Nigeria’s Dangote Refinery plans to invest $14.3 billion to double its processing capacity as the company prepares for what is expected to be Africa’s largest-ever initial public offering (IPO).

The expansion, outlined in the refinery’s IPO prospectus, will increase its capacity from the current 700,000 barrels per day to 1.4 million barrels per day. The project is expected to be completed by 2029.

The refinery’s IPO is scheduled to open on September 14 and close on October 13, with the company targeting about 2.15 trillion naira ($1.63 billion) from the share sale. The offering is primarily aimed at retail investors, while the shares could begin trading on Nigeria’s main stock exchange in late November.

Dangote Refinery will initially offer 4.1 billion ordinary shares at 525 naira each. The company also has a greenshoe option that could allow it to sell up to 30% additional shares if demand exceeds the initial offering.

The refinery, which began operations in 2024, was built at a cost of about $20 billion on the outskirts of Lagos. It has become a major force in Nigeria’s fuel market and has benefited from supply disruptions linked to conflicts in the Middle East and Ukraine, including through exports of jet fuel to African and European markets.

The company has also swung sharply into profitability. According to the IPO prospectus, Dangote Refinery recorded an after-tax profit of $1.82 billion in the first half of 2026, compared with a $476 million loss for the whole of 2025.

Dangote said the refinery’s recent gains from geopolitical disruptions were not the basis of its long-term investment strategy. He also disclosed that the United Arab Emirates’ state-owned oil company ADNOC was interested in investing in the refinery alongside other potential investors, although he did not provide further details.

The IPO is being positioned as a broad-based investment opportunity for Nigerians, the Nigerian diaspora and investors across Africa. David Bird, chief executive of Dangote Refinery, said the offering is intended to widen participation in the ownership of the industrial asset.

The refinery forms part of Aliko Dangote’s wider business empire, which includes cement and sugar operations. Dangote, Africa’s richest man, is also planning to build a refinery on Kenya’s coast in partnership with East African governments.

Source: Reuters