The African Export-Import Bank (Afreximbank) has sponsored $2.5 billion of Dangote Petroleum Refinery and Petrochemicals’ $4 billion syndicated term loan, providing new financial support for Africa’s largest refining complex as it grows production and regional petroleum exports.
The five-year facility, created with Access Bank as co-mandated lead arranger, would be used to repay existing debt and align the refinery’s capital structure with its transition from construction to continuous commercial operations, the bank said on Tuesday.
The Dangote refinery, located in Nigeria’s Lekki Free Zone, processes 650,000 barrels per day, making it Africa’s largest refinery and one of the world’s largest single-train complexes.
The project, expected to cost around $20 billion, was designed to lessen the continent’s reliance on imported refined fuel and position Nigeria as a net exporter of petroleum products.
Afreximbank’s $2.5 billion pledge is the largest element of the syndicated loan and demonstrates African lenders’ sustained support for large-scale industrial projects that aim to increase intra-continental commerce and energy security.
Since the refinery began processing oil in February 2024, the bank has granted a $1 billion working capital facility and served as financial consultant to Nigeria’s naira-for-crude strategy.
This enables the facility to buy crude oil and sell refined products in local currency, alleviating the strain on the country’s foreign cash reserves.
Afreximbank’s president, George Elombi, stated that the bank had invested approximately $15 billion in the Dangote Group since 2015, and hailed the refinery as a crucial project for the continent.
“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,” he explained.
Dangote Group president Aliko Dangote stated that the refinancing would enhance the refinery’s financial footing as it enters its next phase of operations.
“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,” stated the CEO.
The syndicated credit drew participation from a mix of African and foreign lenders, demonstrating investor confidence in the refinery despite global fuel market volatility and Nigeria’s changing energy policies.
The refinery has begun to reshape West Africa’s petroleum trade patterns by supplying gasoline, diesel, and aviation fuel to neighboring countries that traditionally relied primarily on imports from Europe and the Middle East.
Analysts believe that increased regional refining capacity could assist to stabilise fuel costs across Africa and minimize sensitivity to foreign exchange shocks.
Afreximbank, headquartered in Cairo, was founded to promote intra- and extra-African commerce and has since established itself as a significant funder of large infrastructure and industrial projects related to the African Continental Free commerce Area.