Nigeria’s Dangote Petroleum Refinery and Petrochemicals FZE has secured a $2.5 billion private placement led by the Africa Finance Corporation (AFC), marking the facility’s first equity capital raise from new investors beyond its original ownership.
The transaction, which attracted a consortium of strategic investors, was oversubscribed 3.7 times, reflecting strong demand from international and African institutional investors, sovereign-related investment vehicles, development finance institutions, and strategic partners. The capital injection supports the Dangote Group’s Vision 2030 plan to more than double the refinery’s nameplate capacity from 650,000 barrels per day to 1.4 million barrels per day by 2028.
The approximately $20 billion integrated refining and petrochemical complex sits on a 2,500-hectare site in Lagos. It is designed to process 650,000 barrels of crude oil daily into petrol, diesel, aviation fuel, liquefied petroleum gas, naphtha, and other refined products for Nigerian, African, and international markets. An adjoining petrochemical plant converts refinery-derived propylene into polypropylene, a key input for packaging, textiles, household goods, automotive components, and medical products.
The deal deepens a longstanding partnership between AFC and the Dangote Group. AFC previously served as co-coordinating bank on a $3 billion syndicated loan for DPRP and recently received full repayment of a foundational $300 million senior term loan to Dangote Industries Limited that supported the project from the concept stage.
AFC President and Chief Executive Officer Samaila Zubairu said the corporation’s participation reflects continued conviction in DPRP as one of Africa’s most consequential industrial assets. “Since the refinery’s earliest stages, AFC has provided catalytic capital to help move the project from concept to reality, from our role in the syndicated financing and our support for working capital during commissioning to this investment in its next phase of growth,” Zubairu stated. He described the engagement as long-term partnership where capital remains engaged as a project develops, becomes operational, and matures into a stable, cash-generating industrial platform.
Aliko Dangote, Chairman of DPRP and President of Dangote Industries Limited, called the transaction a strategic step to deepen and further institutionalise the enterprise’s shareholder base while raising capital to complement internal cash flows and external debt as the refinery advances its expansion agenda. He said the move reinforces the group’s commitment to expanding domestic refining and petrochemical production, reducing Africa’s reliance on imported refined products, and supporting the continent’s energy security.
DPRP Managing Director and Chief Executive Officer David Bird said the exceptional demand is a proof of the refinery’s operational excellence, execution capacity, and investor confidence in its leadership.
The investment signals growing confidence in Africa’s largest industrial project and underscores the role of development finance institutions in catalyzing private capital for critical infrastructure. As DPRP moves toward its expanded capacity target, the partnership between AFC and the Dangote Group is expected to remain central to the continent’s energy security and industrialization ambitions.
