Table of Contents
Key Points
- Afreximbank leads $1.35 billion financing for Dangote Refinery, part of $4 billion syndicated loan to boost Nigeria’s energy output.
- Dangote Refinery ramps up to 500,000 barrels daily; eyes IPO and 700,000 bpd upgrade to expand refined fuel distribution across Africa.
- Refinancing eases operational costs, supports industrial growth, and signals growing confidence in Africa-led infrastructure financing and energy transformation.
The African Export-Import Bank (Afreximbank) has signed a $1.35 billion financing facility in support of Africa’s largest oil refinery, owned by billionaire Aliko Dangote.
The deal forms part of a broader $4 billion syndicated loan package aimed at refinancing earlier capital costs tied to the construction of the $20 billion Dangote Petroleum Refinery and Petrochemicals Complex in Nigeria.
With a capacity of 650,000 barrels per day, the refinery is the world’s largest single-train crude processing facility and is central to Nigeria’s energy security ambitions.
Landmark financing signals confidence in Africa’s industrialization
Afreximbank served as the Mandated Lead Arranger on the transaction, coordinating efforts among both African and global lenders. The $1.35 billion contribution is the largest share of the facility, underscoring the bank’s commitment to transformative infrastructure that boosts industrial output, regional trade, and energy self-sufficiency.
“This landmark deal proves Africa’s transformation can be financed from within,” said Prof. Benedict Oramah, Afreximbank President. “Our support enhances Dangote Refinery’s capacity to supply refined products across Nigeria, Africa, and beyond.” The syndicated loan is one of the largest in recent African financial history and is expected to ease initial operational costs while bolstering the refinery’s balance sheet.
Dangote eyes expansion and potential public listing
Operations at the refinery commenced in early 2024 and have since ramped up from 350,000 to 500,000 barrels per day as of January 2025. Plans are underway to push capacity to 700,000 barrels per day—an upgrade that could lift the refinery’s valuation and global stature.
“The refinancing strengthens our balance sheet and accelerates refined product distribution across Africa,” said Aliko Dangote, President and CEO of Dangote Industries Limited. He emphasized the alignment with Afreximbank’s industrial vision.
David Bird, a seasoned Shell and Oman Oil executive, was recently appointed CEO of the refinery as Dangote prepares to list the company. The IPO will open access to Nigerian retail investors and institutional partners, reinforcing local ownership and capital inflow.
A new era for Nigerian oil and African wealth
The refinery’s rise is helping reduce Nigeria’s longstanding dependence on imported fuels—marking a shift in the continent’s fuel import dynamics. For the first time, South Africa recently overtook Nigeria as Africa’s largest fuel importer.
Dangote, with a net worth of $29.3 billion according to the Bloomberg Billionaires Index, is poised to become the first African to hit the $30 billion mark. Beyond personal wealth, his refinery project represents a landmark shift in African industrialization—transforming local crude into refined products, boosting energy independence, and catalyzing regional trade.
