Dangote Refinery targets 1,000MW power boost in $20bn expansion

Aliko Dangote, president of Dangote Industries Limited, plans to expand his $20 billion refinery complex to generate 1,000 megawatts of electricity, underscoring the company’s push toward full operational self-sufficiency as part of a broader $10 billion expansion that will double refining capacity to 1.4 million barrels per day (bpd).

Speaking at a media briefing in Lagos, Dangote, Dangote said the refinery’s power boost will ensure uninterrupted operations for what is already the world’s largest single-train refinery. The expansion, he added, reflects confidence in Nigeria’s industrial future and Africa’s growing energy potential.

“We will expand our power generation capacity to 1,000 megawatts, ensuring complete operational self-sufficiency,” Dangote said. “This expansion reflects our confidence in Nigeria’s future and our commitment to shaping Africa’s energy destiny.”

The refinery’s planned upgrade will more than double its current 650,000 bpd capacity within three years, surpassing India’s Jamnagar Refinery, currently the world’s largest, and positioning Nigeria as a global refining hub.

Read also: Refinery to hit 1.4m bpd output by 2028- Aliko Dangote

Dangote said the expansion will be financed through a mix of cash flow, strategic investors, and a public listing, adding that a significant portion of the refinery’s shares will be listed on the Nigerian Exchange (NGX) next year to “democratise ownership.”

“Our main listing will be in Nigeria to give Nigerians value,” he said. “We want the Dangote Refinery to be the golden stock of the Exchange. Listing abroad will be secondary.”

The refinery currently produces Euro V-grade fuel, but Dangote said the expansion will upgrade output to Euro VI standards, aligning with global environmental benchmarks and making Nigeria a supplier of cleaner fuels across Africa.

The refinery’s planned 1,000-megawatt generation capacity, roughly enough to power a mid-sized city, will be used to sustain continuous operations of its refining, petrochemical, and fertilizer units. Dangote said the company’s integrated energy approach eliminates dependence on the fragile national grid and ensures efficiency in product output.

“Energy reliability is non-negotiable for an operation of this magnitude,” he said. “We are building a power system that can rival that of an entire state.”

Beyond refining, Dangote said the group will expand polypropylene production from 900,000 metric tonnes to 2.4 million metric tonnes per annum, alongside increased production of base oils and linear alkylbenzene, vital components for lubricants and detergents.

Read also: Dangote to sell 10% stake in refinery, targets 1.4mbpd expansion

The expansion is expected to generate thousands of direct and indirect jobs, support small and medium-scale enterprises, and save Nigeria billions in foreign exchange spent on importing refined petroleum products.

Dangote estimated the refinery’s annual revenue could exceed $55 billion, making it one of Africa’s most valuable industrial assets.

“Our goal has never been just to refine oil but to refine opportunities for our people,” Dangote said. “This is a vote of confidence in Nigeria, in President Tinubu’s reforms, and in the ability of Africans to build and manage world-class infrastructure.”

He credited the Tinubu administration’s policies, including the Nigeria First, Naira-for-Crude, and One-Stop Shop initiatives, for creating a supportive environment for large-scale industrial investments.

Dangote said the refinery has already stabilised Nigeria’s fuel supply and helped strengthen the naira by reducing import-related dollar demand.

“Nigerians today buy petrol at roughly half the price of what our neighbours pay, and it’s even cheaper than in Saudi Arabia,” he noted. “Our product meets Euro VI standards and has significantly reduced the dumping of toxic fuel into our market.”

Read also: Dangote seeks $5bn Afreximbank loan for refinery expansion

As the festive season approaches, Dangote assured the public of a stable fuel supply and no price hikes, despite recent volatility in global oil prices.

“In the last three days, we have seen an eight percent spike in oil prices,” he said. “But I want to assure Nigerians that there will be no scarcity or price increase during the festive period. For the first time in years, Nigerians can expect a fuel-anxiety-free Christmas.”

Dangote reiterated that the expansion is not just about capacity growth but about redefining Africa’s role in global energy.

“When Africa builds its own capacity, it builds its own destiny,” he said. “This expansion is not just about refining oil, it’s about refining our confidence as a continent.”