Dangote Group has signed a $400 million equipment agreement with XCMG Construction Machinery Co., Ltd., one of China’s leading construction equipment manufacturers, in a strategic move to accelerate its refinery and petrochemical expansion projects.
The deal is aimed at acquiring advanced construction machinery that will support the ongoing expansion of the Dangote Petroleum Refinery & Petrochemicals complex from its current capacity of 650,000 barrels per day (bpd) to 1.4 million bpd a scale that would position it as the largest refinery in the world once completed.
According to the company, the additional equipment will reinforce capabilities across refining, petrochemicals, agriculture, and large-scale infrastructure projects, helping to accelerate delivery timelines. The refinery expansion is expected to be completed within the next three years.
Boost in Petrochemical and Fertiliser Output
Beyond crude processing, the expansion programme includes substantial increases in downstream production:
- Polypropylene output is set to rise from 900,000 metric tonnes per year to 2.4 million metric tonnes, strengthening supply for industries such as packaging, automotive, and consumer goods.
- Urea fertiliser capacity in Nigeria will be expanded from 3 million metric tonnes per year to 9 million metric tonnes annually, adding to another 3 million metric tonnes capacity in Ethiopia, consolidating Dangote’s role as a global urea producer.
- Linear Alkyl Benzene (LAB) production will increase to 400,000 metric tonnes per year, positioning the company as Africa’s leading producer of this key chemical used in detergents and cleaning products.
- Additional base oil production capacity is also planned as part of the broader petrochemical strategy.
Strategic Importance
In a statement, Dangote Group described the transaction as a strategic investment that will deepen the company’s construction footprint and drive progress toward its long-term vision of building a $100 billion enterprise by 2030. “The additional equipment we are acquiring under this partnership will significantly enhance execution across our projects,” the statement said, adding that it positions Dangote to become a leading global construction force.
The refinery expansion is central not only to Nigeria’s industrial ambitions but also to regional energy security, reducing dependence on fuel imports, and supporting local manufacturing and agricultural sectors. If achieved as planned, the enhanced capacity will fortify Nigeria’s position in global refining and petrochemical supply chains.
