Dangote Raises US$2.5 Billion to Expand Nigeria's Largest Refinery

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

A major expansion at the 700,000-barrel-per-day (bpd) Lekki refinery and petrochemical complex in Nigeria has raised US$2.5 billion in private funding.

New Funds

Nigeria's Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) has raised US$2.5 billion in private financing to help fund the major expansion of its 700,000-barrel-per-day (bpd) Lekki refinery and petrochemical complex near Lagos. The refinery is not only the largest refinery in Africa, but also the world's largest single-train oil refinery. According to Industrial Info Resources data, there are 17 projects making up the Lekki expansion, worth more than US$7 billion in investment. 

Investment Boost 

Dangote said that initial offer was vastly oversubscribed with the US$2.5 billion "believed to be Africa's largest publicly disclosed primary equity private placement by value." The key investors included African Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank), alongside "a broad mix of institutional and individual investors." The company said that the funding boost will support "DPRP's ongoing expansion of the refinery and petrochemical complex, strengthen the Enterprise's capital structure and provide additional financial flexibility for future growth initiatives."

"This is a strategic step to deepen and further industrialise the Enterprise's shareholder base, while raising capital to complement our internal cash flows and external funding, as DPRP advances its expansion agenda," said Dangote's founder and president, Aliko Dangote. He added: "This further demonstrates our profound commitment to developing domestic refining and petrochemical capacity -- reducing Africa's reliance on imported refined products and strengthening the continent's energy security."

Lekki Expansion

Dangote intends to increase the Lekki complex's refining capacity by 750,000 bpd to more than 1.4 million bpd - which would make it the world's largest single-site refinery. As well as boosting crude distillation capacity, the project will expand associated petrochemical operations, including boosting the complex's polypropylene production by 900,000 tonnes/year (TPY) to 2.4 million TPY. It will also upgrade the complex's fuel output to conform to Euro 6-quality standards while constructing an on-site gas-fired power plant to fully cater for the site's power needs. 

Importance of Dangote Refinery

Commissioned in 2024, the US$20 billion refinery was designed to cater for all of Nigeria's refined product demand, while exporting surplus volumes to global markets. It aims to process 100% Nigerian crudes but can also handle a range of African, Middle Eastern and U.S. light tight oils. While Nigeria is one of Africa's largest crude producers, it has relied on imports of refined products to cover 70% of its needs. Dangote has already had a major impact in reducing Nigeria's dependence on outside sources. In breaking news, the company has formally approached Nigeria's Securities and Exchange Commission to start the process for an initial public offering (IPO) - something Aliko Dangote spoke about last year. No date has been given, but it is expected to become Africa's largest stock market listing.

Nigeria Leads Global Refining Investment

According to Industrial Info Resources data, there is US$10.74 billion in Nigerian grassroot refinery capital spending out to 2030. There are 24 new plants in various stages of development expected online before 2031, which puts it far ahead of the second and third place nations, the U.S. and Iran, who have 11 each (see chart). For additional information, see July 17, 2026, article - Industrial Info Resources Data Shows Nigeria Leads in Grassroot Refinery Projects. 

Key Takeaways

• Dangote has raised US$2.5 billion in private funding for the expansion at the 700,000 bpd Lekki refinery and petrochemical complex in Nigeria.
• It will increase the Lekki complex's refining capacity by 750,000 bpd to more than 1.4 million bpd.
• Industrial Info Resources is tracking 17 projects making up the Lekki expansion worth more than US$7 billion in investment. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).