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Dangote signs $350m agreement with India’s EIL to expand Lagos refinery

Dangote Group has entered a $350 million agreement with Indian engineering firm Engineers India Ltd (EIL) to significantly expand the Dangote Refinery and Petrochemicals Complex in Lagos, reinforcing Nigeria’s push to cut fuel imports and strengthen industrial capacity.

Under the deal, EIL will provide project management consultancy as well as engineering, procurement and construction management services for the expansion project. The Indian firm previously played the same role during the development of the refinery’s first phase.

The expansion will add a second processing train to the facility, raising refining capacity from 650,000 barrels per day to about 1.4 million barrels per day. Once completed, the Lekki Free Zone-based plant is expected to rank among the largest single-site refinery and petrochemical complexes in the world, with production focused on Euro VI-standard fuels.

The Dangote Refinery, estimated to have cost around $19 billion, was inaugurated in 2023 and began phased operations in 2024. It initially produced diesel and aviation fuel before adding petrol, marking a major shift for Nigeria, which has long depended on imported refined products despite its large crude oil reserves.
Beyond fuel production, the Group is also expanding its petrochemical operations.

Polypropylene output is set to rise sharply from about 830,000 tonnes per year to 2.4 million tonnes annually through upgrades to existing units and the installation of new processing facilities, including an additional polypropylene unit and a large-scale propylene supply system.

EIL said the renewed contract reflects confidence in its ability to deliver complex, large-scale projects, noting that its technical expertise and global execution model would support Dangote Group’s next phase of growth.

Dangote Group, Africa’s largest industrial conglomerate, operates across multiple sectors including energy, cement, fertiliser, mining, and food processing, with a presence in more than a dozen African countries.