Dangote Signs $400m Equipment Deal to Fast-Track Refinery Expansion

Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd., a major Chinese manufacturer, in a move aimed at speeding up a sweeping expansion drive anchored by the Dangote Petroleum Refinery and Petrochemicals.

According to the Group, the partnership will support plans to scale the refinery from its current 650,000 barrels per day to 1.4 million barrels per day, a capacity increase that would place the facility among the largest refinery operations globally upon completion.

The agreement provides Dangote Group with access to a broader range of advanced construction equipment, strengthening execution across ongoing and upcoming projects. The company said the equipment will be deployed across its key growth areas, including refining, petrochemicals, agriculture, and large-scale infrastructure development.

Dangote Group said the newly procured machines will complement equipment already in use for the refinery expansion programme, which is expected to be completed within three years.

More than refining

The expansion push is not limited to crude processing. Dangote Group said the programme includes major capacity upgrades across multiple product lines.

Polypropylene production is expected to rise from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum, increasing output for industrial and consumer goods supply chains that rely on plastic resins.

The company also plans a large urea expansion, projecting Nigeria’s urea capacity to rise from 3 million to 9 million metric tonnes per annum, in addition to the Group’s 3 million metric tonnes per annum capacity in Ethiopia. Dangote said this would further strengthen its position in global fertiliser production.

Dangote Group said production capacity for Linear Alkyl Benzene (LAB) will be increased to 400,000 metric tonnes per annum, positioning it as a leading supplier in Africa and supporting manufacturers of detergents and cleaning products.

The company added that additional base oil capacity is also part of the broader expansion plan, although it did not provide a specific target figure.

In its statement, Dangote Group described the $400 million equipment agreement as a strategic investment designed to deepen its construction footprint and improve project delivery speed across its businesses.

The company said the acquisition will “significantly enhance execution” and aligns with its long-term goal of building a $100 billion enterprise by 2030, as it accelerates expansion and regional market development.