Africa’s richest man sets date to maximise his $20 billion refinery as he targets 1.4 million barrels daily

Nigeria – Africa’s richest man, Aliko Dangote, has set early 2029 as the target for his $20 billion oil refinery to reach a production capacity of 1.4 million barrels per day, as he pushes ahead with an expansion aimed at strengthening Africa’s industrial capacity and reducing reliance on imported petroleum products.

According to Business Insider Africa, Dangote announced the target during a virtual investor roadshow on Monday, saying the refinery would significantly expand its output of refined petroleum products and petrochemicals.

“By 2029 beginning, we will be at 1.4 million barrels per day,” Dangote said, adding that the facility would also produce 2.5 million tonnes of polyolefins annually, alongside 400,000 metric tonnes of linear alkylbenzene.

The expansion would double the refinery’s planned capacity and potentially position it among the world’s largest refining complexes. Bloomberg reported in September that the company was targeting a doubling of capacity within three years, with chief executive David Bird saying the project remained on schedule.

Sufficient crude oil supplies

The refinery, located in Nigeria’s Lekki Free Zone near Lagos, began operations in 2024 and has become a major supplier of petrol, diesel and jet fuel.

A report by Reuters in June said that the facility had processed up to 700,000 barrels per day during performance testing, exceeding its original nameplate capacity of 650,000 barrels per day.

However, the expansion faces operational challenges, particularly securing sufficient crude oil supplies. Nigeria’s Premium Times reported in September that the refinery’s expansion plans depend on reliable crude availability, with the company warning that supply disruptions could affect operations.

Dangote’s expansion plans coincide with a major share offering intended to broaden ownership of the refinery. Business Insider Africa reported that the company had extended its initial public offering (IPO) to attract more investors, including participants from East Africa.

Smaller investors 

Reuters said that the IPO closing date had been extended to 27 October to accommodate investor interest and give prospective shareholders more time to participate. The offering could raise approximately $1.6 billion, making it one of Africa’s largest share sales.

Dangote has also promised to accommodate smaller investors, saying: “Most of the smaller people who are bidding for 50,000 shares and below will definitely be sure that we accommodate all of them.”

The expansion and share offering form part of a broader effort to scale up African industrial investment, expand regional energy supplies and give investors an opportunity to participate in one of the continent’s largest private-sector infrastructure projects.