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Africa’s richest man, Aliko Dangote, is planning to raise an additional $5 billion to expand his multibillion-dollar petroleum refinery in Lagos, a move aimed at meeting the continent’s rising demand for cleaner fuels and strengthening Nigeria’s role in global energy markets.
Dangote seeks $5 billion refinery expansion
The plan was disclosed by George Elombi, the new president and chairman of the African Export-Import Bank (Afreximbank), during his inaugural address at the bank’s investiture ceremony in Cairo on Saturday. Elombi said Dangote personally informed him of the expansion plan and that Afreximbank would explore ways to help raise the funds.
“Alhaji Dangote indicated to me this morning that he will be coming for an additional $5 billion to expand the refinery,” Elombi told attendees. “We have agreed to look for the money wherever it is — in Afreximbank, in your accounts — because it has to be done. If completed, this expansion could double production and lower fuel prices by as much as 50 percent for Nigeria and neighboring countries along the West African coast.”
Dangote eyes refinery expansion to 1.4 million barrels per day
Dangote, with a net worth of $30.5 billion according to Bloomberg, continues to champion Africa’s industrial transformation. Speaking at a recent media briefing in Lagos, he said the refinery’s capacity will rise from 650,000 barrels per day to 1.4 million within three years.
He explained that the upgrade will be financed through a combination of internal cash flow, a potential public listing, and investment from strategic partners. “This expansion reflects our confidence in Nigeria’s future, our belief in Africa’s potential, and our commitment to energy independence for the continent,” Dangote said.
Dangote Refinery set to surpass India’s Jamnagar complex
Once the upgrade is completed, the refinery is expected to become the world’s largest, overtaking India’s Jamnagar complex. The facility could generate as much as $55 billion in annual revenue and strengthen Nigeria’s foreign exchange reserves by cutting fuel imports.
The expansion will also raise polypropylene output to 2.4 million metric tons a year and bring production in line with Euro VI standards, meeting tougher global environmental regulations. Dangote said power generation at the plant will increase to 1,000 megawatts, providing stable energy for one of Africa’s most ambitious industrial ventures.
