Dangote seeks $1.6 billion IPO to fund $14.3 billion refinery expansion

Aliko Dangote’s conglomerate is seeking $1.6 billion in capital from investors to fund a $14.3 billion expansion that would double the capacity of its Lagos‑based oil refinery, the largest single‑site facility in sub‑Saharan Africa. The project, slated to raise the plant’s output from roughly 650,000 to 1.2 million barrels per day, is being financed through a mix of private placement and a potential public offering that could allow individual Nigerians to purchase shares. The company has outlined a timeline that targets completion of the first phase by 2028, with the additional capacity intended to reduce the nation’s reliance on imported refined products and to boost export potential.

Regulatory filings indicate that the offering will be open to qualified institutional investors and, subject to approval by the Nigerian Securities and Exchange Commission, to retail investors meeting specific financial criteria. Analysts note that the minimum subscription amount, set at several hundred thousand naira, may limit participation to higher‑income individuals and corporate entities, raising questions about the extent to which “millions of Nigerians” can realistically acquire a stake. The success of the capital raise will hinge on investor confidence in the refinery’s projected cash flows, the broader economic environment, and the company’s ability to meet the stipulated eligibility thresholds.