Africa’s largest industrial conglomerate, Dangote Industries Limited, has unveiled ambitious plans to increase its total refining capacity to 2.1 million barrels of crude oil per day, a move expected to strengthen Africa’s energy security and potentially drive down fuel prices across the region.
The proposed expansion will include 1.4 million barrels per day in Nigeria through the ongoing expansion of the Dangote Refinery in Lagos, as well as the construction of a 700,000 barrels per day refinery in Kenya to serve East African markets.
The announcement was made by the Group Vice President for Oil and Gas, Devakumar Edwin, during a visit by officials of the Société Nationale des Pétroles du Congo (SNPC), the Republic of the Congo’s national oil company, to the Dangote Petroleum Refinery and Petrochemicals in Lagos.
Edwin disclosed that Dangote Industries also plans to invest an additional 46 billion US dollars between 2026 and 2028 across its refining, cement, and fertiliser businesses as part of its long-term strategy to accelerate industrialisation across Africa.
According to him, the Dangote Refinery has already set a new benchmark for fuel quality by producing petroleum products that meet international standards while reducing Africa’s dependence on imported refined petroleum products.
The visiting SNPC delegation, led by Managing Director Maixent Raoul Ominga, described the Dangote Refinery as a strategic asset for the African continent and expressed interest in establishing a long-term partnership with the company.
The delegation said such collaboration would strengthen the supply of refined petroleum products, improve energy security, and promote industrial cooperation across Africa.
Ominga also praised Dangote Industries for proving that African companies are capable of financing, constructing, and operating world-class industrial infrastructure. He further commended the company’s investments in the Republic of the Congo, particularly in the cement sector, for contributing to local production and economic development.
President and Chief Executive of Dangote Industries, Aliko Dangote, reaffirmed the company’s commitment to Africa’s development, stating:
“We are for Africa, not just Nigeria. Tell us what you need, and we will see how we can work together.”
If successfully implemented, the expansion will position Dangote Industries among the world’s largest refinery operators while significantly boosting Africa’s refining capacity, reducing dependence on imported fuel, and supporting regional economic integration.
Could Fuel Prices Drop?
The planned expansion is expected to increase the availability of refined petroleum products across Nigeria and other African countries. Greater local refining capacity could reduce reliance on imported fuel, lower logistics costs, improve supply stability, and potentially lead to a significant reduction in petrol pump prices over time. However, actual pump prices will still depend on factors such as global crude oil prices, exchange rates, government policies, and market competition.
