The African Export-Import Bank (Afreximbank) has announced that it has underwritten $2.5 billion in a $4 billion senior syndicated term loan for the Dangote Petroleum Refinery & Petrochemicals.
The financing is aimed at strengthening the refinery’s financial position and supporting its long-term expansion plans.
According to Afreximbank, the five-year facility—arranged alongside Access Bank as co-mandated lead arrangers—is designed to refinance existing debt, optimise the refinery’s capital structure, and align its financing with current operational realities.
The deal represents a major milestone for the refinery, which has a capacity of 650,000 barrels per day, making it Africa’s largest refining and petrochemical complex.
What they are saying
The President and Chairman of Afreximbank, George Elombi, said the bank’s continued support reflects confidence in African-owned enterprises and their role in driving the continent’s economic transformation.
- “We take immense pride in being the single largest provider of financing to the Dangote Group. We do so primarily because Dangote is African. When we invest in ourselves, we do more than create jobs and wealth or expand government revenues; we build a secure and resilient future for our continent.”
Elombi also revealed that Afreximbank has committed about $15 billion to the Dangote Group since 2015, highlighting the depth of the partnership.
Similarly, the President and Chief Executive of Dangote Industries Limited, Aliko Dangote, described the financing as a crucial step in strengthening the refinery’s financial base and positioning it for its next phase of growth.
- “This financing marks an important step in strengthening the financial foundation of Dangote Petroleum Refinery & Petrochemicals and positions the business for the next phase of its growth… to build world-class industrial capacity that serves Nigeria, Africa and global markets.”
More insights
Afreximbank’s $2.5 billion contribution represents the largest share of the syndicated facility, underscoring its central role in mobilising capital for large-scale industrial projects across Africa.
- The bank said the deal aligns with its mandate to promote industrialisation, reduce dependence on imported petroleum products, and deepen intra-African trade.
- Since refining operations began in February 2024, Afreximbank has supported the project with a $1 billion working capital facility.
- The bank has also acted as financial adviser on the Naira-for-Crude initiative, which supports crude procurement and petroleum transactions in local currency.
The syndicated loan attracted participation from a mix of African and international financial institutions, reflecting sustained investor confidence in the refinery as a key asset for Africa’s energy security and industrial development.
What you should know
The financing comes amid ongoing expansion plans for the refinery and the wider Dangote Group.
- In February, the group signed a $400 million agreement with XCMG Construction Machinery Co., Ltd. to support expansion efforts.
- The refinery is being expanded from 650,000 barrels per day to 1.4 million barrels per day, which would make it the largest refinery in the world upon completion.
- The expansion will also boost polypropylene production from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum.
These developments highlight the continued push by the Dangote Group to scale up industrial capacity, reduce import dependence, and position Nigeria as a major player in global energy and petrochemical markets.
