The African Export-Import Bank (Afreximbank) has given a major financial boost to Dangote Industries Limited (DIL) by approving a $1.35 billion loan facility to support its massive refinery project. This facility forms part of a larger $4 billion syndicated financing deal aimed at strengthening the company’s operations and expanding its capacity.
The bank disclosed that it acted as the Mandated Lead Arranger in the financing arrangement, which is one of the biggest syndicated loans ever seen in Africa. The funding is targeted at refinancing the funds already spent on building the Dangote Petroleum Refinery and Petrochemicals Complex. The refinery, located in Ibeju-Lekki, Lagos, is the largest single-train refinery in the world, with a capacity of 650,000 barrels per day.
According to Afreximbank, the financing will help reduce pressure on Dangote Industries’ balance sheet and support the company as it moves into full operational mode. The bank said its involvement in the project reflects its commitment to Africa’s industrial growth, energy security, and promotion of trade within the continent.
Afreximbank contributed the largest share to the syndicated loan, with $1.35 billion. The bank has also been providing additional financial support since the refinery began operations in February 2024. This includes helping Dangote secure crude oil supply and assisting in product offtake agreements, which are crucial for keeping the refinery running without interruption.
President and Chairman of the Board of Directors of Afreximbank, Professor Benedict Oramah, said the financing arrangement is a strong signal that Africa can fund its own development if institutions on the continent take the lead. He noted that the Dangote Refinery is playing a critical role in solving the continent’s energy problems and boosting local production of refined petroleum products.
“With this landmark deal, we once again demonstrate that Africa’s development can only be meaningfully financed from within. It is only when African institutions lead the way that others can follow,” Oramah said. “Through the bank’s funding support, we are enhancing the capacity of the Dangote Refinery to produce and supply high-quality refined petroleum products to the Nigerian market, as well as for export to the entire continent and the world. Our energy security is in sight.”
Africa’s dependency on imported refined petroleum products has been a long-standing issue, despite the continent’s abundant crude oil resources. The Dangote Refinery project is seen as a game-changer that could help reduce import bills, create jobs, and contribute to stabilising prices across West Africa and beyond.
Speaking on the financing agreement, Alhaji Aliko Dangote, President and Chief Executive of Dangote Industries Limited, said the support from Afreximbank is a demonstration of shared vision and belief in Africa’s potential. He said the loan facility will go a long way in strengthening the company’s finances and help accelerate the supply of petroleum products across the continent.
“Afreximbank’s contribution to this milestone financing underscores our shared vision to industrialise Africa from within. This refinancing strengthens our balance sheet and accelerates with ease the refinery’s supply of high-quality refined petroleum products across Africa,” Dangote said. “The syndicated facility attracted strong participation from leading African and international financial institutions, reflecting enduring confidence in Africa’s industrial potential and Dangote’s vision in transforming Africa.”
The refinery complex is expected to produce petrol, diesel, aviation fuel and other refined products, not only for the Nigerian market but also for other countries across Africa and the world. The project has been described as a turning point for Nigeria’s energy sector and a major step towards achieving self-sufficiency in fuel production.
Dangote Industries Limited is the largest industrial group in Africa, with investments in cement, sugar, salt, fertiliser and now oil refining. The refinery is one of the most ambitious private sector-led industrial projects in Africa’s history.
