Planned expansion of Dangote refinery can be completed within three years, says MD
Executive summary
Dangote Petroleum Refinery’s Managing Director, David Bird, says the company will expand processing capacity from 650,000 barrels per day to 1.4 million barrels per day within three years, leveraging a “ruthless replication” strategy that avoids redesign and enables immediate procurement and construction. He cites extensive pre-investment and site readiness as key enablers for the accelerated timeline, with long‑lead equipment orders and early construction commencing in early 2026.
Context and scope of the expansion
The
expansion—first announced by Aliko Dangote in October, aims to scale what is
already Africa’s largest single‑train refinery to 1.4 million barrels per day.
If delivered on schedule, the project would place the complex among the largest
globally, with significant implications for Nigeria’s energy security, foreign
exchange earnings, and the downstream sector.
Strategy: “Ruthless replication” and design continuity
Bird
emphasized that the expansion will not require redesign or re‑engineering,
allowing the team to move directly into procurement and construction. This
approach is intended to compress timelines by replicating proven plant configurations
and ordering long‑lead items without delay. The company’s confidence rests on
the continuity of design and the ability to bypass typical engineering cycles.
Timeline and near‑term milestones
Two
parallel tracks will define the immediate phase: procurement of long‑lead
equipment, targeted for substantial completion in the first months of 2026, and
early construction activities such as piling and site preparation, scheduled to
begin before the end of January. Bird expects foundation works to proceed this
year and “steel coming out of the ground” by year‑end, reinforcing the three‑year
delivery window.
Enablers: Pre‑investment and site readiness
The
accelerated schedule is underpinned by extensive preparatory work already
completed at the Lekki site, including land reclamation and elevation by about
one to one‑and‑a‑half metres. Bird credited this foresight, driven by Dangote’s
original vision, with removing typical bottlenecks in large industrial
projects, enabling immediate transition to piling and foundations while
procurement runs in parallel.
Economic and sectoral implications
Upon
completion, the expanded capacity is expected to strengthen Nigeria’s domestic
refining capability, reduce reliance on imported petroleum products, and
position the country as a significant exporter of refined fuels. The scale of
the project could reshape downstream market dynamics, bolster foreign exchange
inflows, and enhance energy security through consistent local supply.
Risks and execution considerations
While the
plan leans on design replication and site readiness to mitigate schedule risk,
execution will still depend on timely delivery of long‑lead equipment, stable
construction logistics, and coordinated regulatory and supply chain support.
The aggressive timeline presumes minimal disruption across procurement, civil
works, and integration with existing operations, areas that typically challenge
megaprojects, even with strong pre‑investment foundations.
Outlook
Bird
reaffirmed the company’s belief that the expansion can be brought online within
three years, with visible construction progress expected by the end of the
first year. If achieved, the project would mark a step‑change in Nigeria’s
refining landscape and elevate the Dangote complex into the top tier of global
refining capacity, aligning operational execution with strategic national
outcomes.
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