Afreximbank secures a $2.5bn share in Dangote refinery financing, boosting growth, energy security, and Africa’s industrialisation drive

The African Export-Import Bank on Tuesday announced that it has underwritten $2.5bn out of a $4bn senior syndicated term loan for Dangote Petroleum Refinery and Petrochemicals, in a major financing arrangement aimed at strengthening the refinery’s capital structure and supporting its long-term expansion.

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The bank disclosed that it acted as a co-Mandated Lead Arranger alongside Access Bank for the five-year facility, which is designed to consolidate existing debt, improve financial flexibility and align the refinery’s funding with its operational needs and growth plans.

According to the statement, Afreximbank’s $2.5bn contribution represents the largest share in the syndicate, underscoring its significant role in mobilising capital for large-scale industrial projects across the continent.

The financing attracted participation from a consortium of African and international financial institutions, reflecting sustained investor confidence in the refinery.

The Dangote Refinery, which has a refining capacity of 650,000 barrels per day, is regarded as Africa’s largest refinery and petrochemical complex.

The facility is widely seen as a transformative asset for Nigeria’s downstream oil sector, with the potential to reduce dependence on imported petroleum products and enhance regional energy security.

Afreximbank stated that the transaction aligns with its broader mandate to promote import substitution, boost intra-African trade and strengthen energy security across the continent.

The bank noted that its involvement goes beyond financing, as it continues to support initiatives that advance Africa’s industrialisation agenda.

The President and Chairman of the Board of Directors of Afreximbank, George Elombi, said the institution’s continued investment in the Dangote Group reflects strong confidence in African-led industrial enterprises.

He described the refinery as a symbol of what African capital and ambition can achieve when properly supported.

Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, said the financing marks a critical step in positioning the refinery for its next phase of growth.

He expressed appreciation for Afreximbank’s continued backing, noting that the support strengthens the company’s ability to deliver world-class industrial capacity.

Since the refinery commenced operations in February 2024, Afreximbank has played a key financial role, including providing a $1bn working capital facility and serving as financial adviser on the Federal Government backed naira for crude initiative.

The initiative enables transactions in local currency, helping to reduce pressure on foreign exchange demand.

The latest syndicated loan is expected to further enhance the refinery’s balance sheet and support its role as a strategic supplier of refined petroleum products to both African and global markets.

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Analysts say the deal signals growing confidence in the refinery’s operational viability and its broader impact on industrial development across the region.