Caption Group Vice President, Oil & Gas, Dangote Industries Limited, Devakumar Edwin; Chairman, Stanbic IBTC Holdings, Sola David Borha; Chief Executive Officer, Standard Bank Group, Sim Tshabalala; Managing Director/Chief Executive Officer, Dangote Petroleum Refinery & Petrochemicals, David Bird; and Chief Executive, Stanbic IBTC Holdings, Chuma Nwokocha, during a strategic visit by Standard Bank Group executives to the Dangote Petroleum Refinery and Dangote Fertiliser complex in Ibeju Lekki, Lagos.
Senior officials of the South Africa’s Standard Bank Group, Africa’s largest financial institution, led by its Chief Executive, Sim Tshabalala, last weekend undertook a strategic tour of the Dangote Petroleum Refinery and Dangote Fertiliser complex in Lagos.
Obviously impressed with the prospect of the facility, Standard Bank Group, with total assets of between $174 billion to $200 billion and dominant operating presence across over 20 countries on the continent, pledged to back the planned listing of the Dangote Petroleum Refinery, finance future expansion projects and support the balance sheet of the Dangote Group across the continent.
Although the exact total exposure of Standard Bank Group to the Dangote Petroleum Refinery is not readily available, Investdata News recalls that the group was a key global financial institutions that participated in the $3.3 billion syndicated loan facility co-led by Standard Chartered and Guaranty Trust Bank to kickstart the refinery’s construction.
SBG and its Nigerian arm – Stanbic IBTC participated alongside 10 other local and global lenders, with the refinery securing subsequent refinancing programmes, including a major $4 billion syndicated facility championed by Afreximbank to optimize interest rates and balance sheets, altering individual commercial bank risk tallies.
Instead of just limiting its risk to debt, Standard Bank has shifted into capital market advisory roles with the appointment of Stanbic IBTC Capital as a lead issuing house and financial adviser for the Dangote Petroleum Refinery IPO on the Nigerian Exchange (NGX), besides positioning Standard Bank as anchor of the international book-building process, bridging the refinery to foreign portfolio managers. This role provides massive advisory fee opportunities, while shielding the bank from direct balance-sheet vulnerability.
Speaking after tour, Tshabalala, who was joined by Sola David-Borha and Chuma Nwokocha, the chairman and CEO of Stanbic IBTC Holdings respectively, described the refinery as a transformational industrial project with far-reaching implications for Nigeria and Africa.
According to Tshabalala, “we are here because the Dangote Group is a large and important global player and a significant force on the African continent… We have partnered with Dangote on a variety of initiatives. We are here to lend support, to see this magnificent refinery and to discuss Vision 2030 and how we can continue supporting the Group’s growth ambitions.”
He disclosed that Standard Bank intends to play a leading role in the refinery’s planned Initial Public Offering and future growth initiatives.
“As Dangote lists, there is an IPO coming up and we are a leading player in that process. As the Group continues to expand in Nigeria and across Africa, there will be opportunities for financial advisory services and balance sheet support, and we stand ready to provide both,” Tshabalala stressed.
He described the refinery as “a wonder of the world,” noting that its impact is already being felt through stronger foreign exchange earnings, improved balance-of-payments performance and enhanced energy security.
“This is a wonder to behold. It is massive, productive and transformative. It is already making a significant contribution to Nigeria’s economy through its impact on foreign reserves, the balance of payments and the lives of ordinary Nigerians,” he said.
Also speaking, Group Vice President, Oil and Gas, Dangote Industries Limited, Devakumar Edwin, said the visit represented a significant milestone in a partnership that began during the refinery’s construction phase.
Edwin recalled that “the bank visited us during construction and understood the scale of what we were building. Today, the refinery is fully operational and they can see what their support has helped to create. It is like nurturing a tree and eventually seeing it bear fruit.”
He added that both organisations are exploring opportunities to deepen collaboration as Dangote expands its industrial footprint across Africa.
Managing Director and Chief Executive Officer of the Dangote Petroleum Refinery, David Bird, said the visit highlighted the importance of long-term partnerships in delivering large-scale industrial projects.
“Standard Bank has been one of our strongest supporters throughout the history of the refinery and the broader Dangote Group,” Bird said.
“This visit was an opportunity to demonstrate what that support has enabled. Seeing is believing, and it allows our partners to appreciate the scale of what has been achieved.”
The visit also coincided with a major operational milestone for the refinery, which has now exceeded its original design capacity.
Bird disclosed that the refinery recently completed performance test runs at 700,000 barrels per day, above its nameplate capacity of 650,000 barrels per day.
“We have always believed there was engineering flexibility built into the design,” he said. “Achieving sustained production of 700,000 barrels per day is a testament to the technical capability of our people and the strength of the systems we have built.”
