Aliko Dangote, Africa's wealthiest individual, is poised to significantly increase his fortune with the public listing of his Nigerian oil refinery business. The initial public offering (IPO) of Dangote Petroleum Refinery and Petrochemicals on the Nigerian exchange, scheduled for Monday, could elevate his net worth by $23 billion (£17 billion), bringing it to nearly $60 billion (£44 billion).
Dangote has described the IPO as “an IPO for the people, ” aiming to attract a diverse group of institutional and retail investors. The minimum subscription is set at just 10 shares, priced at 5,250 naira (£2.94) each. The share purchase process will conclude on October 13, offering a month-long window for potential investors. This initiative is particularly targeted at young Nigerians, leveraging banking platforms and fintech ventures to promote wealth building and economic growth.
If fully subscribed, the refinery's valuation could soar to approximately 65.22 trillion naira (£36.5 billion). This would mark a significant achievement for Dangote, who has historically supported successful presidential campaigns in Nigeria. His influence in the country has sparked criticism, which he addressed by emphasizing his commitment to local investment and employment, stating, “We have chosen to build here, to employ here, to produce here. Let us not use the cry of monopoly to stall growth. No one is prevented from investing.”
Dangote, aged 69, initially amassed his wealth through ventures in cement and sugar. His entrepreneurial journey began in the late 1970s with a loan from his maternal grandfather, a member of the affluent Dantata family in West Africa. Recently, Dangote's foray into the petroleum industry has transformed Nigeria into a net exporter of refined fuel, a first for the nation.
Before the $20 billion Dangote refinery commenced operations on the outskirts of Lagos in January 2024, Nigeria was dependent on exporting crude and importing refined petroleum for domestic consumption. This reliance incurred billions in fuel subsidies and efforts to revive colonial-era refineries. The Dangote refinery, with a capacity of 700,000 barrels per day, is projected to double its output by the end of the decade.
Dangote plans to reinvest profits from the Lagos refinery to foster continental growth and reduce Africa's dependency on foreign goods.
His vision includes establishing a $100 billion industrial empire focused on heavy manufacturing and regional infrastructure. A pivotal component of this plan is a proposed $17 billion energy complex in Lamu, Kenya, with an oil-refining capacity of 700,000 barrels per day, aimed at enhancing the region's energy security.
During an IPO signing ceremony in Lagos on September 7, Dangote expressed his aspirations for African economic leadership, stating, “We, as Nigerians and Africans, must be bold and lead the change to develop our economies. Only then will the others take us very seriously, only then we’ll be in a position to negotiate and walk away with terms we deserve, not those terms that are given to us.”
Following the ceremony, fellow Nigerian billionaire and banker Tony Elumelu hailed the IPO as “a landmark moment for Nigeria and a huge milestone for Africa.”
