The Africa Finance Corporation (AFC) has emerged as a central player in Dangote Petroleum Refinery’s (DPRP) $2.5 billion private placement, a deal that underscores the lender’s long-term commitment to Africa’s industrial growth. The transaction, completed in August 2026, represents the largest equity raise in African history, with international and African institutional investors, sovereign-related funds, and development finance institutions snapping up shares at 3.7 times the initial offer size. The funding will support DPRP’s plan to nearly double its refining capacity to 1.4 million barrels per day by 2028, a move that could reduce the continent’s reliance on imported refined fuels.
AFC’s Strategic Move in Dangote Refinery’s $2.5 Billion Raise
AFC’s role in the $2.5 billion raise was pivotal, though the exact amount it invested remains undisclosed. The transaction marked the refinery’s first equity capital raise involving new investors beyond its legacy ownership structure, a shift from its earlier debt-fueled development. AFC had previously acted as a co-coordinating bank on a $3 billion syndicated loan for DPRP and recently received full repayment of a foundational $300 million senior term loan, which had supported the refinery’s construction. 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,
said AFC President Samaila Zubairu, highlighting the institution’s phased approach to financing.
The private placement’s success reflected investor confidence in DPRP’s leadership and operational track record. David Bird, DPRP’s managing director, noted that the exceptional demand we saw is a testament to our operational excellence, execution capacity, and investor confidence in DPRP’s leadership.
DPRP, which operates an $20 billion integrated refining and petrochemical complex in Lagos, has a nameplate capacity of 650,000 barrels per day, producing fuels and polypropylene for domestic and international markets.
AFC’s Long-Term Partnership with Dangote Group
AFC’s involvement with DPRP dates back to its early development stages. The institution provided a $300 million senior loan to Dangote Industries as part of a $5.6 billion debt facility assembled from development finance institutions, commercial banks, and export credit agencies. This financing supported the construction of the 650,000-barrel-per-day refinery and an adjoining fertilizer plant in the Lekki Free Zone. AFC also acted as a co-coordinating bank on a $3 billion syndicated loan for the project and partnered with Access Bank in 2024 to provide a working-capital facility during commissioning.
The recent private placement extends AFC’s exposure to DPRP after the repayment of its original loan. AFC’s participation in this transaction reflects our continued conviction in DPRP as one of the most consequential industrial assets on the continent,
Zubairu said. The deal also aligns with AFC’s broader strategy of recycling capital from mature projects into new ventures. The institution has already expanded its support for Dangote’s industrial empire, including a $600 million facility for Greenview Fertiliser Corporation, a subsidiary of Dangote Industries.
Implications for Africa’s Energy Sector and Dangote’s Expansion
The transaction also highlights the growing role of African institutions in financing regional industrial projects.
For DPRP, the raise marks a critical milestone in its journey from a nascent project to a mature industrial platform. The refinery’s petrochemical operations, which convert propylene into polypropylene for use in packaging, textiles, and automotive components, further diversify its revenue streams.
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