KEY POINTS
- Dangote refinery share sale may begin in July.
- Offer would open 650,000 bpd refinery to retail investors.
- Share sale could support refinery expansion plans.
Aliko Dangote said Nigerians could begin buying shares in the Dangote refinery as early as July, opening Africa’s largest single-train refining complex to public investors for the first time.
The proposed Dangote refinery share sale marks a shift for a project that sponsors have largely financed through private capital, debt, and strategic partnerships since construction began.
It would allow retail investors to take stakes in a facility that has become central to Nigeria’s strategy to curb fuel imports and expand domestic refining.
Dangote disclosed the plan while outlining broader efforts to widen local participation in the refinery, which is located in the Lekki free zone in Lagos.
Dangote Refinery Share Sale Planned
The 650,000-barrel-per-day refinery began producing refined products after years of delays and cost overruns. Since coming onstream, it has drawn close scrutiny from traders, regulators and marketers because of its potential impact on fuel supply and pricing in Nigeria.
A public offer would represent the first opportunity for individuals to own part of the refinery, which processes crude into petrol, diesel and jet fuel for domestic and regional markets.
Though Dangote did not disclose pricing, valuation or the proportion of equity to be offered. The transaction would require regulatory approvals and depend on market conditions.
Plans for Growth Spark Investor Interest
Dangote has already said that he wants to increase capacity beyond what it is now. Selling shares in a Dangote refinery might give the company more money for that growth and give investors a way to value the firm.
Because Nigeria, Africa’s biggest producer of crude oil, doesn’t have enough refining capacity, it has always relied on imported refined products. The refinery was built to change that structure by keeping more value in the country.
In conclusion, opening the project to public shareholders would attract more domestic investors as it moves from building to running at a larger scale.
