Dangote Refinery is targeting a $50 billion valuation ahead of the planned Initial Public Offering (IPO) in Nigeria later this year.
A report by Bloomberg, quoting sources, noted that the company wants to sell up to a 10 per cent stake, potentially raising around $5 billion in one of Nigeria’s biggest capital market deals.
The 650,000-barrels-per-day refinery has transformed Nigeria’s fuel supply chain by reducing dependence on imported petroleum products.
A senior executive at the Dangote Group confirmed to Bloomberg that the projected valuation reflects the company’s internal expectations but declined to comment further on the timing or structure of the transaction.
The planned listing comes as rising global crude oil prices and stronger domestic fuel consumption improve the refinery’s commercial outlook.
The Dangote Group has also appointed a consortium of three financial advisers to manage the offering. Stanbic IBTC Capital, operating under the Standard Bank umbrella, will handle the international book-building process and lead engagement with foreign portfolio investors.
Vetiva Capital Management, which has advised on previous Dangote listings, will manage retail investor distribution within Nigeria, while FirstCap will focus on placements with Nigerian institutional investors, particularly pension funds, according to the report
Located in the Lekki Free Zone in Lagos, the facility has a refining capacity of 650,000 barrels per day, making it Africa’s largest single-train refinery.
Since beginning large-scale production of petrol, diesel, and aviation fuel, the refinery has reshaped Nigeria’s fuel supply chain, reducing reliance on imported petroleum products and increasing local refining capacity in Africa’s biggest oil producer.
Last year, Mr Aliko Dangote, the majority stakeholder at the refinery, indicated that Nigerian investors would soon have an opportunity to buy shares directly in the refinery business, signalling a broader push to attract domestic participation in the energy sector.
The IPO is anchored by an unprecedented dividend structure that allows investors to purchase shares in Nigerian naira but receive returns in US Dollars, backed by an estimated $6.4 billion in annual petrochemical export revenues.
The prospectus has already been submitted for regulatory review, and a subscription window is expected to open by August 2026.
It will also be the first time that the Refinery will become available for public ownership. The refinery, located in the Lekki Free Trade Zone near Lagos, was commissioned in May 2023 after nearly a decade of construction and an investment of approximately $20 billion.
By February 2026, the facility had reached its full processing capacity of 650,000 barrels of crude oil per day, making it the world’s largest single-train refinery and Africa’s biggest refining complex.
