Dangote Group Signs $400M Deal for Refinery Expansion

The Dangote Group has entered into a $400 million agreement with XCMG to construct and equip its refinery as part of its expansion strategy. This partnership is expected to significantly scale the capacity of Dangote's flagship refinery, which aims to increase its output to 650,000 barrels per day from the current 1.4 million barrels per day.

The agreement will support the expansion of Dangote Petroleum Refinery and its petrochemical business unit, with the deployment of new equipment planned over the next three years. The expansion is part of a broader strategy to deepen local production capacity and strengthen the value chain across Africa.

The Lekki-based refinery is designed to be one of the largest single-train refineries globally, with expectations to boost domestic supply of refined petroleum products and fertilizers, enhancing export potential. Additionally, the agreement aligns with the group's long-term strategy to build a $100 billion pan-African industrial powerhouse, focusing on refining, petrochemicals, fertilizers, agriculture, and infrastructure.