Dangote Refinery has secured $2.5bn investment led by AFC for major capacity expansion.
NewsOnline Nigeria reports that Dangote Petroleum Refinery and Petrochemicals FZE has completed a landmark $2.5 billion private placement led by the Africa Finance Corporation to support the expansion of its Lagos refining and petrochemical complex.
The transaction represents the refinery’s first equity capital raise involving new investors outside its legacy ownership structure.
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According to a statement issued by AFC, the private placement attracted subscriptions worth 3.7 times the amount offered, reflecting strong demand from African and international institutional investors, development finance institutions, sovereign-related investment vehicles and strategic partners.
The entire $2.5 billion was raised from the investor group led by AFC and should not be interpreted as an investment made by AFC alone. The corporation did not disclose the value of its contribution or the equity stake it acquired.
The new capital is expected to complement Dangote Refinery’s internally generated funds and external debt as the company implements its Vision 2030 expansion programme.
Under the plan, the refinery intends to increase its nameplate capacity from 650,000 barrels per day to 1.4 million barrels per day by 2028.
Located on approximately 2,500 hectares in Lagos, the integrated refinery and petrochemical complex is valued at about $20 billion. It processes crude oil into petrol, diesel, aviation fuel, liquefied petroleum gas, naphtha and other products for Nigerian, African and international markets.
Its adjoining petrochemical facility converts refinery-derived propylene into polypropylene, an important raw material used in packaging, textiles, household products, automotive components and medical supplies.
The transaction further strengthens the relationship between AFC and the Dangote Group, which has covered some of Africa’s largest industrial projects.
AFC previously served as a co-coordinating bank on a $3 billion syndicated loan for the refinery. It also recently received full repayment of a $300 million senior term loan granted to Dangote Industries Limited during the project’s development.
President and Chief Executive Officer of AFC, Samaila Zubairu, said the corporation’s participation demonstrated its continued confidence in the refinery as a major African industrial asset.
“AFC’s participation in this transaction reflects our continued conviction in DPRP as one of the most consequential industrial assets on the continent,” Zubairu said.
“Since the refinery’s earliest stages, AFC has provided catalytic capital to help move the project from concept to reality—from our role in the syndicated financing and our support for working capital during commissioning to this investment in its next phase of growth.”
He said the refinery demonstrated the scale of industrial ambition, execution and value creation possible on the continent.
Chairman of Dangote Petroleum Refinery and President of Dangote Industries Limited, Aliko Dangote, said the transaction would broaden the company’s shareholder base and provide additional funding for its expansion.
“This is a strategic step to deepen and further institutionalise the enterprise’s shareholder base while raising capital to complement our internal cash flows and external debt as DPRP advances its expansion agenda,” Dangote said.
He added that the investment reinforced the group’s commitment to increasing Africa’s refining and petrochemical capacity, reducing dependence on imported petroleum products and strengthening the continent’s energy security.
Managing Director and Chief Executive Officer of Dangote Petroleum Refinery, David Bird, said the level of demand recorded during the placement reflected investor confidence in the company’s operations, leadership and expansion strategy.
“The exceptional demand we saw is a testament to our operational excellence, execution capacity and investor confidence in DPRP’s leadership,” Bird said.
