Dangote Petroleum Refinery is preparing to raise about $5 billion through an initial public offering (IPO) expected to conclude in October.
The deal that would be the largest stock market listing in African history when completed.
The refinery, majority-owned by Nigerian billionaire Aliko Dangote, plans to use the proceeds to expand the capacity of its 650,000-barrel-per-day facility in Lagos and support the development of a new refinery project in Kenya, according to a source familiar with the plans.
The proposed IPO has already attracted interest from capital markets across Africa. Stock exchanges in South Africa, Kenya, Egypt, Ghana and Rwanda have reportedly held discussions with the refinery’s advisers on how investors in their markets could participate in the offering.
Kenya alone could contribute as much as $500 million towards the fundraising target, driven by strong interest from institutional investors, including pension funds. While the primary listing will take place on the Nigerian Exchange, other African markets may participate through structured financial instruments rather than cross-listings.
A second source said the refinery has submitted its IPO application to Nigeria’s Securities and Exchange Commission and is expected to receive regulatory approval within weeks, allowing it to publish a prospectus in September. The final amount raised will depend on the regulator’s approval.
The refinery was valued at around $40 billion during a recent private placement that raised $2.5 billion for a 6% stake. That valuation would make it one of Africa’s most valuable privately owned industrial assets, although analysts note it is significantly higher than many listed global refining companies with similar processing capacity.
Dangote Refinery reached full production capacity earlier this year after beginning operations in 2024. The facility has transformed Nigeria’s fuel market by reducing dependence on imported refined petroleum products and has expanded exports of jet fuel and other refined products to countries across Africa and Europe. Dangote has also announced plans to increase the refinery’s capacity to 1.4 million barrels per day over the longer term.
The IPO is expected to deepen Nigeria’s capital market while advancing Dangote’s ambition of creating a pan-African industrial champion. Investors will reportedly have the option of receiving dividends in either Nigeria’s naira or U.S. dollars, a structure designed to appeal to both domestic and international investors.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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