Nigerian industrialist Aliko Dangote has launched the public ownership phase of his refinery, aiming to raise $1.6 billion in Africa’s largest initial public offering (IPO). The IPO allows retail investors to purchase a 10-share bundle for 5,250 naira (£4), making it accessible to a broader audience. Dangote, Africa’s wealthiest man, emphasised that this is a “people’s IPO,” and he retains 87% ownership of the continent’s largest refinery.
The excitement among retail investors stems partly from rising global oil prices linked to geopolitical tensions, particularly the US-Iran conflict. Speaking at the launch in Lagos, Dangote remarked, “We are all going to fully share our prosperity with the people.”
While the refinery’s stock won’t officially list until November, the IPO launch caused significant traffic on investment platforms, with some temporarily offline due to demand.
Titi Adetoye, an operations manager in Abuja, expressed enthusiasm about investing, citing confidence in Dangote and the refinery’s stature. Nigeria has historically depended on foreign refining due to the poor state of its own facilities. However, the $19 billion Dangote refinery, which began production in 2024, is set to transform the country from an oil importer to an exporter.
Analyst Mohammed Saidu noted that this IPO could attract millions of new investors. However, questions have arisen regarding Dangote’s substantial ownership and the refinery’s high valuation of $49 billion, which is more than double its construction cost. Critics argue this raises doubts about whether the IPO is genuinely “people-driven.”
Some investors, like Lagos researcher Abdulkabeer Tijani, remain sceptical about the share price, suggesting it might already be too high. He noted that if the refinery is to justify its valuation, it must achieve consistent and significant profits.
The refinery has reached a capacity of 650,000 barrels per day, with plans to increase this to 1.4 million barrels, potentially making it the world’s largest, surpassing India’s Jamnagar plant. Dangote is also eyeing expansion into East Africa, proposing a new refinery in Kenya by 2030.
