Afreximbank supports Nigerian firm’s project with $81.9 million loan for regional expansion
The expansion will also increase Veenock’s current workforce from 200 to 500, boosting job opportunities for an additional 300 people.
The African Export-Import Bank has loaned Veenocks Limited $81.9 million to develop and expand its porcelain tile manufacturing plant in Sagamu, Ogun State, beyond Nigeria to neighbouring African nations, a project estimated to cost $145 million.
Afreximbank and Veenock have an active partnership dating back to August 2024, when both companies signed a $2 million Project Preparation Facility (PPF) agreement to fund the technical, legal and social studies required to establish the project’s bankability.
The studies birthed Veenock’s ambition to expand beyond the shores of Nigeria and capture new markets in Togo, Benin, Burkina Faso, Niger, Cameroon, Ghana, Mauritania, and Senegal.
Afreximbank offered Veenock a senior term loan of $81.9 million to fund the expansion, which is projected to triple the plant’s annual production capacity to 9.9 million square metres, up from 3.3 million square metres.
This would ensure enough supply to meet regional demand from the targeted countries.
The expansion will also increase Veenock’s current workforce from 200 to 500, boosting job opportunities for an additional 300 people.
Kanayo Awani, executive vice president, intra-African trade and export development, Afreximbank, said the top bank’s support helped to convert Veenock’s ambitions for regional expansion.
“The studies financed through Afreximbank’s Project Preparation Facility have helped strengthen the project’s bankability and broaden the company’s regional growth ambitions,” Mrs Awani said.
Veenocks repaid its initial $2 million PPF loan from the fresh $81.9 million senior term loan obtained from Afreximbank.
Mrs Awani described the loan repayment as a show of good faith that will enable Afreximbank to fund other large-scale projects in Africa.
“Full repayment of the preparation financing ensures capital is available to support more indigenous African investors and projects,” Mrs Awani said. “This is the PPF’s revolving model in practice: the funds that have been repaid are used to support initiatives that add value to local resources and expand manufacturing.”
Adebisi Adebutu, president of R28 Holdings, parent company of Veenocks Limited, said the investment will help the plant to manufacture world-class tiles that will reduce “Nigeria’s dependence on imported tiles.”
“With Afreximbank’s financing, we can now deliver the expansion phase of this project. The facility will allow us to add value to Nigeria’s raw materials, create quality jobs and increase the supply of our porcelain tiles,” Mr Adebutu said.
He added, “Our vision is to set the global benchmark for quality in tile manufacturing and to become Africa’s first choice for porcelain tiles.”
