Afreximbank To Fund Three New Refineries to Cut Fuel Imports in Nigeria

The African Export-Import Bank (Afreximbank) has disclosed plans to finance three additional refineries in Nigeria as part of a broader push to reduce the country’s reliance on imported petroleum products and strengthen local refining capacity.

Senior Executive Vice President of the bank, Denys Denya, made the disclosure on Monday during a virtual media briefing focused on the institution’s 2025 financial performance, crisis response initiatives, and long-term industrialisation strategy.

“We are also financing refining on the continent, which will alleviate the importation of refined products. We are not only supporting Dangote; we’re supporting three other refineries in Nigeria,” Denya said.

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He explained that the intervention is driven by persistent global supply disruptions, particularly tensions in the Middle East, which have increased the cost and complexity of fuel imports across Africa.

According to him, Afreximbank is pursuing a dual-track approach, supporting immediate trade finance needs while investing in long-term production capacity to address structural import dependence.

“For import-dependent economies, the cost of import is very high… so we have taken a proactive approach of engaging with financial institutions on the continent to increase their facilities so they can issue high-value letters of credit,” he said.

Denya noted that the bank’s efforts are backed by a $10 billion Gulf Crisis Response Programme aimed at stabilising access to essential imports, including fuel, food, fertilisers, and pharmaceuticals, while shielding African economies from external shocks.

Beyond short-term interventions, he stressed that investment in refining infrastructure remains central to Afreximbank’s strategy of driving industrialisation and boosting intra-African trade.

“Our support for industrialists who are making a difference on the continent is testimony to this approach. We will continue to champion projects that reduce Africa’s reliance on imported refined products,” he added.

The bank is also financing similar refinery projects in Angola, as part of a continent-wide drive to achieve self-sufficiency in petroleum products and reduce foreign exchange pressures tied to fuel imports.

On Nigeria, Denya said ongoing reforms in local refining could help stabilise domestic fuel prices over time, while also easing pressure on the foreign exchange market.

He highlighted Afreximbank’s support for a local currency framework that allows crude supply to refineries and the sale of refined products in naira, noting that the initiative could help reduce dollar demand.

Addressing concerns about the broader economic impact, Denya said the bank is expanding support for small and medium-sized enterprises through financing and capacity-building programmes.

“We have interventions in the SME sector where we are providing not only financing but capacity building to ensure that we generate employment… so it is felt by the general population,” he said.

He added that supplier financing schemes are also being deployed to support businesses within industrial value chains and ensure timely payments.

On performance, Denya revealed that Afreximbank’s total assets rose to $48.5 billion in 2025, marking a 21 per cent increase, while net income grew by 19 per cent to $1.2 billion.

He said the bank also secured a $2 billion syndicated facility involving 31 global lenders, underscoring investor confidence in its operations.

Looking ahead, Denya said the bank is preparing a new five-year strategic plan for 2027–2031, with a focus on value addition, infrastructure development, and reducing Africa’s dependence on external financial systems.

“There is still a lot to be done… but our focus will remain on value addition because that is what will anchor Africa’s structural transformation,” he said.