Nigerian billionaire plans expansion of Africa’s biggest oil refinery

The Dangote oil refinery sits in Lagos, Nigeria, May 22, 2023. (AP Photo, File)

ABUJA, Nigeria — The billionaire owner of Africa’s largest refinery plans to expand its capacity to 1.4 million barrels per day to meet growing fuel needs in the continent and beyond.

Aliko Dangote, who is Africa’s richest person, said the Dangote refinery, in Nigeria’s economic hub of Lagos, will more than double its current existing capacity of 650,000 barrels per day with the aid of external financing.

“When it is completed, this will be the largest refinery ever built at a single site, surpassing India’s Jamnagar refinery,” Dangote told reporters on Sunday, referring to the world’s biggest refinery in India.

Nigeria is one of Africa’s top oil producers but imports refined petroleum products for its own use. The nation’s oil and natural gas sector has struggled for many years, and most of its state-run refineries operate far below capacity because of the poor maintenance.

The privately run Dangote refinery has helped with local and international demands since it started production in January 2024.

The industrialist, however, said the expansion is needed to meet growing demands locally and abroad.

The expansion reflects “confidence in Nigeria, in Africa, and in our capacity to shape our own energy future,” he added.

The planned expansion is a laudable move but not much is known yet regarding its timeline and available finances, said Ikemesit Effiong, partner at Lagos-based SBM Intelligence research firm.

The US$19 billion refinery took nearly a decade to complete.

Dyepkazah Shibayan, The Associated Press