The Dangote Group, a Nigerian industrial conglomerate led by Aliko Dangote, has signed a $400 million equipment deal with Chinese company Xuzhou Construction Machinery Group (XCMG) to accelerate the expansion of its oil refinery to a planned capacity of 1.4 million barrels per day.

The agreement will provide a wide range of heavy machinery and specialized equipment to support ongoing work at the Dangote Petroleum Refinery & Petrochemicals complex in Lekki. Once completed, the expansion is expected to make the refinery one of the largest single-site facilities in the world.

The investment is part of the Dangote Group’s broader strategy to boost local production of refined fuels, petrochemicals, and fertilizers while reducing Nigeria’s reliance on imports. Polypropylene production is set to increase from 900,000 to 2.4 million tonnes per year, urea fertilizer output will triple, and linear alkyl benzene production will reach 400,000 tonnes annually.

The Dangote Group described the deal as a strategic investment aligned with its goal of becoming a $100 billion company by 2030, while accelerating the implementation of its major industrial projects.

The Lekki refinery, already one of Africa’s largest, began operations in 2024. With this expansion, Nigeria is expected to reduce its dependence on imported refined fuels and supply large-scale refined and petrochemical products to West and Central Africa.

The agreement highlights the growing industrial partnership between China and Nigeria and reinforces the Dangote Group’s role as a leader in African industrialization and energy security.