When Aliko Dangote announced in 2013 that he would build a 400,000-barrel-per-day refinery in Nigeria, many thought the plan was overly ambitious.
The project was initially slated to cost $9 billion and take three years to complete. By the time it was commissioned in 2023, Dangote had invested $20 billion in the now 650,000 bpd complex.
Two years into operation, Dangote is aiming higher: he plans to expand the refinery to 1.4 million barrels per day, which would make it the world’s largest refinery.
At a news conference in Lagos on Sunday, he said the expansion reflects his commitment to building energy independence for Africa.
The plan will add another single-train refining unit, boosting production of petrol, diesel, and higher-value products.
"We will be expanding our polypropylene production from 900,000 metric tons to 2.4 million metric tons per annum," Dangote said.
"This will actually enrich the production of what we call linear alkyl benzene, which is a key ingredient for the production of detergents and the additional production of base oil.
"So, we are adding quite a lot of areas. With this expansion, the refinery transitions from producing Euro 5 to now Euro 6 fuel standards, meeting the highest global environmental benchmark."
The expansion is expected to create 65,000 jobs during construction, with 85 percent of the workforce being Nigerians.
The refinery, which already produces its own power, will double its electricity generation from 500MW to 1,000MW, making it Nigeria’s third-largest power plant, after Egbin (1,320MW) and Afam (1,038MW).
"We already have the infrastructure," Dangote said.
"You know, the last time, when we built the refinery, you remember we had to spend nine months trying to remove the bushes," Dangote told the packed hall.
"We brought all the swamp bullies from the Niger Delta to try and remove all the trees. And then we had to pump 65 million tons of sand to raise the land, the entire land, by one and a half meters.
"But the land that we actually now invested money in - by raising the land by one and a half meters - includes this expansion, so we don't have to do it again.
"And, you know, we had to build SPM. We are not trying to do SPM anymore.
"We don't have to build a port anymore. We already have a port."
With the knowledge gleaned from working on the 650,000 bpd refinery, the company plans to complete the new expansion in three years.
Public Listing
Dangote revealed that the refinery and petrochemical complex will be listed on the Nigerian Exchange (NGX) within a year, without specifying how much equity will be floated.
"You can buy as many shares as you can," he said, adding that the listing will depend on investor demand and represents a step towards broader ownership and market transparency.
The billionaire projects the refinery will generate $55 billion in annual revenue when completed, with the ultimate goal of building Africa’s leading integrated energy and petrochemical hub.
