The Dangote Refinery has attracted a $2.5 billion investment led by the Africa Finance Corporation (AFC), strengthening the facility’s position as one of Africa’s most important energy and industrial projects.
The investment was made through a private placement by Dangote Petroleum Refinery and Petrochemicals FZE and represents the company’s first equity capital raise involving new investors beyond its existing ownership structure.
The transaction was oversubscribed 3.7 times, indicating strong demand from international and African institutional investors, sovereign-related investment vehicles, development finance institutions and strategic partners.
The fresh capital comes as Dangote Group moves to expand the refinery’s capacity from 650,000 barrels per day to 1.4 million barrels per day by 2028.
The approximately $20 billion refinery and petrochemical complex, located on a 2,500-hectare site in Lagos, is designed to supply petrol, diesel, aviation fuel, liquefied petroleum gas, naphtha and other refined products to Nigeria, African markets and international destinations.
Its adjoining petrochemical facility produces polypropylene, a major industrial material used in packaging, textiles, household products, automotive components and medical equipment.
The latest investment also deepens the relationship between Dangote Group and AFC, which has supported the refinery through various stages of its development.
AFC previously served as co-coordinating bank on a $3 billion syndicated loan for the refinery and provided financial support during its commissioning phase.
AFC President and Chief Executive Officer Samaila Zubairu said the corporation’s participation reflected its confidence in the refinery’s long-term significance to Africa’s industrial transformation.
Dangote said the transaction would broaden the refinery’s institutional shareholder base while providing additional capital to support its expansion plans.
He also said the investment demonstrated the company’s commitment to expanding Africa’s domestic refining and petrochemical capacity and reducing the continent’s dependence on imported refined products.
DPRP Managing Director and Chief Executive Officer David Bird said the strong subscription demonstrated investor confidence in the refinery’s operations, management and growth prospects.
The deal marks a significant development for Africa’s energy sector, placing the Dangote Refinery at the centre of growing international investment in the continent’s industrial infrastructure and energy security.
