Dangote Signs $400 Million Equipment Deal to Fast-Track Refinery Expansion and Boost Petrochemical Capacity

Why It Matters

The expansion dramatically increases Africa’s refining and petrochemical capacity, reducing import reliance and reshaping regional energy and chemicals markets.

Key Takeaways

• Expansion doubles refinery capacity to 1.4M bpd.
• Polypropylene output to reach 2.4M tonnes annually.
• Urea production to triple, hitting 9M tonnes in Nigeria.
• LAB capacity to hit 400k tonnes, Africa’s largest.
• $400M XCMG equipment deal accelerates construction timeline.

Pulse Analysis

Dangote Group’s recent $400 million agreement with China’s XCMG Construction Machinery marks a decisive step in the Nigerian conglomerate’s drive to become a global industrial heavyweight. The equipment will underpin the expansion of the Dangote Petroleum Refinery from 650,000 barrels per day to a projected 1.4 million barrels, a capacity that would eclipse all existing plants and place the complex at the top of the world’s refinery rankings. By locking in advanced construction assets, Dangote aims to compress a three‑year build schedule, reinforcing its broader $100 billion enterprise target for 2030.

The capacity upgrades extend far beyond crude processing. Polypropylene output is slated to climb from 900,000 to 2.4 million metric tonnes, feeding a rapidly growing plastics market across West Africa. Simultaneously, urea production in Nigeria will triple to 9 million tonnes, complementing the 3 million‑tonne facility already operating in Ethiopia and cementing Dangote’s claim as the world’s largest urea maker. A new linear alkyl benzene line of 400,000 tonnes will secure raw material supplies for detergent manufacturers, positioning the group as Africa’s leading chemical producer and diversifying revenue streams.

Beyond the immediate output gains, the deal signals a shift in Africa’s industrial financing landscape. By partnering with a Chinese OEM, Dangote reduces reliance on Western capital and showcases the viability of large‑scale, locally‑driven projects. The accelerated construction timeline could spur ancillary infrastructure development, from logistics hubs to power generation, fostering job creation and technology transfer. However, the venture also faces execution risk, including supply‑chain bottlenecks and regulatory hurdles. If managed successfully, the expansion will reshape regional energy security, lower import dependence, and reinforce Nigeria’s position as a manufacturing hub.

Dangote signs $400 million equipment deal to fast-track refinery expansion and boost petrochemical capacity

By Oluwatosin Ogunjuyigbe · February 17, 2026

Dangote Group has signed a $400 million agreement with China’s XCMG Construction Machinery Co., Ltd. to acquire advanced construction equipment, as it accelerates the expansion of its petroleum refinery and broader industrial operations.

The deal will support the expansion of the Dangote Petroleum Refinery and Petrochemicals from its current capacity of 650,000 barrels per day to 1.4 million barrels per day — a scale that would position it as the largest refinery in the world once completed.

The company said the new equipment will strengthen construction capacity across its refining, petrochemical, agricultural, and infrastructure projects. It expects to complete the refinery expansion within three years.

The expansion programme also includes a major increase in petrochemical output. Polypropylene production will rise from 900,000 metric tonnes per year to 2.4 million metric tonnes annually, while Nigeria’s urea production capacity will triple from 3 million to 9 million metric tonnes per year. Combined with its 3 million metric tonnes annual capacity in Ethiopia, Dangote Group will reinforce its position as the world’s largest urea producer.

The group will also expand its production of linear alkyl benzene (LAB) to 400,000 metric tonnes per year, strengthening supply to detergent and cleaning‑product manufacturers and establishing Dangote as Africa’s largest producer of the industrial chemical. The expansion plan also includes additional base‑oil production capacity.

Dangote Group described the agreement as a strategic investment aimed at strengthening its construction capabilities and accelerating its long‑term growth strategy.

“The additional equipment we are acquiring under this partnership will significantly enhance execution across our projects,” the company said. “With this investment, we are positioning ourselves to become the number one construction company in the world.”

The expansion forms part of Dangote Group’s broader ambition to build a $100 billion enterprise by 2030, driven by large‑scale industrial projects and regional market expansion.

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About the author

Oluwatosin Ogunjuyigbe is a writer and journalist who covers business, finance, technology, and the changing forces shaping Nigeria’s economy. He focuses on turning complex ideas into clear, compelling stories.