Nigerian Company Secures $259m from Afreximbank to Set up Refinery to Compete With Dangote, Others

Nov 18, 2023 | Uncategorized

  • Azikel Petroleum Refinery, a Nigerian company, has received funding to build a refinery in Nigeria
  • The deal with Afreximbank was achieved at the Intra-African Trade Fair in Cairo, Egypt.
  • It is expected that the development will lead to the availability of more energy in Africa

Nigerian company, Azikel Petroleum Refinery, a subsidiary of the Azikel Group, has received $259 million in debt funding from the African Export-Import Bank (Afreximbank) to build a refinery in the country.

The deal was achieved at the Intra-African Trade Fair 2023, held between November 9 and 15, 2023, in Cairo, Egypt.

The deal will expectedly create energy sufficiency for the development of Nigeria and the African continent. Photo Credit: Dangote Group
Source: UGC

New industrialisation

In a statement, Austin Ebipade, the Public Relations Officer of Azikel, said that the deal will facilitate the new industrialisation in Nigeria.

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Dr. Azibapu G. Eruani, President of Azikel Group and chairman of the Azikel Petroleum Refinery, alongside Helen Brume, the Director of Project and Asset Based Finance at Afreximbank, signed the debt funding agreement, according to a Leadership report.

The statement reads:

“The debt funding is the participation of Afrexim Bank in the construction, development, and operation of the 12,000 bpd Azikel Hydro-skimming Refinery in Bayelsa State, Nigeria.

“The Azikel Refinery Project is aimed to bring relief to the challenges of refined petroleum products insufficiency in Nigeria.

Eruani said that the deal will usher in sustainable development, thereby creating energy sufficiency for the development of Nigeria and the African continent.

With this, he said Nigeria would be the hub of refined products and abundant clean energy. He added that the products will be exported to other African countries and beyond.

He assured that the Azikel Hydro-skimming Refinery’s daily output would contribute significantly to the energy demand across the continent.

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Recall that the Organisation of Petroleum Exporting Countries (OPEC) recently revealed that Nigeria is about to witness the establishment of small modular refineries with 20,000 bpd capacity in the medium term.

“There’ll be Consequences”: FG Moves to Force Oil Firms to Supply Crude to Dangote, Other Refineries reported that the Nigerian Upstream Petroleum Regulatory Commission (NURPC) said on Saturday, October 28, 2023, that it would take all the required steps within the Petroleum Industry Act 2021 to ensure enough and regular supply of crude oil to upcoming refineries in Nigeria.

The Commission summoned a meeting with 52 crude oil exploration and production companies to ensure the ramping up of feedstock for new refineries in Nigeria.

The Commission’s Head of Public Affairs and Corporate Communications, Olaide Shonola, warned in a statement that there would be consequences for undermining the process.


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