Africa’s biggest refinery launches historic public offering

Investors can buy a minimum of ten shares for around $4 in what owner Aliko Dangote has described as a “people’s IPO”

Nigeria’s Dangote refinery has launched a $1.6 billion initial public offering to help finance a major capacity expansion, in a share sale billed as the largest in African history.

The company is offering up to 4.1 billion shares at 525 naira each, according to its prospectus. The offer opened on Monday and will close on October 13, with trading on the Nigerian Exchange expected to begin in November. The minimum application is ten shares, costing 5,250 naira (around $4).

“We are all going to fully share all our prosperity with the people, and that is why we call it the people’s IPO,” Aliko Dangote said at the launch in Lagos.

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Andrey Maslov, director of the HSE University Center for African Studies, told RT that the refinery’s expected valuation of roughly twice its construction cost reflects the project’s success. He argues the IPO has been launched at an advantageous time, when record refining margins and global fuel-market turmoil allow Dangote to raise more capital while selling a smaller stake.

The expert also notes that the Dangote Refinery, *“*the sole domestic fuel producer in a country of over 200 million people who drive more than 5 million vehicles”, **has acquired strategic importance for Nigeria after overcoming opposition from foreign oil companies and delays to its commissioning.

“What is particularly noteworthy is that the shares are listing on the Nigerian exchange, with capital to be raised in naira. This speaks to the maturity of the domestic stock market, sets a strong precedent for other ventures, and proves that local capital markets can serve as a viable source of funding,” Maslov said.

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A surge in traffic from retail investors seeking to buy the shares briefly disrupted Nigerian investment platforms Bamboo and Cowrywise on Monday, the two companies confirmed. Nigeria’s Securities and Exchange Commission approved the offer but warned investors against buying shares through unauthorized websites and social media accounts.

The roughly $20 billion refinery, Africa’s largest, with a 700,000-barrel-per-day capacity, was inaugurated in May 2023 and began commercial operations in 2024. It has been central to the Nigerian government’s efforts to boost domestic refining and reduce import reliance.

According to the IPO documents, the company expects net proceeds of around 2.11 trillion naira after expenses. The funds will finance part of a $14.3 billion program to double the Lagos facility’s capacity to 1.4 million barrels per day. The expansion will cover processing units, major equipment, utilities and construction work. The remaining costs will be financed through internally generated cash and other sources, with the project targeted for completion by 2030.

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Company figures show that the refinery sold 5.35 million metric tons of petroleum products in the first quarter of 2026, with 42.5% exported to markets across Africa, Europe, Asia and the Americas amid global supply disruptions caused by the US-Israeli war against Iran.

As of May, it supplied around 87.6% of Nigeria’s gasoline market. Dangote also plans to build a $17 billion energy complex in the northern Kenyan coastal town of Lamu, including a 700,000-barrel-per-day refinery.