Nigeria’s push to make more of its own porcelain tiles has received a major boost, as African Export-Import Bank (Afreximbank) has provided an US$81.9 million senior term loan to help Veenocks Limited triple the capacity of its plant in Sagamu, Ogun State.
The loan follows earlier support through the bank’s Project Preparation Facility (PPF). The entire project is estimated to cost US$145 million.
The expansion is expected to raise the plant’s annual production capacity from 3.3 million to 9.9 million square metres, giving the company a stronger base to meet domestic demand and pursue opportunities in other markets.
Afreximbank and Veenocks signed a US$2 million PPF agreement in August 2024. The money paid for technical, commercial, financial, legal, environmental and social studies needed to establish the project’s bankability.
The bank said these studies, together with its pan-African experience, helped Veenocks look beyond its primary focus on the Nigerian market.
The company now plans to target Togo, Benin, Burkina Faso, Niger, Cameroon, Ghana, Mauritania and Senegal over the medium term.
On jobs, the existing plant directly employs more than 200 people. The expansion is expected to add 300 direct jobs, along with indirect employment in raw material supply, logistics and distribution.
Afreximbank said the preparation financing has been fully repaid from senior debt, which completes the PPF’s funding cycle for Veenocks and replenishes capital for other projects.
Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development at Afreximbank, said the deal shows how project preparation, commercial expertise and senior debt can support African industrial investment.
According to her, the studies strengthened the project’s bankability and widened the company’s regional ambitions, while the senior loan will help turn those ambitions into increased productive capacity and stronger foundations for intra-African trade.
She added that the full repayment ensures capital is available for more indigenous African investors and projects.
“This is the PPF’s revolving model in practice,” she said, noting that repaid funds are used to back initiatives that add value to local resources and expand manufacturing.
Mr. Adebisi Abidemi Adebutu, Group President of R28 Holdings, the parent company of Veenocks Limited, described the investment as an important step towards building a globally competitive manufacturing business in Nigeria.
He said the company aims to produce world-class tiles to European quality standards and reduce the country’s dependence on imported tiles.
Mr. Adebutu said the PPF was instrumental in broadening the company’s growth plans and positioning it to enter regional markets.
With the Afreximbank loan, he said, Veenocks can now deliver the expansion phase, add value to Nigeria’s raw materials, create quality jobs and increase the supply of its porcelain tiles to customers at home and across the region.
“Our vision is to set the global benchmark for quality in tile manufacturing and to become Africa’s first choice for porcelain tiles,” he said.
