By: ThinkBusiness Africa
LAGOS, Nigeria — The Dangote Group said on Tuesday that it has signed a $400 million agreement with China’s Xuzhou Construction Machinery Group (XCMG). The deal secures a fleet of advanced heavy-duty equipment to fast-track the expansion of the Dangote Petroleum Refinery, aiming for a global-record capacity of 1.4 million barrels per day (bpd).
Currently operating at its “nameplate” capacity of 650,000 bpd, the refinery is already the largest single-train facility in the world. This new investment kicks off “Phase 2,” a three-year construction marathon intended to more than double that output. If successful, the Lekki-based complex will surpass India’s Jamnagar Refinery to become the largest refinery complex on the planet.
The $400 million investment isn’t just focused on gasoline and diesel. The Group’s expansion plan includes a dramatic scaling of its petrochemical and fertilizer arms:
- Polypropylene: Capacity will jump from 900,000 to 2.4 million metric tonnes per year.
- Urea (Fertilizer): Nigerian production will triple to 9 million metric tonnes, making Dangote the world’s largest urea producer.
- Linear Alkyl Benzene (LAB): Production of this key detergent ingredient will hit 400,000 metric tonnes, making the group the dominant supplier for the African continent.
The deal with XCMG goes beyond simple procurement. The Chinese machinery giant has committed to deploying dedicated project teams for open-pit mining and petrochemical construction.
Also, collaborating on new energy (electric) equipment to reduce the carbon footprint of the refinery’s operations.
The announcement comes at a pivotal time for the Nigerian economy, as the refinery hits its stride in early 2026, the “Dangote Effect”—a reduction in foreign exchange demand for fuel imports—is already beginning to stabilize the Naira.
With the equipment secured, construction is expected to hit peak intensity by the end of 2026. This expansion also paves the way for the highly anticipated IPO of the Dangote Refinery on the Nigerian Exchange (NGX), expected later this year.
