Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) has attracted $2.5bn of fresh institutional investment at a time when it is preparing to more than double its capacity — signalling strong investor confidence in the project and potentially strengthening Nigeria’s ability to supply its own fuel while becoming a major exporter of refined products
Expansion targets energy security
The investment signalled “investor confidence” in the company and its expansion project, according to David Bird, DPRP’s CEO and managing director.
The approximately US$20 billion integrated complex is integral to Nigeria’s economy, and produces petrol, diesel, aviation fuel, LPG, naphtha and other refined products for local, African and international markets.
Its adjoining petrochemical plant produces polypropylene, which is used in packaging, textiles, automotive components, medical products and other manufactured goods.
Dangote and DPRP’s chairman Aliko Dangote described the transaction as “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 DPRP advances its expansion agenda.
"This further demonstrates our profound commitment to developing domestic refining and petrochemical capacity — reducing Africa's reliance on imported refined products and supporting the continent's energy security.”
• The Nigerian company has secured US$2.5bn in new equity funding, led by Africa Finance Corporation (AFC), as the company prepares to more than double refining capacity by 2028.
• The private placement was 3.7 times oversubscribed, attracting international and African institutional investors, sovereign-related vehicles, development finance institutions and strategic partners.
• The Lagos-based refinery currently has a nameplate capacity of 650,000 barrels per day (bpd), but Dangote plans to increase this to 1.4 million bpd by 2028 under its Vision 2030 strategy.
AFC strengthens long-term Dangote partnership
AFC’s investment builds on its long-standing financial involvement with the project.
It previously acted as Co-Coordinating Bank on a US$3bn syndicated loan for the refinery and provided support during commissioning.
AFC has also recently received full repayment of its US$300mn senior term loan to Dangote Industries Limited, which helped advance the refinery from concept to development.
Samaila Zubairu, AFC's president and CEO, said the latest investment reflected the organisation's continued confidence in the refinery as one of Nigeria’s most significant industrial assets.
“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. DPRP's success is a powerful demonstration of the scale of ambition, execution and value creation that is possible in Africa.”
Read more:
Scatec completes second phase of Egypt's Obelisk project
Dangote Refinery secures US$2.5bn investment ahead of expansion
AFC leads strategic investors into Dangote Petroleum Refinery's US$2.5bn private placement (Image source: AFC, Dangote)
