By Obinna Uballa
Dangote Petroleum Refinery and Petrochemicals has secured a $4 billion senior syndicated term loan, with the African Export-Import Bank (Afreximbank) underwriting $2.5 billion, the largest portion of the financing package.
In a statement released on Tuesday, Afreximbank said it served as co-Mandated Lead Arranger alongside Access Bank for the five-year facility designed to strengthen the refinery’s financial structure and support its long-term growth strategy.
According to the bank, the facility will enable the refinery to consolidate existing debt obligations, optimise its capital structure and align its financing with current operational realities as production continues to scale up.
The bank described the transaction as a significant milestone for the Dangote Petroleum Refinery, which has a refining capacity of 650,000 barrels per day and is regarded as Africa’s largest refinery and petrochemical complex.
Afreximbank noted that its $2.5 billion commitment represents the largest share of the loan syndicate, highlighting the bank’s role in mobilising funding for major industrial projects across the continent.
The bank said the financing will improve the refinery’s balance sheet flexibility and overall financial stability, while strengthening its capacity to serve as a strategic supplier of refined petroleum products to African and international markets.
The facility is also expected to support broader objectives of boosting intra-African trade, promoting import substitution and enhancing energy security across the continent.
Providing further insight into the bank’s involvement, President and Chairman of the Board of Directors of Afreximbank, George Elombi, said the institution remains committed to supporting indigenous African enterprises capable of transforming the continent’s economic landscape.
Elombi disclosed that Afreximbank has invested approximately $15 billion in the Dangote Group since 2015, making it the single largest financier of the conglomerate.
“We take immense pride in being the single largest provider of financing to the Dangote Group. When we invest in African enterprises, we do more than create jobs and wealth—we help build a resilient and secure future for the continent,” he said.
He added that the Dangote Refinery stands as a powerful example of African-led industrialisation, capable of reducing reliance on imported petroleum products while expanding opportunities for regional trade.
Since refining operations began in February 2024, Afreximbank has continued to support the refinery’s operations, including providing a $1 billion working capital facility and serving as financial adviser on the naira-for-crude initiative.
The initiative allows the refinery to purchase crude oil and sell refined petroleum products in naira, helping to reduce dependence on foreign exchange and ease pressure on Nigeria’s currency.
Reacting to the development, President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, said the financing would strengthen the refinery’s financial base and prepare it for the next phase of expansion.
“This financing marks an important step in strengthening the financial foundation of Dangote Petroleum Refinery and Petrochemicals and positions the business for the next phase of its growth,” Dangote said.
He expressed appreciation to Afreximbank for its continued support, noting that the company remains committed to building world-class industrial capacity capable of serving Nigeria, Africa and global markets.
According to the bank, the syndicated loan attracted strong interest from a consortium of African and international financial institutions, reflecting sustained investor confidence in the refinery project.
The $20 billion Dangote Refinery, which commenced operations in 2024, is widely expected to play a transformative role in Nigeria’s downstream oil sector by reducing fuel imports and strengthening domestic refining capacity while supporting regional energy supply across Africa.
