Africa’s richest man, Aliko Dangote, is preparing to sell a minority interest in his flagship refinery to fund a major expansion that could make the Lagos-based facility the largest in the world.
Speaking in an interview with S&P Global, Dangote said plans are underway to list between five and ten percent of the Dangote Petroleum Refinery on the Nigerian Exchange within the next year. The partial sale, he explained, will attract new investors, strengthen the company’s balance sheet, and pave the way for an ambitious expansion drive.
“We intend to reduce our holding to around 65 or 70 percent,” Dangote noted, adding that the shares will be released gradually, depending on market appetite and liquidity conditions.
The move marks a new phase for the $20 billion refinery, which began commercial operations less than a year ago. The 650,000-barrel-per-day complex already ranks among the world’s most advanced refining systems, complete with its own port and logistics network. Dangote now wants to double output to 1.4 million barrels per day, overtaking India’s Jamnagar refinery, currently the world’s largest.
According to Dangote, talks are ongoing with Middle Eastern investors to provide both equity and technical support for the expansion, as well as for a new petrochemicals venture in China. “Our model is changing,” he said. “This won’t be a 100 percent Dangote-owned refinery forever. We’re bringing in partners who can add value and accelerate growth.”
Engineers at the Lekki site said the expansion could include constructing a second refinery with a similar setup and additional vacuum distillation units to boost fuel output.
Beyond refining, the group plans to raise polypropylene capacity from one million to 1.5 million metric tonnes annually, while pursuing new ventures in linear alkylbenzene and base oils, which are essential raw materials for detergents and lubricants.
Dangote Group recently secured a $4 billion refinancing deal, easing pressure on its balance sheet and positioning it for fresh capital inflows. Still, the refinery’s scale-up will require billions more, prompting a shift toward strategic partnerships and public ownership.
“Our financing approach is evolving,” Dangote explained. “We’ll remain in control, but we’re opening the door to long-term investors who share our vision.”
The Nigerian National Petroleum Company Limited (NNPC), which currently holds a 7.2 percent stake in the refinery, could raise its shareholding once the next expansion phase begins. “I’d like to first show what the refinery can achieve before discussing a larger stake,” Dangote said.
The announcement comes as the refinery stabilises after months of technical adjustments. Its key residue fluid catalytic cracker, crucial for gasoline production, was temporarily shut in September for maintenance but resumed operations in early October.
Devakumar Edwin, Dangote Group Vice President overseeing operations, confirmed that most of the initial technical challenges have been resolved, with the plant expected to reach full capacity before year-end.
Crude supply has also improved following a crude-for-naira exchange deal with NNPC, which guarantees 14 cargoes of crude oil for refined products. In addition, Dangote’s upstream oil blocks, OML 71 and 72, are scheduled to commence production this month, contributing an estimated 40,000 barrels per day to feed the refinery.
Despite projections by the International Energy Agency of a global refining oversupply by 2030, driven largely by China and India, Dangote insists that Africa cannot afford to rely on imported fuel.
“Most African countries can’t build large refineries,” he said. “Interest rates are high, infrastructure is poor, and funding costs are crippling. Smaller refineries across the continent are barely a drop in the ocean.”
Industry analysts believe the expansion could transform Nigeria’s energy landscape, allowing the country to become a net exporter of refined petroleum products while easing its chronic foreign exchange demand.
“This project has the potential to reshape global trade flows and redefine Africa’s industrial profile,” said an energy consultant based in Lagos. “If Dangote delivers on his expansion target, Nigeria could become a regional fuel hub within five years.”
As construction plans advance and share listing discussions intensify, Dangote remains focused on one overarching goal: building Africa’s refining future at home.
“Africa must refine its own crude,” he said. “We can’t keep exporting jobs and importing fuel forever.”
