The African Export-Import Bank (Afreximbank) announced on 2 November 2026 that it has provided a US$81.9 million senior term loan to Veenocks Limited to fund the expansion of the company’s porcelain tile plant in Sagamu, Ogun State, Nigeria.
Afreximbank said the financing follows a US$2 million project preparation facility (PPF) granted in August 2024 to underwrite technical, commercial, legal, environmental and social studies that established the project’s bankability. The bank said the PPF has been fully repaid from the senior debt, completing the facility’s funding cycle for Veenocks.
Expansion and employment
The lender and Veenocks put the total cost of the expansion at US$145 million. Afreximbank said the senior term loan will finance additional manufacturing capacity that is expected to raise annual output at the Sagamu plant from 3.3 million to 9.9 million square metres of porcelain tiles. The existing factory employs slightly more than 200 people directly; the expansion is projected to create about 300 additional direct jobs and further indirect employment across raw-material supply, logistics and distribution.
Veenocks, a member of R28 Holdings that manufactures under the Veramis brand, will continue to test products to international tile standards, the bank noted. Afreximbank said the enlarged facility will supply domestic demand and enable the company to pursue sales in eight regional markets: Togo, Benin, Burkina Faso, Niger, Cameroon, Ghana, Mauritania and Senegal.
Context and significance
Afreximbank described the transaction as an example of its Project Preparation Facility being used to convert early-stage studies into senior debt for industrial projects. The bank’s statement framed the deal as supporting import substitution and regional trade by increasing local production of a building material that is commonly imported.
The announcement comes amid policy and market moves in Nigeria to boost domestic manufacture of building materials. Local reporting and industry commentary note that restrictions on foreign exchange for certain imports and government plans to develop building-materials hubs have helped create a more favourable environment for manufacturers of tiles and other construction inputs. Afreximbank and Veenocks emphasised that the project aims to add value to locally available raw materials and reduce reliance on imports.
While the bank did not disclose loan pricing or the detailed financing structure beyond the senior term facility and the completed PPF, the deal underscores continued development-finance support for industrial projects in West Africa. Afreximbank said the transaction will replenish PPF capital for further projects under its revolving model for project preparation finance.
Sources
- Afreximbank press release distributed by APO Group: “Afreximbank supports Veenocks’ US$145 million project for industrial expansion and regional growth” (2 November 2026)
- Nairametrics: “Afreximbank provides $81.9 million loan to Veenocks for Ogun tile factory expansion” (3 November 2026)
- Abuja Post: “Afreximbank provides $81.9 million loan to Veenocks for Ogun tile factory expansion” (3 November 2026)
