Nigeria: Dangote Signs $400 Million Equipment Deal With Chinese Firm To Fast-Track Refinery Expansion

Nigeria-based Dangote Group, Africa’s largest petroleum refinery operator, has signed a $400 million construction equipment deal with XCMG Construction Machinery, one of China’s leading machinery manufacturers.

The agreement is expected to accelerate the expansion of the Dangote Petroleum Refinery & Petrochemicals from its current capacity of 650,000 barrels per day to 1.4 million barrels per day.

The company announced the development in a statement issued on Monday.

According to the Group, the agreement will facilitate the acquisition of a wider range of advanced construction equipment to support ongoing and upcoming projects across refining, petrochemicals, agriculture, and large-scale infrastructure development.

The new equipment will complement existing assets being deployed for the refinery expansion, which is projected to be completed within three years.

Beyond refining, the expansion programme will boost polypropylene production from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum.

Urea production capacity in Nigeria will also triple—from 3 million to 9 million metric tonnes per annum—in addition to the 3 million metric tonnes per annum capacity in Ethiopia, strengthening the Group’s standing as the world’s largest urea producer.

Production capacity for Linear Alkyl Benzene (LAB) will increase to 400,000 metric tonnes per annum, positioning the Group as the largest producer in Africa and enhancing supply to the detergent and cleaning products industry. Additional base oil production capacity also forms part of the wider expansion plan.

Describing the agreement as a strategic investment, the Group said it aligns with its ambition to build a $100 billion enterprise by 2030.

“The additional equipment we are acquiring under this partnership will significantly enhance execution across our projects. With this investment, we are positioning ourselves to become the number one construction company in the world,” the statement noted.

Dangote Group is currently accelerating its expansion and regional market development as it advances toward its long-term 2030 vision.