Dangote launches Africa’s largest share sale, targets up to $2.1bn from refinery IPO

Nigerian billionaire Aliko Dangote has launched Africa’s largest ever share sale, offering a stake in his oil refinery to the general public in a deal that could raise as much as $2.1bn (£1.6bn).

The initial public offering (IPO) is for roughly 3% of the Dangote refinery, with the billionaire saying he wanted to give ordinary Nigerians the chance to share in the plant’s success.

The refinery, which started production in 2024, is one of the largest in the world and took more than a decade to complete.

It now supplies more than 70% of Nigeria’s energy consumption, and many Nigerians have expressed excitement at the prospect of owning a part of it.

Among them is Isah Salisu, who told the BBC he withdrew 50,000 naira (£28; $37) from his savings to invest.

“My hope is that my small money will one day grow big. I don’t want to miss out as many I know are also investing,” he said.

The IPO lasts for a month and the minimum purchase is 10 shares, costing about $4.

Economy and business expert Dr Abdulrazak Ibrahim Fagge told the BBC that Monday’s event was historic.

But he warned investors that the price of the shares could fall, meaning people could lose some of their money.

“What prospective buyers, especially first-time buyers, should know is that they shouldn’t invest all their money or money they would need in a couple of months,” he said.

“They should invest something they could do without for the next three, four, five years.”

He also warned people to be wary of scammers, saying there are people who would want to take advantage of those without good knowledge of the process.

“I will advise people to only deal with the institutions that have been listed,” he said.

Nigeria is Africa’s biggest oil producer but until the refinery was opened, most of the country’s fuel had to be imported because of a lack of refining capacity in the country.

Born in Kano, Dangote, 67, has a net worth of around $28bn, according to Forbes magazine.

He made his fortune in cement and sugar in Nigeria before expanding to 16 other African countries.

His company Dangote Cement is Africa’s largest cement producer.

The Lagos refinery was first announced in 2013 with an initial estimated cost of around $19bn, but construction did not begin until 2017. It was further delayed by the Covid-19 pandemic.

The site, in the Lekki Free Zone near Lagos, required massive land reclamation, with 65 million cubic metres of sand moved.

The refinery has a processing capacity of 650,000 barrels per day, making it the seventh-largest in the world.

The money raised by the share offer is intended to help double its capacity.

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