The Senior Executive Vice President of the African Export-Import Bank, Mr Denys Denya, has disclosed that the bank is financing three additional refineries in Nigeria as part of efforts to reduce the country’s dependence on imported petroleum products.
Speaking during a virtual media briefing on Monday, Denya said the intervention is part of a broader strategy to boost local refining capacity and shield Africa from external supply disruptions.
“We are also financing refining on the continent, which will alleviate the importation of refined products. We are not only supporting Dangote Group; we’re supporting three other refineries in Nigeria,” he said.
The briefing, which reviewed the bank’s 2025 financial performance, crisis response initiatives, and industrialisation strategy, included a question-and-answer session with journalists across Africa. Denya explained that the push for refining investments has been influenced by recent global supply chain disruptions, particularly tensions in the Middle East, which have increased the cost and complexity of fuel imports for African economies.
According to him, Afreximbank is adopting a dual strategy—addressing immediate trade finance needs while investing in long-term productive capacity to reduce 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.
The bank’s intervention is supported by a $10bn Gulf Crisis Response Programme, designed to stabilise access to essential imports such as fuel, food, fertilisers, and pharmaceuticals, while also supporting sectors vulnerable to global shocks. Denya noted that countries including Kenya, Ethiopia, and Tanzania are already utilising the facility, adding that demand may increase if geopolitical tensions persist.
Beyond short-term measures, he emphasised that financing refining projects across Nigeria and other African countries remains central to the bank’s long-term industrialisation and export development agenda. He noted that Afreximbank’s backing of large-scale projects, including the Dangote Petroleum Refinery and Petrochemicals, reflects its commitment to reducing reliance on imported refined products and strengthening regional value chains.
“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,” Denya added.
He also revealed that similar refining projects are being financed in Angola as part of a continent-wide effort to achieve self-sufficiency in petroleum products. The shift toward local refining, he said, is expected to enhance macroeconomic stability by easing foreign exchange pressures tied to fuel imports.
On Nigeria, Denya noted that the country could benefit from higher global oil prices as a crude exporter, while ongoing reforms in local refining may help moderate domestic inflation over time. He also highlighted Afreximbank’s support for a local currency framework that allows crude supply to the Dangote refinery to be transacted in naira, enabling refined products to be sold locally in the same currency and reducing pressure on the foreign exchange market.
Addressing concerns about whether macroeconomic improvements are reaching citizens, Denya said the bank is expanding support for small and medium-sized enterprises through financing and capacity-building initiatives.
“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 programmes are being deployed to ensure timely payments within industrial value chains, supporting job creation and economic inclusion.
On financial performance, Denya disclosed that Afreximbank’s total assets rose to $48.5bn in 2025, representing a 21 per cent increase from the previous year, while net income grew by 19 per cent to $1.2bn. He said 92 per cent of earnings were derived from core operations, reflecting the bank’s expanding role in trade and project financing across Africa.
The bank also raised a $2bn syndicated facility during the year, attracting 31 global lenders and demonstrating strong investor confidence in its credit profile and mandate.
Denya stressed that Afreximbank will continue prioritising investments that strengthen Africa’s economic sovereignty, including infrastructure, refining, fertiliser production, and intra-African trade. He added that the institution is preparing a new five-year strategic plan for 2027 to 2031, focused on value addition and reducing reliance 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.
Dip Connect Online News had earlier reported that Afreximbank underwrote $2.5bn out of a $4bn senior syndicated term loan for the Dangote refinery, aimed at strengthening its financial position and supporting long-term growth.
ADEOLA KUNLE
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