Nigeria’s biggest local investor, Aliko Dangote, is moving ahead with plans to launch what could become Africa’s largest initial public offering, as Dangote Petroleum Refinery & Petrochemicals prepares to raise up to $5 billion from investors.
The share sale is expected to open as early as May, with analysts valuing the company between $40 billion and $50 billion, making it one of the most significant capital market events in Africa’s history.
The offer is expected to cover between 5 percent and 10 percent of the company’s equity, creating an opportunity for both local and international investors to participate in the continent’s largest refining project.
Market stakeholders have continued to position the listing as a major milestone that could deepen liquidity and expand participation across African financial markets.
On 1 April, the Nigerian Exchange Group and the African Securities Exchanges Association convened senior executives from leading exchanges across the continent to discuss the structure of the planned listing.
The meeting focused on how the Dangote Refinery IPO could serve as a model for cross-border capital mobilisation and improve investor access across multiple African markets.
The Dangote Group has already appointed a consortium of financial advisers to manage different segments of the offering. Stanbic IBTC Capital will coordinate international placements and investor relations, while Vetiva Capital Management will focus on retail distribution within Nigeria. FirstCap has been mandated to manage placements with institutional investors, particularly pension funds.
The refinery, located in the Ibeju Lekki Free Zone, stands as the world’s largest single-train crude processing facility.
Built for $20 billion, it was commissioned in 2023 and began operations in early 2024 after nearly a decade of construction. It currently processes close to 650,000 barrels of crude oil per day and continues to ramp up production to meet regional demand.
Operations at the facility have already begun to reshape fuel supply across Africa, particularly as global supply chains remain under pressure. The refinery has expanded its export footprint and now supplies petroleum products to several African countries. In a recent update, Dangote confirmed that multiple cargoes of petrol were shipped to regional markets within a single month, reflecting growing demand.
Beyond fuel production, the facility also produces up to three million metric tonnes of urea fertiliser annually, supporting agricultural productivity across the continent.
Expansion plans are underway to increase polypropylene output, which is widely used in manufacturing industries such as packaging, textiles and consumer goods. These developments are expected to strengthen industrial value chains and reduce reliance on imports.
Financial backing for the refinery has continued to grow, with the African Export-Import Bank underwriting $2.5 billion of a $4 billion syndicated loan. Speaking on the development, George Elombi highlighted the importance of investing in African-led projects, noting that such initiatives contribute to economic resilience, job creation and long-term growth.
The refinery’s economic impact is already visible, with more than 150,000 jobs created directly and indirectly. Thousands of engineers have also received technical training through the project.
According to estimates by the International Monetary Fund, the refinery could increase Nigeria’s non-oil GDP by 1.5 percent while boosting foreign exchange reserves by $5.5 billion.
As production scales further, Nigeria is expected to transition from a net importer of refined petroleum products to a net exporter. The refinery currently meets between 35% and 50% of domestic petrol demand, while exports continue to expand across African markets.
Regulators, including the Securities and Exchange Commission of Nigeria, are reviewing a proposed share structure that could allow investors to purchase shares in naira while receiving dividends in US dollars. This model is designed to attract foreign investors and reduce exposure to currency volatility.
The company is expected to submit its prospectus in April, followed by a nationwide investor roadshow ahead of the public offer. Market expectations suggest that the shares could begin trading on the Nigerian Exchange’s main board between June and July, depending on regulatory approvals and investor response.
The planned listing is widely seen as a defining moment for Africa’s financial markets, as it demonstrates the scale of capital that can be raised within the continent. It also reflects growing collaboration among African exchanges, which continue to explore ways to integrate markets and improve capital flows across borders.
