By Magoh Clara
The African Export-Import Bank (Afreximbank) has approved an $81.9 million loan for Veenocks Limited to support the expansion of its porcelain tile manufacturing plant in Sagamu, Ogun State.
The expansion project, estimated to cost $145 million, is expected to triple the factory’s annual production capacity from 3.3 million to 9.9 million square metres of floor and wall tiles.
The financing is expected to strengthen local manufacturing, create employment opportunities and increase the availability of locally produced building materials in Nigeria.
Veenocks Limited, a member of R28 Holdings, is associated with Nigerian businessman Adebisi Abidemi Adebutu.
According to reports, the factory currently employs more than 200 people, while the expansion is projected to create an additional 300 direct jobs.
The project is also expected to generate indirect employment opportunities across raw material supply, transportation, logistics and distribution.
Afreximbank disclosed that its support followed an earlier $2 million Project Preparation Facility agreement signed with Veenocks in August 2024.
The facility funded technical, commercial, financial, legal, environmental and social studies required to assess the project’s viability before the approval of the larger financing.
The bank explained that the studies helped strengthen the project’s financial prospects and supported the company’s plans to expand beyond the Nigerian market.
Veenocks is also targeting other African markets, including Ghana, Benin, Togo, Burkina Faso, Niger, Cameroon, Mauritania and Senegal.
The company’s expansion is expected to increase the use of locally sourced raw materials while reducing Nigeria’s dependence on imported porcelain tiles.
The development comes amid growing efforts to strengthen domestic manufacturing and encourage investments that can create jobs and support economic growth.
If successfully implemented, the expansion could strengthen Ogun State’s position as an important destination for industrial investment while contributing to Nigeria’s building materials industry.
