Nigerian billionaire Aliko Dangote has initiated Africa's largest-ever share sale, offering a public stake in his oil refinery with the potential to raise as much as $2.1 billion. The initial public offering (IPO) covers approximately 3% of the Dangote refinery, a move Dangote stated is intended to allow ordinary Nigerians to participate in the plant's success.
The refinery, which commenced production in 2024 after more than a decade of construction, is one of the world's largest. It currently supplies over 70% of Nigeria's energy consumption. Many Nigerians have expressed enthusiasm for the opportunity to invest in the facility. Isah Salisu, a resident, told the BBC he invested 50,000 naira from his savings, hoping his investment would grow. The IPO is open for one month, with a minimum purchase of 10 shares available for about $4.
Economy and business expert Dr. Abdulrazak Ibrahim Fagge described the event as historic but cautioned potential investors about the possibility of share price declines and the risk of losing money. He advised individuals, particularly first-time investors, to only allocate funds they could afford to have tied up for several years and to be vigilant against scammers by dealing only with listed institutions.
Nigeria, Africa's top oil producer, historically relied on imports for most of its fuel due to insufficient refining capacity before the Dangote refinery's opening. The refinery is situated in the Lekki Free Zone near Lagos and required significant land reclamation, involving the movement of 65 million cubic meters of sand.
Aliko Dangote, 67, has a net worth estimated around $28 billion, according to Forbes. His wealth was built primarily in cement and sugar in Nigeria, with subsequent expansion into 16 other African countries. His company, Dangote Cement, is the largest cement producer on the continent. The Lagos refinery was first announced in 2013 with an initial projected cost of $19 billion, with construction beginning in 2017 and experiencing further delays, including due to the COVID-19 pandemic.
The refinery has a daily processing capacity of 650,000 barrels, ranking it as the seventh largest globally. The funds raised from the current share offer are designated to support efforts aimed at doubling its capacity.