Dangote Acquires 4,000 Machines for Refinery Expansion

Dangote Industries Limited has acquired an additional 4,000 pieces of construction equipment as part of plans to expand its Lekki refinery’s processing capacity to 1.4 million barrels per day.

The latest acquisition has increased the company’s construction equipment fleet to 6,500 machines, including 330 cranes, according to the Group Vice President, Oil and Gas and Fertiliser, Devakumar Edwin.

Edwin disclosed this on Friday while briefing journalists during a tour of the refinery in Ibeju-Lekki, Lagos.

He explained that Dangote initially acquired 2,563 pieces of construction equipment after Julius Berger and other contractors indicated they lacked the capacity to construct the refinery’s main factory buildings.

According to him, the decision to purchase and maintain the equipment internally was driven by the need to reduce project costs and avoid the additional expenses associated with bringing foreign contractors and their machinery into Nigeria.

Edwin said foreign contractors would have to ship equipment into the country and later remove it, while depreciation and other costs would ultimately be reflected in the project’s expenses.

He said the group’s president, Aliko Dangote, therefore approved the acquisition of the equipment needed to support construction activities.

The official also said Nigeria’s infrastructure deficit influenced the decision to build a large equipment fleet, noting that the country had limited access to heavy construction machinery when Dangote built its Apapa sugar refinery in 1998.

For the Lekki refinery project, the company hired one of only two cranes in the world with a 5,000-tonne lifting capacity, while purchasing hundreds of other cranes and construction machines.

Edwin said infrastructure developed during the first phase of the refinery project would be deployed for the expansion, helping the company reduce both costs and construction time.

The refinery currently has a processing capacity of about 700,000 barrels per day, while the expansion is expected to double capacity to 1.4 million barrels per day by 2029.

The expansion is part of Dangote’s broader strategy to increase production and strengthen the refinery’s role in supplying refined petroleum products to Nigeria and international markets.

The refinery began operations in 2024 and has since become a supplier of petroleum products in Nigeria and exporter to overseas markets.

Dangote’s expansion plans come as the company prepares for an initial public offering of its refinery business, which is expected to raise substantial capital from investors and support broader participation in the asset’s ownership.