Honeywell—Dangote deal will help expand refining capacity to 1.4m barrels per day, broaden crude options and boost polypropylene output as Nigeria seeks fuel security.
Nigeria’s Dangote Industries has signed a major agreement with Honeywell to support a sweeping expansion of its oil refining and petrochemical operations, marking a significant step toward the company’s goal of becoming one of the world’s most powerful players in the energy sector.
The deal, announced on Tuesday November 25, 2025, will enable the $20 billion Dangote Refinery in Lagos to double its processing capacity to 1.4 million barrels per day (bpd) by 2028. Honeywell will provide catalysts, equipment and technical support, allowing the refinery to handle a wider range of crude grades as it scales up production.
While financial details were not disclosed, a source familiar with the arrangement told reporters the contract could exceed $250 million, depending on the project’s complexity. Both companies described the agreement as a milestone for Africa’s largest oil producer, which has long struggled to refine its own crude.
Nigeria pumps about 1.5 million bpd of crude but has spent decades importing nearly all its refined fuel due to the collapse of state-owned refineries. The results have been persistent fuel shortages, corruption scandals linked to subsidies and mounting pressure on foreign exchange reserves.
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Dangote’s refinery — the largest in Africa and the world’s biggest single-train facility at 650,000 bpd — is intended to end this dependence by meeting domestic fuel demand and generating export volumes. The planned expansion would allow the facility to process nearly all of Nigeria’s current oil output, sharply reducing the country’s reliance on imported petrol, diesel and aviation fuel.
As part of the agreement, Dangote will also expand into higher-value petrochemicals by licensing Honeywell’s UOP Oleflex technology to boost polypropylene production to 2.4 million metric tons per year. Polypropylene is widely used in manufacturing plastic packaging, automotive components, textiles and household goods, making it a lucrative export commodity.
The partnership comes at a pivotal moment for Honeywell, which is undergoing a major corporate restructuring. Once one of the United States’ largest industrial conglomerates, the company is preparing to carve out its aerospace division — its most profitable unit — and is seeking to strengthen revenue streams across its other business segments.
For Dangote, the agreement underscores its long-term ambition to reshape Africa’s energy landscape. Executive Chairman Aliko Dangote has repeatedly said the refinery’s expansion will position Nigeria as a regional fuel hub while supporting industrial growth across West Africa and beyond.
Further details of the project’s rollout are expected in the coming months as engineering work begins on the second processing unit.
Africa Daily News, New York
