The Dangote Petroleum Refinery has announced plans to invest $14.3 billion to double its refining capacity from about 700,000 barrels per day to 1.4 million barrels per day by 2029. The announcement came as the company signed documents for what is expected to become Africa’s largest-ever initial public offering (IPO).
IPO to raise about ₦2.15 trillion
The refinery plans to offer 4.1 billion ordinary shares at ₦525 each, potentially raising about ₦2.15 trillion ($1.63 billion) if the offer is fully subscribed.
The IPO is scheduled to run from September 14 to October 13, 2026, with the shares potentially beginning to trade on the Nigerian stock exchange in November.
The offer is being positioned as a “people’s IPO”, with the company seeking broad participation from Nigerian and African investors. The minimum proposed purchase is 10 shares, costing ₦5,250.
Refinery expansion
The $14.3 billion expansion would double the Lagos refinery’s capacity to 1.4 million barrels per day by 2029.
If completed as planned, the expansion would make the facility one of the world’s largest single-site refineries. The refinery was built at an estimated cost of about $20 billion and began operations in 2024.
The company says the additional capacity will strengthen Nigeria’s ability to meet domestic fuel demand while allowing it to export more refined petroleum products across Africa and other international markets.
Strong financial turnaround
The IPO prospectus also revealed a major improvement in the refinery’s finances. The company reported an after-tax profit of $1.82 billion in the first half of 2026, compared with a $476 million loss for the whole of 2025.
The refinery has benefited from strong demand for refined products and disruptions to global fuel supplies linked to geopolitical conflicts.
Why the IPO matters
The planned listing could significantly change Nigeria’s capital market because it would allow ordinary investors to own a stake in one of the country’s biggest industrial projects.
Dangote has said the aim is to broaden ownership and give Nigerians, members of the diaspora and other African investors an opportunity to participate in the refinery’s growth.
The company is also considering further expansion beyond Nigeria, including plans for another refinery on Kenya’s coast to serve East African markets.
