Nigerian industrialist Aliko Dangote has opened a portion of his sprawling Lagos-based oil refinery to public ownership through an initial public offering (IPO), aiming to raise $1.6 billion from retail investors across Africa. The offering, described by Dangote, Africa's richest man, as "for the people," allows individuals to purchase shares for $4 each, with a minimum buy-in of 10 shares. Dangote retains 87% ownership of the facility.
The refinery's scale and potential returns have generated considerable excitement, particularly as global oil prices have seen increases. Titi Adetoye, an operations manager in Abuja, expressed enthusiasm for participating, citing Dangote's reputation and the refinery's status as Africa's largest. The Nigerian digital investment platform Bamboo reported high traffic volumes, indicating strong investor interest.
Historically, Nigeria has relied on foreign refining of its crude oil due to the poor maintenance and underperformance of its state-run refineries. However, the Dangote refinery, which began production in 2024 after an investment of $19 billion, has transformed Nigeria into an exporter of refined oil. Analysts predict the IPO could attract millions of new investors to Nigeria's markets.
Questions have arisen regarding the refinery's valuation of $49 billion, which is more than double its construction cost, and Dangote's continued majority ownership. Refinery officials have denied claims of an inflated valuation. Joachim McEbong, a senior West Africa analyst, commented that the narrative of a "people-driven" initiative is challenged by Dangote's substantial retained ownership.
Despite the general optimism, some analysts express reservations. Abdulkabeer Tijani, a Lagos-based researcher, suggested that the share price might already be high, placing a significant burden on the refinery to consistently generate substantial profits and maintain its elevated valuation. The refinery currently operates at a full capacity of 650,000 barrels per day, with plans to expand to 1.4 million barrels per day, potentially making it the world's largest. Dangote also has ambitions to expand into East Africa, with a proposed refinery in Kenya by 2030.