The Dangote Group is moving forward with plans to offer a 10 percent stake in its $20 billion refinery, which has a capacity of 650,000 barrels per day, through a Pan-African Initial Public Offering (IPO) scheduled for 2026. This announcement was made by Aliko Dangote during an event hosted by the Atlantic Council in Washington, D.C. According to Dangote, the share sale aims to fund long-term expansion and enhance capital market participation across Africa. The refinery, operated by Dangote Petroleum Refinery and Petrochemicals FZE, is anticipated to pay dividends in dollars following its listing, although specific financial terms of the offering have not yet been disclosed.
To facilitate the IPO, the company has appointed Stanbic IBTC Capital Ltd., Vetiva Advisory Services Ltd., and FirstCap Ltd. as advisers. Dangote indicated that this initiative is part of a broader strategy to invest approximately $40 billion over the next five years in various sectors, including refining, fertilizer production, and mining ventures across the continent. The expansion plans involve quadrupling fertilizer output, significantly increasing refinery capacity, and establishing potash and phosphate plants in the Democratic Republic of Congo, in addition to copper refining projects in Zambia.
The Dangote refinery, recognized as Africa’s largest, recently achieved full operational capacity. This milestone coincided with global supply disruptions related to tensions in the Middle East, which have heightened demand for its products. The facility has also emerged as a crucial supplier of jet fuel to Europe, thereby reinforcing Nigeria’s position in global refining and export chains. Alan Gelder, the senior vice president of refining, chemicals, and oil markets at Wood Mackenzie, noted that the refinery is highly profitable, attributing this to rising export volumes and robust demand across various product segments. Data revealed that diesel exports increased to approximately 79,500 barrels per day in April, up from 73,600 in March, while gasoline shipments decreased to 50,100 barrels per day from nearly 102,400 previously.
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