Afreximbank Secures $4bn Refinancing for Dangote Refinery in Landmark African Loan Deal
- The Dangote Refinery has secured a loan, which was syndicated by the Afrexibank, a significant milestone in infrastructure funding
- The facility is a part of a larger syndicated financing deal to help the mega refinery expand its operations across the continent
- This refinancing aims to cover capital previously expended on the construction of the 650,000 barrels-per-day
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The African Export-Import Bank (Afreximbank) has announced a $1.35 billion financing facility for Dangote Industries Limited (DIL), marking a major milestone in African-led infrastructure funding.
The loan is part of a broader $4 billion syndicated financing arrangement, with Afreximbank acting as the Mandated Lead Arranger, underscoring its pivotal role in one of the continent’s largest financial deals in recent years.
Source: UGC
Driving Africa’s industrial future from within
This refinancing aims to cover capital previously expended on the construction of the 650,000 barrels-per-day Dangote Petroleum Refinery and Petrochemicals Complex in Lagos, the largest single-train refinery in the world.
The facility is expected to ease initial operational expenses, strengthen the company’s balance sheet, and position it for sustainable growth.
Speaking on the deal, Afreximbank President and Chairman, Professor Benedict Oramah, emphasised the importance of self-reliant financing:
“It is only when African institutions lead the way that others can follow. The journey to utilise African resources for its own economic transformation is well underway.”
Oramah noted that the bank’s support will help scale up production capacity and ensure the continuous supply of high-quality refined petroleum products not just for Nigeria but for regional and international markets.
The move is also expected to bolster energy security, reduce import dependence, and stimulate intra-African trade through the African Continental Free Trade Area (AfCFTA).
Strengthening supply, expanding reach
Aliko Dangote, president and CEO of DIL, described the facility as a timely boost that aligns with the company’s vision of industrialising 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.
Since operations at the refinery began in February 2024, the complex has already started refining crude, but its full-scale distribution plans hinge on financing for crude supply logistics and nationwide offloading infrastructure.
The new $4 billion facility will be channelled partly toward planned upgrades and expanding storage and distribution networks across Nigeria’s six geopolitical zones.
Strong investor confidence in Dangote’s vision
Afreximbank noted that the syndicated facility attracted robust participation from leading African and global banks, reflecting high investor confidence in both the refinery's viability and Dangote’s vision of transforming Africa’s energy and manufacturing sectors.
According to a Punch report, the refinery is expected to help Nigeria achieve fuel self-sufficiency, curb forex outflows from fuel imports, and potentially stabilise local pump prices.
Source: Getty Images
This development follows other recent investments and collaborations aimed at extending the refinery’s distribution channels, including jetty expansions, nationwide storage facilities, and an ambitious plan to reach over 80% of Nigeria’s fuel demand by 2026.
Dangote Refinery’s new CEO unveils expansion plans
Legit.ng earlier reported that the Dangote Group appointed David Bird, former head of Oman’s Duqm Refinery, as the first CEO of its fuels and petrochemicals division, as the company enters a critical phase of growth and stabilisation.
Effective July 2025, Bird now oversees operations at the 650,000 barrels-per-day (b/d) refinery in Lagos—the world’s largest single-train refinery.
His appointment follows persistent unit outages and early-stage technical setbacks that have limited output despite the plant’s official commissioning in early 2024.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
