Africa Finance Corporation (AFC) has led a group of strategic investors in a major $2.5 billion equity raise for Dangote Petroleum Refinery and Petrochemicals FZE (DPRP), marking a significant vote of confidence in Nigeria’s biggest integrated refining and petrochemical project. The private placement was reportedly oversubscribed 3.7 times, highlighting strong interest from international and African institutional investors, development finance institutions, sovereign-linked investment vehicles and strategic partners.
The fresh capital comes as the Dangote Group pushes ahead with its Vision 2030 expansion plans, which aim to more than double the refinery’s capacity from its current 650,000 barrels per day to 1.4 million barrels per day by 2028. Located on a 2,500-hectare site in Lagos, the roughly $20 billion refinery and petrochemical complex produces products including petrol, diesel, aviation fuel, liquefied petroleum gas and naphtha for markets in Nigeria, across Africa and internationally.
Beyond refining, the complex also includes a petrochemical plant that converts refinery-derived propylene into polypropylene, a material widely used in packaging, textiles, household products, automotive components and medical supplies. The latest investment strengthens AFC’s long-running relationship with the Dangote Group, following its previous involvement in a $3 billion syndicated loan for the refinery and the repayment of a $300 million senior term loan that supported the project during its development.
AFC President and Chief Executive Officer, Samaila Zubairu, said the corporation’s participation reflects its continued confidence in the refinery’s long-term potential. He described the project as one of Africa’s most important industrial assets, noting that AFC has remained involved from the refinery’s early financing stages through commissioning and now into its next phase of expansion. According to him, the strong investor response demonstrates the potential for large-scale African industrial projects to attract significant long-term capital.
For Dangote Industries, the transaction is more than just a fundraising exercise. Chairman Aliko Dangote said the equity raise will help broaden and institutionalise the company’s shareholder base while providing additional funding to support the refinery’s expansion alongside internal cash flows and external debt. DPRP Managing Director and CEO David Bird also pointed to the strong subscription as evidence of investor confidence in the refinery’s operations and leadership. With plans to reach 1.4 million barrels per day, the expansion could further position the Dangote Refinery as a major player in Africa’s energy market while supporting efforts to reduce the continent’s dependence on imported refined petroleum products.
source: This day
