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

Video - Nigeria to step up efforts to tackle gas flaring

Gas flaring, or the burning of natural gas released during oil extraction, costs the country billions of dollars each year. Residents of communities in oil-producing also say the practice damages their health, environment and livelihoods, despite efforts to reduce it. President Bola Tinubu has directed Nigeria LNG to cut gas flaring and make better use of the country's gas resources. But residents remain skeptical that the directive will solve the problem.

CGTN Africa

Dozens die in Nigeria oil theft attempt after inhaling toxic fumes

An attempt to steal oil from a loading vessel in Nigeria’s oil-producing Rivers state left at least 37 people dead, most of them from inhaling toxic fumes, an advocacy group said Friday.

The Youths and Environmental Advocacy Center said the victims were simultaneously siphoning crude products into their boats from an “illegal tapping point” on Thursday. It caused them to inhale toxic fumes at high pressure, it said. Many are still missing, according to the report, quoting a network of volunteers.

The Nigerian police confirmed the incident on Friday but gave no death toll and said an investigation was underway.

“The Rivers State Police Command can confirm the deaths. The victims were allegedly attempting to steal crude oil,” Blessing Agabe, Rivers State police spokesperson, said.

Oil theft is common in the Niger Delta region of Nigeria, Africa’s biggest oil producer, where decades of oil exploration have led to high levels of poverty and environmental degradation.

The Nigerian government said oil theft causes several billion dollars in losses annually and has been clamping down on the practice.

By Dyepkazah Shibayan, AP

Video - Fuel subsidies emerge as key issue ahead of Nigeria's elections

Petrol subsidies have become a major campaign issue in Nigeria ahead of January's general elections, with candidates divided over how to address the country's cost-of-living pressures. President Bola Tinubu's government removed the subsidy in 2023, triggering a sharp rise in fuel prices and broader economic challenges. Former Vice President Atiku Abubakar, who is seeking the presidency, says he would restore the subsidy if elected.

CGTN 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

Video - Nigeria subsidy debate returns ahead of elections

As Nigeria prepares for general elections in January 2027, petrol subsidies have emerged as a key campaign issue. President Bola Tinubu’s government scrapped the subsidy in 2023, triggering a sharp rise in fuel prices. Former Vice President Atiku Abubakar has now pledged to reinstate petrol subsidies if elected president.

CGTN Africa

Africa’s largest refinery faces fresh challenge at home as Dangote threatens to cut off petrol importers

Dangote Petroleum Refinery is considering restricting Premium Motor Spirit (PMS) sales to major Nigerian marketers that continue to import petrol, as the refinery raises concerns over product quality, market transparency and the protection of its brand.

The proposed measure could take effect as early as this week, subject to further consultations and any last-minute intervention, according to sources familiar with the refinery’s position.

The potential restriction comes as Nigeria’s downstream petroleum market undergoes a major shift from decades of dependence on imported refined products towards increased domestic production.

At the centre of Dangote Refinery’s concerns is the alleged blending of imported petrol with products purchased from the refinery before the mixture is distributed to consumers.

The refinery is concerned that if imported PMS of uncertain quality is mixed with its products, consumers may be unable to distinguish between fuel supplied directly by Dangote and products subsequently blended or handled by marketers.

The Punch reported that a source familiar with the refinery’s position said, “It is difficult to understand why we would invest heavily in producing high-quality petroleum products for Nigerians, only for those products to be mixed with imported products of uncertain quality and the resulting product to be associated with the refinery.”.

Dangote challenges continued petrol imports

The refinery has also raised concerns about Nigeria’s ability to independently test and certify imported petroleum products.

The Punch further reported that sources familiar with the refinery’s position said the regulator lacks a standard laboratory and sufficient quality-control infrastructure to independently verify the specifications of some imported petroleum products

That concern has become more significant as Dangote’s 700,000-barrel-per-day refinery has expanded domestic production and emerged as a major supplier of refined products in Nigeria and international markets.

The refinery’s position reflects a broader argument that continued petrol imports are becoming increasingly difficult to justify as Nigeria develops substantial domestic refining capacity.

The United States Energy Information Administration recently highlighted the transformation in Nigeria’s refined-product trade, identifying the Dangote refinery as a major contributor to the country's rising seaborne petroleum-product exports.

Nigeria’s seaborne petroleum-product shipments averaged about 561,000 barrels per day in the second quarter of 2026, compared with an annual average of just 79,000 barrels per day in 2023.

The development underscores how rapidly Nigeria’s role in the international refined-products market has changed since the Dangote refinery began ramping up operations.

The refinery has also gained a growing presence in international aviation-fuel markets. Its jet fuel has been supplied to major overseas markets, including Europe and the US, where its exports have become increasingly significant.

For Dangote, the dispute is therefore not simply about controlling who buys its petrol. It is also about protecting the reputation of products carrying the refinery’s name at a time when it is seeking to establish Nigerian refined petroleum products as a competitive alternative to imports.

Any decision to restrict supplies to marketers that continue importing PMS could further reshape Nigeria’s downstream market, putting additional pressure on major fuel distributors to choose between domestic supply and imported petrol.

It could also intensify the debate over whether Nigeria should continue allowing significant petrol imports while one of Africa’s largest refineries is operating at scale and increasingly supplying both domestic and international markets.

By Solomon Ekanem, Business Insider Africa

Dangote refinery boosts Nigeria’s petroleum product exports

The startup and incremental expansion of Dangote Group's integrated Lekki refinery has sharply increased Nigeria's refining capacity, supporting reduced imports and expanded exports to Europe and Africa, positioning Nigeria as a vital supplier amid global supply disruptions.

Nigeria’s seaborne petroleum product exports have surged since the startup and expansion of Dangote Industries Ltd. (Dangote Group) subsidiary Dangote Refinery and Petrochemicals Co.'s (DRPC) integrated refining and petrochemical complex in southwestern Nigeria’s Lekki Free Trade Zone, in Ibeju-Lekki, Lagos, increasing the country’s role as a regional and international supplier as refined-product markets face supply constraints elsewhere.

Nigeria’s seaborne petroleum product shipments averaged 561,000 b/d in the second quarter of 2026, up nearly sevenfold from an annual average of 79,000 b/d in 2023, according to data from Vortexa Analytics cited by the US Energy Information Administration (EIA). Exports accounted for about 350,000 b/d of the quarterly total, compared with 46,000 b/d in 2023.

The increase has been driven primarily by DPRC's complex, which began operations in January 2024 and has significantly expanded Nigeria’s domestic refining capacity. The refinery’s impact has become more pronounced following maintenance and expansion work completed in February 2026.

The February 2026 work increased DRPC’s crude distillation capacity to 700,000 b/d from 650,000 b/d. Higher refinery runs, combined with disruptions to petroleum product flows through the Strait of Hormuz, helped push Nigeria’s total seaborne product shipments higher during second-quarter 2026.

The increase in domestic refining has also reduced Nigeria’s dependence on imported petroleum products. Seaborne imports averaged less than 130,000 b/d in second-quarter 2026, down sharply from nearly 400,000 b/d in 2023.

At the same time, Intra-Nigerian shipments increased to 211,000 b/d in second-quarter 2026, compared with 81,000 b/d in 2025 and 33,000 b/d in 2023. The growing domestic distribution network has allowed Dangote to supply more products to parts of the country that previously depended on imports.

Before DRPC's complex came online, Nigeria’s existing state-owned refineries collectively shipped less than 100,000 b/d of petroleum products to domestic and international destinations, EIA said.

Europe, Africa as key markets

Nigeria’s rising product availability has also translated into higher exports to overseas markets.

Seaborne petroleum product exports from Nigeria to Europe averaged 130,000 b/d in second-quarter 2026, more than three times the 40,000 b/d recorded in 2025 and nearly nine times the 15,000 b/d average in 2023.

Exports to other African countries also increased, reaching nearly 120,000 b/d in second-quarter 2026, compared with 89,000 b/d in 2025.

The increase comes at a time when petroleum product supplies from several other regions have been constrained. Disruptions to flows through the Strait of Hormuz have added to the need for alternative sources of refined products, creating additional opportunities for Nigeria’s growing refining sector.

Dangote Group plans to expand the refinery further by adding a second 750,000-b/d crude distillation unit by 2028, which would substantially increase the complex’s potential contribution to Nigeria’s domestic market and international product trade.

By Conglin Xu, Oil & Gas Journal

As Nigeria's Dangote refinery nears record IPO, investors focus on oil supply costs

Nigeria's Dangote Refinery, the largest on the continent, is expected in October to seek to raise around $5 billion in ​Africa's biggest IPO listing yet, after months of strong earnings, boosted by the disruption caused by the Iran war.

For potential ‌investors, the question is whether Dangote, majority-owned by Africa's richest man, Aliko Dangote, can avoid squeezing its profits while sourcing enough crude oil for its plans to double capacity within three years, in part funded by the initial public offering.

"If Dangote’s only supplier of oil is Nigeria ... this does increase the risk of the ​refinery as an investment," Rob Thummel, senior portfolio manager at U.S.-based Tortoise Capital Management, said.

Dangote does not disclose its margins, ​but as a whole the refining industry has benefited from higher profits since the disruption in the Middle East increased ⁠demand for alternative sources of fuel.

Dangote was particularly well-placed to meet demand across Africa and beyond. A new, efficient refinery, it reached its ​initial maximum capacity of 650,000 barrels per day in February, just before U.S.-Israeli attacks launched the war on Iran.

The refinery has already tested ​production at 700,000 barrels per day.

It is also working on diversifying its sources of crude.

THE COMPLICATIONS OF BUYING NIGERIAN CRUDE

Ideally, Dangote would rely on domestic oil, especially when Nigeria, with output of 1.6 million bpd, is Africa's biggest producer.

The reality is that much of Nigeria's state oil firm the Nigerian National Petroleum Company Limited's ​joint‑venture crude is tied to oil-backed loans and pre‑export deals, reducing the amount it has available for Dangote.

The NNPC does not disclose its ​obligations, but David Bird, chief executive of the Dangote refinery, told Reuters imports account for about 30% to 40% of crude intake.

Dangote crude imports hit peak in May as supply sources diversify

Nigeria cemented its position as Dangote's main crude supplier this year, replacing declining U.S. volumes. At the same time, the refinery broadened its sourcing to include more barrels from Libya, Angola, Ghana, Guyana and Cameroon.

The problem is one of ‌economics as ⁠well as of availability.

"Challenges in accessing feedstock at competitive prices would increase costs and compress margins and utilisation rates, impacting the refinery's commercial performance and therefore its valuation," said Mikolaj Judson, analyst at risk consultancy Control Risks.

The crude Dangote buys from other African countries, as well as more distant producers, including the United States and Guyana, is priced in dollars.

Some domestic Nigerian crude is priced in naira, but is still ​expensive, Dangote says, as the NNPC ​prices Nigerian crude against international ⁠benchmarks such as Brent that include freight and logistics costs even though domestic refiners do not incur them.

Group Vice President of Dangote Industries Limited Edwin Devakumar told Reuters that certain Nigerian cargoes were more expensive ​than comparable imports without giving precise figures.

The grades Dangote has imported include U.S. WTI Midland crude, ​which has generally traded ⁠above Nigerian grade Bonny Light in 2026, according to S&P Global Energy Platts data.

Nigerian authorities say they are seeking to improve the flow of local crude.

Oritsemeyiwa Eyesan, chief executive of regulatory body the Nigerian Upstream Petroleum Regulatory Commission, said authorities were exploring a crude swap system that would match ⁠refiners with ​local producers to reduce delivery times and ease logistics.

Dangote's coastal location, meanwhile, gives it ​flexibility to import supplies.

"The main risk is the cost of importing these barrels," Wood Mackenzie analyst Alan Gelder said.

By Isaac Anyaogu, Reuters

From fighting terrorists to protecting oil, US-made hardware finds a new role in Africa's largest oil-producing nation

That role is now expanding, with American-made technology increasingly being used to protect Nigeria's oil infrastructure and maritime assets.

The latest example is a deal between US-based Textron Systems and Nigerian security company Tantita Security Services Nigeria Limited for the supply of Aerosonde Mk 4.7 unmanned aerial systems.

The aircraft will be integrated into Tantita's command-and-control centres to strengthen surveillance, intelligence gathering and maritime security operations around Nigeria's oil and gas infrastructure.

The development comes as Nigeria's oil industry shows signs of recovery after years of production losses linked to crude theft, pipeline vandalism and operational disruptions.

From counterterrorism to oil security

The shift is significant because it broadens the role of US-made security technology in Nigeria.

American defence equipment has been deployed in Nigeria's counterterrorism efforts, particularly as the country has battled Boko Haram, Islamic State West Africa Province and other armed groups in the northeast.

But the country's oil industry presents a different security challenge.

Nigeria's oil infrastructure stretches across the Niger Delta's creeks and waterways and into offshore areas, making it difficult to monitor through conventional patrols alone.

The Aerosonde Mk 4.7 gives security operators an aerial surveillance capability that can cover large areas and provide intelligence to command centres. Its vertical take-off and landing capability also allows it to operate without conventional runways.

For Tantita, the system can complement its existing maritime and physical security operations, giving personnel greater visibility over oil-producing areas and infrastructure.

Oil production is recovering

The deployment comes against the backdrop of improving oil production.

Nigeria's crude output reached 1.56 million barrels per day in June 2026, according to the Nigerian Upstream Petroleum Regulatory Commission, its highest level since April 2020. Including condensates, total production reached 1.735 million bpd.

Crude output had increased from 1.483 million bpd in February to 1.546 million bpd in March and 1.663 million bpd in April, before reaching 1.70 million bpd in May.

NUPRC attributed the improvement to stable production operations, fewer major pipeline outages, better production uptime and improved crude evacuation.

The regulator has also highlighted the contribution of security and technology to the broader recovery.

At the company level, businessman Tony Elumelu, founder of Heirs Energies, recently said his company now recovers 98% of the crude produced from its facilities, a significant improvement from the losses previously suffered by operators in the region.

The figures cannot be attributed directly to the Textron-Tantita deal, which was announced in December 2025. Instead, they show the wider environment in which the US technology is being deployed.

Nigeria is increasingly combining physical security, intelligence, surveillance and technology to protect the crude it produces.

For the US, that creates a role beyond traditional military cooperation. American-made systems are becoming part of Nigeria's effort to protect a strategic economic asset and increase the amount of oil that reaches the formal production and export chain.

The shift effectively takes US-Nigeria security cooperation from the battlefield to the oilfield, with American technology now playing a growing role in protecting the infrastructure that underpins Nigeria's economy.

By Solomon Ekanem, Business Insider Africa

Dangote Refinery secures $1 billion underwriting ahead of IPO

 

Nigeria's Dangote Refinery has secured ‌a $1 billion underwriting programme for its planned stock market listing that could become Africa's largest IPO, marking a major step toward bringing the continent's biggest refinery to investors.

The underwriting comprises a fully funded $600 million tranche for the refinery's completed private placement and ​a further $400 million commitment to support the planned initial public offering, the deal's co-financial advisers Marob ​Strategies and Lilium Capital said on Tuesday.

Dubai-based advisory firm Marob and Washington-based investment group ⁠Lilium said it was implemented through Pan-African Refinery Investment, a special purpose vehicle and subsidiary of Lilium.

In ​IPO transactions, underwriting is a service offered by capital firms and investment banks to a company to guarantee ​the sale of its shares to investors.

Majority-owned by Africa's richest man Aliko Dangote, the refinery has submitted an application for a $5 billion IPO to Nigeria's Securities and Exchange Commission, a source familiar with the matter told Reuters two weeks ago, although ​the final size of the offering has yet to be determined.

"The successful completion of the private placement, together ​with the $400 million underwriting commitment ... in support of the planned IPO, reflects confidence in the refinery's strategic role," Aliko Dangote ‌said ⁠in the joint statement.

OCTOBER LISTING

The $20 billion facility near Lagos, which processes about 700,000 barrels of crude a day, has emerged as a major beneficiary of supply disruptions linked to the Iran war,exporting jet fuel across Africa and into Europe as buyers sought alternative supplies.

That has sparked widespread interest in the sale of shares in the ​plant, African market participants say.
The $400 ​million underwriting commitment would ⁠be implemented upon the launch of the IPO, subject to market conditions and regulatory approvals, Marob and Lilium said.

The public offering is expected to receive regulatory approval ​in the coming weeks and to list on the Nigerian market in October, ​with other ⁠African capital markets also involved.

Investors have responded strongly to the deal, the advisers said, citing African and Caribbean sovereign wealth funds, governments, institutional investors and other eligible investors.

"It is expected to help deepen African capital markets, broaden ownership ⁠of a ​strategic African enterprise and demonstrate how African institutions can mobilise ​long-term capital for industrialisation," the advisers added.

Dangote is also planning to build a new refinery along Kenya's coast, together with East African governments.

By Chijioke Ohuocha and Duncan Miriri, Reuters

Video - Nigeria to list NNPC on stock market

Nigeria is reviving plans to list state-owned oil company NNPC on the Nigerian Exchange. The move could bring greater transparency to the company and unlock new private investment.

CGTN Africa

Tinubu vows to revive Nigeria’s refineries, says plants must return to profitability

President Bola Tinubu has assured that Nigeria’s refineries will be revived, saying the Federal Government is undertaking a comprehensive reset, restructuring and technical assessment to ensure the facilities become productive and profitable.

Tinubu gave the assurance on Thursday in Abuja when he received the national executive of the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), led by its National President, Comrade Salimon Akanni Oladiti, at the State House.

The President said the government would not allow the nation’s refineries, which have absorbed huge public investments over the years, to waste away, stressing that their revival must be based on sound research, technical assessment, effective management and a sustainable business model.

Responding to NUPENG’s appeal for the revival of the refineries, Tinubu said the government was adopting a systematic and evidence-based approach to addressing the structural, operational, financial and managerial challenges that had hindered their performance.

“The refineries that you mentioned are going to come back to work; we’re just building a very firm resetting and structural reworking of the economy of it.

“Ordinary flame and smoke of a refinery doesn’t mean that it’s working until it’s profitable and yields the value for which it is built.

“I’m not a man who goes looking back on everything because I’ve accepted the assets and liabilities of my predecessor. No matter what has happened in the years past, it’s now my responsibility as president to fix it and make it work for the greatest common good of our population. I take responsibility for that, and we will do it,” he said.

Tinubu appealed to stakeholders, including organised labour, to support the administration’s reform programme, describing democracy as a process that requires patience, sacrifice and collective commitment.

“I promise you, you will enjoy a better Nigeria,” the President said.

On the implementation of local government autonomy, Tinubu said the constitutional issues surrounding its implementation were being reviewed, with a view to possible fine-tuning, and appealed for understanding among stakeholders.

The President also paid tribute to the late former NUPENG leader, Frank Kokori, recalling their shared struggle for the restoration of democratic rule in Nigeria.

“You brought good memories of my relationship with Frank Kokori; may his soul rest in peace. We struggled for this democratic dispensation together, and it was very tough for us to have this democracy, and you have been a very good partner of the government in progress,” he said.

Tinubu further promised greater inclusion for NUPENG in the implementation of the Presidential Initiative on Compressed Natural Gas (CNG), while challenging the union to ensure that the benefits of the programme translate into tangible relief for commuters.

Earlier, the Minister of Information and National Orientation, Mohammed Idris, commended NUPENG for acknowledging what he described as the positive impact of the Tinubu administration’s reforms.

Idris said the recognition by the labour union was significant, particularly against the background of past tensions between organised labour and government over economic policies.

“Your Excellency, it is not common that you find trade unions come back to the President and say, ‘Thank you for what you have done.’ I think this is an uncommon situation,” the minister said.

He recalled that the organised labour movement had previously commended the President after he approved an increase in workers’ wages and indicated that there was no need to wait five years before reviewing the minimum wage.

Idris said it was particularly significant that NUPENG, an influential union at the heart of the petroleum sector, had acknowledged the administration’s major economic reforms, including the removal of fuel subsidy.

“For their leader to come and recognise the reforms that you are doing, especially the major reforms you undertook in this country, the removal of fuel subsidy and also acknowledging that everywhere you go is a construction site in this country, is a good development,” he said.

Speaking earlier, NUPENG President Oladiti commended Tinubu for what he described as the courageous decision to end the fuel subsidy regime, saying the policy had helped halt decades of financial drain on the nation’s resources.

He said the resources freed by the reform were increasingly being channelled into infrastructure and other critical sectors of the economy.

Oladiti particularly praised the administration’s renewed investment in the rehabilitation and construction of federal highways, citing the 750-kilometre Lagos-Calabar Coastal Highway and the 1,068-kilometre Sokoto-Badagry Superhighway.

“For our members, a good road is the difference between arriving home safely and never arriving at all. Every stretch of highway rehabilitated or constructed means fewer accidents, fewer spillages, fewer lives lost, and less stress for the men behind the wheels,” he said.

Oladiti said the impact of the road projects was already being felt by tanker drivers and other road users, describing improved road infrastructure as one of the reforms directly affecting the working lives of NUPENG members.

He, however, urged the President to sustain efforts to revive the country’s refineries, arguing that functional refineries would strengthen national energy security, reduce dependence on imported petroleum products and create more jobs for Nigerian workers.

At the end of the meeting, the NUPENG leadership decorated President Tinubu as the Grand Patron of the union.

By Terhemba Daka, The Guardian

Dangote refinery plans retail-focused IPO, no foreign listing for now

Dangote Petroleum Refinery's planned October IPO, which could become Africa's largest, is designed to let Nigerians share in the company's growth, its CEO ​told Reuters, adding that a foreign listing is at least three years away.

The ‌refinery has submitted an application for a $5 billion IPO to Nigeria's Securities and Exchange Commission, a source familiar with the matter told Reuters this month, although the final size is not decided.

"We really want to drive ​participation," CEO David Bird said in an interview. "The mandate of the IPO was to be ​the people's IPO."

Bird said the company wanted at least three years of ⁠proven production and financial performance before pursuing an overseas listing, which could support a stronger ​valuation. London has been mentioned as a possible venue.

Bird declined to comment on the size of ​the IPO or the refinery's valuation. The source said the company could take into account the $2.5 billion raised in a July private placement, which valued the refinery at about $40 billion.

STRONG INTEREST

The refinery, owned by Africa's richest man Aliko ​Dangote, has emerged as a major beneficiary of disruption linked to the Iran war, selling jet ​fuel across Africa and into western Europe as buyers sought alternative supplies. It became Europe's largest supplier of ‌jet ⁠fuel in June and July, Bird said.

He said preparations for the IPO were on schedule and investor interest had been strong during pre-marketing and the July private placement.

Africa Finance Corporation said on Thursday it led a group of strategic investors in the private placement, adding the deal ​was 3.7 times subscribed ​and attracted strong demand ⁠from African and international institutional investors.

Bird said the refinery compared favourably with U.S. refining assets because of its access to local crude supplies, ​strong domestic demand and integrated operations.

PLANNED EXPANSION

Bird confirmed the company aims ​to double ⁠refining capacity to 1.4 million barrels per day within three years, funded partly through the IPO and debt. He said the expansion would cost substantially less than the roughly $20 billion spent on the ⁠original ​refinery.

Africa remains structurally short of refined fuels and petrochemicals, creating ​significant room for growth, Bird said.

The refinery supplies most of Nigeria's gasoline and diesel demand and all of its ​jet fuel needs.

By Chijioke Ohuocha and Isaac Anyaogu, Reuters

Nigeria considers crude supply reforms to aid Dangote, other refiners

Nigeria is considering changes to crude allocation and pricing rules to improve ‌feedstock access for its refiners, including Dangote Refinery, the local oil refiners' association said.

Dangote has previously said Nigeria's pricing structure adds $3 to $4 per barrel to feedstock costs for refiners because purchases ​are routed through producers' trading arms. Analysts say the main constraint in domestic ​crude transactions is pricing rather than physical availability.

The move could help ⁠boost operations at Dangote's 650,000 barrel-per-day refinery, Africa's largest, whose output has at ​times been constrained by difficulties securing sufficient crude supplies domestically.
The Crude Oil Refinery-owners Association ​of Nigeria (CORAN) said the proposed changes are expected to be discussed this week during a regulator-led review of Nigeria's domestic crude supply obligation, which requires producers to supply local refiners before exporting.

Under ​one proposal, a producer linked to an IOC's network could deliver crude directly ​to a nearby refinery, with volumes reconciled later at the terminal, said CORAN spokesperson Eche Idoko, ‌adding ⁠this would reduce reliance on trunklines and bring crude closer to refiners.

A second proposal would allow refiners that lift crude directly from production facilities to receive a discount reflecting the freight and handling costs embedded in Brent-linked pricing but not actually incurred ​by them.

"This could be ​a win-win for ⁠both the producers and refiners," said Idoko.

The Nigerian Upstream Regulatory Commission (NUPRC) released data on Monday showing producer compliance with the domestic ​crude supply framework rose to over 90% from less than ​43% in ⁠the previous quarter.

The metric tracks actual deliveries against volumes allocated by the regulator, not refinery demand met. Under the scheme, producers must offer allocated volumes to local refineries, with ⁠sales ​agreed on a 'willing-buyer, willing-seller' basis.

A NUPRC official said ​the ideas "are on the table" largely at the urging of inland refiners, but added that implementation would require ​addressing crude quality differences and pricing adjustments.

By Isaac Anyaogu, Reuters

Nigeria Becomes Indonesia’s Top Crude Supplier

Indonesia has been buying large numbers of African crude this year, according to official statistics, as Jakarta draws attention for its Russian contracts.

The government-run statistics agency BPS revealed on Monday that Nigeria made up nearly a quarter of Indonesia’s crude oil imports from January to June 2026.

“Nigeria accounted for 24.91% of the crude imports made in the first half. Followed by Angola [15.41%] and Saudi Arabia [13.62%],” BPS deputy Ateng Hartono told reporters in Jakarta.

The monthly crude imports reached $1.20 million in January on cargoes weighing 2.52 million tons. The February shipments weighed less at just 610,000 tons and had a price tag of $280,000. The figures rose to 1.56 million tons and cost just $850,000 in March. Indonesia imported 1.6 million tons of crude at $1.09 million the following month. The May volume totaled 710,000 tons, Ateng said, without disclosing the value. Imports reached $1.72 million in June, although Ateng did not say the volume.

Indonesia has been working to diversify its oil sources by tapping suppliers whose routes do not include the Strait of Hormuz. Shipping flows have ground to a halt in this narrow passage following the US-Iran war that erupted in late February. Amidst the Nigerian crude purchases, Indonesia has also turned to Moscow for fuel.

Just last week, Energy Minister Bahlil Lahadalia confirmed that the first batch of the Russian crude had already arrived in the country. Local news agencies wrote that the delivery comprised 770,000 barrels. According to initial reports, the order would total 150 million barrels.

“We want to safeguard our energy reserves so we will not face any shortage,” Bahlil said at a press briefing, commenting on the Russian crude.

The overall oil and gas imports had skyrocketed 105.15% year-on-year to $4.56 billion in June 2026, BPS reported. The first-half fuel imports also soared 38.71% compared with the same period last year. Singapore and Malaysia are the leading suppliers.

By Jayanty Nada Shofa, JAKARTA GLOBE