Dangote Secures $2.5bn To Expand Africa’s Largest Refinery

Africa’s largest oil refinery, Dangote Petroleum Refinery and Petrochemicals, says it has secured $2.5 billion in fresh private equity investment to support the next phase of its expansion and strengthen its position in the continent’s downstream energy sector.

The company announced on Thursday that the funding was raised through a private placement, which resulted in the issuance of approximately 3.7 trillion subscription units and attracted a broad base of African and international institutional investors.

According to the refinery, the transaction is the largest publicly disclosed private equity placement in Africa and marks a significant milestone in its long-term growth strategy.

Dangote said the new capital will be used to expand refining and petrochemical operations, improve the company’s capital structure and provide additional financial flexibility for future investments.

The offering drew participation from institutional investors, sovereign wealth funds, development finance institutions and strategic partners. Among them were the Africa Finance Corporation (AFC) and Infra Builda, an investment platform facilitated by the African Export-Import Bank (Afreximbank).

President and Chief Executive of Dangote Industries Limited, Aliko Dangote, described the transaction as a strong vote of confidence in the refinery’s performance and future prospects.

“The successful completion of this landmark fundraising demonstrates investors’ confidence in our expansion strategy. It also reflects our commitment to strengthening Africa’s refining capacity, reducing dependence on imported petroleum products and enhancing the continent’s energy security,” he said.

The refinery, which has a processing capacity of 650,000 barrels of crude oil per day, began commercial operations in 2024 and has significantly altered the supply dynamics of refined petroleum products in Nigeria and parts of West Africa.

The latest capital injection comes as Dangote advances plans to expand its refining and petrochemical businesses. The company has previously outlined ambitions to increase its refining capacity to 1.4 million barrels per day, a move that would position the facility among the largest refineries in the world.

Dangote Petroleum Refinery said the successful fundraising reinforces investor confidence in its long-term strategy and provides a stronger platform to execute future growth initiatives while supporting Africa’s industrial and energy development.