Dangote Petroleum Refinery
The Securities and Exchange Commission (SEC) has approved the proposed initial public offering (IPO) of Dangote Refinery, clearing the way for what could become Africa’s largest-ever share sale.
Dangote Group disclosed on Friday August 4 that the regulator had approved the offer, which is expected to raise about N2.15 trillion if fully subscribed.
Under the offer, the refinery will issue 4.1 billion ordinary shares at N525 per share, giving retail and institutional investors an opportunity to acquire stakes in the 650,000-barrel-per-day facility.
The SEC has also registered 120.13 billion existing ordinary shares in the refinery, implying a valuation of about $47 billion, based on Reuters’ calculations.
The refinery, located on the outskirts of Lagos, was built at an estimated cost of $20 billion and has become a major player in Nigeria’s petroleum market since commencing operations. It has also increased exports of refined petroleum products to markets across Africa and Europe.
The IPO is expected to open for subscription on September 14, according to a source familiar with the transaction.
Dangote Group said the SEC approval would broaden investor participation in what it described as one of Nigeria’s major industrial projects. The proceeds from the share sale are expected to support the refinery’s expansion plans, which aim to increase its capacity from the current 650,000 barrels per day to 1.4 million barrels per day.
The company had earlier raised $2.5 billion through a private placement as part of efforts to strengthen its balance sheet ahead of the IPO. It also secured underwriting commitments from investors to support the planned offer.
A formal signing ceremony with the Nigerian Exchange is expected to take place next week, according to company sources.
Dangote Group President, Aliko Dangote, said the refinery’s long-term ambition was to become one of Africa’s largest companies, with a target of generating more than $12 billion in earnings before interest, tax, depreciation and amortisation (EBITDA).
He also said the share offer would be open to investors across Africa, including Nigerian retail investors.
The planned listing comes as Dangote Group continues to explore additional refining opportunities outside Nigeria, including a proposed refinery project in Kenya.
The refinery’s growing production has also contributed to increased Nigerian exports of refined petroleum products to Europe. Data from the U.S. Energy Information Administration showed that Nigeria’s seaborne refined petroleum exports to Europe rose to about 130,000 barrels per day in the second quarter of 2026, from 15,000 barrels per day in 2023, with increased output from the Dangote Refinery identified as a major driver.
