Dangote Petroleum Refinery could open its long-awaited initial public offering within the next 10 to 12 days as billionaire industrialist Aliko Dangote moves to raise fresh capital for an ambitious expansion that would double the facility’s processing capacity.
Dangote disclosed the timeline while speaking to investors and analysts in Botswana, bringing Africa’s largest refinery closer to a public listing after months of preparations and growing interest from institutional investors across the continent.
The offering is expected to target around $5 billion, a size that could make it the largest initial public offering ever undertaken in Africa.
The final amount to be raised will, however, depend on regulatory approval and the structure ultimately adopted for the offering.
The IPO represents a major step in Dangote’s plan to transform the Lagos-based refinery from a 650,000-barrel-per-day facility into a 1.4 million-barrel-per-day refining complex capable of supplying petroleum products across Africa and international markets.
Dangote said doubling the refinery’s capacity remains central to the group’s long-term strategy.
The refinery reached its 650,000-barrel-per-day nameplate capacity earlier this year and has since processed more than 700,000 barrels per day during performance testing, demonstrating its ability to operate above its original design capacity.
Expansion to 1.4 million barrels per day would more than double current capacity and place the refinery among the largest refining facilities globally.
The proposed IPO is expected to provide part of the capital required to support that expansion while opening ownership of one of Africa’s largest industrial assets to public investors.
The refinery has already attracted significant capital ahead of the planned listing.
In August, Dangote Petroleum Refinery announced the completion of a $1 billion underwriting programme comprising a funded $600 million private placement and an additional $400 million underwriting commitment.
The transaction was designed to strengthen the capital-market foundation for the IPO and broaden participation among African and international institutional investors.
Investor interest has also been supported by the refinery’s growing role in regional and international petroleum markets.
Since commencing operations in 2024, the facility has steadily increased production of petrol, diesel and aviation fuel, supplying the Nigerian market while exporting products to other African countries, Europe and other international destinations.
Global disruptions in petroleum supply have further strengthened refining margins and increased demand for alternative suppliers, giving the Dangote refinery an opportunity to expand its presence outside Nigeria.
However, investors considering the IPO are also expected to focus closely on the refinery’s ability to secure sufficient crude oil at competitive prices.
Dangote currently sources crude from Nigeria as well as international suppliers, with imported barrels accounting for a significant proportion of its feedstock.
Nigeria produces substantial volumes of crude oil, but commitments tied to existing supply arrangements and other contractual obligations have limited the amount readily available to domestic refiners.
The refinery has consequently imported crude from countries including the United States and Guyana as it seeks to maintain utilisation rates and diversify its supply base.
Feedstock costs will become even more important if capacity rises to 1.4 million barrels per day.
At that level, the refinery would require substantially larger and more reliable crude supplies, making procurement costs a critical factor in margins, profitability and ultimately the valuation investors are willing to place on the business.
Nigeria has been taking steps to improve crude availability for domestic refiners, including efforts to facilitate local supply arrangements and reduce logistical inefficiencies.
Dangote’s coastal location also gives the refinery flexibility to source crude internationally when domestic barrels are unavailable or comparatively expensive.
The IPO is expected to be primarily anchored in Nigeria, but interest has extended across African capital markets as Dangote seeks to make the transaction a broader continental investment opportunity.
A successful $5 billion offering would represent a landmark transaction for African capital markets and could significantly deepen Nigeria’s equity market by bringing one of the continent’s largest privately controlled industrial businesses to public investors.
It would also mark another stage in the expansion of Dangote’s industrial operations across Africa.
Beyond the Lagos refinery expansion, Dangote is pursuing additional energy investments elsewhere on the continent as part of a broader strategy to reduce Africa’s dependence on imported refined petroleum products.
For investors, attention will now shift to the final IPO structure, valuation, share allocation and regulatory approvals as the proposed opening approaches.
If the 10-to-12-day timetable is maintained, one of Africa’s most anticipated public offerings could begin before the middle of September.
