Dangote IPO: Banks raise scam alert amid investor rush

Financial institutions on Tuesday cautioned customers against fraudsters seeking to exploit growing interest in the proposed Dangote Refinery share offering.

They warned investors not to disclose sensitive banking information to anyone claiming to facilitate the transaction.

This is coming after the initial public offering (IPO) of the firm drew about N1.5 trillion in subscriptions within the first 6 hours of trade on the floor of the Nigerian Exchange Limited (NGX), signaling extraordinary investor demand for what could be one of Africa’s biggest share sales after the likes of MTN.

The massive rush by Nigerians to buy shares in Dangote Petroleum Refinery overwhelmed some local investment and trading platforms, with investors reporting difficulties accessing the apps as the much-awaited initial public offering (IPO) opened on Monday.

Hence, the unprecedented demand followed the commencement of the N2.15 trillion share offer by Dangote Industries Limited, which sought to sell 4.1 billion shares in the refinery at N525 per share.

Chief Executive, Dangote Industries Limited, Aliko Dangote, assured investors that the public offering presents a compelling opportinity for atrong returns and sustainable wealth creation whilst urging Nigerians to participate.

Following the announcement, the Securities and Exchange Commission (SEC) in a public statement, cautioned prospective investors to be vigilant and use only approved channels when subscribing to the IPO.

The Commission confirmed that it had approved the refinery’s public offer and urged investors to ensure that all applications and payments are processed exclusively through authorised receiving agents, approved subscription platforms, and designated channels.

In the same vein, banks urged customers to be particularly careful with unsolicited messages, calls and social-media offers promising access to shares or preferential allocations.

They also added that legitimate banks will not request highly sensitive information such as a customer’s full card number, personal identification number (PIN), card verification value (CVV) or one-time password (OTP) through unsolicited calls, text messages or online communications.

In a notification sent to its customers, Access Bank, said, “Buying the Dangote Refinery IPO? Remember, Access Bank will never ever ask for your full card number, PIN, CVV or OTP.

If you have shared the above information with anyone, please dial *901*911# to block your account”.

The warning highlights a familiar tactic used by financial fraudsters: exploiting public interest in a major corporate transaction to make fraudulent requests appear legitimate.

Scammers may present themselves as bank officials, investment advisers, brokers or representatives involved in the share offering. They can use official-looking logos, convincing language and references to well-known companies to persuade potential victims that a transaction is genuine.

Banks are therefore advising customers to independently verify investment opportunities before transferring money or providing personal information. Investors should rely on official communications and established financial channels rather than links or contact details supplied through unexpected messages.

The Dangote Refinery, one of Africa’s most prominent industrial projects, has generated significant interest in Nigeria’s capital markets and broader business community. Any potential share offering connected to the company is likely to attract considerable attention from retail and institutional investors.

That visibility, however, also creates an opportunity for criminals.

Financial institutions say customers who have already disclosed sensitive banking information should act immediately rather than wait to determine whether their accounts have been compromised. Promptly contacting the bank and taking steps to block or secure an account can help limit potential losses.

The latest warnings also underscore the wider challenge facing Nigeria’s financial sector as digital banking and mobile transactions become increasingly common. Fraudsters have increasingly sought to exploit moments of heightened public interest, particularly when consumers are eager to participate in investments that appear to offer significant returns.

For prospective investors, the message from banks is straightforward, enthusiasm for an investment opportunity should not override basic security precautions.

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