Dangote Industries Limited has acquired 4,000 additional pieces of construction equipment as it begins the expansion of its Lekki refinery in Lagos, with the company targeting a processing capacity of 1.4 million barrels of crude oil per day.
The latest acquisition brings Dangote Industries’ construction equipment fleet to approximately 6,500 machines, including about 330 cranes, according to Devakumar Edwin, Group Vice President for Oil, Gas and Fertiliser at Dangote Industries.
Edwin disclosed the development during a briefing with journalists following a tour of the Dangote refinery in Ibeju-Lekki, Lagos.
The company initially purchased 2,563 pieces of construction equipment during the development of the existing refinery. According to Edwin, the decision followed concerns from contractors that they did not have sufficient equipment capacity to undertake some of the major construction works required for the project.
Dangote subsequently increased its machinery fleet as it took on more construction responsibilities itself.
The company said building its own construction capacity also helped reduce its dependence on foreign contractors. Edwin explained that relying heavily on international contractors would require the contractors to transport their equipment into Nigeria and later remove it, with the associated expenses ultimately reflected in project costs.
The refinery expansion is expected to increase the facility’s capacity from its current level of about 700,000 barrels per day to 1.4 million barrels per day. The Dangote Refinery itself currently describes its expansion plan as a move toward 1.4 million barrels per day.
The project is part of Dangote Group’s broader expansion of its oil and gas operations. The company is also investing in petrochemicals and fertiliser production, with plans to increase fertiliser output substantially.
The refinery’s expansion is expected to require additional workers. Premium Times reported that the company plans to double its workforce within the refinery as processing capacity increases.
The expansion also comes as Dangote Refinery seeks to raise capital through an initial public offering. The refinery is seeking ₦2.2 trillion ($1.6 billion) in equity capital, with the funds intended to support its expansion programme.
The planned increase in refining capacity could have implications for Nigeria’s petroleum market because a larger refinery would provide greater capacity for processing crude locally and supplying refined petroleum products to domestic and international markets.
Dangote Industries is also developing supporting infrastructure around its industrial operations. The company has invested in facilities including a granite quarry, concrete batching plants, transit mixers and port infrastructure, which support the construction and operation of its large-scale projects.
The company’s approach of maintaining a large in-house construction fleet is therefore not limited to the current refinery expansion. It forms part of a wider strategy to develop internal capacity for executing major industrial projects.
The refinery expansion is currently targeted for completion around 2029, although the company has indicated that it wants to accelerate the timetable where possible.
If completed, the expansion would more than double the refinery’s original 650,000-barrel-per-day design capacity and further increase Nigeria’s domestic refining capacity.
