Lagos, Nigeria – Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery to expand its refining and industrial operations across Africa, the company announced on Tuesday.
Okay News reports that the deal will support the expansion of the Dangote Petroleum Refinery and other strategic business units, with phased equipment deployment over three years. Once completed, the refinery’s output is projected to rise from 650,000 barrels per day to about 1.4 million barrels per day, positioning it among the largest refineries globally.
The company said the partnership is designed to boost execution speed across its expanding portfolio of mega projects. The additional equipment will play a critical role in delivering ongoing and future developments within projected timelines. Polypropylene output is expected to increase from 900,000 metric tonnes per annum to about 2.4 million metric tonnes. Nigeria’s urea production capacity under the group is projected to triple from three million to nine million metric tonnes annually.
Beyond refining, the investment targets growth in downstream product lines. Annual Linear Alkyl Benzene output, a key raw material for detergents, will increase to 400,000 metric tonnes, positioning the conglomerate as Africa’s largest producer. New base oil production capacity is also planned as part of the industrial scale-up strategy.
The agreement aligns with the group’s “Dangote Vision 2030” strategy, which aims to build a $100 billion pan-African industrial powerhouse. The refinery expansion forms part of broader efforts to deepen local production and strengthen value chains across the continent. The federal government recently reported that the Dangote refinery delivered an average of 40.1 million litres of petrol daily in January 2026.
