President of the Dangote Group, Aliko Dangote, has disclosed that the Dangote Refinery is targeting about $2 billion through a private placement exercise ahead of its planned initial public offering (IPO).
The development comes as billionaire businessman and Chairman of First HoldCo, Femi Otedola, announced plans to invest $100 million in the refinery project.
The disclosures were made on Wednesday during a visit by Otedola and senior executives of First HoldCo to the Dangote Refinery and Fertiliser complex located in the Lekki Free Trade Zone area of Lagos State.
The delegation toured several strategic facilities within the industrial complex, including the refinery, fertiliser plant and marine jetty constructed by Dangote Industries to handle large cargo vessels supplying raw materials and equipment to the facilities.
The planned investment by Otedola forms part of the $2 billion private placement that the refinery is seeking to raise from private investors ahead of its anticipated stock market listing.
The private placement is regarded as a major step in the refinery’s broader IPO strategy, which is expected to culminate in a public listing later in the year, although no official date has yet been announced.
The Dangote Refinery, widely described as Africa’s largest single-train refinery, has remained one of the continent’s most ambitious industrial projects, attracting significant local and international interest since it commenced operations.
The facility is expected to play a major role in reducing Nigeria’s dependence on imported petroleum products while also positioning the country as a major exporter of refined petroleum products within Africa and beyond.
Speaking during the visit, Otedola revealed that his decision to invest heavily in the refinery was driven by confidence in the long-term viability and transformational potential of the project.
“On a personal note, I have appealed to him (Aliko Dangote). I’ve been here with him 25 times, so my compensation is he’s going to allocate to me shares worth $100 million in the private placement,” Otedola stated.
The billionaire businessman also disclosed that one of the reasons behind his decision to sell his stake in the Geregu power plant was to free up capital for investment in the Dangote Refinery.
“That’s one of the reasons why I sold my stake in the Geregu plant to come and invest my proceeds in the IPO of Dangote refinery,” he added.
The announcement further highlights the close business relationship between Dangote and Otedola, both of whom are regarded as among Nigeria’s most influential businessmen with investments spanning energy, manufacturing, banking and infrastructure.
Analysts say Otedola’s planned investment could boost investor confidence in the refinery’s upcoming private placement and eventual IPO.
The Dangote Refinery’s proposed public listing has continued to attract widespread attention within financial and investment circles, especially following reports regarding its expected valuation.
On May 12, Bloomberg reported that Dangote was targeting a valuation of up to $50 billion for the refinery business ahead of the planned IPO.
The valuation, if achieved, would place the refinery among the most valuable industrial assets in Africa and potentially rank it among the continent’s largest publicly traded companies.
In 2025, Dangote disclosed that the refinery could sell as much as 10 percent equity stake during the public offering.
Based on Bloomberg’s reported valuation estimate, the proposed 10 percent stake sale could potentially raise about $5 billion.
Although details regarding the timing, pricing structure and listing exchange have not yet been formally released, industry observers expect the IPO to attract substantial interest from institutional investors, pension funds and retail investors across Africa and beyond.
Dangote has repeatedly emphasised the importance of encouraging African investment participation in strategic industrial projects on the continent.
The businessman has also advocated cross-border stock market listings as a means of mobilising African capital for industrialisation and infrastructure development.
According to him, broader African participation in projects such as the refinery would help strengthen regional economic integration and reduce dependence on foreign financing.
The Dangote Refinery project itself has been viewed as a major milestone in Nigeria’s industrial ambitions.
Located in the Lekki Free Trade Zone, the refinery has a refining capacity of about 650,000 barrels of crude oil per day, making it one of the largest refineries in the world.
The project also includes petrochemical and fertiliser facilities aimed at supporting agriculture, manufacturing and industrial growth across Nigeria and other African countries.
Since production activities commenced, the refinery has gradually expanded operations, with expectations that it could significantly alter fuel supply dynamics within Nigeria and the wider West African region.
For decades, Nigeria has relied heavily on imported refined petroleum products despite being one of Africa’s largest crude oil producers.
The high cost of fuel imports has historically placed pressure on the country’s foreign exchange reserves and contributed to periodic fuel supply challenges.
Stakeholders believe the full operation of the refinery could help stabilise domestic fuel supply, reduce import dependence and support foreign exchange conservation.
The refinery is also expected to create thousands of direct and indirect jobs while stimulating economic activities in sectors linked to logistics, shipping, manufacturing and services.
Industry analysts say the planned IPO and private placement could further strengthen the financial position of the refinery as it scales operations and expands market reach.
The visit by First HoldCo executives to the refinery and fertiliser plants is also viewed as a signal of growing institutional interest in the project from Nigeria’s financial sector.
During the tour, the visitors reportedly inspected key infrastructure supporting refinery operations, including the marine jetty designed to receive large vessels transporting crude oil and industrial supplies.
Observers note that the successful execution of the refinery’s IPO could become one of the largest capital market transactions in Africa’s history.
The development also comes at a time when investors are increasingly looking toward large-scale African industrial projects capable of generating long-term economic returns.
Financial experts believe the participation of high-profile investors such as Otedola may further enhance the refinery’s attractiveness to both domestic and international investors ahead of the public offering.
As preparations continue for the anticipated listing, market analysts are expected to closely monitor developments surrounding the refinery’s valuation, ownership structure and investment framework.
The Dangote Refinery remains one of the most closely watched industrial projects in Africa due to its potential impact on energy security, regional trade and economic transformation across the continent.
