- Dangote Petroleum Refinery has secured US$2.5 billion in new investment to finance a major expansion of its Lagos refinery.
- The expansion will increase refining capacity from 650,000 barrels per day to 1.4 million barrels per day by 2028, ahead of a planned stock market listing.
Dangote Petroleum Refinery and Petrochemicals has secured US$2.5 billion in new investment to finance the expansion of its Lagos refinery, marking one of Africa’s largest publicly disclosed private equity investments.
The financing, backed by the Africa Finance Corporation (AFC) and an investment vehicle facilitated by the African Export-Import Bank (Afreximbank), will support the refinery’s expansion programme and strengthen domestic refining and petrochemical capacity across the continent.
The investment will enable the company to increase the refinery’s processing capacity from approximately 650,000 barrels per day to 1.4 million barrels per day by 2028. Once completed, the facility will rank among the world’s largest refineries, reinforcing its position as Africa’s biggest refining complex.
According to the company, the fundraising attracted strong investor interest, with the offering oversubscribed by 3.7 times. The successful capital raise also signals investor confidence ahead of the company’s planned listing on the Nigerian Exchange later this year, which analysts expect could value the refinery business at about US$40 billion and become Africa’s largest initial public offering.
President and Chief Executive of Dangote Group, Aliko Dangote, said the investment reflects the company’s commitment to expanding Africa’s domestic refining and petrochemical capacity while reducing the continent’s dependence on imported refined petroleum products.
The refinery, which cost an estimated US$20 billion to develop, reached full operational capacity earlier this year and has rapidly become a strategic asset for Nigeria’s energy sector. The facility has significantly reduced the country’s reliance on imported petrol and diesel while increasing exports of refined petroleum products.
Beyond expanding fuel production, Dangote also plans to increase the production of polypropylene, a key industrial polymer widely used in food packaging, textiles and automotive manufacturing.
The investment comes amid growing interest in Africa’s energy and industrial sectors. According to recent international investment data, foreign direct investment into Africa increased significantly in 2025, reflecting stronger investor confidence in large-scale infrastructure and industrial projects across the continent.
Dangote Group also continues to pursue broader expansion plans across Africa, including a proposed 700,000-barrel-per-day refinery in Kenya as part of its long-term strategy to strengthen regional refining capacity.