KEY POINTS
- Afreximbank has provided an $81.9 million senior term loan for the expansion of Veenocks’ porcelain tile plant in Sagamu, Ogun State.
- The $145 million project will increase annual production capacity from 3.3 million to 9.9 million square metres.
- The expansion is expected to create 300 additional direct jobs and open regional export opportunities across Africa.
MAIN STORY
The African Export-Import Bank (Afreximbank) has provided an $81.9 million senior term loan to support the expansion of Veenocks Limited’s porcelain tile manufacturing plant in Sagamu, Ogun State.
The $145 million project will triple the plant’s annual production capacity from 3.3 million to 9.9 million square metres, increasing local production and creating opportunities for the company to serve markets beyond Nigeria.
Afreximbank disclosed this in a statement issued by its Communication and Events Manager, Vincent Musumba, on Monday.
The bank said its support for the project began with a $2 million Project Preparation Facility (PPF) agreement signed with Veenocks in August 2024.
The facility financed technical, commercial, financial, legal, environmental and social studies required to establish the project’s bankability.
According to the bank, the studies helped Veenocks expand its ambitions beyond the Nigerian market, with plans to pursue opportunities in Togo, Benin, Burkina Faso, Niger, Cameroon, Ghana, Mauritania and Senegal.
The $81.9 million senior loan will support the implementation of the expansion, including investment in additional manufacturing capacity.
THE ISSUES
The expansion is expected to strengthen domestic porcelain tile production while reducing reliance on imported products.
Veenocks currently employs more than 200 people directly. The expansion is expected to create an additional 300 direct jobs, with further employment opportunities anticipated across raw material supply, logistics and distribution.
The project also highlights the role of project preparation financing in helping indigenous businesses secure larger-scale investment.
Afreximbank said the $2 million preparation facility had been fully repaid from the senior debt financing. The repayment completes the PPF funding cycle for Veenocks and releases capital for other projects.
The bank said the preparation financing helped establish the project’s bankability and broaden its regional growth plans, while the senior loan would provide the funding needed to increase production.
WHAT’S BEING SAID
“Veenocks demonstrates how project preparation, commercial expertise and senior debt financing can support African industrial investment.” – Mrs Kanayo Awani, Executive Vice-President, Intra-African Trade and Export Development, Afreximbank.
“Our senior debt financing supports the plant expansion needed to convert those ambitions into increased productive capacity, and stronger foundations for intra-African trade.” – Mrs Kanayo Awani, Executive Vice-President, Intra-African Trade and Export Development, Afreximbank.
“This investment represents an important step towards our ambition of building a globally competitive manufacturing business in Nigeria, producing world-class tiles to European quality standards and reducing Nigeria’s dependence on imported tiles.” – Mr Adebisi Adebutu, Group President, R28 Holdings.
“With Afreximbank’s financing, we can now deliver the expansion phase of this project.” – Mr Adebisi Adebutu, Group President, R28 Holdings.
WHAT’S NEXT
Veenocks plans to use the expanded production capacity to serve Nigerian customers and pursue regional markets across West and Central Africa.
Its target markets include Togo, Benin, Burkina Faso, Niger, Cameroon, Ghana, Mauritania and Senegal.
Afreximbank said the repayment of the project preparation facility would also allow it to deploy the recovered funds to support other African investors and manufacturing projects.
BOTTOM LINE
Afreximbank’s $81.9 million loan will help Veenocks triple its porcelain tile production capacity in Ogun State. Beyond the additional jobs, the expansion could strengthen Nigeria’s domestic tile manufacturing base and support the company’s entry into regional markets.
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