Dangote Group signs $400m deal to accelerate refinery expansion

Dangote Group has signed a $400 million agreement with XCMG Construction Machinery Co., Ltd. to acquire advanced construction equipment aimed at fast-tracking the expansion of the Dangote Petroleum Refinery & Petrochemicals.

The deal will support the refinery’s growth from 650,000 barrels per day to 1.4 million barrels per day, positioning it to become the world’s largest refinery.

The new equipment will complement existing machinery and accelerate projects across refining, petrochemicals, agriculture, and large-scale infrastructure development. The refinery expansion is expected to be completed within three years.

Beyond refining, the programme will increase polypropylene production from 900,000 to 2.4 million metric tonnes per year. Urea production in Nigeria will triple from 3 million to 9 million metric tonnes annually, supplementing Ethiopia’s 3 million metric tonnes capacity, further establishing the Group as the world’s largest urea producer.

Production of Linear Alkyl Benzene (LAB), essential for detergents and cleaning agents, will rise to 400,000 metric tonnes per year, making the Group the largest producer in Africa. Additional base oil production capacity is also planned as part of the broader expansion initiative.

In a statement, the Group described the agreement as a strategic move to deepen its construction capabilities and accelerate its goal of building a $100 billion enterprise by 2030. “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 statement said.

The Dangote Group continues to expand regionally and strengthen its operations across multiple sectors, underscoring its long-term vision of becoming a global industrial leader by 2030.