KEY POINTS
- Dangote says the refinery’s IPO will open within 10–12 days and could raise about $5 billion.
- Dangote plans to expand refinery capacity to 1.4 million barrels per day and launch a new Kenya refinery on September 30.
- IEA chief Fatih Birol says Nigeria could double energy investment within five years if it strengthens investor confidence and exploits its oil, gas and renewable-energy potential.
The Initial Public Offering, IPO, of the Dangote Petroleum Refinery is expected to open within the next 10 to 12 days, marking a major step towards broadening ownership and attracting additional capital into Africa’s largest oil refinery.
Aliko Dangote, president of Dangote Industries and Africa’s richest man, disclosed the timeline while speaking to investors and analysts during a visit to Botswana. The proposed listing could become one of the largest public offerings in Africa if the refinery succeeds in raising the expected $5 billion.
The IPO is being closely watched by investors because of the refinery’s strategic importance to Nigeria’s energy industry and its growing role in the international petroleum-products market.
Dangote said the company’s long-term ambition was to expand the refinery’s processing capacity significantly. The existing facility has a nameplate capacity of 650,000 barrels per day, although it has already tested production at about 700,000 barrels per day.
The refinery reached full nameplate capacity in February, strengthening expectations that it could become a major source of refined petroleum products for both Nigeria and international markets.
Refinery expansion remains a key priority
Dangote said the group intends to more than double the refinery’s eventual capacity to about 1.4 million barrels per day.
Such an expansion would further cement the facility’s position as one of the most significant refining complexes in the global energy market and could substantially increase Nigeria’s ability to process crude domestically rather than relying heavily on imported refined fuels.
The refinery has also benefited from stronger refining conditions amid disruptions and uncertainty in global energy markets, particularly following geopolitical tensions in the Middle East.
Although Dangote Industries does not publicly disclose the refinery’s profit margins, stronger demand for alternative fuel supplies has provided favourable conditions for refiners.
Dangote also disclosed that the planned secondary listing of Dangote Cement on the London Stock Exchange is likely to take place in October.
The proposed listing is expected to give the cement business greater exposure to international investors while potentially widening its access to global capital markets.
Dangote Cement remains one of the group’s flagship businesses and is already one of Africa’s largest cement producers.
A London listing would represent another step in the group’s strategy of connecting its major businesses to international investors and financial markets.
