The Dangote Petroleum Refinery has received approval from Nigeria’s Securities and Exchange Commission (SEC) to proceed with its initial public offering (IPO), a landmark development for Nigeria’s capital market.
The refinery plans to offer 4.1 billion ordinary shares at ₦525 per share. If the offer is fully subscribed, it could raise approximately ₦2.15 trillion, or about $1.63 billion.
The order book is expected to open on September 14, 2026, meaning investors will soon have the opportunity to participate in the ownership of one of Africa’s most important industrial projects.
Refinery valued at about $47 billion
The SEC has also registered the refinery company’s existing 120.13 billion ordinary shares. Based on the approved offer price, the company is valued at approximately $47 billion.
The refinery, located in the Lekki area of Lagos, has a processing capacity of about 650,000 barrels of crude oil per day, making it one of the largest single-train refineries in the world.
The project cost around $20 billion to build and has become an important part of Nigeria’s efforts to reduce its dependence on imported refined petroleum products.
Money will support expansion
Aliko Dangote, the founder and majority shareholder of the Dangote Group, plans to use funds raised from the IPO to support the refinery’s expansion.
The company aims to eventually increase its refining capacity from 650,000 barrels per day to 1.4 million barrels per day.
The IPO will also broaden ownership of the refinery by allowing investors, including Nigerian retail investors, to acquire shares.
Dangote has described the offering as more than a Nigerian transaction, saying he wants investors from across Africa to participate.
A major test for Nigeria’s capital market
The share sale is expected to attract significant attention from institutional and individual investors.
However, analysts will also be watching whether investors consider the refinery’s valuation attractive compared with other major international refining companies. Reuters noted that some analysts have questioned the roughly $47 billion valuation when compared with established international refinery operators.
The IPO also includes a 15% greenshoe option, which would allow additional shares to be sold if demand exceeds the initial allocation.
With the September 14 opening date approaching, the Dangote Refinery IPO is set to become a major event for Nigeria’s financial markets and could significantly increase public participation in one of the country’s biggest industrial businesses.
