Africa Finance Corporation (AFC) has led a group of strategic investors in a US$2.5 billion private placement by Dangote Petroleum Refinery and Petrochemicals FZE (DPRP), providing fresh capital to support the expansion of one of Africa’s largest industrial projects.
The investment is expected to strengthen the refinery’s capacity, deepen domestic refining and petrochemical production in Nigeria, and support efforts to reduce Africa’s dependence on imported refined petroleum products. The transaction also marks an important step in attracting more institutional investment into large-scale African industrial projects.
Investment Supports Refinery Growth and Energy Security
DPRP owns the approximately US$20 billion integrated refining and petrochemical complex on a 2,500-hectare site in Lagos. The refinery has a nameplate capacity of 650,000 barrels of crude oil per day and produces petrol, diesel, aviation fuel, liquefied petroleum gas, naphtha and other refined products for Nigerian, African and international markets.
The adjoining petrochemical plant converts refinery-derived propylene into polypropylene, a material used in packaging, textiles, household goods, automotive components, medical products and other manufactured goods.
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. The latest capital raise is expected to provide additional financial support as DPRP moves forward with this expansion agenda.
Aliko Dangote, President and Chief Executive of Dangote Industries Limited and Chairman of DPRP, described the transaction as “a strategic step to deepen and further institutionalize the Enterprise’s shareholder base,” while raising capital to complement internal cash flows and external debt.
He also said the investment demonstrates the company’s commitment to increasing domestic refining and petrochemical capacity, reducing Africa’s reliance on imported refined products and supporting the continent’s energy security.
The private placement is DPRP’s first equity capital raise to bring in new investors beyond its legacy ownership. It was 3.7 times oversubscribed, with strong participation from international and African institutional investors, sovereign-related investment vehicles, development finance institutions and long-standing strategic partners.
AFC Deepens Long-Term Industrial Investment
For AFC, the investment builds on a longstanding partnership with Dangote Group and reflects its strategy of providing capital to major African infrastructure and industrial projects at different stages of development.
AFC previously acted as Co-Coordinating Bank on a US$3 billion syndicated loan for DPRP. It also recently received full repayment of its foundational US$300 million senior term loan to Dangote Industries Limited, which helped support the refinery from its early development stage.
AFC President and CEO Samaila Zubairu said the corporation’s participation reflects its continued confidence in DPRP and its importance to Africa’s industrial development.
“Since the refinery’s earliest stages, AFC has provided catalytic capital to help move the project from concept to reality,” Zubairu said, pointing to AFC’s involvement in syndicated financing, working capital support during commissioning and its latest investment in the refinery’s next phase of growth.
He added that the project demonstrates how long-term investment can support major African assets as they move from development to operations and eventually become stable, cash-generating businesses.
David Bird, Managing Director and CEO of DPRP, said the strong demand for the shares reflected investor confidence in the company. “The exceptional demand we saw is a testament to our operational excellence, execution capacity, and investor confidence in DPRP’s leadership,” he said.
Established in 2007, AFC has 48 member countries and has invested more than US$19 billion across 36 African countries. Its portfolio covers energy, natural resources, heavy industry, transport and telecommunications, with a focus on infrastructure and industrial projects that can support long-term economic growth.
