INDUSTRIALIZATION : Afreximbank Secures US$1.35 Billion in Financing for the Dangote Refinery

(LVDE) – The African Export-Import Bank (Afreximbank) has recently finalized a US$1.35 billion financing agreement to support the Dangote Refinery project—a flagship initiative for Africa’s industrialization and energy security. This funding is part of a broader US$4 billion syndicated financing framework, reflecting the growing momentum within the continent’s industrial sector.

At a time when industrialization has become a top priority for Africa, Afreximbank has officially committed US$1.35 billion to Dangote Industries Limited (DIL). This agreement falls under a wider syndicated financing plan totaling approximately US$4 billion, aimed at supporting Africa’s largest industrial conglomerate. Acting as Lead Arranger, Afreximbank is asserting its strategic role in mobilizing capital for high-impact projects.

This initiative goes beyond a simple financial transaction—it is a strategic lever for industrial development. The Dangote Refinery, set to become the world’s largest single-train refinery, is designed to process 650,000 barrels of crude oil per day. The project seeks to reduce Nigeria’s dependency on imported petroleum products while boosting the local economy through job creation and expanded production capacity.

The US$1.35 billion financing will help ease the refinery’s initial operating costs and strengthen DIL’s financial position, supporting long-term growth. In parallel, Afreximbank has already provided vital financial solutions for crude oil procurement and the distribution of refined products since operations began at the complex in February 2024, ensuring continuity and stability.

Prof. Benedict Oramah, President of Afreximbank, emphasized that this effort illustrates the importance of financing Africa’s development from within. “Africa’s economic transformation through the utilization of its own resources is underway. With our support, we are enhancing the Dangote Refinery’s ability to supply high-quality petroleum products to both Nigerian and international markets,” he stated.

Aliko Dangote, CEO of DIL, echoed this vision, stating that the refinancing is crucial for optimizing the refinery’s supply chain. He noted that the support will improve the ability to meet market demand and facilitate distribution across the continent.

The financing has attracted significant interest from both African and international financial institutions, reflecting renewed confidence in Africa’s industrial potential. This transaction stands out as one of the most significant recent financial deals in Africa, highlighting the determination of regional stakeholders to invest in large-scale development projects.

The numbers speak for themselves: the Dangote Refinery represents a massive investment that could transform Nigeria’s energy sector and extend benefits across the continent. The project is expected to create new employment opportunities and drive economic growth, positively impacting millions who rely on the oil industry.

In conclusion, Afreximbank’s US$1.35 billion financing for the Dangote Refinery is more than just a financial deal—it is a foundational step toward Africa’s industrial future and energy self-sufficiency. This project could well serve as a catalyst for a new era of sustainable development and prosperity on the continent.

Esther Grace