Adebutu Secures $81.9M Afreximbank Facility to Triple Sagamu Tile Production

​SAGAMU, NIGERIA — Industrialization efforts in Ogun State have received a major financial boost following the approval of an $81.9 million senior term loan by the African Export-Import Bank (Afreximbank) to Veenocks Limited, a subsidiary of R28 Holdings headed by industrialist Adebisi Abidemi Adebutu.

​The capital injection anchors a comprehensive $145 million expansion project designed to scale up operations at the company’s advanced porcelain tile manufacturing plant located in Sagamu.

​Scaling Capacity and Substitution Strategy

​The multi-million-dollar investment will drive a threefold expansion in the facility’s output, pushing annual production capacity from 3.3 million square meters to 9.9 million square meters. By optimizing local mineral resources and scaling domestic output, the strategic expansion aims to drastically curb Nigeria’s heavy reliance on imported building materials while meeting rigorous international specifications.

​Speaking on the milestone, Group President Adebisi Adebutu emphasized the company’s long-term commitment to raising the bar for indigenous manufacturing.

​”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,” Adebutu stated. “Our vision is to set the global benchmark for quality in tile manufacturing and to become Africa’s first choice for porcelain tiles.”

​Economic Impact and Job Creation

​Beyond industrial substitution, the scaling of the Sagamu plant is projected to generate significant socio-economic ripple effects across the region. The expansion will create 300 new direct jobs, expanding the factory’s current workforce from over 200 personnel to a robust total of 500 direct employees. Additional indirect employment opportunities are expected to proliferate across raw material sourcing, logistics, packaging, and commercial distribution networks.

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​Afreximbank’s Executive Vice President for Intra-African Trade and Export Development, Kanayo Awani, lauded the partnership as a textbook example of successful project financing. She noted that the initiative builds upon an initial $2 million Project Preparation Facility (PPF) agreement signed in August 2024, which financed vital technical, commercial, environmental, and financial feasibility studies. Notably, Veenocks has fully repaid the initial PPF loan utilizing the newly disbursed senior debt facility, fulfilling a revolving capital model meant to empower other regional investors.

​With construction and expansion phases moving into high gear, Veenocks is positioned to cement Sagamu’s status as a burgeoning manufacturing hub, catering to burgeoning domestic demand while aggressively capturing broader export markets across the African continent.