Nigeria’s Dangote Petroleum Refinery and Petrochemicals has secured US$2.5 billion from the African Export‑Import Bank (Afreximbank) as part of a US$4 billion syndicated term loan, a move aimed at strengthening the financial footing of Africa’s largest oil refinery and supporting its next phase of growth.
Afreximbank and Access Bank served as co‑mandated lead arrangers for the five‑year facility, which will refinance existing debt and align financing with the refinery’s operational phase, sources said. The Dangote refinery, with a processing capacity of 650,000 barrels per day, began refining operations in February 2024 and is expected to supply both domestic and regional markets, potentially reducing Nigeria’s dependence on imported fuels.
The US$2.5 billion contribution represents the largest share of the syndicate, Afreximbank said, though details of other lenders in the consortium were not disclosed. Since operations began, Afreximbank has provided a $1 billion working‑capital facility to the refinery and acted as financial adviser on Nigeria’s naira‑for‑crude programme, a scheme that allows crude oil purchases and refined product sales in local currency.
Afreximbank’s investments in the Dangote Group date back to 2015, totaling approximately $15 billion, reflecting the bank’s long-standing commitment to large-scale industrial and energy projects in Africa. “Our financing demonstrates continued confidence in Nigeria’s largest refinery and in Africa’s energy infrastructure,” said Afreximbank President George Elombi.
Dangote Industries Chairman Aliko Dangote welcomed the loan, saying it would “strengthen the refinery’s financial position and support its next phase of operations,” positioning the facility to play a pivotal role in Nigeria’s energy sector.
The refinery’s commissioning marked a significant milestone for Nigeria, historically reliant on imported petroleum products due to limited domestic refining capacity. The country imports gasoline and other refined products to meet domestic demand, putting pressure on foreign exchange reserves and exposing the economy to global fuel price volatility.
Since opening, the Dangote refinery has begun supplying domestic markets with refined petroleum products, including gasoline, diesel, and jet fuel. The facility is also expected to serve regional markets in West Africa, potentially helping to stabilize fuel availability and prices in neighboring countries.
The refinancing comes amid growing interest from both African and international lenders in energy infrastructure projects, particularly in facilities that can help reduce the continent’s reliance on imports and strengthen domestic production capabilities. Analysts say such investments are critical to achieving energy security in Africa’s largest oil producer.
“The refinancing highlights how large-scale infrastructure projects in Africa can attract sustained investor interest, particularly when they support local industrialization and reduce dependency on imports,” said Chike Obi, an energy analyst based in Lagos.
Nigeria’s energy sector has faced long-standing challenges, including underinvestment in refining capacity, outdated infrastructure, and high import dependency. The Dangote refinery, often described as the cornerstone of Nigeria’s efforts to achieve energy self-sufficiency, aims to reverse these trends by processing crude domestically into refined products.
Afreximbank’s support, combined with its previous financing initiatives, reflects a broader strategy to strengthen Africa’s industrial base and promote intra-African trade. The bank has consistently backed projects that increase domestic production, reduce import dependency, and foster regional integration.
With the $4 billion syndicated loan, Dangote Petroleum Refinery is poised to consolidate its position as Africa’s largest refining operation and a key player in regional energy markets, signaling confidence in the continent’s capacity to develop large-scale, commercially viable energy infrastructure.
