The African Export-Import Bank (Afreximbank) has announced a major step that significantly transforms Africa’s financial sector by underwriting US$2.5 billion of a US$4 billion senior syndicated term loan facility for the Dangote Petroleum Refinery and Petrochemicals FZE.
This historic agreement raises Afreximbank’s total support to the Dangote Group since 2015 to over US$15 billion, highlighting the vital importance of the partnership between the Bank and the Group for the industrial development of West Africa.
This announcement was made during a strategic meeting of the top leadership of both institutions held in Cairo, Egypt. Afreximbank, working in collaboration with Access Bank, served as the co-Mandated Lead Arranger for this five-year loan agreement. The facility is intended to consolidate the refinery’s financial structure and further streamline its operational efficiency.
Located in the Lekki Free Zone in Nigeria, the Dangote Petroleum Refinery has a processing capacity of 650,000 barrels per day, making it the largest of its kind in the world.
Following the commencement of operations in February 2024, this new US$4 billion financial support will help the refinery significantly scale up production and consistently supply petroleum products not only to Nigeria but to the entire African continent and the global market.
By reducing the high costs Africa incurs to import petroleum products, the refinery addresses the continent’s economic vulnerability. Furthermore, the “Naira-for-Crude” initiative, in which Afreximbank participates as a financial adviser, enables the purchase of crude oil and the sale of products using local currency. This is expected to greatly reduce the pressure on Nigeria’s foreign exchange reserves.
During the signing ceremony, Dr. George Elombi, President and Chairman of the Board of Directors of Afreximbank, emphasized the importance of domestic capital. He stated that the Bank takes immense pride in being the largest provider of financing to the Dangote Group, primarily because Dangote is African.
He noted that investing in ourselves builds a secure and resilient future for the continent beyond just job and wealth creation, adding that empowering African enterprises is essential for self-sustainability.
Dr. Elombi further explained that the US$15 billion support provided by the Bank over the past decade reflects the belief that African institutions should solve their own problems rather than waiting for external assistance during times of crisis.
Aliko Dangote, President and CEO of Dangote Industries, added that this financing serves as a bridge for their future journey, helping the refinery transition to its next phase of growth and become globally competitive.
