HomeNewsDangote Plans $5 Billion Lagos Refinery Expansion To Boost Fuel Supply

Dangote Plans $5 Billion Lagos Refinery Expansion To Boost Fuel Supply

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Key Points


  • Dangote seeks $5 billion to expand his Lagos refinery.

  • Afreximbank will help raise the funds.

  • The upgrade could double production and cut fuel costs.


Africa’s richest man, Aliko Dangote, plans to raise $5 billion to expand his refinery in Lagos. The goal is to meet growing demand for cleaner fuels and strengthen Nigeria’s role in global energy trade.

Afreximbank backs new refinery funding plan

George Elombi, president of the African Export-Import Bank, announced the plan during his inaugural address in Cairo on Saturday.

He said Dangote personally discussed the project and asked for support in securing the funds.

“Alhaji Dangote told me this morning that he will be seeking an extra $5 billion,” Elombi said. “We’ve agreed to help raise the money. It must be done.”

According to Elombi, the expansion could double output and lower fuel prices by up to 50 percent across Nigeria and neighboring West African countries.

Refinery output to grow within three years

At a briefing in Lagos, Dangote said the refinery’s production will increase from 650,000 barrels per day to 1.4 million within three years.

He explained that the upgrade will be funded through internal revenue, possible share listings, and new investment partners.

“This expansion shows our confidence in Nigeria’s economy,” Dangote said. “It reflects our belief in Africa’s future and our commitment to energy independence.”

Refinery set to surpass India’s Jamnagar complex

Once completed, the upgraded plant will become the largest refinery in the world, overtaking India’s Jamnagar complex.

It could generate about $55 billion in yearly revenue and reduce fuel imports, easing pressure on Nigeria’s foreign reserves.

The expansion will also raise polypropylene output to 2.4 million metric tons each year. It will meet Euro VI fuel standards and support cleaner energy goals.

Dangote added that power generation will rise to 1,000 megawatts, ensuring steady electricity for the refinery and nearby industries.

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