KEY POINTS
- Dangote Group signed a $400 million deal with XCMG to expand its refinery and industrial operations.
- Capacity is set to rise from 650,000 bpd to 1.4 million bpd within three years.
- The refinery now supplies 62% of Nigeria’s petrol demand and is expanding exports globally.
The Dangote Group has signed a $400 million agreement with XCMG to acquire industrial machinery that will accelerate expansion of its refinery complex.
The partnership will also cover collaboration across mining, petrochemicals, infrastructure, agriculture, and building materials, as both companies aim to leverage their strengths for long-term growth.
Owned by billionaire industrialist Aliko Dangote, the refinery currently processes 650,000 barrels of crude oil per day.
The new investment is expected to raise capacity to 1.4 million bpd alongside petrochemical projects, with completion projected within three years.
Growing Regional and Global Export Reach
Since beginning operations in 2024, the facility has steadily expanded production. It first produced diesel and naphtha in January 2024, followed by gasoline output in September the same year.
The plant now exports refined products beyond West Africa and has an exclusive agreement with Vinmar International to supply polypropylene to global markets.
Despite earlier gasoline production setbacks, the refinery achieved record daily crude processing levels in January 2026. It now supplies about 62% of Nigeria’s premium motor fuel, surpassing importers for the first time and reaching full operational capacity—an important milestone for Nigeria as it works to reduce dependence on imported fuel.
