downstream energy sector and reduce Africa’s dependence on imported refined fuels.
Under the agreement, EIL will serve as project management consultant as well as engineering, procurement and construction management consultant for the expansion of the Dangote Refinery, located in the Lekki Free Zone. The Indian firm played a similar role during the original construction phase of the refinery, which began operations in stages from 2023.
The expansion is expected to raise the refinery’s processing capacity from 650,000 barrels per day to about 1.4 million barrels per day, positioning it among the largest single-location refinery complexes in the world. Dangote Group said the project will include the addition of a second refining train capable of producing Euro VI-grade fuels, including petrol, diesel and aviation fuel.
The Lagos-based facility is already the world’s largest single-train refinery. Since early 2024, it has begun producing diesel and jet fuel, followed by petrol, marking a major shift for Nigeria, which has long relied on fuel imports despite being Africa’s biggest crude oil producer.
Beyond refining, the deal also covers a major expansion of Dangote’s petrochemicals operations. The group plans to increase polypropylene production from 830,000 tonnes per annum to 2.4 million tonnes per annum by revamping its existing polypropylene unit and installing an additional large-scale unit. This will be supported by a new 750,000-tonne-per-year UOP Oleflex facility to boost propylene feedstock supply.
EIL, which operates under India’s Ministry of Petroleum and Natural Gas, said the renewed partnership reflects confidence in its capacity to deliver projects of exceptional scale and technical complexity. The firm provides engineering and consultancy services across refining, petrochemicals, fertilisers, infrastructure and energy projects worldwide.
The Dangote Refinery and petrochemicals complex is estimated to have cost around $19 billion, making it one of the most expensive industrial projects ever undertaken in Africa. The group has previously said it trained more than 150 engineers in India as part of preparations for the refinery’s completion and operation.
Analysts say the expansion could further strengthen Nigeria’s industrial base, ease pressure on foreign exchange by cutting fuel imports, and position the country as a regional hub for refined petroleum products and petrochemicals across West and Central Africa.
Dangote Group, Africa’s largest industrial conglomerate, operates across sectors including cement, fertiliser, oil and gas, sugar and food processing in more than 17 African countries. While challenges around crude supply, pricing and regulation remain, the Lagos refinery is increasingly seen as central to Nigeria’s ambition to achieve energy security and deepen industrialisation.
