The African Export-Import Bank (Afreximbank) announced on March 31 it has underwritten $2.5bn of a $4bn senior syndicated term loan for Dangote Petroleum Refinery and Petrochemicals FZE (DPRP), marking one of the largest financing deals for an African industrial project.

Afreximbank and Access Bank Plc (NGX:ACCESS) acted as co-mandated lead arrangers for the five-year facility, which is intended to refinance existing debt, optimise capital structure and align financing with the refinery’s operational phase.

The Dangote Refinery, with a capacity of 650,000 barrels per day (bpd), is Africa’s largest refining and petrochemical complex and a key component of Nigeria’s efforts to reduce fuel imports and boost domestic supply.

The transaction is expected to enhance DPRP’s balance sheet flexibility and support its role as a major supplier of refined products across Africa and international markets.

Afreximbank said its $2.5bn commitment represents the largest share of the syndicate and reflects its strategy to support industrialisation, energy security and intra-African trade.

“We take immense pride in being the single largest provider of financing to the Dangote Group,” said Dr. George Elombi, President and Chairman of the Board of Directors of Afreximbank. “When we invest in ourselves, we do more than create jobs and wealth… we build a secure and resilient future for our continent.”

Elombi added that the bank had invested about $15bn in the Dangote Group since 2015, underscoring its long-term backing of African industrial projects.

Since refining operations began in February 2024, Afreximbank has also provided a $1bn working capital facility and acted as financial adviser on the naira-for-crude initiative, which enables crude purchases and product sales in local currency.

“This financing marks an important step in strengthening the financial foundation of Dangote Petroleum Refinery & Petrochemicals and positions the business for the next phase of its growth,” said Aliko Dangote, President/Chief Executive, Dangote Industries Limited (DIL).

The syndicated loan attracted strong participation from African and international lenders, reflecting continued investor confidence in the private Nigerian refinery as a transformative asset for Africa’s industrialisation and energy supply, said Afreximbank.

Despite being Africa’s largest crude oil producer, Nigeria has historically relied heavily on fuel imports due to limited and underperforming domestic refining capacity. State-owned refineries have operated well below nameplate capacity for years, leaving the country dependent on imported refined products despite crude output of around 1.2mn–1.4mnbpd in recent periods.

The Dangote Refinery is expected to transform this dynamic by significantly expanding domestic refining capacity, reducing import dependence and positioning Nigeria as a potential net exporter of refined petroleum products.