Nigeria’s biggest refinery project is preparing for another major milestone as Dangote Petroleum Refinery & Petrochemicals FZE plans to raise about $5 billion through an Initial Public Offering (IPO), with the funds expected to support the expansion of its refining capacity to 1.4 million barrels per day.
If successful, the public share sale, expected to be completed in October, could become the largest stock market listing in Africa’s history, highlighting growing investor confidence in one of the continent’s biggest industrial projects.
According to reports, the company has already submitted its initial application to Nigeria’s securities regulator and is waiting for approval. Once cleared, the refinery is expected to release its investment prospectus in September before opening the share sale to investors the following month.
The exact amount to be raised will depend on regulatory approval, but insiders say the refinery is aiming for around $5 billion. The shares will be listed on the Nigerian Exchange (NGX), giving both local and international investors an opportunity to own part of the refinery.
The planned fundraising will help finance the refinery’s next phase of expansion. Increasing production capacity to 1.4 million barrels per day would further strengthen its position as one of the world’s largest single-site refineries and reduce Africa’s dependence on imported petroleum products.
The company is also said to be exploring plans for another refinery along the Kenyan coast in partnership with East African governments, showing its ambition to expand beyond Nigeria and serve more markets across the continent.
Interest in the IPO is already spreading beyond Nigeria. Capital markets in countries including South Africa, Kenya, Egypt, Ghana and Rwanda have reportedly held discussions on how investors in their countries can participate in the offer.
Sources say Kenya alone could contribute as much as $500 million, with pension funds and other institutional investors showing strong interest in the deal.
Rather than listing the shares on multiple African stock exchanges, the refinery is expected to keep its primary listing on the Nigerian Exchange. Investors from other countries may participate through structured investment products that mirror the listed shares while allowing them to benefit from future dividends.
The planned IPO comes shortly after the refinery completed a $2.5 billion private placement that sold a six per cent stake in the company, placing its estimated value at around $40 billion.
That valuation puts the refinery among the world’s most valuable refining businesses, despite being relatively new. Industry observers note that its market value is higher than several established international refiners with comparable production capacity.
Built at a cost of about $20 billion, the refinery began operations in 2024 and reached full production earlier this year. The Nigerian National Petroleum Company Limited owns a little over seven per cent of the project.
Another attractive feature of the IPO is that investors are expected to have the option of subscribing in either naira or US dollars, making the offer more accessible to different categories of investors.
Market analysts believe the listing could deepen Nigeria’s capital market by attracting more domestic and foreign investment while giving ordinary investors an opportunity to own shares in one of Africa’s most strategic industrial assets.
If completed as planned, the IPO could mark a new chapter for Nigeria’s financial markets and strengthen the country’s position as a major refining and energy hub for Africa.
