Nigeria’s largest refinery, the Dangote Petroleum Refinery, is seeking to raise $1 billion from investors through a private placement as it continues to expand its operations and strengthen its position in Africa’s energy industry.
According to details contained in the offering memorandum, the refinery is making available 3 billion ordinary shares at a price of $0.35 per share. If investors fully subscribe to the offer, the company will successfully raise approximately $1 billion in fresh capital.
The fundraising exercise places the refinery’s enterprise valuation at around $39.1 billion, making it one of the most valuable privately owned industrial assets on the African continent. The valuation also surpasses the market value of most companies currently listed on the Nigerian stock market.
The private placement is aimed at institutional and high-net-worth investors. The memorandum states that investors must purchase a minimum of one million shares, representing an investment of at least $350,000. Additional investments can be made in blocks of 500,000 shares.
To encourage long-term participation and stability, all successful investors will be required to hold their shares for a period of 365 days from the date of allocation before they can sell or transfer them.
The company said the funds raised will be used to support ongoing expansion projects and other corporate needs. This move forms part of the refinery’s broader strategy to strengthen its financial position while investing in future growth opportunities.
Since commencing production in 2024, the refinery has become one of the most significant energy projects in Africa. With a refining capacity of 650,000 barrels of crude oil per day, the facility produces a range of petroleum products including diesel, aviation fuel, naphtha, and Premium Motor Spirit (PMS), commonly known as petrol.
Industry experts believe the refinery’s high valuation reflects growing confidence in its ability to transform Nigeria’s energy landscape. For decades, Nigeria relied heavily on imported refined petroleum products despite being one of Africa’s largest crude oil producers. The refinery is expected to significantly reduce that dependence while improving fuel availability within the country.
Analysts also point to the facility’s export potential. As production increases, the refinery is expected to supply petroleum products to markets across Africa and beyond, helping to boost regional trade and strengthen Nigeria’s role in the global energy sector.
Market observers say the latest capital raise is only one part of a wider expansion programme. Future investments are expected to focus on improving storage infrastructure, transportation networks, distribution systems, and other supporting facilities that will help move products efficiently across domestic and international markets.
There are also expectations that the company may expand further into petrochemical and related industrial operations, creating additional revenue streams and strengthening its position as a major player in Africa’s industrial economy.
With a valuation approaching $40 billion and ambitious expansion plans underway, the Dangote Refinery continues to attract attention from investors and industry stakeholders, reinforcing its status as one of the most significant industrial projects in modern African history.
