The Dangote Refinery has secured a landmark $2.5 billion private placement led by the Africa Finance Corporation (AFC), in one of the largest investments in Nigeria’s refining and petrochemical sector.
The transaction, involving Dangote Petroleum Refinery and Petrochemicals FZE (DPRP), represents a major capital injection into Nigeria’s largest integrated refining and petrochemical project and has attracted strong interest from investors across Africa and internationally.
According to a statement issued by AFC on Thursday, the private placement was oversubscribed 3.7 times, reflecting strong demand from international and African institutional investors, sovereign-related investment vehicles, development finance institutions and strategic partners.
The transaction also represents DPRP’s first equity capital raise involving new investors beyond its legacy ownership.
The fresh capital comes as the Dangote Group advances its Vision 2030 plan to more than double the refinery’s nameplate capacity from 650,000 barrels per day to 1.4 million barrels per day by 2028.
Located on a 2,500-hectare site in Lagos, the approximately $20 billion Dangote refinery and petrochemical complex is designed to process 650,000 barrels of crude oil daily into petrol, diesel, aviation fuel, liquefied petroleum gas, naphtha and other refined products for Nigerian, African and international markets.
The adjoining petrochemical plant converts refinery-derived propylene into polypropylene, a key raw material used in packaging, textiles, household goods, automotive components and medical products.
The latest investment further strengthens AFC’s longstanding partnership with the Dangote Group, which has involved some of Africa’s largest industrial projects.
AFC previously served as Co-Coordinating Bank on a $3 billion syndicated loan for DPRP. The corporation also recently received full repayment of its foundational $300 million senior term loan to Dangote Industries Limited, which supported the refinery’s development from its concept stage.
Commenting on the transaction, AFC President and Chief Executive Officer, Samaila Zubairu, said the corporation’s participation reflected its continued confidence in the refinery as one of Africa’s most significant industrial assets.
“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.
He noted that AFC had supported the project from its earliest stages through syndicated financing and working capital support during commissioning, before participating in the latest investment to support its next phase of growth.
Zubairu described the refinery’s progress from concept to an operational and cash-generating industrial platform as an example of the scale of ambition, execution and value creation possible in Africa.
Chairman of DPRP and President and Chief Executive of Dangote Industries Limited, Aliko Dangote, described the transaction as a strategic move to broaden and institutionalise the company’s shareholder base while supporting its expansion plans.
“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 transaction demonstrated the group’s commitment to expanding domestic refining and petrochemical production, reducing Africa’s reliance on imported refined products and strengthening the continent’s energy security.
Meanwhile, DPRP Managing Director and Chief Executive Officer, David Bird, said the strong subscription demonstrated investor confidence in the refinery’s operations, management and future prospects.
“The exceptional demand we saw is a testament to our operational excellence, execution capacity, and investor confidence in DPRP’s leadership,” Bird said.
With the $2.5 billion investment, the Dangote Refinery is positioned to pursue its expansion plans while deepening its role in Nigeria’s energy sector and supporting efforts to increase domestic refining and petrochemical capacity across Africa.
