The Africa Finance Corporation (AFC) has led a group of strategic investors in the recently completed $2.5 billion private placement by Dangote Petroleum Refinery and Petrochemicals FZE (DPRP), further strengthening the capital base of Africa’s largest integrated refinery and petrochemical complex.
Located on a 2,500-hectare site in Lagos, the approximately $20 billion Dangote refinery has a nameplate capacity of 650,000 barrels of crude oil per day, producing petrol, diesel, aviation fuel, LPG, naphtha and other refined products for Nigerian, African and international markets.
The adjoining petrochemical plant produces polypropylene from refinery-derived propylene, supplying industries including packaging, textiles, automotive components, household goods and medical products.
The equity transaction was 3.7 times oversubscribed, attracting international and African institutional investors, sovereign-related investment vehicles, development finance institutions and strategic partners. It represents DPRP’s first equity capital raise involving investors outside its existing shareholder base.
AFC deepens Dangote partnership
AFC said its participation reflects its strategy of providing catalytic capital during the early stages of major African projects and subsequently recycling capital as those projects become operational and cash-generative.
The corporation previously served as 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 to Dangote Industries that helped finance the refinery from its development stage.
AFC President and CEO Samaila Zubairu described the latest transaction as evidence of the corporation’s long-term commitment to the project.
He said AFC had remained involved from the project’s early stages through syndicated financing and working-capital support during commissioning, adding that its participation reflected confidence in DPRP as one of Africa’s most significant industrial assets.
Expansion to 1.4 million barrels per day
The fresh equity comes as Dangote Industries advances its Vision 2030 expansion programme.
The group has announced plans to more than double the refinery’s capacity from 650,000 barrels per day to 1.4 million barrels per day by 2028.
Dangote Industries Chairman and CEO Aliko Dangote said the new capital would complement internally generated cash flows and external debt as DPRP pursues its expansion.
He said the investment would support the company’s objective of increasing domestic refining and petrochemical capacity, reducing Africa’s dependence on imported refined petroleum products and strengthening the continent’s energy security.
DPRP CEO David Bird said the strong investor demand for the placement demonstrated confidence in the refinery’s operational performance, execution capability and management.
The transaction therefore represents more than a capital injection: it marks a significant shift in the ownership and financing structure of the Dangote refinery, bringing major external institutional investors into the project while providing additional capital for its next phase of expansion.
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