The African Export-Import Bank (Afreximbank) has credited the Dangote Petroleum Refinery with playing a significant role in easing pressure on Nigeria’s foreign exchange market, reducing reliance on imported fuel, and strengthening energy security across Africa.
Speaking during the bank's Mid-Year Media Roundtable with journalists in Abuja on Wednesday, Afreximbank President and Chairman of the Board of Directors, George Elombi, said the refinery had become a strategic asset not only for Nigeria but for the entire African continent.
He noted that the refinery proved its importance during the recent tensions in the Middle East, when disruptions in the Gulf triggered concerns over global oil supply chains but did not result in shortages of refined petroleum products across Africa.
"The crisis in the Gulf has happened; oil prices fled, but Africa didn’t lack in its refined petroleum products."
According to Elombi, the refinery's operations have also contributed to stabilising Nigeria's currency by reducing the country's dependence on imported petroleum products and supporting the Federal Government's crude-for-naira initiative.
"It wasn’t believed, but the currency stabilised because of that."
Afreximbank backs refinery expansion with $2.5bn
Elombi disclosed that Afreximbank had approved $2.5 billion of the $4 billion financing requested by Dangote Petroleum Refinery to support its expansion, describing the project as one whose impact extends far beyond Nigeria's borders.
He said the bank was replicating similar investments across the continent by financing refinery and petroleum storage infrastructure in Ethiopia, Kenya, Tanzania, Uganda, Angola, Chad, the Republic of Congo and Namibia. According to him, these projects are designed to reduce Africa's dependence on imported refined products while improving the continent's resilience against global supply disruptions.
Dangote Fertiliser boosting exports
Beyond petroleum refining, Elombi highlighted the growing contribution of Dangote Group's fertiliser business to Africa's export market, noting that its products are already being shipped to countries including Germany and Brazil.
However, he stressed that Afreximbank would like to see a larger share of those exports remain within Africa to promote regional trade under the African Continental Free Trade Area (AfCFTA).
Describing Nigeria as Afreximbank's most strategic market, Elombi said the country's economic importance makes it central to Africa's development ambitions.
"It’s the heartbeat of the African continent, and Dangote is demonstrating that it is indeed the heartbeat of the continent. When you stop the energy, everything comes to an end. The heart stops beating."
PAPSS reducing demand for scarce foreign exchange
The Afreximbank president also highlighted the growing impact of the Pan-African Payment and Settlement System (PAPSS), saying the platform is helping businesses settle cross-border transactions using local currencies instead of relying on the US dollar.
He cited a transaction involving Dangote Group and Ethiopian Airlines, explaining that the system enabled Dangote to exchange its Ethiopian birr holdings with Ethiopian Airlines' naira balances without either company sourcing scarce foreign exchange.
According to Elombi, PAPSS currently connects more than 190 commercial banks and fintech companies across 28 African countries, making it a key pillar for implementing the African Continental Free Trade Area.
He added that the platform would soon launch a payment card that would allow Africans to spend their local currencies across participating countries without first converting them into dollars.
Although adoption was initially slow because many central banks misunderstood how the platform operates, Elombi said momentum has continued to build, with growing interest from global payment companies.
He also described stablecoins as complementary to PAPSS rather than competitors, arguing that payment systems would remain essential as long as African countries continue operating different national currencies.
Focus shifting from raw material exports to value addition
Elombi said Afreximbank has increasingly shifted its financing strategy towards projects that promote value addition rather than the export of raw materials.
Drawing from a recent visit to China, he argued that Africa should capitalise on opportunities in electric vehicle battery manufacturing by processing its abundant mineral resources locally instead of exporting them in their raw state.
"We’re no longer interested in anyone who is going to just mine Africa. We only want people who will mine and process at home."
Criticism of global rating agencies
Elombi also criticised international credit rating agencies, accusing them of applying unfair assessments to African institutions because of long-standing negative perceptions about the continent.
He maintained that Afreximbank's loan portfolio remains well collateralised and continues to perform strongly despite operating primarily within African markets.
According to him, negative ratings increase borrowing costs, discourage investment and limit African institutions' access to more affordable financing.
He further urged African journalists to present more balanced narratives about the continent by highlighting development achievements alongside governance challenges.
Reaffirming the bank's commitment to financing African development, Elombi said Afreximbank would continue deploying African capital into infrastructure, manufacturing and strategic industries rather than investing those resources abroad.
"You cannot say there are no seaports, no power transmission lines and no manufacturing units, and then you take the money and keep it abroad."
He added that despite concerns expressed by some rating agencies, Afreximbank continues to enjoy the confidence of its shareholders and remains committed to financing governments and private-sector projects across the continent.
The latest announcement comes after Afreximbank underwrote $2.5 billion of a $4 billion senior syndicated term loan for Dangote Petroleum Refinery and Petrochemicals to strengthen the refinery's financial position and support its long-term growth.
In addition, the bank recently disclosed that it is financing three more refinery projects in Nigeria as part of broader efforts to reduce the country's dependence on imported petroleum products and strengthen domestic refining capacity.