Nigerian billionaire Aliko Dangote has launched Africa's largest-ever initial public offering, offering a stake in his Lagos oil refinery to the public in a deal that could raise as much as $2.1 billion.
The IPO covers roughly 3% of Dangote Petroleum Refinery and Petrochemicals, listed on the Nigerian exchange. The share sale runs for one month, closing on 13 October, with a minimum subscription of just 10 shares, priced at approximately 5,250 naira, or around $4.
If fully subscribed, the refinery's total value is expected to reach approximately 65.22 trillion naira, equivalent to around $36.5 billion.
Dangote has framed the offering as "an IPO for the people," saying he wants to give ordinary Nigerians the chance to share in the plant's success. The IPO has been marketed particularly to young Nigerians through banking platforms and fintech ventures as a means of building personal wealth and growing the broader economy.
The refinery, located in the Lekki Free Zone on the outskirts of Lagos, began production in January 2024 after more than a decade of construction. It was first announced in 2013 with an estimated cost of around $19 to $20 billion, though construction did not begin until 2017 and was further delayed by the Covid-19 pandemic. The site required massive land reclamation, with 65 million cubic metres of sand moved.
The facility now supplies more than 70% of Nigeria's domestic energy consumption. Prior to its opening, Nigeria had relied on exporting crude oil and importing refined petroleum for domestic use, spending billions to subsidise fuel costs. The refinery's launch has since made Nigeria a net exporter of refined fuel for the first time.
Its processing capacity stands at between 650,000 and 700,000 barrels per day, making it among the largest refineries in the world. Capacity is expected to double by the end of the decade. Proceeds from the IPO are intended to help fund that expansion.
The flotation has drawn significant attention. At an IPO signing ceremony in Lagos on 7 September, Dangote said: "We, as Nigerians and Africans, must be bold and lead the change to develop our economies. Only then will the others take us very seriously, only then we'll be in a position to negotiate and walk away with terms we deserve, not those terms that are given to us."
Fellow Nigerian billionaire and banker Tony Elumelu called the event "a landmark moment for Nigeria and a huge milestone for Africa."
Retail investors have also responded with enthusiasm. Isah Salisu, a member of the public, said he withdrew 50,000 naira from his savings to invest. "My hope is that my small money will one day grow big. I don't want to miss out as many I know are also investing," he said.
Economy and business expert Dr Abdulrazak Ibrahim Fagge described Monday's launch as historic but urged caution, particularly for first-time investors. "What prospective buyers, especially first-time buyers, should know is that they shouldn't invest all their money or money they would need in a couple of months," he said. "They should invest something they could do without for the next three, four, five years."
He also warned the public to be wary of scammers seeking to exploit those unfamiliar with the investment process. "I will advise people to only deal with the institutions that have been listed," he said.
Dangote, who is 67 according to one source and 69 according to another, was born in Kano and made his initial fortune in cement and sugar. He started his company in the late 1970s with a loan from his maternal grandfather, a member of the Dantata family, one of West Africa's historically wealthiest dynasties. His business has since expanded across 16 African countries. Dangote Cement remains Africa's largest cement producer.
His net worth is estimated at between $28 billion and $35 billion, depending on the source. If the IPO proceeds as planned, that figure could rise to nearly $60 billion.
Beyond the refinery, Dangote has outlined an ambitious plan to build a $100 billion industrial empire focused on heavy manufacturing and regional infrastructure. A key element is a planned $17 billion energy complex in the Kenyan island town of Lamu, with an oil-refining capacity of 700,000 barrels per day, aimed at boosting regional energy security.
Responding to past criticism of his political influence in Nigeria, Dangote said: "We have chosen to build here, to employ here, to produce here. Let us not use the cry of monopoly to stall growth. No one is prevented from investing."
