Nigeria’s Dangote Group has awarded a $350 million contract to Engineers India Limited to expand its massive Lekki refinery to 1.4 million barrels per day, more than doubling current capacity in a bid to transform Africa’s largest economy into a regional petroleum hub.

The deal, signed with the Indian state-owned engineering consultancy, will see the addition of a second processing train that would make the facility the world’s largest single-location refinery complex, according to terms reviewed by BusinessDay.

The expansion includes upgrading fuel output to Euro VI standards and tripling polypropylene production capacity to 2.4 million metric tons annually.

Engineers India will serve as project management and engineering consultant for the buildout, reprising its role on the original 650,000 barrel-per-day complex that began operations in 2024. That facility, located in the Lekki Free Zone outside Lagos, currently ranks as the world’s largest single-train refinery.

The planned expansion addresses Nigeria’s longstanding paradox of exporting crude oil while importing nearly all refined petroleum products, a situation that has drained foreign exchange reserves and left Africa’s most populous nation vulnerable to fuel shortages. The West African country produces roughly 1.3 million barrels of crude daily but has relied on imports for decades due to moribund state-owned refineries.

“This project is of global significance and will stand among the largest refinery complexes at a single location,” Engineers India said in a statement confirming the agreement. The New Delhi-based firm, which operates under India’s Ministry of Petroleum and Natural Gas, has delivered projects across oil and gas, petrochemicals, and infrastructure sectors.

The second phase will add production of Euro VI-grade fuels, which meet stricter emissions standards than the Euro V products currently manufactured. The polypropylene expansion involves revamping existing units and installing an additional 1.2 million metric ton facility, plus a 750,000 metric ton UOP Oleflex unit to supply propylene feedstock.

Aliko Dangote, Africa’s richest person and chairman of the Dangote Group, has positioned the refinery as central to Nigeria’s economic transformation. The conglomerate, which operates across 17 African countries in sectors from cement to sugar, is one of West Africa’s largest private employers.

The expansion timeline and financing details were not disclosed. Engineers India’s contract covers engineering, procurement, construction management, and commissioning work through project completion.

Nigeria’s government has championed local refining capacity as critical to reducing import dependence and stabilising pump prices, which are politically sensitive in a country where fuel subsidies have historically consumed significant portions of the federal budget. President Bola Tinubu eliminated subsidies in May 2023, a move that sparked inflation but freed up fiscal resources.

The Dangote complex already produces gasoline, diesel, jet fuel, and polypropylene from its current configuration. Industry analysts say the expansion could reshape regional petroleum markets by creating surplus refining capacity that Nigeria could export to neighbouring West African nations currently dependent on European suppliers.

Engineers India has built a portfolio of major energy projects globally, including refineries, petrochemical complexes, and fertiliser plants. The firm’s selection for the second Dangote phase underscores the technical complexity of integrating new processing units with existing infrastructure while maintaining operations.

The original refinery, which took several years longer than initially projected to reach full production, faced startup challenges common to mega-projects, including equipment testing and feedstock optimisation. Company officials have said the facility now operates at designed capacity.

Dangote Group’s broader energy ambitions include upstream oil and gas exploration, fertiliser production at a separate complex also located in Lekki, and potential expansion into other African markets. The refinery expansion represents the company’s largest single capital commitment since completing the initial phase.