Dangote Group signed a $350 million contract with engineering major Engineers India Limited (EIL) to significantly expand its flagship oil refinery and petrochemicals complex in Lagos. The move is expected to reshape Nigeria’s downstream energy landscape while sharply reducing Africa’s reliance on imported refined fuels.
EIL to Lead Project and Construction Management
Under the agreement, EIL will act as project management consultant as well as engineering, procurement and construction management (EPCM) consultant for the expansion of the Dangote Refinery in the Lekki Free Zone. Notably, EIL had performed a similar role during the original construction phase, which began phased operations in 2023. The renewed partnership highlights continuity in execution and confidence in EIL’s technical and project delivery capabilities.
Refining Capacity to More Than Double
The expansion will increase the refinery’s processing capacity from 6,50,000 barrels per day to around 1.4 million barrels per day, placing it among the largest single-location refinery complexes globally. As part of the project, Dangote will add a second refining train designed to produce Euro VI-grade fuels, including petrol, diesel and aviation turbine fuel. Although the Lagos facility already holds the distinction of being the world’s largest single-train refinery, the new addition will further enhance its global standing.
From Fuel Imports to Domestic Production
Since early 2024, the refinery has progressively begun producing diesel and jet fuel, followed by petrol. This marks a major shift for Nigeria, which has historically depended on fuel imports despite being Africa’s largest crude oil producer. As domestic refining capacity rises, the country is expected to reduce import bills, ease foreign exchange pressures, and improve energy self-sufficiency.
Major Petrochemicals Expansion Planned
Beyond refining, the agreement also covers a substantial expansion of Dangote’s petrochemicals operations. The group plans to raise polypropylene capacity from 830,000 tonnes per annum to 2.4 million tons per annum by revamping its existing unit and installing a new large-scale polypropylene plant. To support this expansion, Dangote will add a 750,000-tonne-per-year UOP Oleflex unit, significantly boosting propylene feedstock availability.
EIL Brings Global Engineering Expertise
Engineers India Limited, which operates under India’s Ministry of Petroleum and Natural Gas, said the contract reinforces global confidence in its ability to execute projects of exceptional scale and technical complexity. EIL provides engineering, consultancy and project management services across refining, petrochemicals, fertilisers, infrastructure and energy sectors worldwide. The Dangote Group spent around $19 billion on its refinery and petrochemicals complex, making it one of Africa’s most capital-intensive industrial projects.
Building Skills and Industrial Capability
In preparation for the refinery’s commissioning and operations, Dangote Group previously trained more than 150 engineers in India. This focus on skills development has helped strengthen local operational capability and ensure smooth ramp-up of complex facilities. As reported by africabusinessinsight.com, analysts believe the expansion will further strengthen Nigeria’s industrial base, cut dependence on imported fuels, and position the country as a regional hub for refined petroleum products and petrochemicals across West and Central Africa.
