Having a capacity to process 500,000 barrels of Nigerian crude mix a day, the refinery’s produce will meet Euro V fuel specifications.
The Lagos complex will also include petrochemical and fertilizer facilities.
Dangote Industries executive director of stakeholder management and corporate communications Mansur Ahmed told Reuters: "By the third quarter of 2017, we expect to be looking at commissioning."
The refinery is being funded by debt and equity, including a $3bn from majority stakeholder Aliko Dangote.
The company is contemplating to list the refinery in future depending on its production and performance.
"In the past when we have reached a point where we feel we need to increase capital we have listed.
"We have listed our cement business, we have listed our sugar business and our salt business… and, if you like, history is the best teacher," Ahmed added.
Nigeria is Africa’s largest oil producer but imports 80% of its fuel requirements.
A boost to the country’s refining capacity would affect European refiners and oil traders, who export gasoline into the country, Reuters reported.
