Nigeria TV Info 

Africa's Richest Man Seals $400 Million China Deal to Drive Refinery Expansion to 1.4 Million Barrels Per Day

Africa's richest businessman, Aliko Dangote, has signed a $400 million equipment agreement with China's Xuzhou Construction Machinery Group (XCMG) to accelerate the expansion of the Dangote Petroleum Refinery, a move aimed at boosting its refining capacity from 650,000 barrels per day (bpd) to 1.4 million bpd within the next three years.

The agreement will provide advanced heavy-duty construction equipment to support ongoing work across the refinery, petrochemical, fertilizer, agriculture and infrastructure projects under the Dangote Group. The additional machinery is expected to improve construction efficiency and reduce dependence on external contractors during the expansion phase.

Beyond increasing crude refining capacity, the expansion will significantly raise petrochemical output. Polypropylene production is projected to increase from 900,000 metric tonnes to 2.4 million metric tonnes annually, while urea fertilizer production is expected to reach 9 million metric tonnes per year, positioning Dangote among the world's largest fertilizer producers. The project will also expand production of linear alkyl benzene and base oils, strengthening Nigeria's manufacturing and industrial supply chains.

The refinery, which began operations in 2024, has already transformed Nigeria's downstream petroleum sector by reducing reliance on imported fuel and expanding exports across Africa and beyond. It recently surpassed its design capacity during performance tests by processing over 700,000 barrels per day, highlighting its growing operational strength ahead of the planned expansion.

Dangote described the investment as part of the group's broader ambition to become a $100 billion enterprise by 2030, while reinforcing Nigeria's position as a major refining and petrochemical hub for Africa.