Lagos in Talks for Second Private Refinery as New Investor Enters the Sector
Lagos in Talks for Second Private Refinery as New Investor Enters the Sector
The Lagos State Government has revealed that discussions are underway for the establishment of a second privately owned refinery in the state, signalling expanding investor confidence in Lagos as Nigeria’s emerging petrochemical and industrial powerhouse.
The disclosure was made by the Commissioner for Physical Planning and Urban Development, Dr. Oluyinka Abiodun Olumide, who confirmed that the state is in active talks with a major private operator. While details remain confidential, the commissioner noted that the project is moving through early planning stages and could significantly strengthen Lagos’ downstream oil and gas profile.
Olumide explained that Lagos continues to attract large scale industrial capital due to its infrastructure foundation, regulatory improvements, and deliberate planning policies designed to organise growth through designated industrial corridors. The state’s development agenda, he added, aims to balance heavy industry with expanding residential demand through zoning, land use control, and the creation of new towns to ease pressure on overcrowded districts.
A Refinery Landscape That Is Rapidly Evolving
If approved, the new project would become the state’s second private refinery after the Dangote Refinery in the Lekki Free Zone. The existing facility has already transformed the Ibeju-Lekki axis into a high-demand corridor for industrial, commercial, and residential development. A second refinery would accelerate this shift, consolidating Lagos’ position at the centre of Nigeria’s refining landscape.
The move also aligns with national efforts to expand private refining capacity, reduce fuel import dependence, and drive job creation across petrochemicals, logistics, manufacturing, engineering, and marine services.
Implications for Real Estate and Urban Development
A new refinery in Lagos is expected to trigger a wide range of consequences for land use, housing markets, and investment patterns.
Increased demand for industrial and logistics real estate
Refineries require extensive land for processing facilities, pipelines, parking yards, utilities, tank farms, and export operations. Surrounding areas typically see a spike in demand for warehouses, industrial parks, and logistics hubs.
Development pressure on nearby housing markets
Refineries attract large workforces, which increases demand for rental housing, serviced apartments, and developer-driven estates within commuting distance. Without strict planning control, residential growth may spill into unsuitable or unsafe areas too close to industrial operations.
Rising land values and new investment hotspots
Just as the Lekki–Epe corridor experienced sharp land appreciation following the Dangote refinery announcement, any new refinery site is likely to become a strong magnet for investors and developers.
Importance of coordinated planning and environmental oversight
Heavy industrial activity requires strict environmental buffers, compliance monitoring, and infrastructure upgrades. Lagos officials have reiterated the need for planning discipline to avoid informal settlements or unregulated estates developing near high-risk zones.
A Signal of Bigger Investment Momentum Ahead
Although Lagos has not disclosed the investor’s name, the project location, or development timeline, confirmation that discussions are underway marks a significant step in the state’s long-term industrial strategy.
If realised, a second private refinery would:
strengthen Lagos’ role as Nigeria’s industrial and energy hub
attract new clusters of petrochemical and manufacturing activity
push demand for both industrial and residential real estate
influence new town development and long-term infrastructure planning
For investors, developers, policymakers, and urban planners, this announcement is an early indicator of another transformative cycle for Lagos. As the state progresses from negotiations to formal planning submissions, the project could set the stage for a new era of industrial expansion that shapes property development and economic activity across Nigeria’s commercial capital.