The Africa Finance Corporation has invested in the Dangote Petroleum Refinery’s $2.5 billion private placement, strengthening its financial relationship with the project.
AFC led a group of strategic investors in the equity raise, which is the refinery’s first capital raise involving new investors outside its existing ownership structure. The corporation did not disclose how much it invested or the stake it acquired.
The $2.5 billion was raised from a wider group of African and international institutional investors, development finance institutions, sovereign-linked funds and strategic partners. AFC said demand for the shares was 3.7 times the initial offer.
The investment comes after Dangote Industries fully repaid a $300 million loan previously provided by AFC. The loan was part of the financing used to develop the 650,000-barrel-per-day refinery and its adjoining fertiliser plant in Lagos.
AFC also participated in a $3 billion syndicated loan for the project and provided working-capital financing with Access Bank in 2024 to support crude purchases during the refinery’s commissioning and early production.
The new equity is expected to strengthen the refinery’s finances and provide additional funding for its expansion plans.
Dangote Industries plans to increase the refinery’s capacity from 650,000 barrels per day to 1.4 million barrels per day by 2028.
The refinery currently produces petrol, diesel, aviation fuel, liquefied petroleum gas, naphtha and other petroleum products for the Nigerian and export markets.
AFC President and Chief Executive Officer, Samaila Zubairu, said the corporation’s investment reflected its continued confidence in the refinery and its importance to Africa’s industrial development.
The latest equity transaction is separate from the refinery’s $4 billion syndicated term loan announced earlier this year, which was arranged to refinance existing debt and improve its financing structure.
AFC’s latest investment further expands its financial exposure to the Dangote Group after providing funding for the refinery and, more recently, a $600 million facility for Dangote’s fertiliser business.
