Energy
Dangote Refinery expands to 1.4mbpd capacity
· Commends Tinubu’s reforms, projects $55bn annual revenue
· Plans NGX listing to empower Nigerians
President of Dangote Industries Limited, Aliko Dangote, has explained that the decision to expand the Dangote Petroleum Refinery from 650,000 barrels per day (bpd) to 1.4 million bpd is driven by emerging opportunities across Africa, growing regional demand for cleaner fuels and Nigeria’s evolving policy environment that encourages local refining.
Speaking at a media briefing in Lagos, Dangote said the $20 billion facility, already the largest single-train refinery in the world, will more than double its capacity within the next three years, making it a global leader in petroleum refining and a major driver of Africa’s industrial renaissance.
“This expansion reflects our confidence in Nigeria’s future, our belief in Africa’s potential and our commitment to building energy independence for our continent and the world. It also is about confidence in Nigeria, in Africa and in our capacity to shape our own energy future.
”It is the dream of President Bola Ahmed Tinubu GCFR, for Nigeria to emerge as one of the major suppliers of petroleum products in the world. And with his strong backing through his policies, we are taking on the challenge to make this happen,” Dangote said.
According to him, the expansion reflects the group’s belief in Africa’s potential to achieve energy security and transform its economy from being an exporter of raw crude to a hub for refined petroleum products.
Dangote revealed that the expansion project would be executed over the next three years and would be financed through a mix of cash flow, public listing and strategic investors. When completed, the refinery will surpass India’s Jamnagar Refinery, currently the world’s largest facility, cementing Nigeria’s position as a global refining hub.
He said the refinery will also expand its polypropylene production capacity from 900,000 metric tonnes to 2.4 million metric tonnes per annum, further boosting the output of linear alkylbenzene, a key ingredient in detergent manufacturing, along with additional production of base oils.
“With this expansion, the refinery transitions from producing Euro V to Euro VI fuel standards, meeting the highest global environmental benchmarks. We will also expand our power generation capacity to 1,000 megawatts, ensuring complete operational self-sufficiency. More than 85 per cent of our workforce will be Nigerians, with continuous investment in skills development and technology transfer. Our commitment to safety, sustainability and local participation remains unwavering throughout every phase of the expansion,” he said.
Highlighting the economic impact of the project, Dangote said the expansion would further strengthen Nigeria’s energy security, reduce foreign exchange outflows, and save the country billions of dollars annually that would otherwise go into importing refined products.
He estimated that the refinery’s revenue could exceed $55 billion annually, making it one of the most valuable industrial assets on the African continent.
Dangote reaffirmed plans to list a significant portion of the refinery’s shares on the Nigerian Exchange (NGX) within the next year, describing it as part of efforts to democratise ownership and allow Nigerians to share in the value creation.
“Our main listing will be here in Nigeria to give Nigerians value. We want the Dangote Refinery to be the golden stock of the Exchange. Listing outside Nigeria is secondary to us. We want this to be a national asset in every sense. This is a step towards broader ownership and market transparency. Therefore we call on all Nigerians to seize this window, to benefit from this golden opportunity. Our long-term goal remains clear: to build Africa’s leading integrated energy and petrochemical hub, the first of its kind on the continent,” Dangote said.
He said the refinery’s strong cash flow, profitability prospects and strategic positioning would make it attractive to both local and global investors.
“This expansion will create additional jobs, support thousands of SMEs, and deepen our industrial base. Our goal has never been just to refine oil, but to refine opportunities for our people. It is a vote of confidence in Nigeria, in the reforms of President Bola Ahmed Tinubu’s administration, and in the ability of Africans to build and manage world-class infrastructure,” he added.
He expressed gratitude to President Tinubu and the Federal Government for supporting industrialisation policies such as Nigeria’s First, Naira-for-Crude and the ‘One-Stop Shop’ initiatives, which he said have emboldened investors to take on transformative projects.
He also commended the government’s intervention in mediating recent disruptions at the refinery linked to union activity and sabotage attempts, calling it a demonstration of effective collaboration between the public and private sectors.
Despite not yet recouping the initial investment in the 650,000 bpd phase, Dangote said the group is focused on long-term transformation rather than short-term returns.
“Refining is a long-term project. We are expanding because we believe in Africa. Without this refinery, Nigeria would still be buying dollars at ridiculous rates and depleting our reserves to import fuel,” he said.
He emphasised that Nigeria’s pump price remains among the lowest in the region despite the refinery’s production of higher-quality, cleaner fuels that have reduced toxic dumping in the country.
Dangote emphasised that the refinery has already made a difference by stabilising local fuel supply, helping to strengthen the naira, and preventing capital flight.
“Nigerians today buy petrol at roughly half the price of what our neighbours pay and it is even cheaper than in Saudi Arabia. Our product is of higher quality, meeting Euro VI standards, and it has significantly reduced the dumping of toxic fuel into our market,” he said.
As Nigeria approaches the festive season, Dangote assured the public that there would be no fuel scarcity or price hike during the ember months, despite recent global price increases.
“In the last three days, we have witnessed an eight per cent spike in global oil prices. But I want to assure Nigerians that the Dangote Refinery is fully committed to maintaining uninterrupted supply of petrol throughout the festive period. For the first time in many years, Nigerians can look forward to a Christmas and New Year free of fuel anxiety,” he added.
Dangote praised the Federal and Lagos State Governments for their continued support, along with the company’s host community in Lekki and its financial and technical partners.
“This expansion is not just about capacity; it is about confidence — in our people, in our government and in our continent. Together, we are building a stronger Nigeria and redefining what is possible for Africa,” the DIL President said.
He called on other investors holding refinery licences to emulate the example, urging collaboration in achieving President Tinubu’s vision of making Nigeria the refining hub of Africa.
“When Africa builds its own capacity, it builds its own destiny,” Dangote concluded.
• Nigeria’s Energy Revival Already Happening, Says Ojulari
On December 1st, 2025, NNPC E&P Limited (NEPL), the flagship upstream subsidiary of NNPC Limited, achieved a record production level of 355,000 barrels of oil per day, its highest daily output since 1989.
The milestone marks a significant step forward for Nigeria’s upstream sector and reflects the company’s ongoing transformation anchored on efficiency and discipline.
The figures show genuine transformation: average daily production surged 52%, rising from 203,000 barrels per day in 2023 to 312,000 in 2025.
This growth is no coincidence; it stems from a clear strategy anchored on operational excellence, strong asset management, and structured field development. NEPL’s performance demonstrates that with the right leadership, strengthened systems, and a committed workforce, Nigeria’s upstream sector can overcome years of instability.
The achievement converts national ambition into measurable momentum. The presidential targets of 2 million barrels per day by 2027 and 3 million by 2030 have often appeared aspirational. NEPL’s delivery brings them closer to reality.
Speaking on the development, Engr. Bashir Bayo Ojulari, the Group CEO of NNPC Limited pointed out that the milestone is proof that Nigeria’s energy revival is not a dream; it is already happening.
“By showing its ability to exceed its own production benchmarks, NEPL confirms that the essential building blocks for scaling national output are being firmly established. The achievement signals that the machinery of production—equipment, processes, capabilities, and partnerships—can be driven with commercial discipline to produce real and positive outcomes,” Ojulari stated.
He noted that the achievement reinforces confidence nationally and across the global energy landscape, assuring partners and investors that Nigeria is committed to reaffirming its role as a dependable energy supplier.
Also speaking, Udy Ntia, the Executive Vice President, Upstream, observed that the milestone goes beyond the 355,000 bpd figure.
“In a sector where shortcuts can yield short-term wins but long-term damage, NEPL is making a different point: sustainable progress must rest on responsible operations. This ensures that scaling production does not compromise worker safety, community wellbeing, or environmental protection. It reinforces a shift away from extraction at any cost towards sustainable value creation—a core requirement for any modern energy company seeking global relevance,” Ntia added.
Nicolas Foucart, MD, NEPL also noted that NEPL’s record-setting performance mirrors the broader transformation unfolding across NNPC Limited.
“This is a story shaped by leadership that charts a clear course; by partnerships built on alignment and accountability; and by a workforce whose hard work is turning goals into measurable progress. Our people, our processes, and principles are the real engines behind this success. We are building for tomorrow, not just celebrating today,” Foucart stated.
He added: “For Nigerians, this accomplishment means far more than increased barrels; it translates into greater national revenue, stronger energy security, and a more resilient economic foundation. NEPL has not only produced more hydrocarbons; it has reignited belief in what Nigeria’s energy sector can achieve with the right systems, culture, and dedication.”
NNPC E&P Limited is a wholly-owned subsidiary of the Nigerian National Petroleum Company (NNPC) Limited involved in the exploration and production of oil and gas resources.
The Abia state government, in partnership with the Niger Delta Power Holding Company (NDPHC), has commenced the construction of a 7.5MVA, 33/11kV Injection Substation in Umuahia.
The state governor, Governor Alex Otti, at the groundbreaking ceremony, described the project as a transformative initiative that will significantly boost power supply and enhance distribution reliability across the state, noting that the new infrastructure marks the beginning of a broader effort to modernise Abia’s power network.
The project is being executed by NDPHC under the National Integrated Power Project (NIPP). Its scope includes the construction of a 1km 33kV line, 1.2km of 11kV line, installation of two 300kVA distribution substations, and the provision of 2km of low-tension line.
Governor Otti commended the Federal Government and NDPHC for prioritising Abia in this strategic intervention. He also applauded President Bola Tinubu’s ongoing reforms in the power sector, which he said have expanded the national electricity framework to encourage stronger state participation, private sector investment, and global partnerships.
The governor further revealed that the state government has budgeted for an additional 7.5MVA Injection Substation in the 2026 fiscal year, which will raise the combined capacity in the Ogurube Layout area of Umuahia to 15MVA once completed.
NDPHC Managing Director/CEO, Jennifer Adighije, an engineer, who was represented at the event by Executive Director, Networks, Bello Babayo Bello, reaffirmed the company’s commitment to expanding access to reliable and sustainable electricity nationwide.
She said the Umuahia project reflects NDPHC’s mandate to empower communities and drive economic development.
When completed, the substation is expected to strengthen electricity supply, support small businesses, promote industrial development, and ultimately improve the quality of life for residents of Umuahia and surrounding communities.
The NNPC/Heirs Energies OML 17 Joint Venture yesterday advanced Nigeria’s gas commercialisation and environmental initiative with the symbolic signing of Gas Flare Commercialisation Agreements under the Nigerian Gas Flare Commercialisation Programme (NGFCP) and approved Non-NGFCP frameworks.
The ceremony, which held in Lagos, marks a significant transition from regulatory approvals to structured commercial execution, enabling flare gas volumes across OML 17 to be captured and deployed for productive use, including power generation, industrial applications, LPG and CNG, in alignment with Nigeria’s gas development priorities and energy-transition objectives.
The agreements was signed between Heirs Energies, as operator of the OML 17 JV and approved flare gas offtakers – AUT Gas, Twems Energies, Gas & Power Infrastructure Development Limited (GPID), PCCD and Africa Gas & Transport Company Limited (AGTC) – under frameworks designed to eliminate routine flaring while converting previously wasted resources into economic value.
Speaking at the ceremony, the Chief Upstream Investment Officer, NNPC Upstream Investment Management Services (NUIMS), Seyi Omotowa, an engineer, representing NNPC Limited, described the milestone as a practical demonstration of Nigeria’s commitment to gas-based development.
“For us at NNPC Limited and NUIMS, flare gas commercialisation is not a compliance exercise; it is a strategic pathway to improving energy availability, deepening gas-based industrialisation and strengthening Nigeria’s position as a responsible energy producer. OML 17 has become a practical model of this vision, moving decisively from approval to delivery,” Omotowa said.
He commended Heirs Energies for disciplined execution and investment, noting that the JV continues to set benchmarks for operational delivery and gas development within Nigeria’s upstream sector.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Chief Executive, Engr. Gbenga Komolafe, who was represented by Senior Manager, Ojo Ezekiel, reaffirmed the Commission’s support for the project, describing flare gas commercialisation as a cornerstone of Nigeria’s decarbonisation pathway under the Petroleum Industry Act (PIA) 2021.
“This ceremony demonstrates Heirs Energies’ commitment to eliminating routine gas flaring across OML 17 and aligns fully with the Commission’s Gas Flare Commercialisation Programme and national energy and emission-reduction objectives,” Ezekiel said.
Heirs Energies’ Chief Executive Officer, Osa Igiehon, noted that the agreements reflect the company’s broader gas-led strategy and brownfield excellence approach, focused on creating long-term value for Nigeria.
“Gas sits at the heart of Nigeria’s development journey. Through disciplined investment, partnership with regulators and credible offtakers, and a clear execution focus, we are converting waste into value, strengthening domestic energy supply and supporting responsible operations across OML 17,” he said.
The NGFCP and Non-NGFCP flare gas projects build on recent operational progress by the OML 17 JV, including a significant increase in gas delivery to the domestic market through brownfield interventions and infrastructure optimisation. The JV has also continued to deepen its host-community partnerships through targeted healthcare interventions, education support and skills-development programmes across its areas of operation.
With the symbolic signing completed, the flare gas offtakers are expected to progress into full project implementation, working closely with the JV, regulators and communities to deliver commercial, environmental and social outcomes.
The OML 17 NGFCP initiative reinforces Nigeria’s position as a gas-led economy, supporting domestic power generation, industrial growth and responsible resource development while advancing the country’s energy-transition objectives.
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