Business
Dangote Plans Bold 650,000bpd East Africa Refinery Expansion
Dangote East Africa refinery expansion plans unveiled as he proposes 650,000bpd plant to boost fuel production and reduce import reliance
Africa’s richest man, Aliko Dangote, has unveiled plans to build a new 650,000 barrels-per-day refinery in East Africa, marking a major step in his continental industrial expansion strategy.
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Dangote made the announcement on Thursday during a presidential panel at the Africa We Build Summit organised by the Africa Finance Corporation in Nairobi, Kenya.
He said the project would replicate the scale and model of his Lagos-based refinery, provided regional governments offer the necessary support and policy backing.
The proposed facility is expected to strengthen fuel production capacity across East Africa and reduce dependence on imported petroleum products, which currently dominate the region’s supply chain.
Dangote expressed confidence in the project’s feasibility, citing the successful delivery of his 650,000bpd refinery in Nigeria as proof of concept.
He also revealed that expansion works had already begun in Nigeria to increase the Lagos refinery’s capacity to 1.4 million barrels per day, which would make it one of the largest refining complexes globally.
According to him, Africa must prioritise industrial self-sufficiency to shield economies from global price volatility and supply disruptions.
He cited recent spikes in petrochemical prices as evidence of the risks associated with import dependence, warning that local production is critical for economic stability.
Dangote added that stronger African financial institutions and improved investment climates now make large-scale infrastructure projects more viable than in previous years.
He also disclosed plans to open ownership of his refinery ventures to African investors, with returns expected in dollars to deepen continental participation in key infrastructure.
The billionaire said the East African refinery could be completed within four to five years if agreements with partner governments are finalised.
Kenyan President William Ruto confirmed ongoing discussions with Dangote and regional partners, noting that a joint refinery project in Tanga, Tanzania, is under consideration.
Ruto said the initiative would serve multiple countries, including Kenya, Uganda, South Sudan, and the Democratic Republic of Congo, through a shared crude supply network.
Energy experts note that the project could significantly reshape Africa’s fuel landscape, where a large portion of refined products is still imported from outside the continent.
Dangote’s expansion plans build on the commissioning of his Lagos refinery in 2024, widely regarded as Africa’s largest, and a key milestone in the continent’s push for energy independence.
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He also announced additional plans to establish fertiliser blending plants across Africa by 2028, further extending his industrial footprint.
Dangote Petroleum Refinery has set its initial public offering price at ₦525 per share, with the company seeking to raise about ₦2.15 trillion as it prepares to enter Nigeria’s public equities market.
The Securities and Exchange Commission has approved the offer for 4.1 billion ordinary shares at ₦525 each. If fully subscribed, the offer would generate approximately ₦2.15 trillion, equivalent to about $1.6 billion at current exchange rates.
The offering is expected to open on 14 September 2026, according to Aliko Dangote, the president of Dangote Industries. The planned sale is positioned to become one of the largest equity offerings in Africa.
The IPO marks a significant step in Dangote Group’s plans to broaden ownership of the refinery and raise additional capital for expansion.
The refinery currently has a stated processing capacity of 650,000 barrels of crude oil per day. Dangote has said the company plans to increase that capacity to 1.4 million barrels per day as part of its longer-term expansion strategy.
The planned share sale follows a $1 billion underwriting programme completed in August, providing additional financial backing ahead of the public offering.
The refinery, located in the Lekki area of Lagos State, is one of Africa’s largest industrial projects and has become an increasingly important player in Nigeria’s fuel supply market since beginning operations.
The public offering will give Nigerian investors an opportunity to acquire shares in the refinery directly, while providing Dangote Petroleum Refinery with fresh capital to support its next phase of growth.
The company has also indicated ambitions to expand beyond its current Nigerian operations, with Dangote recently announcing plans for another refinery project in Kenya.
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