The African Export-Import Bank (Afreximbank) has underwritten $2.5 billion of a $4 billion syndicated term loan for Dangote Petroleum Refinery and Petrochemicals, providing fresh financial backing for Africa’s largest refining complex as it expands production and regional fuel exports.

The five-year facility, arranged alongside Access Bank as co-mandated lead arranger, will be used to refinance existing debt and align the refinery’s capital structure with its transition from construction to steady commercial operations, the bank said on Tuesday.

The Dangote refinery, located in Nigeria’s Lekki Free Zone, has a processing capacity of 650,000 barrels per day, making it the biggest refinery in Africa and one of the largest single-train facilities globally. The project, estimated to have cost about $20 billion, was built to reduce the continent’s dependence on imported refined fuel and position Nigeria as a net exporter of petroleum products.

Afreximbank’s $2.5 billion commitment represents the largest portion of the syndicated loan and reflects continued support from African lenders for large-scale industrial projects aimed at boosting intra-continental trade and energy security.

Since the refinery began processing crude in February 2024, the bank has also provided a $1 billion working-capital facility and acted as financial adviser on Nigeria’s naira-for-crude policy. This allows the plant to purchase crude oil and sell refined products in local currency, reducing pressure on the country’s foreign-exchange reserves.

Afreximbank’s president, George Elombi, said the bank had invested about $15 billion in the Dangote Group since 2015 and described the refinery as a strategic project for the continent.

“When we invest in ourselves, we do more than create jobs and wealth or expand government revenues; we build a secure and resilient future for our continent,” he said.

Dangote Group president, Aliko Dangote said the refinancing would strengthen the refinery’s financial base as it moves into its next phase of operations.

“This financing marks an important step in strengthening the financial foundation of Dangote Petroleum Refinery & Petrochemicals and positions the business for the next phase of its growth,” he said.

The syndicated facility attracted participation from a mix of African and international lenders, underlining investor confidence in the refinery despite volatility in global fuel markets and Nigeria’s evolving energy policies.

The refinery has begun reshaping fuel trade flows in West Africa by supplying petrol, diesel and aviation fuel to neighbouring countries that previously relied heavily on imports from Europe and the Middle East.

Analysts say expanded regional refining capacity could help stabilise fuel prices across parts of Africa and reduce exposure to foreign exchange shocks.

Afreximbank, headquartered in Cairo, was established to promote intra- and extra-African trade and has increasingly positioned itself as a key financier of large infrastructure and industrial projects linked to the African Continental Free Trade Area.