AFC leads new investors in $2.5bn Dangote refinery private placement

The Africa Finance Corporation (AFC) has led a consortium of strategic investors in a landmark US$2.5 billion private placement completed by Dangote Petroleum Refinery and Petrochemicals FZE (DPRP), strengthening the refinery’s capital base and supporting its expansion plans.

The transaction marks DPRP’s first equity capital raise to bring in new investors beyond its legacy ownership structure, attracting strong demand from international and African institutional investors, sovereign-related investment vehicles, development finance institutions, and strategic partners.

The private placement was 3.7 times oversubscribed, highlighting growing investor confidence in the refinery and its long-term role in Africa’s energy and industrial development.

DPRP owns the approximately US$20 billion integrated refinery and petrochemical complex in Lagos, built on a 2,500-hectare site. The refinery has a nameplate capacity of 650,000 barrels of crude oil per day, producing petrol, diesel, aviation fuel, liquefied petroleum gas (LPG), naphtha and other refined products for Nigerian, African and international markets.

The complex also includes a petrochemical plant that converts refinery-derived propylene into polypropylene, a key material used across industries including packaging, textiles, household products, automotive components and medical products.

As part of Dangote Group’s Vision 2030, the company has announced plans to more than double the refinery’s nameplate capacity to 1.4 million barrels per day by 2028.

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For AFC, the latest investment builds on its longstanding partnership with the Dangote Group. The corporation previously acted as Co-Coordinating Bank on a US$3 billion syndicated loan for DPRP and provided a foundational US$300 million senior term loan to Dangote Industries Limited to support the refinery’s development.

Commenting on the transaction, Samaila Zubairu, President and CEO of AFC, said the corporation’s participation reflected its continued confidence in DPRP as one of Africa’s most significant industrial assets.

He said AFC had remained involved throughout the refinery’s development, from syndicated financing and commissioning support to its latest investment in the facility’s next phase of growth.

“This is what long-term partnership looks like: capital that remains engaged as a project develops, becomes operational and matures into a stable, cash-generating industrial platform,” Zubairu said.

Aliko Dangote, President and Chief Executive of Dangote Industries Limited and Chairman of DPRP, described the transaction as a strategic move to broaden and institutionalise the company’s shareholder base while raising additional capital to support its expansion plans.

He said the investment demonstrated Dangote Group’s commitment to expanding domestic refining and petrochemical capacity, reducing Africa’s dependence on imported refined petroleum products and strengthening the continent’s energy security.

Meanwhile, David Bird, Managing Director and CEO of DPRP, said the strong investor demand reflected confidence in the company’s operational performance, execution capabilities and leadership.