Dangote Cement shelves planned $1bn London listing amid market volatility

Nigeria’s Dangote Cement (NGX: DANGCEM) has shelved its proposed secondary listing and share offering on the London Stock Exchange, citing market conditions and strategic priorities, in another setback for a London market where new-listing activity has remained subdued.

In a November 10 regulatory filing, the cement producer said its board had resolved that the company and its selling shareholder, Dangote Industries Limited, would not proceed with the proposed transaction at this time. Its shares would remain listed on the Nigerian Exchange, and the decision would not affect its operations or business plans.

A person familiar with the situation told Reuters that market volatility following the US midterm elections contributed to the decision and that the company could reconsider a London listing once conditions stabilised. The Financial Times, also citing a person familiar with the decision, linked the withdrawal to volatile equity markets following a sell-off in technology stocks driven by concerns about artificial intelligence.

“These are pretty awful conditions for anyone to attempt an IPO,” Samuel Kerr, an analyst at M&A analytics platform Mergermarket, told Reuters, pointing to the recent rise in equity volatility. He added that Dangote could probably do a deal now, but that waiting for a better market would likely bring a better outcome and perhaps a higher valuation.

Wall Street fell last week after the Democrats’ midterm victory deepened concerns over whether the AI boom can last, and London’s benchmark FTSE 100 also ended the week lower, Reuters reported. Airtel Money, which listed in London in October, has mostly traded around its GBP1.96 IPO price.

The decision comes weeks after Dangote Cement chairman Emmanuel Ikazoboh, who had promoted the listing during recent investor roadshows, told The Sunday Times that “London is a natural bridge between African opportunity and global investors”.

Dangote Cement first disclosed in May that it was exploring a secondary London listing, subject to corporate and regulatory approvals, transaction terms and market conditions. The company said the move could broaden its international investor base and strengthen its access to overseas capital markets.

At its July 2 annual general meeting, shareholders authorised the board to pursue an international secondary listing and a potential sale of existing shares by the majority shareholder. The company subsequently held a Capital Markets Day in London on September 21.

Preparations continued into October, when Bloomberg reported that bankers were preparing a secondary share sale targeting approximately $1bn. Aliko Dangote had told the Financial Times in May that about 10% of the company would be sold to outside investors, although final terms had not been announced.

The proceeds from the proposed offering would have gone to the selling shareholder rather than Dangote Cement itself. Goldman Sachs (NYSE: GS) and UBS (SIX: UBSG; NYSE: UBS) had reportedly joined global coordinators Citigroup (NYSE: C), JPMorgan Chase (NYSE: JPM) and Standard Bank (JSE: SBK) in the banking syndicate working on the transaction.

The sale would have widened a tightly held shareholder base. Dangote Cement reported a free float of 5.73% at June 30, with Dangote Industries holding 87.28% of shares outstanding excluding treasury stock.

The announcement came a day after Dangote Cement shares rose 9.6% to close at NGN1,469.90 on the Nigerian Exchange on November 9, taking their gain since the start of the year to about 141%. In late October, the company reported a 31.2% rise in nine-month profit after tax to NGN974.8bn and a net cash position of NGN51.1bn at the end of September, compared with net debt of NGN682.9bn at the end of 2025.

The decision also comes two weeks after the close of Dangote Petroleum Refinery’s $1.6bn initial public offering on the Nigerian Exchange, which attracted about $4.78bn in domestic orders, according to sources cited by Reuters.

Reuters valued Dangote Cement at approximately NGN24.79 trillion ($18.42bn) on November 10. The company has not indicated when, or whether, it will revive its London listing plans.

IntelliNews

Dangote refinery IPO draws three times target demand

Nigeria's $1.6 billion Dangote refinery initial public offering has drawn about three times the total targeted orders, two people with knowledge of the situation said, underscoring strong demand for what has been billed as "The People's IPO".

The share ​sale, which closes on Tuesday, has about 6.4 trillion naira ($4.78 billion) of orders from ​Nigerian retail and institutional investors, one person involved told Reuters.

Aliko Dangote, the ⁠billionaire owner of the Lagos refinery, has said the sale is targeting millions of ordinary ​Nigerians and Africans who can buy shares with as little as $4.

He said in a statement on ​Wednesday all 54 African countries had participated in the IPO while applications were received from 120 countries, calling it "a historic achievement."

The order book is expected to grow once subscriptions from investors in other African countries are included, ​one of the people said, adding that Dangote had received subscriptions from more than 2 ​million investors through digital channels so far.

Given the demand, Dangote was expected to exercise a greenshoe option that ‌would allow ⁠it to increase the size of the offering to as much as $2.1 billion, the person added.

A Dangote spokesperson declined to comment on the demand and possibility of exercising the greenshoe option.

The IPO comes as Dangote Petroleum Refinery and Petrochemicals FZE has benefited from stronger margins, with higher ​crude oil prices linked ​to the Iran war ⁠lifting earnings.

The refinery, which began commercial operations in early 2024, has steadily increased output and expanded exports, including shipments of jet fuel to Europe ​and other African markets, helping position Nigeria as a potential net ​exporter of refined ⁠petroleum products.

Share allocation will begin next week ahead of the stock's planned listing on the Nigerian Exchange later in November, the company's IPO prospectus said.

Built at a cost of about $20 billion, the refinery ⁠has ​transformed Nigeria's fuel market since it began operating.
It processes about ​700,000 barrels of crude oil per day and aims to double capacity to 1.4 million barrels per day by 2029.

By Chijioke Ohuocha and Macdonald Dzirutwe, Reuters

Honeywell Technologies launches new AI platform at Dangote's Nigeria refinery

Honeywell Technologies said on Monday it was launching ​a new industrial AI platform, "Forge ‌Plant Cognition", at Nigeria's Dangote refinery to boost the plant's productivity.

The platform, ​being launched at Dangote's Lekki ​refinery in Lagos, will use NVIDIA and Dell Technologies' capabilities in ​a bid to drive up productivity ​and profitability in complex industrial settings, a statement said.

Honeywell is already helping the ​refinery more than double its nameplate ​capacity from 650,000 million barrels per day (bpd) ‌to ⁠1.4 million bpd by 2028.

Based on preliminary data and not guaranteed, Honeywell said its AI platform ​could deliver ​operational ⁠benefits of more than 29 cents a barrel at ​Lekki, or around $60 million ​a ⁠year in gross benefits at full-capacity throughput.

Honeywell has also been selected to help ⁠Dangote ​build a new mega-refinery ​in Kenya's Lamu County.

Reuters

Africa’s richest man, Aliko Dangote, reveals how much you must have before he prioritizes you for his refinery’s IPO

 

Aliko Dangote, President of the Dangote Group and majority shareholder of the Dangote Refinery, recently said investors with N50,000 ($37.59) and below will receive more attention concerning the Dangote Refinery’s initial public offering (IPO).

He made the revelation at the nationwide IPO roadshow in Port Harcourt, Rivers State, as the event ended.

Addressing investors, financial market experts, business leaders, and other stakeholders, Africa’s richest man reiterated a message he has insisted on since he decided to take his refinery public, and that is the fact that the IPO was initiated for the average and below-average African investor.

“We will prioritise people with 50,000 and below,” Dangote stated, according to a Wednesday statement by the Dangote Group.

During the event, Dangote also revealed that investors from across the globe had already committed significant capital to the refinery.

However, the public offering is intended to enable Nigerian citizens to secure direct ownership in the enterprise.

“African investors have invested in this refinery. Now it is time for Nigerians to invest in themselves and participate in a project that is creating value, jobs, and opportunities for generations to come,” Dangote stated.

The Nigerian billionaire urged potential investors to take a long-term view of the IPO, noting that it could offer opportunities to build wealth and diversify their investment portfolios, as reported by the Punch.

It was recently reported that the refinery has returned to profitability, raking in $4.725 billion in net income for the nine months ended September 30, 2026.

Revenue more than doubled to $22.5 billion as the refinery processed up to 700,000 barrels of crude oil per day.

The company reported $650.8 million in cash, compared with $1.7 billion in debt a year earlier.

This improved financial performance coincides with the refinery's efforts to secure capital amounting to billions of dollars through the IPO, which is projected to be the largest equity offering in African history.

Dangote IPO

The Dangote Refinery IPO is intended to attract investors across Africa, starting from its home base, Nigeria.

The Refinery IPO aims to broaden ownership of the $20 billion facility, which has a processing capacity of 700,000 barrels per day, by bringing in up to 10 million retail investors in Nigeria and across Africa.

The IPO was launched on September 14 and was initially scheduled to close on October 13, before being recently extended to October 27.

The initial public offering currently consists of 4.1 billion new ordinary shares priced at N525 per share, with a minimum purchase requirement of 10 shares valued at N5,250.

The issuance of 4.1 billion new ordinary shares at N525 each is expected to raise roughly N2.15 trillion upon full subscription.

By Chinedu Okafor, Business Insider Africa

Related story: Nigeria's Dangote oil refinery swings to net profit ahead of IPO

Nigeria's Dangote oil refinery swings to net profit ahead of IPO

Nigeria's Dangote Petroleum Refinery, which is seeking to raise $1.6 billion in what would be Africa's biggest IPO, swung to a net profit in the first nine months of 2026 as ​revenue more than doubled, according to unaudited results released on Tuesday.

The company ​posted a net profit of $4.73 billion for January to September, compared ⁠with a $117.2 million loss a year earlier.

The refinery has benefited from rising ​demand for its products amid supply disruptions linked to the Iran war, helping it ​sell jet fuel into Western Europe.

"Our third-quarter performance demonstrates the successful transition from commissioning and ramp-up activities to sustainable commercial operations," Chief Executive Officer David Bird said in a statement.
Revenue ​rose to $22.48 billion from $9.19 billion, while core earnings (EBITDA) jumped to $5.52 billion from $627.6 million, ​as higher crude processing rates, stronger refining margins and improved operations boosted profits.

The 700,000-barrel-per-day refinery ‌generated ⁠operating cash flow of $3.68 billion, up from $364.7 million a year earlier, and ended September with cash holdings of $6.69 billion.

It also moved from a net debt position of $1.73 billion a year ago to net cash of $650.8 million.
The application period for the ​initial public offering, ​initially due to ⁠close on October 13, has been extended by two weeks to October 27 amid strong investor demand.

Built at a cost of ​about $20 billion on the outskirts of Lagos, the refinery has ​reshaped Nigeria's ⁠fuel market since it started operations in 2024.

It aims to double refining capacity to 1.4 million bpd by 2029. The refinery has helped reduce Nigeria's reliance on ⁠imported petroleum ​products and has emerged as a major supplier ​of refined fuels to domestic and regional markets.

Reuters

Dangote refinery extends $1.6 billion IPO to broaden African investor access

Dangote refinery extends $1.6 billion IPO to broaden African investor access

Nigeria's Dangote Petroleum Refinery and Petrochemicals has extended the application period for its initial public offering by two weeks to October 27, citing strong investor interest across Africa and efforts to ​broaden access to the share sale.

The company said on Monday that Nigeria's Securities ​and Exchange Commission had approved the extension of the offer, which ⁠opened on September 14 and had been due to close on October 13.
Reuters earlier ​reported the extension of what is set to be Africa's largest share sale.

The refinery, owned ​by Africa's richest person, Aliko Dangote, is seeking to broaden ownership of its 700,000-barrel-per-day complex through an offer aimed at up to 10 million retail investors in Nigeria and elsewhere across the continent.

The ​company said the extension would support market-access initiatives in other African countries, including expanding ​distribution channels and facilitating cross-border investment.

It said the additional time would also allow prospective investors to complete ‌account-opening ⁠procedures, identity verification checks and other regulatory requirements needed to participate in the offer.

The prospectus showed the share sale was not registered as a public offering outside Nigeria, forcing investors to rely on local regulations or gain access through a limited number of eligible ​online investment platforms.

The mismatch ​between Dangote's pan-African ⁠ambitions and the uneven take-up beyond Nigeria highlights how fragmented capital markets continue to hinder cross-border investment across the continent.

The IPO aims to ​raise around $1.6 billion — or up to $2.1 billion if an over-allotment ​option is ⁠exercised — from retail investors to help fund the expansion of the Lagos refinery.

The refinery, which began processing crude in early 2024, is central to Nigeria's efforts to reduce fuel imports and ⁠become ​a net exporter of refined petroleum products.

The offering is ​viewed as a major test of pan-African retail investor appetite for ownership in a large industrial asset.

By Chijioke Ohuocha and Macdonald Dzirutwe, Reuters

Related story: Africa's biggest IPO exposes continent's cross-border investing barriers

Africa's biggest IPO exposes continent's cross-border investing barriers

The historic stock market debut of Nigeria's Dangote refinery was billed as an opportunity for investors across Africa to own a stake in the continent's largest refining complex and finance its own industrial development.

But the $1.6 billion share sale was not registered as ​a public offering outside Nigeria, the prospectus showed, leaving investors relying on their own country's regulations or finding workarounds using the few eligible online financial platforms.

The disconnect between Dangote's ‌pan-African ambitions and the patchy take-up outside Nigeria shows how the continent's fragmented capital markets continue to constrain cross-border investment.
The IPO was approved by Nigeria's Securities and Exchange Commission, which has no jurisdiction outside of Nigeria, pointing to the regulatory hurdles to a truly pan-African deal.

Aliko Dangote, Africa's richest man and the majority owner of Dangote Petroleum Refinery and Petrochemicals, told Reuters that dealing with multiple jurisdictions' securities rules was a "teething problem".

The continent has pursued economic integration efforts, including the African Continental Free Trade Area, ​but lacks a framework for jointly regulating capital-market issuance.

"I'm sure with this, a lot of our own capital markets will also try and change their regulations," Dangote said, to make it easier for ​cross-border investments in the future. "We want to make sure that the African capital markets collaborate with each other."

BUILDING AFRICAN CAPITAL MARKETS

Referring to a proposed refinery in Lamu, ⁠Kenya, Dangote said it should be listed on Nairobi's stock market and be accessible to investors across Africa and that, in turn, will help integrate the continent's capital markets.
"That's what we want to do. We ​want to deepen them," Dangote told Reuters.
There was strong demand for the shares across the continent, Dangote said, adding Kenya's and Botswana's capital markets alone could have fully subscribed the offering. An issuer gets regular feedback from ​advisers and brokers as an offering progresses.

Kenya approved a public offering of Global Depositary Receipts linked to the IPO, the market regulator said, with just eight days left in the subscription period.
Dangote has said he is aiming for 10 million shareholders in the refinery, double the retail subscribers attained by Saudi Aramco (2222.SE), opens new tab in its blockbuster listing in 2019.

'EXTREMELY DISAPPOINTED'

Markets outside Nigeria wishing to participate in the IPO, such as the Nairobi Securities Exchange, had to seek regulatory approvals, which took weeks to secure.

That left disappointed ​investors unable to subscribe and blaming disparate regulations for the missed opportunity.

"People were extremely disappointed," said Kenyan financial researcher Sultan Mwangi, who had set aside $5,000 to invest.

Africa's capital markets remain among the world's most fragmented, with ​regional integration, like boosting the local saving rate to increase investments, lagging efforts in Latin America and parts of Asia and investors still facing a patchwork of national rules and market infrastructure.

In Rwanda, investors had to register with the ‌market regulator before ⁠applying for shares, adding another hurdle.

"Those eligible will be assisted by authorised intermediaries but registered in Nigeria," said Celestin Rwakumbuka, chief executive of the Rwanda Stock Exchange.

The Dangote refinery offering demonstrates Africa's ability to finance industrial development, said Hannah Ryder of consultancy Development Re-imagined, as past large capital market deals focused on banks and telecoms.

However, she said the IPO is "somewhat less ambitious in reality than it started off."

"Most importantly and conceptually for the continent's manufacturing aspirations, it raises large domestic finance for an industrial asset, which is fairly unique for the continent," she said.

The African Development Bank has been pushing a financing model called the New African Financial Architecture for Development, aimed ​at mobilising large-scale local savings after aid cuts.

With Africa's capital ​markets still shallow and illiquid, the IPO was ⁠expected to demonstrate how regional savings could be channelled into major investment projects.

The AfDB did not respond to a request for comment.

TWO INVESTMENT CHANNELS FOR AFRICA

Only two brokerages, Ecobank and Standard Bank-owned SBG Securities, were listed in the prospectus as channels for African investors.

Ecobank, which operates in 34 African countries, said it was seeing "encouraging ​interest... from investors across East, West and Central Africa." Standard Bank did not respond to a request for comment.

By contrast, Nigerians can use 53 channels, including ​banks, brokerages and trading apps, ⁠to buy shares. Fintech firms say they can help widen access across borders.

"One of the biggest opportunities fintech creates is the ability to remove geographical barriers to investing," said Richmond Bassey, chief executive of retail-focused fintech platform Bamboo.

Bassey said Bamboo provides eligible Africans, including Nigerians outside the continent, access to the Dangote IPO through a licensed nominee in Nigeria.

Dangote has promoted the sale as a way to spread share ownership among ordinary Africans. Investors can buy as ⁠few as 10 ​shares for 5,250 naira ($3.96).

Lagos entrepreneur Jide Owolabi said he is investing despite what he perceived as steep valuation of nearly $50 billion ​for the refinery.

"There is enough room for revenue growth as they begin to harness the potential from the petrochemicals and other value-added products, such as plastics and detergents," he said.
Others were sceptical.

"There are other companies that can offer better returns on investment," said Peter Oke, ​a financial literacy advocate in the southwestern city of Ibadan.

By Duncan Miriri, Reuters

Nigeria's Dangote refinery targets 10 million retail investors for planned IPO, CEO says

 

Nigeria's Dangote ​Petroleum Refinery ‌is targeting 10 million ​retail investors ​for its planned ⁠initial public ​offering, Chief ​Executive David Bird said on ​Tuesday.

Bird said ​the refinery was ‌using ⁠Saudi Aramco's listing as a benchmark ​for ​the ⁠IPO and expected ​to "smash ​that" ⁠target.

Reuters

Former President Obasanjo gives speech in Dangote Lamu Oil Refinery Project Launch

 

Former Nigerian President Olusegun Obasanjo praised Aliko Dangote’s industrial rise during the groundbreaking of the Lamu refinery in Kenya, recalling how Nigerian policy helped push Dangote from cement imports into manufacturing. Obasanjo said African integration, leadership and private enterprise can transform the continent’s industrial future. For more details, watch our story and subscribe to our channel, DRM News. Obasanjo Reveals How He Pushed Dangote From Cement Imports to African Industry ‘You Are My Boss’: Obasanjo Praises Dangote in Emotional Lamu Refinery Speech Obasanjo Tells Remarkable Dangote Story at Kenya’s East Africa Refinery Launch

Video - Dangote refinery fuels East Africa’s energy independence dream

The Port of Lamu received its first major delivery of heavy machinery ahead of the groundbreaking ceremony. The development comes as East African countries seek to reduce their dependence on overseas supplies of refined fuel. Its backers say the project could strengthen regional energy security while supporting wider economic activity.

CGTN Africa

Related story: Dangote says refinery IPO demand 'enormous' as Kenya project advances

Dangote says refinery IPO demand 'enormous' as Kenya project advances

Aliko Dangote said on Tuesday that investor demand for his ongoing Lagos refinery share ‌sale was "enormous", as the Nigerian pressed ahead with plans for a $16 billion refinery in Kenya that would extend his energy empire across Africa.

Dangote, Africa's richest man, earlier this month launched a $1.6 billion initial public offering in the refinery to fund a doubling of its capacity to 1.4 billion barrels per day. The deal is being marketed as a "people's IPO" ​and would be Africa's largest.

"Demand is there, enormous demand. In fact, I didn't know the depth of our capital markets until now, ​really, because we have never tested it," he told reporters in Nairobi.

He did not provide specific investor demand ⁠figures for the offer, which is scheduled to close on October 13.

The deal, which is underwritten for $400 million by Dangote's lead financial advisers, could raise ​as much as $2.1 billion if oversubscribed.

Strong demand has temporarily disrupted some financial technology platforms as investors rushed to buy into the refinery, which is widely ​viewed as a bet on Africa's need for greater refining capacity.

"We expected a wave of retail demand in the IPO, but in reality, it's been more like a tsunami," Richmond Bassey, chief executive of Nigerian financial technology platform Bamboo, which focuses on retail investors, told Reuters.

The platform registered a 350% surge in new accounts in ​the week before the IPO opened, a rate that was surpassed after the offer launched, he said.

DANGOTE TO REPLICATE LAGOS FACILITY IN KENYA

Construction of ​a 700,000 barrel-per-day refinery for the East African market, in which regional governments have been offered a 30% stake, is due to begin on Wednesday.

The refinery near ‌Kenya's second ⁠deep-water port of Lamu on the country's North coast is expected to cost $16 billion, Dangote said.

Dangote said governments investing in the project, including Kenya and Rwanda, would be allowed to spread payments for their equity stakes over four years.

"We have made it very simple and easy for them to fund their own equity. They are not putting their equity in one day," he said, adding Rwanda had sought a 10% stake, a request that is ​being discussed.
Other countries besides Kenya and ​Rwanda have also expressed interest ⁠in investing in the refinery, Dangote said, without naming them.

The Lamu refinery will source crude from regional producers, including Kenya, which is racing to begin oil production from its own deposits, as well as from overseas ​suppliers in the Middle East and the United States, Dangote said.

"You don't go and build a refinery for ​only one source ⁠of crude. You take different types: Middle Eastern crude, American, WTI, so you mix them up," he said.

The facility will also spur industries such as petrochemicals, Dangote said, adding pipelines would be built from the Lamu refinery into one or two countries in the region.

He dismissed criticism of the project, including from ⁠conservationists and ​a group of local residents who have challenged it at Kenya's High Court, saying ​opposition was driven by traders whose businesses would be disrupted by the refinery.

"Everybody is saying that 'no, we have a way that we used to make money without working hard.' But ​right now, they will make money still, but they have to work hard," he said.

By Duncan Miriri, Reuters

Related story: Dangote named African Energy Person of the Year as refinery expansion gathers pace

Dangote named African Energy Person of the Year as refinery expansion gathers pace

 

Nigerian industrialist Aliko Dangote has been named the African Energy Chamber’s 2026 African Energy Person of the Year, with the industry group citing his investment in refining, infrastructure and African industrial capacity.

The chamber said the award recognised Dangote’s role in strengthening African energy security, infrastructure and domestic industrial capacity. It highlighted the Dangote Petroleum Refinery near Lagos as the centrepiece of that strategy.

The complex, described by the chamber as the world’s largest single-train refinery, has increased processing capacity from its original 650,000 barrels per day (bpd) to about 700,000 bpd and produces gasoline, diesel, aviation fuel and other petroleum products.

The African Energy Chamber called the refinery “a macroeconomic game-changer for Nigeria”, saying it had helped reduce dependence on imported refined products and increase Nigeria’s role as a petroleum-product exporter. It said Nigeria’s seaborne petroleum-product imports fell from nearly 400,000 bpd in 2023 to less than 130,000 bpd in the second quarter of 2026, while exports to Europe reached about 130,000 bpd during the quarter.

Dangote Petroleum Refinery launched an initial public offering in September comprising 4.1bn ordinary shares at NGN525 each, seeking about NGN2.15 trillion ($1.6bn). The offer opened on September 14 and is scheduled to close on October 13, with trading expected to begin on the Nigerian Exchange in late November.

The refinery reported net profit of $1.82bn in the first half of 2026 on revenue of more than $13bn, reversing a $476mn full-year loss in 2025.

The offering has also drawn scrutiny over valuation and ownership concentration. The Financial Times described the IPO as a test for African capital markets while noting that the offer values the refinery at roughly $48bn-$50bn and places only about 3.3% of enlarged share capital in the public offer.

The IPO comes alongside a $14.3bn expansion programme intended to double refinery capacity to 1.4mn bpd by 2029. The chamber said basic engineering had been completed, almost all detailed engineering work was finished and most equipment had been ordered.

Beyond Nigeria, Dangote is pursuing a planned 700,000-bpd refinery in Lamu, Kenya, while the group is also participating in a planned $660mn refined-products pipeline linking Djibouti and Ethiopia. Dangote said on September 29 that a Kenyan land-rights ruling would not halt the Lamu groundbreaking, although site activity could be constrained pending an October 14 hearing.

These projects fit the wider industrial strategy highlighted by the chamber, which said Dangote has focused on increasing domestic processing and manufacturing rather than relying on exports of raw materials and imports of finished products, with investments spanning cement, fertiliser, logistics and energy infrastructure.

By IntelliNews

Related stories: Video - Aliko Dangote: Refining Nigeria’s oil, helping Africa, and creating wealth

Nigeria’s refining revolution has a monopoly problem

Nigeria marked a major economic milestone on September 14, 2026, with the opening of the initial public offering (IPO) of Dangote Petroleum Refinery, the largest IPO in African history. Located in the Lekki Free Zone in Lagos, the refinery now has a crude-processing capacity of 700,000 barrels per day, up from 650,000, and cost approximately $20bn to build. It was commissioned in May 2023, while production of diesel and jet fuel began in January 2024, followed by the start of petrol supplies to the local market in September that year.

At the opening of the IPO, Dangote Group president Aliko Dangote said: “We fully share all our prosperity with the people. That’s why we call this the ‘People’s IPO’.” Days earlier, as the IPO documents were signed, he had presented the refinery as part of a broader African industrial project: “The refinery means too much to our continent. We can’t industrialise if we don’t have energy security.”

The contrast with Nigeria’s state-owned refineries could hardly be starker. While construction of the Dangote Refinery was under way, the government-owned facilities in Port Harcourt, Warri and Kaduna continued to struggle amid allegations of corruption, weak operational capacity, chronic political interference and an overreliance on short-term contracting models. Over the past two decades, estimates of spending on rehabilitation and turnaround maintenance range from more than $18bn to as much as $25bn, yet the refineries have remained largely dormant or operated at negligible capacity for much of the past decade.

This failure had severe consequences for Nigeria’s energy sector. For years, the country depended on imports for most of its domestic demand for petroleum products, particularly petrol and diesel. This placed immense pressure on foreign exchange reserves and the national budget, as billions of dollars were spent on fuel subsidies, while leaving the domestic market exposed to global price volatility and recurring fuel shortages.

With the launch of large-scale domestic refining projects such as Dangote, Nigeria has begun to move away from its longstanding reliance on exporting crude oil while importing much of the refined fuel it consumes. This shift has coincided with major reforms in the downstream oil sector. The government eliminated the costly petrol subsidy, allowing prices to move towards market levels, and introduced a “crude-for-naira” mechanism under which domestic refineries could buy crude oil in local currency rather than dollars. The scheme was intended to reduce pressure on foreign exchange and improve the supply of crude to local refiners.

The impact of increased domestic refining is already visible in Nigeria’s fuel trade. The country’s petrol imports have fallen from about 400,000 barrels per day in 2024 to about 83,000bpd this year. While the country has not eliminated its need for imported fuel, its dependence on imports has fallen sharply.

Yet the expansion of domestic refining has not delivered the lower fuel prices many Nigerians expected. Following the removal of the petrol subsidy and the shift towards market-based pricing, petrol prices rose from about 185 naira ($0.14) per litre before the reforms to more than 1,000 naira ($0.75) per litre, with prices continuing to fluctuate according to market conditions. The increase has fed into higher transport and production costs, adding to already severe inflationary pressures and placing a heavy burden on households. The broader cost-of-living crisis has also fuelled repeated protests and trade union action.

Domestic refining does not, by itself, insulate Nigeria from global oil prices or exchange-rate fluctuations. Refineries must still obtain crude at prices linked to international markets, while shortfalls in domestic crude supply have at times forced Dangote to buy part of its feedstock abroad in dollars. This means movements in global oil prices and the naira can still affect the cost of fuel sold domestically.

The severity of the cost-of-living crisis has also prompted questions about whether domestic refining is delivering genuine economic independence or merely replacing dependence on foreign suppliers with dependence on a dominant local producer. Such concerns have been reinforced by repeated public disputes since 2024 involving the Dangote refinery, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Company (NNPC) over crude supply, fuel import licences and the rules governing the domestic market.

Without effective competition and robust enforcement of existing antimonopoly safeguards, a highly concentrated domestic market risks limiting competitive pressure on prices. Consumers may therefore fail to receive the full benefits that domestic refining should provide, even as dependence on imported petroleum products falls.

Market concentration can also erode some of the cost advantages of domestic production. If a small number of major refiners and suppliers dominate the market, there is less competitive pressure to pass savings on to consumers. Nigerians may therefore see little benefit from reductions in some of the shipping, insurance and other costs previously associated with importing refined fuel.

For common Nigerians, the consequences of higher fuel prices extend far beyond the filling station. Increases in petrol and diesel prices quickly feed into transport costs, the prices of essential goods and the cost of running the generators on which millions of households and businesses still depend. Ultimately, this creates a situation in which domestic refining can generate enormous profits for a small number of powerful players, while common consumers continue to bear the full weight of rising prices and daily inflationary pressures.

At the same time, addressing the crisis requires recognising the challenges facing local refiners. Dangote buys crude at prices linked to the international market and, as a private business, cannot indefinitely absorb high input costs or subsidise fuel prices. The refinery has also faced difficulties securing sufficient crude from Nigerian producers, at times forcing it to make up the shortfall through purchases on the international market.

Many still believe that addressing these problems requires a package of legislative and regulatory measures, alongside the continued implementation of the mechanism allowing refineries to buy crude oil in naira under stable and sustainable terms. This could help shield the domestic market from exchange rate volatility and fluctuations in the US dollar. Others have called for major players to disclose their daily pricing structures and for regulators to ensure non-discriminatory treatment of local distributors and importers.

Accelerating the rehabilitation and return to full-capacity operation of state-owned refineries could also create stronger competition with the private sector. At the same time, providing facilities and incentives for small- and medium-sized refineries across the country could help meet local and regional demand while breaking the dominance of industry giants.

The government could also redirect funds previously spent on fuel subsidies towards improving electricity supply and subsidised public transport, while investing more heavily in healthcare and education. Its efforts to rapidly expand the use of compressed natural gas (CNG) as a cheaper alternative to petrol and diesel could also ease the pressure on consumers, although the programme has yet to deliver results on the scale required.

By Hakeem Najimdeen, Al Jazeera

Related story: Video - Aliko Dangote: Refining Nigeria’s oil, helping Africa, and creating wealth

Video - Aliko Dangote: Refining Nigeria’s oil, helping Africa, and creating wealth

Nigerian billionaire businessman Aliko Dangote says building his refinery was the hardest challenge he’s faced, but he never considered giving up. 

 

For decades, Nigeria - Africa’s biggest oil producer - spent billions of dollars importing refined petroleum products because its state-owned refineries were barely functioning. 

 

Dangote, who is Africa’s richest man, says his refinery has made his country less dependent on imported fuel. Since the February 28 launch of the US-Israel war on Iran, the facility has seen an increase in demand for its jet fuel due to disruptions to global energy supplies. 

Dangote wants to double the refinery’s processing capacity and says he’s listing the company on the Nigerian stock exchange to create wealth for ordinary citizens. T

The world’s wealthiest Black man rejects criticism that he’s creating a monopoly. Dangote says his goal is to make Africa great and to make the continent more self-sufficient and less reliant on imports.

Al Jazeera

Related story: Dangote IPO tests Nigeria's fintech infrastructure as investor demand overwhelms platforms

Dangote IPO tests Nigeria's fintech infrastructure as investor demand overwhelms platforms

Several Nigerian digital investment platforms suffered outages as retail investors rushed to buy shares ​in Dangote Petroleum Refinery, highlighting the strain Africa's largest-ever share sale is placing on fintech infrastructure.

Regulators and market participants have urged first-time ‌investors to be cautious as the record $1.6 billion offering, launched this week by Aliko Dangote, seeks broad public participation through banks, mobile operators and fintech platforms.

Neither Dangote nor the underwriters have provided any figures for demand for the shares. However, the disruptions point to strong retail investor interest in the offer and illustrate the growing role fintech firms may play in widening access to Nigeria's ​capital markets.

When the IPO launched on Monday, Temi Popoola, CEO of NGX Group, said demand was so high that some investment apps crashed.

"I think ​this particular IPO is stress testing Nigeria's financial infrastructure across the board. Us fintechs are being tested to take this massive ⁠amount of traffic," Yanmo Omorogbe, co-founder and chief operating officer at one of the largest platforms, Bamboo, told Reuters.

Omorogbe said Bamboo faced outages after traffic on ​Bamboo's app surged to 10 times normal levels within 30 minutes of the IPO going live on Monday. The spike also affected some of Bamboo's third-party service providers, ​compounding the disruption.

"So you have almost a perfect storm, or should we say an imperfect storm, of massive influx of customers, third-party providers, and then multiple retries, creating even more demand on our system," Omorogbe said. "And to be very, very honest, our system broke."

MILLIONS EXPECTED TO BUY SHARES

Users of other platforms that allow digital share subscriptions, including Cowrywise and InvestNaija, also reported difficulties ​accessing services and executing transactions.

Oluwayinka Alaje, who runs a small printing shop in Abuja, said his attempt to buy Dangote shares on Bamboo had failed and he was ​only able to use another app late at night.

InvestNaija directed users to its WhatsApp channel after its platform was overwhelmed.
Bamboo and InvestNaija said their platforms were operating normally by Wednesday. ‌Cowrywise did ⁠not respond to requests for comment.

Some stockbrokers, including Chapel Hill Denham, are also using WhatsApp to reach potential investors. Chapel Hill Denham did not respond to a request for comment.

Betting that digital distribution channels will help attract millions of investors, including Nigerians who have never owned shares and those with limited access to traditional banking services, Dangote told local television he expects 10 million people to buy shares in the refinery.

Dangote has marketed it as a "people's IPO" - an opportunity to share the benefits of ​his business's growth, with the minimum investment ​set at just 10 shares or ⁠around $4 - a lower threshold than in previous IPOs.

The refinery, which cost more than $20 billion to build, has emerged as a key supplier of fuel to Europe following disruptions to Middle East exports. It increased fuel exports this year during the crisis, delivering ​a net profit of $1.82 billion in the first half of 2026 on revenue of more than $13 billion, according to ​its prospectus.

"ALL SORTS OF ⁠SCAMS"

The rush to buy into one of Africa's most significant industrial projects could create opportunities for fraudsters to target investors through phishing attempts, fake investment websites and impersonation scams designed to exploit the inexperienced.

"Somebody can create all sorts of scams. By the time people know about it, the guys have left town," said Bismarck Rewane, chief executive of Lagos-based ⁠Financial Derivatives ​Company.

The Securities and Exchange Commission has called on investors to be wary before they transfer funds ​or provide any personal information. The SEC has not reported any cases of fraud.

Analysts say the risks may be especially acute for first-time investors using mobile applications, where the speed and simplicity of digital transactions ​can make it harder to distinguish legitimate offers from fraudulent ones.

By Macdonald Dzirutwe, Reuters

Related story: Video - Dangote Refinery launches Nigeria's largest-ever IPO

Video - Dangote Refinery launches Nigeria's largest-ever IPO

Aliko Dangote launched an initial public offering for his refinery, seeking to raise $1.6 billion in what is being billed as Africa's largest share sale. If the offer is oversubscribed, a green-shoe option could increase the fundraising target to $2.1 billion, with ordinary Nigerians able to subscribe from as little as 10 shares.

CGTN Africa

Related story: Africa's richest man Dangote's IPO out of reach in Nigeria

Africa's richest man Dangote's IPO out of reach in Nigeria

 

The industrialist Aliko Dangote is turning to Nigerians to help finance the next growth phase of his oil refinery: The richest man in Africa announced that he is seeking to attract about $1.6 billion (€1.4 billion) by going public.

This initial public offering of Dangote Industries is intended to help support a $14.3 billion expansion, which would more than double the refinery's production capacity. In absolute numbers, it would increase capacity from 700,000 barrels per day (bpd) to 1.4 million bpd.

It would also include new petrochemical and refining units designed to reduce Nigeria's reliance on imports of some petrochemical products while also allowing the plant to produce different grades of diesel.

This plan would make the refinery one of the largest single-site refining complexes in the world.

Dangote's ambitious plans also include the launch of a processing plant in Kenya to extend his reach from the Atlantic to the Indian Ocean, which is planned to be launched in partnership with governments in eastern Africa.

African success story

Since it began operations in 2024, the Dangote Petroleum Refinery has started to reshape Nigeria's fuel market and has become one of the few businesses in the world to benefit from the ongoing supply disruptions caused by the war in Iran.

The refinery has become an important supplier of petrol and other fuels domestically and abroad; in fact, it made Nigeria a net exporter of refined fuel for the first time after reaching its full capacity in early 2026.

The refinery reported making an after-tax profit of $1.82 ​billion in the first half ​of 2026, following ⁠a $476 million loss for all of 2025.

Things appear to be on the up-and-up for Dangote — so, why is the company seeking public investment now?


Why is Dangote going public?

Ayodele Oni, an energy analyst and partner with the Bloomfield Law Practice in Lagos, told DW that the public offering could be a "game changer," as it alters the role of who could stand to benefit from Dangote's expansion drive.

Oni said equity invested by potentially millions of Nigerian and international shareholders would shield the corporation from having to rely solely on expensive dollar debt "with permanent Naira capital, which matches a business now earning heavily in Naira."

This could also unlock additional long-term investment as any "listed company answers to ... its shareholders every quarter."

"That transparency is precisely what long-term lenders and international partners want to see before the next billion is committed," Oni said.

He said this would turn into a sustainable model for Dangote, as the approach would be designed to permanently "lower its cost of capital for every future phase."

For 'the people' of Nigeria

Oni summarized the potential of the deal by referring to it as a restructuring of both who bears the risk — and who stands to share with the reward, with "the people" being the greatest beneficiaries of the IPO, at least to his mind.

Opening up the ownership of the refinery business to ordinary Nigerians does not automatically mean that many can afford it, however.

The pricing of the initial offering is indeed priced at an affordable 525 Naira (€0.34/$0.39) a piece for each of the 4.1 billion ordinary shares, and a minimum of just 10 shares.

At the signing ceremony in Lagos, Dangote said the company was trying to "make sure that the majority of … our drivers, our cook, our servants, our managers, everybody will have an opportunity to have a stake in the refinery."


Nigeria: Deep inequality, deeper pockets

In a country where almost two-thirds of the population is struggling with extreme poverty, according to Nigeria's National Bureau of Statistics, that figure can translate into 10% of the minimum wage — for people who are fortunate enough to have a job.

Entry-level employees and workers who perform menial tasks at Dangote are fortunate enough to earn almost four times the minimum wage in Nigeria, according to media reports — though this still translates to only about $150 a month in a country that has been witnessing steep inflation, especially in petrol prices. For most, seeing any personal benefit by investing in Nigeria's oil remains a pipe dream.

Charles Asiegbu, a policy and economic analyst who has worked as a consultant for various Nigerian organizations, told DW that Dangote's description of the offer as "for the people" could still qualify as a "psychological masterstroke" for those who can afford to invest.

Asiegbu said broader ownership could bring a large number of Nigerians into one consolidated platform, changing how they view the refinery.

"With millions as shareholders, it would shift from a private enterprise to a national asset in the public consciousness," Asiegbu said.

IPO excites investors

Nigerians who can afford to invest in Dangote appear to quickly be adopting that mindset.

Olamilekan Oladehinde, a Nigerian retail investor, told DW that he is "excited" to partake in the launch and buy shares. He said Dangote was now much more than just a private enterprise: It has become a key national asset that addresses direct social problems in Nigeria — including fuel shortages.

"They're trying to expand, and that's something I am very proud and happy to identify with," Oladehinde said. "The fact that it's also owned by a Nigerian makes me more than happy, and that's why I will be buying a stake in the company," he said about the richest man in Africa.

Risks and opportunities

Oladehinde said he had no concerns about investing in Dangote — despite the fact that various market experts have cautioned investors to be mindful of potential risks, especially because refining is a cyclical business.

Oni said Dangote was riding a wave during the current situation across the Middle East; however, fortunes could change — especially when the tensions around the Strait of Hormuz eventually ease. A return to steep competition in oil prices from those Middle Eastern countries could then saturate markets.

Dangote's strengths were a mitigating factor, Oni said: "The Middle East disruption showed that a refinery on [Nigeria's] Atlantic coast can supply Europe and the Americas faster than the Gulf can — and, at 700,000 bpd, the plant has already proven the model, so the expansion is about scale on an existing site, which is the cheapest capacity anyone can build."

Oladehinde said this was exactly the outlook that he will be betting on. "I believe the time has come for us," he said. "We can't lose this the momentum."

By Abiodun Jamiu, DW

Africa’s biggest oil refinery opens to public ownership, sparking excitement among retail investors

Nigerian industrialist Aliko Dangote opened his refinery to public ownership Monday with plans to raise $1.6 billion from retail investors across the continent in Africa’s biggest initial public offering, or IPO.

Dangote, Africa’s richest man, dubbed the IPO one “for the people” and said he wants everyone to be able to own a share. Retail investors can buy shares in the sprawling Lagos-based refinery for 5,250 naira ($4) per share with a minimum purchase of 10 shares. Dangote retains 87% ownership of the refinery, Africa’s largest.

The refinery’s scale and potential returns, especially at a time when global oil prices have risen following the U.S.-Iran war, have generated excitement among retail investors.

“I will be a fool not to partake in it and see how it goes. I am placing a lot of emphasis on his name and on the refinery being the biggest in Africa,” Titi Adetoye, an Abuja-based operations manager who hopes to buy up to 1,000 shares, told The Associated Press.

Production began at the $19 billion refinery in 2024 as Nigeria, one of Africa’s top oil producers, continues to struggle with local refining capacity.

The Dangote refinery has transformed the energy-rich country of more than 210 million people from an importer of refined oil into an exporter.

“It is going to be a game-changing IPO for Nigeria’s markets,” said Mohammed Saidu, head of research and investment analysis at Lagos-based TrustBanc. Saidu said he predicted there would be millions of new investors from the IPO.

The IPO has raised questions about Dangote retaining significant ownership and the refinery’s purported valuation after the offering. At $49 billion, the valuation is more than twice what it cost to build it. The refinery’s officials have denied that its valuation is inflated.

“It is not something someone can classify as people-driven if you still own 87% of the refinery and there are many ways that narrative breaks down,” Joachim McEbong, a senior West Africa analyst at Control Risks, said.

Nigeria has relied for many decades on foreign refining of its oil due to decrepit state-run refineries, many of which operate below capacity or have remained stagnant for years due to poor maintenance.

The Dangote refinery reached its full capacity of 650,000 barrels per day earlier this year. Dangote announced plans last year to increase capacity to 1.4 million barrels per day, a move its officials say will make it the world’s largest refinery by surpassing India’s Jamnagar refinery.

Dangote has also set out to expand into East Africa, and has proposed building a refinery in Kenya by 2030.

By Ope Adetayo, AP

Dangote refinery buys 16 million Nigerian barrels as Iran war tightens global oil supply

Four industry sources told Reuters⁠ that the purchases were assembled through Nigerian National Petroleum Company allocations and additional cargoes acquired through tenders.

The volume is equivalent to approximately 520,000 barrels per day and would provide most of the crude required by Dangote’s 700,000-barrel-per-day refinery during October.

The final quantity could rise if the refinery makes further purchases. Dangote did not respond to Reuters’ request for comment.

Dangote’s growing claim on Nigerian crude

NNPC is expected to supply eight cargoes of Nigerian oil to the refinery in October, matching the monthly record reached in April, May and August. The state oil company will also provide one cargo of US WTI Midland crude.

Dangote reportedly bought a second WTI Midland cargo and enough additional Nigerian oil through a spot tender to lift its confirmed October purchases to at least 16 million barrels.

The purchases show the refinery’s increasing ability to rely on domestic supply after repeatedly importing crude from the United States, Libya and Guyana.

Kpler data cited by Reuters showed that Dangote received about 565,000 barrels of Nigerian crude per day in August, nearly twice its average of approximately 280,000 barrels per day in 2025.

That shift supports Nigeria’s long-standing aim of refining more of its oil at home. However, it also leaves traders with fewer Nigerian cargoes to sell abroad at a time when global buyers are competing for crude produced outside the Middle East.


Iran conflict changes the market

The purchases carry consequences beyond Nigeria because the Iran conflict has disrupted traditional oil flows and strengthened demand for West African grades.

Chinese refiners have already bought more than 20 million barrels from Angola, the Republic of Congo and other alternative suppliers as they attempt to replace constrained Iranian and Russian supplies.

Dangote is now competing in that same market while requiring enough crude to run one of the world’s largest single-site refineries.

The refinery’s chief executive, David Bird, said this week that damage to Middle Eastern production and refining infrastructure could keep global fuel markets tight even after fighting ends.

Dangote plans to spend $14.3 billion to expand its capacity to 1.4 million barrels per day by 2029. At that scale, its demand for crude could rival the output of some OPEC members.


Purchase comes before record IPO

The crude acquisition was disclosed days before the order book for Dangote Petroleum Refinery and Petrochemicals’ IPO is expected to open.

Nigeria’s Securities and Exchange Commission approved an offer intended to raise approximately $1.63 billion (₦2.15 trillion) through the sale of 4.1 billion shares at ₦525 each.

The offer is expected to open on 14 September and would become Africa’s largest IPO if completed as planned.

Reliable crude access is therefore more than an operational matter. It is central to the refinery’s production, earnings and valuation as Dangote seeks money from millions of prospective investors.

By Ayodeji Adegboyega, Business Insider Africa

Nigeria's oil refining just grew 43.94% and Aliko Dangote is the only reason

Nigeria's oil refining sector grew 43.94% in the second quarter, its strongest quarterly expansion on record and close to ten times the pace of the wider economy.

The figure comes from the National Bureau of Statistics, which published its second-quarter gross domestic product report on Monday, Aug. 31. The release covers rebased quarterly estimates for the four quarters of 2025 and the first two of 2026. Rebasing updates the reference year a statistics agency uses to measure the size of an economy, which changes the comparison but gives a more current picture of what the country actually produces.

Nigeria's overall GDP grew 4.43% over the same period. Refining grew at almost ten times that rate.

Aliko Dangote's refinery is the reason. Maintenance and expansion work completed in February lifted its crude distillation capacity from 650,000 barrels a day to 700,000, above the plant's original nameplate figure, and the additional throughput has fed straight into the national accounts.

The scale of what it consumes shows in the crude allocation numbers. Domestic supply to Nigerian refineries reached 97.4% of requirement in the second quarter, with 53.7 million barrels delivered between April and June, according to the Nigerian Upstream Petroleum Regulatory Commission. Dangote alone required 63 million barrels. Producers offered it 68.1 million, and the refinery accepted 52.6 million, roughly 78% of what was put in front of it.

That is a transformation from the first quarter, when just 28.5 million barrels reached all domestic refineries combined despite 61.9 million being allocated and 68.7 million offered.

The refining acceleration has been building. Growth ran at 37.46% in the first quarter of 2025 and 43.94% in the second quarter of 2026, well above the 19.42% and 12.33% recorded in the third and fourth quarters of 2024 under the rebased series, when full-year growth was 14.08%.

The rest of the oil sector moved more modestly. Crude production averaged 1.72 million barrels a day in the second quarter, up from 1.68 million a year earlier and 1.55 million in the first quarter. The oil sector as a whole grew 7.31% year on year, down sharply from 20.46% in the same quarter of 2025 but well ahead of the 2.57% recorded in the first quarter, and expanded 10.91% against the previous quarter. Its share of real GDP rose to 4.16% from 4.05% a year earlier.

The non-oil economy grew 4.31% and still accounts for 95.84% of output.

What the refining growth is producing is exports rather than import substitution alone. Nigeria's seaborne petroleum product exports reached 350,000 barrels a day in the second quarter, against an annual average of 46,000 in 2023, according to the United States Energy Information Administration. Total seaborne shipments averaged 561,000 barrels a day. Europe took about 130,000 barrels a day, up from 40,000 in 2025 and 15,000 in 2023. Other African markets took nearly 120,000, and Asia and Oceania around 110,000.

The refinery's own position is that too much of the domestic market remains closed to it. It told the market last week that imported petrol supplied about 43% of Nigerian demand in July under licences issued by the regulator, and that surplus product has to be exported because it cannot be sold at home.

By Adedotun Elijah Oyeniyi, Billionaires Africa