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By Adewale Sanyaolu
To ensure Nigeria attains self sufficiency and increase its refining capacity, the African Export-Import Bank has unveiled plans to finance three new refinery projects in Nigeria.
Afreximbank Senior Executive Vice President, Denys Denya disclosed the bank’s intervention during a virtual media briefing.
He stated that the intervention is designed to address structural supply challenges and reduce exposure to global market disruptions.
Denya added that the decision of the bank to expand its support for Nigeria’s refining sector with financing for three additional refinery projects was part of efforts to reduce dependence on imported petroleum products.
He stressed that the intervention is designed to address structural supply challenges and reduce exposure to global market disruptions.
“The move extends the bank’s existing involvement in the country’s downstream segment, including its support for the Dangote Refinery, and reflects a broader strategy aimed at strengthening domestic processing capacity across Africa.
According to him, recent geopolitical tensions, particularly in key energy producing regions, have increased the cost and complexity of fuel imports for African economies. In response, he disclosed that the bank has adopted a dual approach that combines short term trade finance support with long term investment in refining and industrial capacity.
This approach, he maintained, is supported by a 10 billion dollar Gulf Crisis Response Programme, which is intended to stabilise access to essential imports such as fuel, food, fertilisers, and pharmaceuticals, while also supporting sectors affected by external shocks.
Denya noted further that the facility has already recorded participation from countries including Kenya, Ethiopia, and Tanzania, with further demand expected if global uncertainties persist.
The bank Chief noted that Afreximbank is also working with financial institutions across the continent to expand their capacity to issue high value letters of credit, particularly for import dependent economies facing elevated costs.
Beyond Nigeria, Afreximbank confirmed that it is financing refining projects in Angola, as part of a wider effort to improve self sufficiency in petroleum products across the continent and strengthen regional value chains.
In Nigeria, increased refining capacity is expected to reduce pressure on foreign exchange by lowering fuel import requirements, while supporting more stable domestic supply. The bank also referenced its role in supporting local currency crude supply arrangements linked to the Dangote Refinery, which allows refined products to be traded in naira and reduces reliance on foreign currency transactions.
On its financial performance, Afreximbank reported total assets of 48.5 billion dollars in 2025, representing a 21 per cent increase year on year, while net income rose by 19 percent to 1.2 billion dollars. The bank also raised a 2 billion dollar syndicated facility backed by 31 global lenders, indicating continued investor confidence.
In addition to large scale industrial financing, the institution said it is expanding support for small and medium sized enterprises through targeted funding and capacity building programmes aimed at improving participation across value chains and supporting employment.
The bank is currently preparing a new five year strategic plan covering 2027 to 2031, with a focus on value addition, industrialisation, and reducing dependence on external financial systems. It maintained that expanding refining capacity remains central to improving energy security and reducing import exposure across African economies.
Recall that Afreximbank had in March announced that it has underwritten $2.5 billion in the $4-billion senior syndicated term loan in favour of Dangote Petroleum Refinery and Petrochemicals FZE.
Afreximbank and Access Bank were appointed co-Mandated Lead Arrangers for the five-year facility to consolidate existing financing, optimise its capital structure and align with the refinery’s operational status and long-term growth plan.
The facility, according to the bank will enhance balance sheet flexibility, strengthen the company’s financial position, and support the refinery as a strategic supplier of refined petroleum products to Africa and the global market.
Afreximbank’s participation of $2.5 billion is the largest share in the syndicate and underscores the Bank’s leadership in mobilising capital to support Africa’s industrialisation, advancing import substitution, promoting intra-African trade in refined petroleum products, and strengthening energy security.
Since the commencement of refining operations in February 2024, Afreximbank has supported the refinery with a $ 1 billion working capital facility, as well as acting as Financial Adviser on the Naira-for-Crude initiative which is facilitating the purchase of crude oil and sale of refined product in local currency eliminating the dependence on foreign currency.
