Lagos — Africa’s richest man, Aliko Dangote, has announced ambitious plans to list approximately 10% of the Dangote Oil Refinery in a $40 billion multi-exchange initial public offering — a deal that could reshape the continent’s capital markets and mark the largest ever public listing of an African industrial asset.
The proposed listing is tied to Dangote Group’s “Vision 2030” programme, under which the conglomerate intends to invest $40 billion over the next five years to dramatically expand its refining and fertiliser operations and establish the group as a $100 billion revenue enterprise.
Proceeds from the IPO are earmarked for a series of transformative projects: more than doubling the Lagos refinery’s daily capacity from 650,000 barrels to 1.4 million barrels; quadrupling fertiliser production; establishing potash and phosphate plants in the Democratic Republic of Congo; and building copper-refining operations in Zambia.
The Dangote Oil Refinery, which began production in 2024, is widely regarded as one of the most consequential industrial projects in Nigeria’s modern history. Its scale was designed to reduce the country’s dependence on imported refined petroleum products and position Nigeria as a net exporter of refined fuels.
The proposed multi-exchange structure — which would see the listing span several African stock exchanges rather than a single venue — represents an innovative approach to accessing capital at the scale required. Frank Mwiti, CEO of the Nairobi Securities Exchange, confirmed he had met with Dangote at the refinery complex to discuss how African exchanges could support the transaction.
“The dollar dividend structure is an enticing feature for foreign participation,” said Oyinkansola Aregbesola, a Lagos-based investment professional. “That addresses the currency concern that would otherwise limit serious foreign appetite.” She noted that the refinery’s pledge to pay dividends in US dollars rather than volatile local currencies could significantly broaden the investor base.
The timing of the IPO comes against a complex geopolitical backdrop. The ongoing conflict in the Middle East and closure of the Strait of Hormuz has tightened global fuel supplies and driven up prices — circumstances that, paradoxically, may strengthen the refinery’s revenue outlook while simultaneously making foreign investors more cautious.
Analysts say the symbolic significance of a $40 billion IPO taking place within Africa should not be underestimated. “For a long time, any serious African company needing real capital had to look outside the continent,” Aregbesola said. “This listing has the potential to mark a turning point, fostering greater market integration and giving retail and institutional investors across Africa a chance to own a stake in one of the continent’s most strategic industrial assets.”
If successfully executed, the deal could become a blueprint for future major African listings and contribute to the broader development of the continent’s capital markets infrastructure.
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*Sources: African Business, Dangote Group, Bloomberg*