Africa's largest refinery, the Dangote Refinery, is preparing for what could be the largest public offering in African history. The company plans to allow Nigerians to buy shares via Point-of-Sale (POS) terminals, mobile phones, and fintech platforms such as OPay and Moniepoint, among other digital channels.
Historic IPO Details
The refinery, owned by Africa's richest man, Aliko Dangote, is expected to list on the Nigerian Exchange Group at a target valuation of about $50 billion, equivalent to nearly N70 trillion based on current exchange rates. Sources familiar with the transaction revealed that Nigerians anywhere in the world with a valid Bank Verification Number (BVN) will be able to participate seamlessly.
Fintech and POS Operators to Drive Share Sales
Insiders disclosed that major fintech companies with strong nationwide networks have already been engaged to support the distribution of shares. The refinery plans to leverage agency banking systems, POS operators, and mobile payment channels to ensure millions of retail investors, especially underserved Nigerians, can access the investment opportunity without traditional stockbroking barriers. This structure is expected to deepen financial inclusion by bringing investment opportunities closer to ordinary Nigerians through familiar platforms they already use daily.
A source involved in the process stated: "Nigerians with BVN in any part of the world should be able to participate in the offer." However, details on how non-Nigerians, particularly investors from other African countries, will participate are yet to be clarified.
IPO Could Raise $1.5 Billion
Sources also disclosed that the proposed Initial Public Offering (IPO) could raise as much as $1.5 billion, potentially making it the largest public offering ever undertaken on the African continent. While Bloomberg recently estimated the refinery's valuation at about $50 billion, insiders suggest the final figure could be significantly higher depending on market conditions and investor demand. The planned 10% share sale may also include targeted allocations to foreign institutional investors who are reportedly eager to secure a stake in the refinery.
Global Comparisons
Industry experts note that refinery valuations globally often range between $20,000 and $40,000 per barrel per day, depending on crude oil prices, product quality, demand levels, and location. For comparison, Valero Energy Corporation, one of the world's leading refining firms, is currently valued at about $74 billion. Similarly, Reliance Industries operates the massive Jamnagar refinery complex in India and carries a market valuation of around $192.6 billion. These comparisons highlight why investor interest in Dangote Refinery remains extremely strong.
Investors Expect Dollar Dividends
Back in April, Dangote confirmed that the listing would likely involve "around 10 per cent" of the refinery, although final terms are still being finalized. "We will list as much as possible, maybe 10 per cent or so," he said. He also disclosed that the refinery is expected to pay dollar-denominated dividends after the IPO, a major attraction for both local and foreign investors seeking protection against currency volatility. Advisers already working on the transaction include Stanbic IBTC Capital, Vetiva Advisory Services, and FirstCap.
The Dangote Refinery listing is now seen as one of the most anticipated events on the Nigerian capital market and could redefine retail investing across Africa.
Dangote Gets Support for Another Refinery in Kenya
In related news, Nigerian billionaire Aliko Dangote plans to site a massive $17 billion oil refinery in Kenya and has received a major boost. In an interview with the Financial Times, Dangote said that he is leaning towards Mombasa as the preferred location for the proposed 650,000 barrels-per-day refinery. The industrialist noted that the new location has a deeper and larger port compared to Tanzania's Tanga, which was previously under consideration.
