Africa’s richest man, Aliko Dangote, is planning to sell about 10 per cent of his oil refinery through an initial public offering that will be marketed across multiple African countries, according to people familiar with the matter.
Multiple sources confirmed to Energy in Africa the planned share sale is aimed at raising capital and opening up the refinery’s ownership to a wider pool of investors across the continent, marking a rare cross-border listing involving a major industrial asset in Africa.
The proposed IPO comes after years of significant financial commitment to build the refinery, widely regarded as one of the most ambitious private-sector projects in Africa.
The facility, located in Lagos, has a refining capacity of 650,000 barrels per day and was developed to reduce Nigeria’s reliance on imported petroleum products.
Nigeria, despite being Africa’s largest oil producer, has historically depended on fuel imports due to limited domestic refining capacity. This has exposed the country to global price swings, foreign exchange pressure, and recurring fuel supply challenges.
The Dangote refinery, which began operations in 2024, was designed to change that structure by supplying petrol, diesel and aviation fuel locally, while also serving export markets across West and Central Africa.
By selling a minority stake, Dangote is expected to retain control of the refinery while attracting fresh investment to support ongoing operations, expansion plans and possible debt restructuring.
Pan-African listing signals broader market ambition
According to recent reports, the IPO is expected to be structured across several African stock exchanges, allowing investors beyond Nigeria to participate.
This approach could deepen regional capital market integration and attract institutional investors seeking exposure to large-scale energy infrastructure.
The move also reflects a shift in how major African projects are financed, with promoters increasingly looking beyond domestic markets to raise funds.
A multi-country listing could improve liquidity and visibility for the refinery, while reinforcing its position as a continental asset rather than a purely Nigerian project.
Refinery’s growing role amid global energy shifts
The timing of the planned IPO is linked to wider developments in the global energy market. Disruptions tied to tensions in the Middle East have affected crude supply routes and pushed up prices, drawing attention to the importance of local refining capacity.
In Africa, where many countries still rely heavily on imported refined fuel, the Dangote refinery is expected to play a central role in stabilising supply and reducing exposure to external shocks.
Since ramping up production, the facility has increased fuel availability within Nigeria, with gradual expansion into regional exports. This has positioned it as a key player in efforts to reshape Africa’s downstream oil sector.
Bloomberg also reported that opening up the refinery to public investment could support its long-term growth and strengthen its financial base as demand for refined products continues to rise across the continent.
