African Export-Import Bank (Afreximbank) is supporting a US$145 million industrial expansion project by Nigerian manufacturer Veenocks Limited, reinforcing efforts to strengthen local manufacturing, reduce dependence on imported products and expand intra-African trade.
The project, located in Sagamu, Ogun State, Nigeria, combines Afreximbank’s project preparation support with an US$81.9 million senior term loan to finance the expansion of Veenocks’ porcelain tile manufacturing facility. The investment is expected to increase the plant’s annual production capacity from 3.3 million to 9.9 million square metres, tripling its current output.
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The financing builds on an earlier US$2 million agreement signed in August 2024 under Afreximbank’s Project Preparation Facility (PPF). The facility financed technical, commercial, financial, legal, environmental and social studies required to establish the project’s viability and prepare it for investment.
Beyond strengthening the project’s financial and technical foundations, the preparation process helped Veenocks broaden its commercial ambitions beyond Nigeria. The company is now targeting regional markets including Togo, Benin, Burkina Faso, Niger, Cameroon, Ghana, Mauritania and Senegal, positioning the expanded facility as a potential contributor to regional construction supply chains and manufacturing trade.
The expansion comes at a time when African economies are seeking to strengthen domestic production, develop industrial value chains and reduce reliance on imported manufactured goods. By increasing local production of porcelain tiles, the project is expected to support Nigeria’s manufacturing sector while creating opportunities for regional distribution and commercial partnerships.
Employment generation is another important dimension of the investment. Veenocks’ existing facility employs more than 200 people directly, while the expansion is expected to create an additional 300 direct jobs. Further employment opportunities are anticipated across raw material supply, transportation, logistics and distribution.
Mrs. Kanayo Awani, Executive Vice President of Intra-African Trade and Export Development at Afreximbank, said the project demonstrates how preparation financing, commercial expertise and long-term debt can support industrial investment across the continent. She highlighted the importance of strengthening project bankability and transforming investment ambitions into productive manufacturing capacity.
She also noted that the full repayment of the initial project preparation financing would replenish the facility’s resources, allowing Afreximbank to support additional African investment projects. The revolving financing model is intended to help more indigenous businesses develop commercially viable ventures 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 milestone in the company’s ambition to establish a globally competitive manufacturing business in Nigeria.
He emphasized the company’s commitment to producing porcelain tiles that meet European quality standards while reducing Nigeria’s dependence on imported tiles. The expanded production capacity is also expected to strengthen the company’s ability to supply customers domestically and across regional markets.
The investment highlights the importance of access to long-term financing in overcoming some of the structural challenges facing African manufacturers. Industrial projects often require substantial upfront capital, technical preparation and market development before they can achieve commercial scale. Institutions such as Afreximbank therefore play an important role in connecting project development with financing and regional trade opportunities.
For Nigeria, the expansion represents an opportunity to strengthen its manufacturing base, create employment and increase the domestic value addition of industrial inputs. For the wider African market, it illustrates how investments in productive capacity can support the development of regional supply networks and create new opportunities for cross-border commerce.
As the African Continental Free Trade Area continues to provide a framework for expanding trade among African economies, projects capable of increasing local production and improving industrial competitiveness will be important to translating the continent’s integration ambitions into tangible economic activity.
Through its support for Veenocks, Afreximbank is reinforcing a broader development objective: building African industries that produce more, employ more people, compete internationally and increasingly serve African markets with products manufactured on the continent.
The success of the expansion will ultimately depend on its implementation, production performance and ability to secure sustainable demand across domestic and regional markets. Nevertheless, the project represents a significant investment in Nigeria’s industrial capacity and the wider ambition of strengthening Africa’s manufacturing ecosystem.
