The African Export-Import Bank (Afreximbank) has committed $2.5 billion of the $4 billion senior syndicated term loan for the Dangote Petroleum Refinery and Petrochemicals FZE, making it the single largest participant in the lending group.
The facility, arranged alongside Access Bank as co-mandated lead arranger, is structured as a five-year loan package involving multiple African and international lenders.
It is aimed at refinancing earlier construction-related debt and adjusting the refinery’s capital structure following the start of operations in 2024.
Afreximbank said the transaction consolidates existing financing and aligns funding arrangements with the refinery’s operational phase.
“African Export-Import Bank (Afreximbank) is pleased to announce that it has underwritten US$2.5 billion in the US$4-billion senior syndicated term loan in favour of Dangote Petroleum Refinery and Petrochemicals FZE (DPRP),” the source read in part.
The bank also noted that its exposure to the project builds on earlier support, including a $1 billion working capital facility extended after the refinery began operations.
Operation phase refinancing
The financing arrangement is linked to the period after the Dangote Petroleum Refinery commenced operations in 2024, following the completion of its multi-year construction phase.
The refinery, located in Lagos, has a capacity of 650,000 barrels per day and processes crude oil into petrol, diesel, aviation fuel, and other petroleum products for both domestic use and export markets.
The syndicated loan is structured around refinancing obligations tied to the construction period, while also supporting adjustments to the project’s financial structure as operations stabilise after commissioning.
The refinery has also been involved in Nigeria’s crude-for-naira arrangement, which allows crude oil purchases and refined product sales to be conducted in local currency rather than foreign exchange.
What they are saying
Afreximbank President and Chairman of the Board, Dr. George Elombi, said the bank’s involvement represents its financing role in African industrial projects.
He added that Afreximbank has provided about $15 billion in financing to the Dangote Group since 2015.
“We take immense pride in being the single largest provider of financing to the Dangote Group. We do so primarily because Dangote is African.
“When we invest in ourselves, we do more than create jobs and wealth or expand government revenues; we build a secure and resilient future for our continent,” Elombi said.
Dangote Industries Limited President, Aliko Dangote, noted that the refinancing strengthens the financial position of the refinery as it continues operations.
“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,” Dangote said.
The bottom line
The $4 billion syndicated facility includes participation from a group of African and international financial institutions.
Afreximbank said the transaction indicates continued lending interest in large-scale industrial projects in Africa.
The refinery remains one of the continent’s largest industrial assets, and the financing structure is expected to support ongoing operations and debt consolidation under the five-year term.
Since commencement of operations in 2024, the refinery has also received prior support from Afreximbank through working capital financing and advisory involvement in crude oil and refined product arrangements.
