Nigeria’s Dangote Group has selected Honeywell International Inc. to support its ambitious plans to expand refining capacity to 1.4 million barrels per day (bpd) by 2028, signaling a major step toward establishing the world’s largest single-train petroleum refinery.

The partnership will leverage Honeywell’s advanced catalysts, equipment, and Oleflex technology to process a wider range of crude grades and boost both fuel and polypropylene production, the companies announced on Tuesday.

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Dangote Refinery Expansion Plans

The Dangote refinery, located in Lekki, Lagos, is currently Africa’s largest and the world’s biggest single-train refinery, with a processing capacity of 650,000 bpd. The facility is designed to end Nigeria’s long-standing dependence on imported refined fuels, which has historically caused chronic fuel shortages, subsidy scandals, and strain on foreign exchange reserves.

With a planned investment of $20 billion, Dangote aims to double the refinery’s capacity by adding a second single-train unit over the next three years. Once operational, the expanded facility will be capable of processing nearly all of Nigeria’s crude production, currently around 1.5 million bpd, while also generating a surplus for export.

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Honeywell’s Role in Expansion

Under the agreement, Honeywell will provide key services and equipment to support the refinery’s growth. This includes:

• Catalysts and equipment for processing a broader range of crude oil grades
• Licensing of Honeywell’s Oleflex technology to expand polypropylene production to 2.4 million metric tons per year
• Technical and operational support to optimize refinery efficiency and output

While financial terms were not officially disclosed, industry sources estimate the deal could be valued at over $250 million, depending on project scope and complexity.

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Strategic Impact on Nigeria’s Energy Sector

Nigeria is Africa’s largest crude oil producer, yet for decades its state-owned refineries have remained largely non-functional, forcing the nation to import most of its refined petroleum products. The Dangote refinery seeks to reverse this trend by:

• Meeting domestic fuel demand
• Reducing reliance on imports
• Creating export-ready fuel and petrochemical products
• Contributing to economic growth and energy self-sufficiency

The refinery’s expansion will also play a critical role in strengthening Nigeria’s position as a regional energy hub and supporting the government’s goals for industrial and infrastructural development.

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Honeywell’s Strategic Interests

The agreement comes at a time when Honeywell, previously a diversified conglomerate, is restructuring and preparing to carve out its aerospace business, its largest revenue-generating segment. Partnering with Dangote provides Honeywell with a significant revenue stream from the energy and chemicals sector while reinforcing its global industrial footprint.

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Outlook for 2028 and Beyond

With the planned capacity expansion to 1.4 million bpd, Dangote will be positioned not only as a domestic supplier but also as a global player in the petroleum and petrochemical industries. The refinery’s growth is expected to:

• Secure Nigeria’s fuel supply
• Enhance export potential for refined products
• Boost local job creation and industrial activity
• Strengthen Nigeria’s energy independence and economic stability

The Dangote-Honeywell collaboration is thus a landmark deal for Africa’s energy sector, marking a new era of industrial self-sufficiency and regional influence.