Nigeria’s Dangote Refinery to List in London and Lagos by End of 2024

Dangote Refinery Aims for Dual Listings in London and Lagos

by Motoni Olodun
Dangote Industries is set to list its flagship oil refinery on the London Stock Exchange and the Nigerian Stock Exchange by the end of 2024. This move marks a significant milestone for the company, aiming to enhance its global profile and attract a diverse range of investors.

The Dangote Refinery, located in Lagos, Nigeria, is one of the most ambitious industrial projects in Africa. With a refining capacity of 650,000 barrels per day, it is poised to become the largest single-train refinery in the world. This capacity will enable Nigeria to meet its domestic fuel needs and significantly boost export revenue.

Aliko Dangote, Africa’s richest man and the driving force behind Dangote Industries, announced that the dual listings are part of a broader strategy to raise capital and strengthen the company’s financial foundation. The refinery’s listing on these prominent stock exchanges will provide investors an opportunity to participate in Africa’s rapidly growing energy sector.

The refinery project, which has faced numerous delays, is now nearing completion and is expected to commence operations later this year. Once operational, the refinery will transform Nigeria’s oil industry by reducing the nation’s dependence on imported petroleum products. Currently, despite being one of the world’s largest oil producers, Nigeria imports the majority of its refined fuel due to a lack of domestic refining capacity.

The dual listings will help Dangote Industries raise funds to pay down debt incurred during the refinery’s construction and finance future expansions. Listing on the London Stock Exchange, in particular, will attract international investors and enhance the company’s visibility in global financial markets. Meanwhile, the listing on the Nigerian Stock Exchange underscores the company’s commitment to boosting local economic development and providing opportunities for Nigerian investors.

In addition to its massive refining capacity, the Dangote Refinery includes a petrochemical plant, a fertilizer unit, and a power plant, making it a comprehensive industrial complex. This integration aims to maximize efficiency and create a wide range of products from crude oil, thereby adding significant value to Nigeria’s oil resources.

The refinery’s completion and the subsequent listings are expected to have a transformative impact on Nigeria’s economy. By becoming self-sufficient in fuel production, Nigeria can save billions of dollars currently spent on fuel imports. Additionally, the refinery is projected to create thousands of jobs, stimulate local industries, and contribute to economic growth.

However, the project has not been without controversy. Environmental concerns and the displacement of local communities have sparked debates about the refinery’s impact. Dangote Industries has stated its commitment to adhering to environmental regulations and engaging with affected communities to mitigate negative effects.

In conclusion, the upcoming listings of the Dangote Refinery on the London and Nigerian stock exchanges mark a pivotal moment for Dangote Industries and Nigeria’s oil sector. This move is expected to attract substantial investment, enhance financial stability, and drive economic growth. As the refinery nears completion, its potential to transform Nigeria’s energy landscape and economy offers a promising outlook for the future.

Source: Engineering News

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