The African Export-Import Bank (Afreximbank) has taken the lead role in a $4 billion senior syndicated term loan for Dangote Petroleum Refinery and Petrochemicals, underwriting $2.5 billion to reinforce the refinery’s financial position, restructure existing obligations, and support its next phase of growth.
In a statement released on Tuesday, the bank confirmed that it acted as a co-Mandated Lead Arranger alongside Access Bank for the five-year facility, positioning itself at the centre of one of Africa’s most significant industrial financing deals in recent years.
The transaction is structured to consolidate existing debt, optimise the refinery’s capital structure, and align its financing framework with current operational realities as the facility scales production and expands its market footprint.
By underwriting the largest portion of the loan, Afreximbank is not only providing capital but also signalling strong institutional confidence in the long-term viability of the Dangote Refinery, which has a refining capacity of 650,000 barrels per day and is widely regarded as Africa’s largest refinery and petrochemical complex.
“African Export-Import Bank (Afreximbank) is pleased to announce that it has underwritten US$2.5bn in the US$4bn senior syndicated term loan in favour of Dangote Petroleum Refinery and Petrochemicals FZE,” the statement read.
“Afreximbank and Access Bank were appointed co-Mandated Lead Arrangers for the five-year facility to consolidate existing financing, optimise its capital structure and align with the refinery’s operational status and long-term growth plan.”
The bank described the deal as a major milestone, noting that the facility would enhance the refinery’s balance sheet flexibility while positioning it as a strategic supplier of refined petroleum products across Africa and into global markets.
“The facility will enhance balance sheet flexibility, strengthen the company’s financial position, and support the refinery as a strategic supplier of refined petroleum products to Africa and the global market,” it added.
Afreximbank’s dominant contribution of $2.5 billion represents the largest share in the syndicate, underscoring its leadership role in mobilising capital to support Africa’s industrialisation agenda and reduce reliance on external markets.
Beyond the immediate financial impact, the bank linked the transaction to its broader mandate of promoting import substitution, boosting intra-African trade, and strengthening energy security across the continent.
“Afreximbank’s participation of US$2.5bn is the largest share in the syndicate and underscores the Bank’s leadership in mobilising capital to support Africa’s industrialisation, advancing import substitution, promoting intra-African trade in refined petroleum products, and strengthening energy security,” the statement noted.
The refinery, which commenced operations in February 2024, has already been positioned as a transformative asset in Nigeria’s downstream oil sector, with the potential to significantly reduce dependence on imported petroleum products.
Afreximbank’s involvement in the project predates this latest financing round. Since operations began, the bank has provided a $1 billion working capital facility and also served as financial adviser on the Federal Government-backed naira-for-crude initiative.
This initiative allows the refinery to purchase crude oil and sell refined products in naira, helping to reduce pressure on foreign exchange demand and support local currency stability.
“Since the commencement of refining operations in February 2024, Afreximbank has supported the refinery with a US$1bn working capital facility, as well as acting as Financial Adviser on the Naira-for-Crude initiative which is facilitating the purchase of crude oil and sale of refined product in local currency, eliminating the dependence on foreign currency,” the bank stated.
Speaking on the development, the President and Chairman of the Board of Directors of Afreximbank, George Elombi, emphasised that the bank’s continued backing of the Dangote Group reflects a broader commitment to African-led industrialisation.
“We take immense pride in being the single largest provider of financing to the Dangote Group. We do so primarily because Dangote is African,” Elombi said.
“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 disclosed that Afreximbank has invested approximately $15 billion in the Dangote Group since 2015, reinforcing its position as a key financial partner in the conglomerate’s expansion across multiple sectors.
“This is why we are pleased to have invested about US$15bn in the Dangote Group since 2015,” he added.
Elombi further stressed that supporting indigenous enterprises remains critical to achieving long-term economic independence across Africa.
“Afreximbank and its Board of Directors stand ready to support the realisation of Dangote Group’s aspirations because when we build our institutions and provide the requisite support to grow, we will no longer have to look elsewhere for benevolence or salvation in difficult times,” he said.
Describing the refinery as a symbol of African capability, he noted that the project goes beyond refining capacity to represent a shift in how large-scale industrial projects are conceived and executed on the continent.
“The Dangote Refinery stands as a bold symbol of what African ambition, African capital and African execution can achieve at scale,” Elombi stated.
“Beyond expanding refining capacity, it is strengthening the foundations of Africa’s energy security, reducing dependence on imports and opening new frontiers for intra-African trade and industrial development.”
On the part of the Dangote Group, President and Chief Executive Officer Aliko Dangote said the financing would play a crucial role in stabilising the refinery’s financial base and enabling its next phase of growth.
“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,” Dangote said.
He also acknowledged Afreximbank’s continued support and confidence in the group’s long-term vision.
“We appreciate Afreximbank’s continued support and confidence in our vision to build world-class industrial capacity that serves Nigeria, Africa and global markets,” he added.
The $4 billion syndicated loan also attracted strong interest from a consortium of African and international financial institutions, reflecting sustained investor confidence in the refinery’s operational viability and long-term prospects.
With Afreximbank leading the financing structure, the deal signals not only confidence in the Dangote Refinery but also a broader shift towards African-led funding of large-scale industrial projects aimed at transforming the continent’s economic landscape.
