Key Takeaways
- • Afreximbank commits $2.5 billion as part of a $4 billion syndicated term loan to support Dangote Petroleum Refinery and Petrochemicals' expansion at its Lekki integrated complex, with funding mobilized to accelerate petrochemical and refining capacity growth.
- • Dangote awarded $350 million construction contract to Engineers India Limited to expand the Lekki refinery's crude processing capacity from 650,000 barrels per day (b/d) to 1.4 million b/d, positioning the site as the world's largest single-location refinery by 2028.
- • Petrochemical expansion secured with $400 million XCMG equipment deal and Honeywell technology licensing agreements to add 750,000 tonnes/year of propylene capacity and 400,000 tonnes/year of linear alkylbenzene (LAB) production, improving refinery economics and product flexibility.
- • 30-month completion timeline targets December 2028 for the Lekki refinery expansion, part of Dangote Group's broader $46 billion capital commitment through 2028 across refining, cement, and fertilizer operations.
- • Strategic positioning as petrochemical hub addresses regional demand for plastics, packaging, and detergent feedstocks while reducing West Africa's reliance on imports and strengthening Nigeria's downstream energy supply chain.
Summary
Dangote Petroleum Refinery and Petrochemicals is advancing a multiphase expansion of its Lekki integrated complex near Lagos, Nigeria, underpinned by substantial funding and engineering commitments. African Export-Import Bank (Afreximbank) has agreed to provide $2.5 billion within a broader $4 billion syndicated term loan facility, securing financial capacity for the operator's next phase of growth. This funding mechanism signals strong institutional confidence in Dangote's execution capability and the strategic importance of the expansion to continental energy markets.
The refining expansion centers on increasing crude processing capacity at the Lekki site from its current 650,000 b/d to 1.4 million b/d by December 2028—a 30-month development timeline. Dangote has awarded a $350 million construction contract to Engineers India Limited to execute this capacity increase, which would establish the Lekki complex as the world's largest single-site refinery. Complementing this effort, a $400 million equipment deal with XCMG will supply machinery to support the accelerated expansion schedule, ensuring construction pace aligns with financial and operational milestones.
The petrochemical component of the expansion reinforces the facility's integrated value proposition. Dangote contracted Honeywell UOP LLC to license proprietary Oleflex technology and supply catalysts, enabling 750,000 tonnes per year of additional propylene output and 400,000 tonnes per year of linear alkylbenzene (LAB) production. These capacity additions directly address growing West African demand for plastics, packaging materials, and detergent precursors, reducing regional import dependency while improving overall refinery economics through enhanced product flexibility and crude value capture. A separate November 2025 Honeywell contract addresses process controls and digital optimization across existing and expanded units.
The Lekki expansion forms part of Dangote Group's ambitious $46 billion capital allocation program through 2028, spanning refining, cement, and fertilizer assets. As of mid-2026, the refinery was processing approximately 590,000 b/d of crude, with roughly 60% sourced from US grades and 40% from Nigerian crude supplies. By positioning the complex as both a massive refining hub and integrated petrochemical facility, Dangote targets global competitive positioning while advancing Nigeria's strategic objective of strengthening domestic downstream capacity and reducing crude export dependency in favor of higher-value refined and petrochemical products.
The refining expansion centers on increasing crude processing capacity at the Lekki site from its current 650,000 b/d to 1.4 million b/d by December 2028—a 30-month development timeline. Dangote has awarded a $350 million construction contract to Engineers India Limited to execute this capacity increase, which would establish the Lekki complex as the world's largest single-site refinery. Complementing this effort, a $400 million equipment deal with XCMG will supply machinery to support the accelerated expansion schedule, ensuring construction pace aligns with financial and operational milestones.
The petrochemical component of the expansion reinforces the facility's integrated value proposition. Dangote contracted Honeywell UOP LLC to license proprietary Oleflex technology and supply catalysts, enabling 750,000 tonnes per year of additional propylene output and 400,000 tonnes per year of linear alkylbenzene (LAB) production. These capacity additions directly address growing West African demand for plastics, packaging materials, and detergent precursors, reducing regional import dependency while improving overall refinery economics through enhanced product flexibility and crude value capture. A separate November 2025 Honeywell contract addresses process controls and digital optimization across existing and expanded units.
The Lekki expansion forms part of Dangote Group's ambitious $46 billion capital allocation program through 2028, spanning refining, cement, and fertilizer assets. As of mid-2026, the refinery was processing approximately 590,000 b/d of crude, with roughly 60% sourced from US grades and 40% from Nigerian crude supplies. By positioning the complex as both a massive refining hub and integrated petrochemical facility, Dangote targets global competitive positioning while advancing Nigeria's strategic objective of strengthening domestic downstream capacity and reducing crude export dependency in favor of higher-value refined and petrochemical products.
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