Dangote plans $50 billion capex, twice its 2020–2025 spend

Dangote Group intends to increase its capital expenditure (capex) by a substantial $25 billion, from $25 billion between 2020 and 2025, to $50 billion during the subsequent five-year period from 2026 to 2030. This announcement was made by Aliyu Suleiman, Group Chief Strategy Officer of Dangote Industries Limited, during a briefing for Kenyan President William Ruto, who was visiting the Dangote Petroleum Refinery in Lagos.

The $50 billion capex plan is a crucial component of Dangote Group's Vision 2030 strategy, which aims to expand its industrial footprint across Africa and propel the company's valuation to $100 billion. After concluding its previous five-year capex program, which concluded at the end of 2025, Dangote Group has reviewed and adjusted its growth strategy to significantly increase investment rather than slow down its expansion efforts.

Suleiman highlighted that Dangote is targeting the $50 billion capex figure, which is twice the amount invested during the previous five-year period. The group has also identified potential opportunities that could surpass the $100 billion target. One major expansion project is the planned East Africa refinery in Kenya, valued at approximately $17 billion.

This project, estimated to take around five years to complete, is set to launch on September 30, 2026, with President Ruto expected to officiate the groundbreaking ceremony.

Dangote Group has secured financing arrangements for the equity component of the investment program and has received commitments from financiers for the debt component. The company is also preparing to develop a 700,000-barrels-per-day greenfield refinery and petrochemical plant in Lamu, Kenya, with an estimated cost of $17 billion. The Kenyan government has finalized preparations for the project's inauguration on September 30, 2026.

Additionally, Dangote Group has entered into a deal worth over $450 million with Engineers India Ltd. to oversee project management, engineering, procurement, and construction services for the Lamu refinery. The company is also expanding its petroleum refining operations in Nigeria by increasing the Dangote Petroleum Refinery's crude-processing capacity from 700,000 barrels per day to approximately 1.4 million barrels per day.

This expansion includes the addition of a 750,000-barrels-per-day crude oil distillation unit and is in line with Dangote Refinery's ongoing growth, which serves markets across Africa and Europe. These developments are part of Dangote Group's broader strategy to establish businesses in Nigeria and subsequently scale its expansion into other African markets.