Dangote Signs Separate $750 million Deals with Chinese and Indian Companies to Expand Refinery

Dangote Group has made significant strides in expanding its refinery and petrochemical operations with two major agreements, collectively worth $750 million.

The company has signed separate deals, one valued at $400 million with Chinese construction machinery giant XCMG, and another at $350 million with Indian engineering firm EIL.

These investments will support Dangote’s ambitious plan to increase its refinery capacity from 650,000 barrels per day to 1.4 million barrels per day, positioning it as a leading player in Nigeria’s fuel self-sufficiency efforts and driving growth in its broader petrochemical and agricultural sectors.

The agreement with XCMG comes shortly after Dangote Group’s $350 million deal in January with Indian engineering firm EIL.

Together, these agreements aim to enhance Africa’s industrial capacity and reduce the continent’s dependence on imported refined fuels.

As part of the refinery expansion, a second processing train will be added, helping to increase the refinery’s capacity.

EIL will continue its role as Project Management Consultant (PMC) and Engineering, Procurement, and Construction Management (EPCM) consultant, following its initial involvement in the refinery’s development, which was commissioned in 2024.

The deal with XCMG, one of China’s major construction machinery manufacturers, will provide Dangote with a wide range of advanced equipment.

This new machinery will support the refinery expansion, as well as other projects across petrochemicals, agriculture, and large-scale infrastructure development.

Dangote Group aims to complete the expansion within three years, further advancing its goal of becoming a $100 billion enterprise by 2030.

The investments aim to increase Dangote’s refinery capacity from 650,000 to 1.4 million barrels per day, boosting Nigeria’s fuel self-sufficiency and supporting broader industrial growth. Google

Refining Capacity Expansion and Diversification Plans

The $20 billion Dangote Petroleum Refinery, located in Lekki, Lagos, reached its full operational capacity of 650,000 barrels per day (bpd) in January 2026, marking a significant milestone in Nigeria’s efforts to enhance fuel self-sufficiency.

As of January 2026, the refinery produced 40.1 million litres of crude per day, accounting for 57% of Nigeria’s total fuel supply, a 25% increase from December 2025.

The refinery now supplies 62% of Nigeria’s Premium Motor Spirit (PMS), overtaking traditional fuel importers and reshaping the country’s fuel market.

Its impact extends beyond Nigeria, with shipments of diesel and jet fuel now reaching Ghana, Togo, and Cameroon, establishing the refinery as a regional fuel hub.

The expansion also includes plans for substantial diversification. Dangote Group plans to scale polypropylene production from 900,000 to 2.4 million metric tonnes annually.

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The company also intends to triple Nigeria’s urea production capacity from 3 million to 9 million metric tonnes per year.

In Ethiopia, Dangote plans to increase urea production by an additional 3 million metric tonnes per year, enhancing its leadership in global urea production.

Additionally, Dangote will increase its production of Linear Alkyl Benzene (LAB) to 400,000 metric tonnes annually, positioning the company as Africa’s largest LAB producer, meeting the needs of local manufacturers who have traditionally relied on imports for industrial inputs.

Positioning for Global Leadership

The $400 million agreement with XCMG supports the company’s strategy to expand its global footprint. The new equipment will expedite ongoing and future projects, positioning the business to lead in construction and industrial development worldwide.

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Aliko Dangote, President of the conglomerate, emphasized the company’s commitment to growth, stating, “With this investment, we are positioning ourselves to become the number one construction company in the world.”