The African Export-Import Bank (Afreximbank) has underwritten $2.5bn of a $4bn senior syndicated term loan for Dangote Petroleum Refinery and Petrochemicals, in a move aimed at reinforcing the refinery’s financial strength and supporting its long-term expansion.
In a statement released on Tuesday, March 31, via its website, Afreximbank said it acted as a co-Mandated Lead Arranger alongside Access Bank for the five-year facility.
The financing is intended to refinance existing obligations, improve the refinery’s capital structure, and align its funding with current operational needs.
The bank described the deal as a significant milestone for the Dangote Refinery, which has a capacity of 650,000 barrels per day and is regarded as the largest refinery and petrochemical complex in Africa.
Afreximbank noted that its $2.5bn contribution represents the largest share of the syndicate, highlighting its leading role in mobilising funding for Africa’s industrial development.
“African Export-Import Bank (Afreximbank) is pleased to announce that it has underwritten US$2.5bn in the US$4bn senior syndicated term loan in favour of Dangote Petroleum Refinery and Petrochemicals FZE.
“Afreximbank and Access Bank were appointed co-Mandated Lead Arrangers for the five-year facility to consolidate existing financing, optimise its capital structure and align with the refinery’s operational status and long-term growth plan.
“The transaction marks a major milestone for DPRP, Africa’s largest refinery and petrochemical complex with a capacity of 650,000 barrels per day.
“The facility will enhance balance sheet flexibility, strengthen the company’s financial position, and support the refinery as a strategic supplier of refined petroleum products to Africa and the global market.”
Afreximbank stated that the financing aligns with its broader mandate to drive import substitution, promote intra-African trade, and strengthen energy security across the continent.
It added that its participation underscores its commitment to supporting Africa’s industrialisation.
The bank also revealed that it had previously supported the refinery with a $1bn working capital facility following the commencement of operations in February 2024.
In addition, it served as financial adviser on the naira-for-crude initiative, which facilitates the purchase of crude oil and sale of refined products in local currency, reducing reliance on foreign exchange.
Providing further insight, the President and Chairman of the Board of Directors of Afreximbank, George Elombi, said the bank’s sustained investment in the Dangote Group reflects confidence in African-led industrial ventures.
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“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. This is why we are pleased to have invested about US$15bn in the Dangote Group since 2015.”
Elombi stressed the importance of supporting African enterprises to achieve self-sufficiency.
“Afreximbank and its Board of Directors stand ready to support the realisation of Dangote Group’s aspirations because when we build our institutions and provide the requisite support to grow, we will no longer have to look elsewhere for benevolence or salvation in difficult times.”
“This transaction makes a powerful statement about Afreximbank’s commitment to backing transformative and indigenous industrial projects that are reshaping Africa’s economic future.
“The Dangote Refinery stands as a bold symbol of what African ambition, African capital and African execution can achieve at scale.
“Beyond expanding refining capacity, it is strengthening the foundations of Africa’s energy security, reducing dependence on imports and opening new frontiers for intra-African trade and industrial development.
“Afreximbank is proud to stand alongside this historic achievement and to continue supporting the continent’s journey towards greater self-sufficiency, resilience and prosperity.”
Reacting to the development, President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, said the facility would position the refinery 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,” he said.
“We appreciate Afreximbank’s continued support and confidence in our vision to build world-class industrial capacity that serves Nigeria, Africa and global markets.”
Afreximbank also disclosed that the loan attracted strong interest from a consortium of African and international financial institutions, reflecting sustained investor confidence in the refinery project.
The $20bn Dangote Refinery, which began operations in February 2024, is widely seen as a major development in Nigeria’s downstream oil sector, with expectations that it will significantly reduce the country’s dependence on imported petroleum products.
The latest $4bn syndicated loan further signals growing confidence in the refinery’s operational viability and its potential to transform energy supply across Africa.