By Ebi Kesiena
The African Export-Import Bank (Afreximbank) has signed a $1.35 billion financing agreement in favor of Dangote Industries Limited (DIL), marking a major milestone in Africa’s quest for industrial self-reliance.
The deal forms part of a $4 billion syndicated financing package, which will refinance the construction of the 650,000-barrel-per-day Dangote Petroleum Refinery and Petrochemicals Complex, the largest single-train refinery in the world.
This landmark financing, announced by Afreximbank, positions the bank as the Mandated Lead Arranger for the syndication, contributing the largest single share among participating institutions.
Strengthening Africa’s Industrial and Energy Security
The syndicated facility will refinance capital costs expended on constructing the massive refinery, providing Dangote Industries with financial flexibility to scale operations and manage initial operational expenses.
According to Professor Benedict Oramah, President and Chairman of Afreximbank, the transaction reinforces Africa’s commitment to financing its own development.
“With this landmark deal, we once again demonstrate that Africa’s development can only be meaningfully financed from within. By empowering African institutions to lead, we ensure that energy security and industrial growth remain in African hands,” Oramah stated.
He explained that the financing will enhance the refinery’s capacity to supply high-quality petroleum products to Nigeria, the rest of Africa, and global markets, directly addressing fuel import dependency while boosting intra-African trade.
Dangote Group Hails Strategic Support
Alhaji Aliko Dangote, President/CEO of Dangote Industries Limited, described the financing as a strategic boost for the company and for Africa’s industrialization agenda.
“Afreximbank’s contribution to this milestone financing underscores our shared vision to industrialize Africa from within. This refinancing strengthens our balance sheet and accelerates the refinery’s supply of high-quality refined petroleum products across Africa,” Dangote said.
The syndicated facility also attracted strong participation from top African and international financial institutions, reflecting global confidence in Africa’s industrial potential and in Dangote’s role as a key player in energy transformation on the continent.
Key Benefits of the $4bn Syndicated Facility
The financing supports Dangote Refinery in meeting Nigeria and Africa’s petroleum needs, reducing reliance on imported fuel.
Strengthens Industrialization: By stabilizing DIL’s balance sheet, the facility enables the company to focus on expanding production capacity and downstream operations.
Supports Job Creation and Trade: The refinery is expected to create thousands of jobs while enabling intra-African exports of refined petroleum products.
Enhances Africa-led Financing: The transaction proves that African financial institutions can mobilize large-scale funding for critical infrastructure projects, setting a precedent for future industrial ventures.
Encourages Foreign Investment Confidence – The successful syndication signals to global investors that African-led projects are bankable and sustainable.
Since commencing operations in February 2024, the Dangote Refinery has received continued financial and operational support from Afreximbank, including solutions for crude oil supply and product offtake.
Meanwhile, the bank emphasized that this transaction is not just about refinancing a refinery; it is a symbol of Africa’s determination to harness its resources for continental transformation.
