Nigerian billionaire Aliko Dangote has launched an initial public offering (IPO) for his oil refinery, opening what is now Africa’s largest share sale to inves...
Nigerian billionaire Aliko Dangote has launched an initial public offering (IPO) for his oil refinery, opening what is now Africa’s largest share sale to investors. The Dangote Petroleum Refinery and Petrochemicals is offering 4.1 billion shares at ₦525 each, with the offer expected to raise about ₦2.15 trillion, or roughly $1.6 billion, if fully subscribed.
The IPO opened on Monday, September 14, 2026, and is scheduled to close on October 13. The shares are expected to begin trading on the Nigerian Exchange in November. The offering is aimed at broadening ownership of the refinery by allowing retail investors to participate alongside institutional investors.
The refinery, located near Lagos, was built at a reported cost of about $20 billion and began operations in 2024. It currently has a capacity of about 700,000 barrels per day and has become a major supplier of refined petroleum products in Nigeria.
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The company is seeking to use money raised through the IPO to support an expansion that would increase refinery capacity to 1.4 million barrels per day. The planned expansion is expected to take the facility’s production capacity to twice its current level by 2029.
The IPO comes after a strong improvement in the refinery’s financial performance. Reuters reported that the refinery recorded a net profit of $1.82 billion in the first half of 2026, compared with a loss of $476 million in the same period of the previous year. Revenue during the first half exceeded $13 billion.
The refinery has also benefited from changes in global fuel markets. Supply disruptions linked to the conflict involving Iran have increased demand for refined petroleum products, including jet fuel, giving the refinery an opportunity to increase sales in African and European markets.
The share offering has been structured to attract retail investors, including people who have not previously invested large amounts in the stock market. Investors can buy a minimum of 10 shares, with the minimum purchase priced at ₦5,250. The offer is also being made available through digital and fintech platforms.
The size of the IPO has made the transaction significant for Nigeria’s capital market. The offering values the refinery at about $47 billion to $49 billion, according to reports, making the refinery one of the largest companies to enter Nigeria’s public market through an IPO. Aliko Dangote will retain majority ownership after the share sale.
The IPO follows several months of preparations and regulatory steps. Nigeria’s Securities and Exchange Commission approved the offering in September, after earlier regulatory action in June over unauthorised marketing and investment solicitations linked to the planned share sale. At that time, the regulator said no IPO application had yet been filed or approved.
The company had also secured a $1 billion underwriting programme ahead of the public offering. Reuters reported in August that the underwriting arrangement was intended to support the refinery’s planned listing and expansion programme.
The IPO is part of a broader expansion strategy for the Dangote refinery. The group plans to increase production capacity and invest in additional energy infrastructure. The company has also announced plans for a new refinery in Kenya, although that project faces challenges including crude oil supply, infrastructure and financing.
Dangote’s refinery has become an important part of Nigeria’s petroleum industry since starting operations. The facility was developed to process crude oil into refined products and reduce dependence on imported fuel. Its current production capacity of 700,000 barrels per day places it among the largest refineries in the world.
The public offering also gives Nigerian and other African investors an opportunity to acquire a stake in a major industrial asset. Dangote has promoted the IPO as a way of widening ownership, with the company targeting as many as 10 million shareholders across Africa.
For investors, however, the share sale also comes with the normal risks associated with buying shares. The price at which the shares trade after listing can rise or fall depending on the company’s performance, market conditions and investor demand. Reports have also noted that some investors have questioned the valuation attached to the refinery.
The IPO is expected to provide the refinery with additional capital at a time when it is preparing for a major increase in production. If the expansion proceeds as planned, capacity would rise from 700,000 barrels per day to 1.4 million barrels per day by 2029.
The offering also marks a change in the ownership structure of one of Africa’s most prominent privately developed energy projects. While Dangote will remain the majority shareholder, the IPO will bring a larger group of investors into the business once the shares are listed on the Nigerian Exchange.
The offer will remain open until October 13, giving investors several weeks to consider whether to participate. Trading of the shares is expected to begin in November following the completion of the offer process and allocation of shares.
The Dangote refinery IPO therefore represents a major development for Nigeria’s capital market and energy sector. With 4.1 billion shares being offered at ₦525 each, the transaction could raise about ₦2.15 trillion and provide funding for the planned expansion of the refinery’s production capacity.
