Aliko Dangote is seeking a $50bn valuation for the Dangote Petroleum Refinery & Petrochemicals ahead of a planned public listing, as the billionaire industrialist moves to open ownership of the refinery to investors across Africa.
According to a Bloomberg report, the refinery could sell up to 10 per cent of its shares through the Nigerian Exchange, implying a possible deal size of about $5bn. The refinery, which began operations in 2024, is already being positioned internally at a valuation level that reflects its growing dominance in Nigeria’s downstream oil market.
The planned listing is bigger than a normal fundraising exercise. It signals Dangote’s attempt to transform the refinery from a privately controlled industrial project into a continental investment vehicle tied to Africa’s energy transition and capital market expansion.
A cross-border structure is also being considered, which could make the offering one of the largest pan-African IPOs ever attempted.
Discussions around the structure reportedly took place in Lagos during a meeting between Dangote and executives of several African stock exchanges under the African Securities Exchanges Association. The focus was on creating a framework that would allow investors across multiple African markets to participate in the offering.
Frank Mwiti, Chief Executive Officer of the Nairobi Securities Exchange, said the plan was to develop a “pan-African IPO,” an approach that would require coordination among regulators and exchanges across different countries.
The move reflects a broader shift taking place around the refinery itself. What started as a domestic energy infrastructure project is increasingly becoming a continental industrial asset with influence beyond Nigeria’s borders.
Since operations began, the 650,000 barrels-per-day refinery has rapidly altered fuel supply dynamics in Nigeria, reducing dependence on imports while expanding exports of refined products into African and European markets. The refinery has also benefited from stronger global crude prices and rising regional fuel demand, both of which have strengthened its commercial outlook.
For Dangote, the listing also comes at a strategic time. The group is preparing for another expansion phase that could push refining capacity to 1.4 million barrels per day within three years, potentially making it one of the largest refining complexes globally.
That scale requires capital.
The company recently secured support from the African Export-Import Bank, which underwrote $2.5bn of a $4bn syndicated financing facility tied to expansion plans. Opening part of the refinery to public investors would provide another source of funding while spreading ownership beyond the Dangote Group.
But the significance of the proposed IPO goes beyond the refinery itself.
African capital markets have long struggled with low liquidity, limited cross-border participation, and the absence of large industrial listings capable of attracting long-term institutional capital. A refinery offering of this size could change that dynamic, particularly if multiple African exchanges are involved.
The deal could also strengthen Nigeria’s position as a regional financial hub at a time the country is trying to attract foreign portfolio flows and rebuild investor confidence after years of currency instability and market uncertainty.
At the same time, the valuation target will attract scrutiny.
Although the refinery has become a dominant player in Nigeria’s fuel market, questions remain around profitability, debt exposure, crude supply arrangements, and pricing dynamics in a deregulated downstream environment. The business is also operating in a volatile global oil market shaped by geopolitical tensions and fluctuating refining margins.
Still, Dangote appears determined to frame the refinery as proof that large-scale industrial projects can be executed from Africa and financed partly by African capital.
Financial advisers already working on the transaction include Stanbic IBTC Capital, Vetiva Advisory Services, and FirstCap Limited, according to company officials familiar with the process.
The listing, if completed, would mark another turning point for a refinery project that has already reshaped Nigeria’s oil and gas conversation, from fuel imports and pricing to energy security and industrial capacity.
