Dangote Industries Limited plans to double its refinery output to 1.4 million barrels per day, aiming to create the world’s largest refining facility and surpass India’s Jamnagar plant. Founder Aliko Dangote revealed this expansion in an interview with S&P Global Commodity Insights, noting the refinery currently operates at 650,000 bpd. He also announced intentions to list up to 10 percent of shares by 2026, marking a shift in business strategy.

Dangote described the pursuit of African energy independence as a “herculean task” and a “labour of love,” emphasizing that no African government is investing in such large-scale projects. He stated, “We have to build the refinery again, either here or somewhere else. But really, somewhere else is not possible because we’d have to go and spend so much building infrastructure, and we have the infrastructure already here.”

Engineers at the Lekki complex confirmed the site was designed for growth, with empty plots for a second refining system. Expansion may involve building an identical refinery, potentially with a vacuum distillation unit to boost yields. Dangote is actively considering strategic partnerships with Middle Eastern companies to fund expansion and a new petrochemical project in China, signaling a move away from full ownership.

The company will list 5 to 10 percent of its shares on the Nigerian Stock Exchange within the next year. Dangote explained, “We don’t want to keep more than 65 per cent to 70 per cent,” adding that shares will be offered incrementally based on market depth. He left the door open for NNPC to increase its stake, but only after demonstrating the refinery’s capabilities.

Operational challenges included the Residue Fluid Catalytic Cracker going offline in September after a turnaround. Vice President Devakumar Edwin said it restarted around October 7 and should reach full capacity soon. Dangote confirmed a planned month-long turnaround for the RFCC, avoiding peak demand periods, while the Crude Distillation Unit remains operational.

Labor tensions flared after the company fired 800 employees, sparking a strike. Following government-brokered talks, Dangote committed to rehiring dismissed workers outside the refinery. He stated, “We don’t have any worries with the unions,” and noted the reorganization is nearly complete to ease tensions.

To address crude supply concerns, Dangote secured a “crude for naira” swap with NNPC for 14 cargoes, exchanging crude for petrol and gasoil in local currency. Upstream assets in the Niger Delta are expected to start production, reaching 40,000 bpd. Dangote remains interested in new upstream opportunities and expanding investments across Africa, including in Namibia, Ethiopia, and Senegal.