The Dangote Refinery has announced plans to expand its internal, off-grid power generation capacity to 1,000 megawatts (MW) as part of its ongoing refinery expansion from 650,000 barrels per day (bpd) to 1.4 million bpd.
President and Chief Executive of Dangote Industries Limited, Aliko Dangote, revealed this during the refinery’s expansion announcement in Lagos.
He said the additional power capacity would ensure uninterrupted operations and support other industrial activities within the Lekki Free Zone.
Dangote noted that the scale of the refinery’s next growth phase will not only boost output but also strengthen its energy infrastructure.
“We are expanding our refinery from 650,000 barrels per day to 1.4 million barrels per day, and with this expansion, we will also grow our power generation capacity to 1,000 megawatts,” he said.
The refinery currently operates a 500MW off-grid electricity capacity.
Backstory leading up to this
The 650,000 bpd refinery began operations in early 2024 and has since ramped up production to about 85% of capacity, supplying refined products to local and international markets.
According to the refinery’s Executive Director, Edwin Devakumar, the upgrade was expected raise the plant’s throughput to 700,000 bpd — a 7% increase aimed at eliminating bottlenecks.
“In most of the departments, our production level has gone far beyond 100%. We need to do a bit of de-bottlenecking to increase overall production,” he explained.
The refinery currently generates its own power to maintain uninterrupted operations.
Expanding the capacity to 1,000MW will provide surplus electricity to sustain the refinery, petrochemical, and fertilizer plants, while improving energy reliability within the zone.
Dangote said energy stability remains central to the group’s long-term plan of positioning Nigeria as Africa’s refining and energy hub.
“Power is at the heart of our operations. This new phase will ensure we have more than enough capacity to run all our facilities seamlessly,” he added.
The new facility will integrate advanced energy recovery systems to enhance efficiency and reduce production downtime.
It also aligns with Dangote’s broader goal of achieving greater energy independence and minimizing reliance on the national grid.
Other Nigeria businesses move off-grid
More than 200 major companies in Nigeria currently self-generate electricity with a combined capacity exceeding 6,000MW.
The Nigerian Electricity Regulatory Commission (NERC) issued 16 new captive power permits totaling 953MW in Q1 2025, reflecting growing private investment in off-grid solutions.
Nigeria’s grid continues to deliver under 5,000MW to over 220 million people despite an installed capacity of 14,000MW.
The government has acknowledged that industrial consumers require consistent and quality power to remain competitive.
Meanwhile, Nigeria’s minister of power, Adebayo Adelabu, recently said efforts are ongoing to reconnect large industries to the national grid under new service-based models.
Refinery’s expansion plan
The Dangote Refinery’s power expansion is expected to strengthen Nigeria’s industrial base and reduce pressure on the national grid.
By ensuring self-sufficiency in energy, the refinery could redirect excess power to nearby industries within the Lekki Free Zone.
The 1,000MW addition will also support future refinery output increases, improve operational efficiency, and reinforce Nigeria’s drive toward industrial energy independence.
Dangote stated that the expansion goes beyond refining more crude, describing it as a strategic move to build the kind of infrastructure that will ensure stability, enhance efficiency, and drive long-term growth across Nigeria’s energy sector.
