Dangote Petroleum Refinery Receives $2.5B Afreximbank Loan to Boost Nigeria’s Fuel Production
Nigeria’s Dangote Petroleum Refinery and Petrochemicals has secured $2.5 billion from the African Export-Import Bank (Afreximbank) as part of a $4 billion syndicated term loan, strengthening the financial position of Africa’s largest oil refinery and supporting its next phase of expansion.
Afreximbank and Access Bank acted as co-mandated lead arrangers for the five-year facility, which is intended to refinance existing debt and align the refinery’s financing structure with its operational phase.
The Dangote Refinery, with a refining capacity of 650,000 barrels per day, began operations in February 2024. The facility is designed to supply refined petroleum products to Nigeria and regional markets, helping reduce the country’s reliance on fuel imports.
Afreximbank provided the largest portion of the financing at $2.5 billion, though the identities of other participating lenders were not disclosed.
Since the start of operations, Afreximbank has also extended a $1 billion working capital facility to the refinery and has acted as a financial adviser on Nigeria’s naira-for-crude program, which facilitates crude oil purchases and refined product sales in local currency.
According to Afreximbank, the bank has invested approximately $15 billion in the Dangote Group since 2015.
Dangote Industries Chairman Aliko Dangote said the refinancing will reinforce the refinery’s financial position and support its next stage of operations.
The loan attracted interest from both African and international lenders, highlighting strong demand for financing large-scale energy infrastructure projects.
Nigeria, Africa’s largest oil producer, has historically relied on imported fuels due to limited domestic refining capacity, a factor that has contributed to pressure on the country’s foreign exchange reserves.
