Africa’s richest businessman, Aliko Dangote, is reportedly targeting a valuation of up to $50 billion for the Dangote Refinery as plans intensify for a public listing on the Nigerian stock market later this year.
According to a report by Bloomberg, the refinery could offer up to 10 per cent of its shares to investors in what is expected to become one of the largest capital market transactions in Nigeria’s history. The proposed sale could potentially raise about $5 billion.
The refinery, located within the Lekki Free Trade Zone, has significantly changed Nigeria’s downstream petroleum industry since commencing operations. With a processing capacity of 650,000 barrels per day, the facility is regarded as the largest single-train refinery in Africa and among the biggest globally.Industry analysts believe the refinery’s growing market strength, coupled with rising global crude prices and increased domestic fuel demand, has boosted investor confidence ahead of the planned Initial Public Offering (IPO).
A senior official within the Dangote Group reportedly confirmed that the projected valuation aligns with internal expectations, although details regarding the structure and timing of the listing remain undisclosed.To coordinate the IPO process, the group has assembled a consortium of financial advisers.
Stanbic IBTC Capital is expected to oversee international book-building and foreign investor engagement, while Vetiva Capital Management will manage retail participation within Nigeria. FirstCap is also expected to focus on institutional investors, particularly pension fund operators.
The planned public listing marks the first time ordinary Nigerians and institutional investors will have the opportunity to directly own shares in the refinery business.
Commissioned in May 2023 after nearly a decade of construction, the refinery was built at an estimated cost of around $20 billion.
By February 2026, it reportedly reached full refining capacity, strengthening Nigeria’s efforts to reduce dependence on imported petroleum products.Since ramping up production of petrol, diesel, and aviation fuel, the refinery has become a major supplier within Nigeria and across Africa.
Reports indicate that it currently accounts for more than 90 per cent of Nigeria’s petrol supply while also exporting refined products to countries including Ghana, Cameroon, Togo, and Tanzania, alongside shipments to European markets.
Beyond fuel production, the refinery’s petrochemical division has emerged as another key revenue source. Its polypropylene products are widely used in plastics manufacturing, industrial packaging, and other industrial applications.
The proposed IPO is also expected to introduce an unusual dividend structure allowing investors to buy shares in naira while receiving returns backed by US dollar revenues generated from petrochemical exports.
Financial projections linked to the offering estimate that petrochemical exports could generate about $6.4 billion annually, strengthening the refinery’s foreign exchange earnings capacity.
The prospectus for the public offering has reportedly been submitted for regulatory review, with subscription expected to begin around August 2026.
Analysts say the refinery’s valuation has risen sharply over the past year due to improved operational performance and stronger international demand for refined petroleum products.
Earlier estimates had valued the facility between $20 billion and $25 billion before revised projections pushed expectations toward the $40 billion to $50 billion range.
The refinery also operates an extensive pipeline infrastructure estimated at about 1,100 kilometres, linking crude supply networks to processing and distribution systems across the operation.
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