The expansion of the Veenocks tile factory, supported by an Afreximbank loan, significantly enhances manufacturing output. This initiative has received a substantial boost with the agreement for $81.9 million in senior term debt financing aimed at increasing domestic porcelain production.
As disclosed in official project announcements on November 2, 2026, by the African Export-Import Bank (Afreximbank), this debt facility is part of a larger $145 million industrial project for Veenocks Limited located in Sagamu, Ogun State.
Additionally, bank officials have confirmed that this financial support will result in a tripling of annual tile production, increasing from 3.3 million square meters to 9.9 million square meters. As a result, the expansion of the plant will create 300 new direct jobs, raising the total workforce to 500 employees, while also generating thousands of indirect job opportunities within local raw material supply chains.
Background: Transitioning from Project Preparation to Enhanced Industrial Capacity
To appreciate the significance of funding this manufacturing expansion, it is essential to consider Nigeria’s historical reliance on imported building materials. For many years, property developers have depended on imported European porcelain tiles, which have drained foreign exchange reserves and hindered domestic industrial development. Traditionally, local manufacturers have faced challenges in securing the structured long-term capital necessary for financing high-capacity production lines.
Also read Africa50 Data Centre Investments Highlight Africa’s Growing Demand for AI Infrastructure
In August 2024, Afreximbank allocated $2 million through its Project Preparation Facility (PPF) to support vital technical, commercial, legal, and environmental feasibility studies for Veenocks Limited. Under the leadership of Adebisi Abidemi Adebutu, Group President of R28 Holdings, and Kanayo Awani, Executive Vice President of Afreximbank, project planners have ensured that the Sagamu facility adheres to European quality standards. Veenocks has fully repaid the initial preparation facility loan using the new senior debt line.
Consequently, the expansion of domestic processing enables the company to replace imported products.
