Afreximbank funds three more Nigerian refineries to cut imports

From Lagos, Nigeria, we report on a significant development in our nation's quest for energy self-sufficiency. The African Export-Import Bank (Afreximbank) has announced its commitment to financing three additional refineries in Nigeria, a move that directly addresses our long-standing dependence on imported petroleum products. This is not just about numbers; it's about reclaiming our economic sovereignty and strengthening our industrial base.

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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.

Mr. Denys Denya of Afreximbank highlighted that this intervention extends beyond supporting the Dangote refinery, emphasizing a continent-wide push. For Nigeria, a nation blessed with abundant crude oil but plagued by inadequate refining capacity, this is a critical step. The global supply chain disruptions, particularly those linked to Middle East tensions, have starkly exposed the fragility of relying on external sources for refined fuels. Afreximbank's strategy, which combines immediate trade finance with long-term investment in productive capacity, is precisely what our economy needs.

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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.

This initiative is particularly welcome as it aligns with our national aspirations for industrialization and export development. By boosting local refining, we not only reduce foreign exchange pressures associated with fuel imports but also create jobs and stimulate economic growth. The bank's $10 billion Gulf Crisis Response Programme provides a robust framework for this endeavor, ensuring stability for essential imports while building resilience. While international media might focus on the financial mechanisms, for us in Nigeria, this represents a tangible commitment to African solutions for African problems, a vital step towards true economic independence.

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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.