Nigerian entrepreneur Aliko Dangote has initiated the largest share sale in Africa’s history, opening up a significant opportunity for the public to invest in his oil refinery. This initial public offering (IPO) could potentially generate up to $2.1 billion (£1.6 billion), offering approximately 3% of the refinery’s shares to everyday Nigerians.
Launched to coincide with the refinery’s operational success, which began in 2024, this venture aims to involve ordinary citizens in the financial benefits derived from the plant. The Dangote refinery is not only one of the largest globally but also essential to Nigeria, supplying over 70% of the country’s energy needs.
Many Nigerians are eager to take part in this unprecedented investment opportunity. For instance, Isah Salisu shared his story, having withdrawn 50,000 naira (£28; $37) from his savings to invest. “I believe my small investment can grow significantly. I want to be part of this success, especially since many of my acquaintances are also investing,” he expressed.
Investment Details and Expert Advice
The IPO is set to run for a month, with a minimum purchase requirement of 10 shares, each priced around $4. Experts in the economic field, like Dr. Abdulrazak Ibrahim Fagge, have called this event a landmark moment for the country’s investment landscape. However, he also issued a word of caution to potential investors, highlighting the risk of share prices fluctuating and the possibility of monetary loss.
Dr. Fagge advised prospective buyers, particularly those new to investing, to avoid allocating all their funds or any money they may need in the near future. “It’s advisable to invest only what you can afford to leave untouched for several years,” he stated. Furthermore, he emphasized the importance of being vigilant against scams, urging individuals to transact only with recognized institutions.
Background on Dangote and the Refinery Project
Aliko Dangote, who hails from Kano, boasts a remarkable net worth of approximately $28 billion, as per Forbes. His wealth primarily stems from his ventures in cement and sugar within Nigeria, and he has since expanded his reach to 16 additional African nations. His company, Dangote Cement, holds the title of Africa’s leading cement producer.
The refinery project was first introduced in 2013, with initial estimates placing its cost at around $19 billion. However, construction only commenced in 2017 and faced further delays due to the COVID-19 pandemic. Situated in the Lekki Free Zone close to Lagos, the refinery project required extensive land reclamation, moving around 65 million cubic meters of sand.
With a staggering processing capacity of 650,000 barrels per day, the Dangote refinery ranks as the seventh-largest globally. The funds raised from the current share sale are aimed at doubling its processing capacity, further solidifying Nigeria’s position in the oil production sector.
