Lilian Ugwu
Africa’s push for energy independence received a major lift on Tuesday as the African Export-Import Bank underwrote $2.5 billion—the largest share—of a $4 billion syndicated loan for the Dangote Petroleum Refinery.
The landmark financing deal strengthens the refinery’s financial base while positioning it for long-term expansion and dominance in Africa’s downstream oil market.
Acting as co-Mandated Lead Arranger alongside Access Bank Plc, Afreximbank said the five-year facility would be used to restructure existing debt, improve capital efficiency, and align financing with the refinery’s operational realities.
The Dangote Petroleum Refinery and Petrochemicals, with a massive capacity of 650,000 barrels per day, is widely regarded as Africa’s largest refining complex and a critical asset in reducing the continent’s reliance on imported fuel.
Afreximbank described its $2.5 billion commitment as a clear demonstration of confidence in African-led industrialisation, noting that the refinery is central to boosting intra-African trade and strengthening energy security.
Since the refinery began operations in February 2024, the bank has remained a key financial backbone, previously providing a $1 billion working capital facility and supporting the Federal Government-backed naira-for-crude initiative.
The initiative allows crude oil purchases and refined product sales in naira, reducing dependence on foreign exchange and easing pressure on Nigeria’s currency.
President of Afreximbank, George Elombi, said the bank’s continued investment reflects a broader vision of empowering African enterprises to drive the continent’s future.
“We invest in Dangote because it represents African capacity and ambition. Supporting such projects is essential to building a resilient and self-sustaining continent,” he said.
Also reacting, President of Dangote Industries Limited, Aliko Dangote, described the deal as a critical step in strengthening the refinery’s financial structure and unlocking its next phase of growth.
The $20 billion refinery project has been widely seen as a game-changer for Nigeria, with the potential to significantly cut fuel imports, stabilise supply, and transform the country into a net exporter of refined petroleum products.
Industry analysts say the strong participation of African and international lenders in the syndicated loan signals growing global confidence in both the refinery’s viability and Africa’s industrial future.
Beyond financing, the deal represents a broader shift—one where African institutions are increasingly funding large-scale projects on the continent, reducing dependence on external capital and reinforcing economic sovereignty.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.