Dangote Refinery Launches $1.6 Billion IPO, Africa's Largest Share Sale

Nigeria’s Dangote Petroleum Refinery launched a $1.6 billion initial public offering (IPO), marking the largest share sale in African history, to fund a capacity expansion.

The company is offering up to 4.1 billion shares at 525 naira each, with the offer closing on October 13 and trading on the Nigerian Exchange expected in November. Aliko Dangote, president of Dangote Group, stated the IPO aims to fully share all their prosperity with the people, calling it a people’s IPO. The IPO seeks to double the refinery's capacity from 700,000 barrels per day (bpd) to 1.4 million bpd by 2028, which would make it the world's largest refinery.

This $14.3 billion expansion includes new petrochemical and refining units designed to reduce Nigeria's reliance on imports and produce various diesel grades. Dangote also plans to launch a processing plant in Kenya. Dangote explained that petrol prices remain high in Nigeria because the refinery purchases crude at international market rates, sometimes with premiums, making it difficult to sell refined products below sustainable levels.

He noted that petrol is 30 to 50 percent more expensive in neighboring countries, contributing to smuggling. Dangote cited high borrowing costs, at 30 percent, as a major obstacle to industrialization and warned against future refinery investments without protective policies. He also reflected on his textile industry investment as his biggest business mistake, leading to nearly 8,000 layoffs due to foreign dumping.

The refinery, which began operations in 2024, became Nigeria's first net exporter of refined fuel in early 2026 and reported an after-tax profit of $1.82 billion in the first half of 2026. Temi Popoola, group chief executive of NGX Group, stated the listing tests whether Nigeria's market infrastructure can allow ordinary savers to own a piece of this asset. Investment banker Aigboje Imoukhuede believes the IPO will put wealth into the hands of tens of millions of Nigerians.