The Africa Finance Corporation (AFC) has led a consortium of investors in a $2.5 billion private placement by Dangote Petroleum Refinery and Petrochemicals FZE (DPRP), marking a significant new capital injection into Nigeria’s largest integrated refining and petrochemical project.
The transaction, which represents DPRP’s first equity capital raise involving new investors outside its legacy ownership structure, was reportedly oversubscribed 3.7 times. The strong demand highlights significant investor appetite from international and African institutional investors, sovereign-related investment vehicles, development finance institutions and strategic partners.
The fresh capital comes as the Dangote Group accelerates its Vision 2030 expansion programme, which aims to more than double the refinery’s nameplate capacity from its current 650,000 barrels per day to 1.4 million barrels per day by 2028.
AFC President and Chief Executive Officer Samaila Zubairu said the corporation’s participation reflected its continued confidence in DPRP and its long-term potential as one of Africa’s most important industrial assets.
AFC has supported the project from its early development stages, including its role in syndicated financing and its provision of working capital during commissioning. The latest investment extends that partnership into the refinery’s next phase of expansion and growth.
DPRP Chairman and Dangote Industries Limited President and Chief Executive Aliko Dangote described the transaction as a strategic step toward broadening and institutionalising the company’s shareholder base while providing additional funding for its expansion programme.
The investment also reinforces Dangote Group’s stated commitment to expanding domestic refining and petrochemical production, reducing Africa’s dependence on imported refined petroleum products and strengthening regional energy security.
DPRP Managing Director and Chief Executive Officer David Bird said the strong subscription demonstrated investor confidence in the refinery’s operations, management and execution capabilities.
The $2.5 billion equity raise comes at a pivotal stage for the Dangote refinery, which has become increasingly important to Nigeria’s downstream petroleum sector. Its planned expansion to 1.4 million barrels per day could substantially increase Nigeria’s refining capacity and strengthen the country’s position as a supplier of refined petroleum products to African and international markets.
Located on a 2,500-hectare site in Lagos, the approximately $20 billion Dangote refinery and petrochemical complex was designed to process 650,000 barrels of crude oil per day into petrol, diesel, aviation fuel, liquefied petroleum gas, naphtha and other refined products.
The adjoining petrochemical facility converts refinery-derived propylene into polypropylene, a key industrial material used in packaging, textiles, household goods, automotive components and medical products.
The transaction further deepens the longstanding relationship between AFC and the Dangote Group. AFC previously served as coordinating bank on a $3 billion syndicated loan for DPRP and has also received full repayment of its foundational $300 million senior term loan to Dangote Industries Limited, which supported the refinery’s development from the concept stage.
