Dangote refinery IPO set to become Africa's biggest-ever listing
Aliko Dangote's Nigerian oil refinery business is set to go public on the Nigerian exchange in a flotation that could become Africa's biggest-ever initial public offering. The listing of Dangote Petroleum Refinery and Petrochemicals is scheduled for Monday, with share purchases open until 13 October. If the offer is fully subscribed, it could add about $23bn to Dangote's net worth.
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The public offering is being marketed as an IPO for ordinary investors as well as institutions, with a minimum subscription of 10 shares costing 5,250 naira. The company has also been promoted through banking platforms and fintech ventures, with a particular focus on younger Nigerians. According to the figures provided, the refinery's value could rise to about 65.22tn naira if the offer is completely taken up.
The planned flotation comes after a rapid expansion of Dangote's petroleum business, which began operations at the $20bn refinery on the outskirts of Lagos in January 2024. The refinery has a capacity of 700,000 barrels a day and is expected to double that by the end of the decade. Its launch marked a shift for Nigeria, which had long exported crude oil while importing refined fuel for domestic use.
That shift matters because Nigeria has spent billions of dollars subsidising fuel costs and supporting older refineries that date back to the colonial era. The refinery's output has already helped Nigeria become a net exporter of refined fuel for the first time, according to the supplied material. The listing therefore carries significance beyond one company's valuation, touching on the country's energy balance, industrial policy and capital markets.
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Dangote, 69, built his fortune in cement and sugar before moving into the petroleum sector. The supplied material says he has financed several successful presidential campaigns in Nigeria and that policymakers have granted him a near monopoly in his chosen sectors. He has rejected criticism of his influence, saying that building and producing in Nigeria should not be stalled by accusations of monopoly.
The wider backdrop is a business empire that began in the late 1970s with a loan from his maternal grandfather, a member of the Dantata family. The refinery has also benefited this year from disruptions in global supply linked to the war in Iran, according to the supplied material. What remains unclear is how much demand the offer will attract over the full subscription period and how the market will value the asset once trading begins.
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