Afreximbank underlines $2.5 billion commitment; syndicated facility consolidates construction debt and positions refinery for next growth phase
The African Export-Import Bank has underwritten $2.5 billion of a $4 billion senior syndicated term loan for the Dangote Petroleum Refinery and Petrochemicals to mark one of the continent’s largest industrial financing transactions and reinforcing Africa’s capacity to finance its own economic transformation.
The five-year facility, jointly arranged by Afreximbank and Access Bank as co-mandated lead arrangers, was formally signed on 31 March 2026 during a strategy session in Cairo, Egypt. The transaction brings together multiple financing lines used during the construction and operational start-up of the $20 billion Lekki complex.
Afreximbank President and Chairman of the Board of Directors Dr. George Elombi and Dangote Industries President and Chief Executive Aliko Dangote signed the agreement alongside Afreximbank Board members and executive leadership.
“We take immense pride in being the single largest provider of financing to the Dangote Group. We do so primarily because Dangote is African,” Elombi stated.
The facility is designed to consolidate existing financing, optimise the refinery’s capital structure, and align its financing structure with current operational realities. Unlike construction financing, this syndicated loan refinances existing debt accumulated during the refinery’s development phase.
Afreximbank’s largest industrial commitment
Afreximbank’s $2.5 billion participation represents the largest share of the syndicated facility, underscoring the bank’s leadership in mobilising capital for transformative African industrial assets. The bank disclosed that it has invested approximately $15 billion in the Dangote Group since 2015, positioning itself as the group’s single largest financial partner.
The syndicated loan attracted strong participation from a consortium of African and international financial institutions, reflecting continued confidence in the Dangote Refinery as a transformative industrial asset. The participation of multiple lenders across continents signals global recognition of the refinery’s strategic importance to Africa’s energy security.
Strategic importance for Africa
The Dangote Refinery, with a capacity of 650,000 barrels per day, is Africa’s largest petrochemical complex. Since commencing refining operations in February 2024, it has covered approximately 44 per cent of Nigeria’s gasoline demand and begun exporting refined products to five African countries.
The facility aligns with Afreximbank’s core mandate to promote industrialisation, reduce reliance on imported petroleum products, and deepen intra-African trade. The bank emphasised that the Dangote Refinery “stands as a bold symbol of what African ambition, African capital and African execution can achieve at scale.”
Afreximbank has been instrumental in supporting the refinery since operations commenced. Beyond the new syndicated facility, the bank previously provided a $1 billion working capital facility and has acted as financial adviser on the Naira-for-Crude initiative, which enables crude procurement and refined product sales in local currency, reducing foreign exchange dependence.
Operational challenges and crude allocation
Despite the refinery’s strategic importance, operational constraints persist. The Nigerian National Petroleum Corporation has allocated only five crude oil cargoes per month to the refinery, well below the 13 to 15 cargoes required for full-capacity operations. In response, NNPC announced an increase to seven cargoes for May 2026, though this still falls short of the facility’s needs.
The refinery has consequently been forced to purchase crude on international markets at prevailing prices to maintain operations. This operational constraint affects the refinery’s profitability and its ability to supply domestic and regional markets consistently.
Future capitalisation through stock listing
Dangote Industries is planning to list the refinery on the Nigerian Exchange in 2026, with an offering of approximately 10 per cent of the capital. The planned structure would allow investors to subscribe for shares in naira while receiving dividends in dollars, backed by export revenues estimated at $6.4 billion per year. Approval of this structure by Nigerian regulators could enable the refinery to diversify its financing sources beyond Afreximbank.
Aliko Dangote stated: “This financing marks an important step in strengthening the financial foundation of Dangote Petroleum Refinery and Petrochemicals and positions the business for the next phase of its growth. We appreciate Afreximbank’s continued support and confidence in our vision to build world-class industrial capacity that serves Nigeria, Africa and global markets.”
The $4 billion syndicated facility represents a turning point in how Africa finances its industrial transformation. With Afreximbank leading the charge and attracting participation from international lenders across Europe, the Middle East and Asia, the transaction demonstrates that African enterprises can mobilise world-class capital on competitive terms.
