Nigeria has taken another significant step toward energy self-sufficiency and industrial growth with the award of a major expansion contract at the Dangote Petroleum Refinery to Engineers India Limited (EIL), a state-owned Indian engineering and project management company. The contract, valued at over US$350 million, covers project management consultancy and engineering, procurement and construction management services for the next phase of expansion of the Lekki-based refinery, already the largest single-train refinery in the world.
The Dangote Refinery, commissioned in 2024 with an installed capacity of 650,000 barrels per day (bpd), was designed to meet Nigeria’s entire demand for petrol, diesel, aviation fuel and other refined products, while also supplying export markets. Under the new expansion plan, total refining capacity is projected to rise to 1.4 million bpd, positioning the complex as the largest refinery globally by capacity. In addition to fuels, the expansion will significantly increase petrochemical output, particularly polypropylene, from about 830,000 tonnes per annum to approximately 2.4 million tonnes per annum, strengthening Nigeria’s downstream manufacturing base.
Engineers India Limited has decades of experience delivering large-scale refinery and petrochemical projects across Asia, the Middle East and Africa, and previously played a role in the original Dangote Refinery development. Its involvement reduces execution risk and supports timely delivery of a technically complex expansion that includes upgrades to produce Euro-V and Euro-VI compliant fuels, which meet stringent global environmental standards.
However, for Nigeria, the economic implications are substantial because for decades, the country exported crude oil while importing most of its refined petroleum products, spending billions of dollars annually and placing sustained pressure on foreign exchange reserves. Even with the commencement of operations at the 650,000 bpd Dangote Refinery, the country has already recorded a sharp reduction in fuel imports. Industry data from 2025 indicate that daily petrol supply from the refinery alone has exceeded 45 million litres, surpassing estimated national consumption. With the expansion, Nigeria is positioned not only to fully eliminate imports but also to become a net exporter of refined products to West and Central Africa.
Going further, by replacing imports with locally refined fuel, Nigeria stands to save several billion dollars annually, improving the balance of payments and easing pressure on the naira. These savings can be redirected toward infrastructure, healthcare, education and industrial development, while also strengthening investor confidence in the Nigerian economy.
The impact on fuel prices, while not entirely immune to global crude oil movements, is already becoming evident. Reduced dependence on imports eliminates costs associated with international freight, insurance, port charges and currency volatility. Since large-scale domestic supply began, average petrol prices have shown periods of moderation compared with earlier post-subsidy peaks, with reported averages falling from above ₦1,000 per litre in late 2024 to the mid-₦800 range in parts of 2025, depending on location and logistics. As the refinery expands and logistics efficiencies improve, price stability is expected to improve further, particularly by reducing scarcity-driven spikes.
Beyond fuel, the expansion has wider industrial and employment benefits, construction and installation activities are expected to create tens of thousands of direct and indirect jobs, while long-term operations will support skilled employment in engineering, operations, maintenance, logistics and petrochemical manufacturing. A high proportion of the workforce is projected to be Nigerian, supporting skills transfer and the development of local technical capacity in advanced refining and petrochemical operations.
The increased production of petrochemicals such as polypropylene will also support Nigeria’s manufacturing sector, reducing imports of industrial raw materials used in packaging, textiles, automotive components and consumer goods. This deepens industrial linkages, supports small and medium-scale enterprises, and advances the country’s broader industrialisation agenda.
Strategically, the expansion reinforces Nigeria’s shift from being primarily a crude oil exporter to a value-adding energy and petrochemical hub. With refined products and petrochemicals commanding higher and more stable margins than crude exports, the Dangote Refinery expansion strengthens long-term revenue prospects, enhances energy security and positions Nigeria as a key supplier in regional energy markets.
In sum, the Dangote Refinery expansion contract awarded to Engineers India Limited is more than an engineering deal; it is a critical economic intervention. By scaling up domestic refining capacity, reducing import dependence, stabilising fuel supply and prices, and catalysing industrial growth, the project has the potential to deliver lasting benefits to Nigeria’s economy and its citizens while redefining the country’s role in the global energy value chain.
