Nigeria’s Dangote oil refinery is preparing for what could become Africa’s largest-ever stock market listing, with plans to raise about $5 billion through an initial public offering (IPO) expected to conclude in October 2026, according to a source familiar with the plan.
The 650,000-barrel-per-day Lagos-based refinery, majority owned by Africa’s richest man Aliko Dangote, has expanded its operations after benefiting from increased demand for jet fuel during the Iran war, supplying markets in Africa and Western Europe amid shortages.
The company plans to use proceeds from the IPO to expand the refinery’s capacity and support plans to build a similar facility in Kenya. The move is part of Dangote’s broader ambition to reduce Africa’s reliance on imported fuel and position the continent as a petroleum exporter.
Stock exchanges in South Africa, Kenya, Egypt, Ghana and Rwanda have expressed interest in participating in the listing, with Kenya’s capital market expected to contribute up to $500 million of the target amount, according to sources.
Dangote Petroleum Refinery & Petrochemicals FZE has submitted its IPO application to Nigeria’s Securities and Exchange Commission and is expected to receive approval in the coming weeks, allowing it to publish a prospectus in September.
The final size of the offering will depend on regulatory approval, with the primary listing expected to take place on the Nigerian Stock Exchange. A recent $2.5 billion private placement for a 6% stake valued the refinery at about $40 billion. The company is also expected to give investors the option of receiving returns in either naira or US dollars.