Dangote Refinery IPO Draws ‘Enormous’ Demand in Nigeria
Key Facts
- —The country Nigeria is Africa’s most populous nation, with about 238 million people. Its economy, about US$291 billion in 2025 (World Bank), is roughly 1% the size of the US economy.
- —Why it matters For decades Nigeria exported crude oil but imported most of its petrol. Aliko Dangote, Africa’s richest man, built a giant private refinery near Lagos to change that.
- —Why now The share sale closes on Tuesday 13 October. On 29 September, Dangote said demand was “enormous” and hinted the offer could be enlarged.
- —What happened 4.1 billion new shares at 525 naira (about US$0.39) each, raising about US$1.62 billion if fully sold.
- —The numbers Minimum order: 10 shares, or 5,250 naira (about US$3.95). The money is meant to help double capacity from 700,000 to 1.4 million barrels a day.
- —What it means for you Shares trade in naira on the Nigerian Exchange (NGX), the Lagos stock market. Buying requires a Nigerian brokerage account, through banks, brokers or apps.
- —Still open Final subscription figures, the allotment method, any upsizing and the first trading date have not been announced.
Nigeria’s biggest share sale in years enters its final days. Africa’s richest man says investors want more stock than is on offer.
The Dangote Refinery IPO, a share sale by Nigeria’s largest private oil refinery, closes on Tuesday 13 October. Its founder, Aliko Dangote, says demand has been “enormous”.
Nigeria, Africa’s most populous country, has long exported crude oil and imported fuel. Dangote, the continent’s richest man, built his refinery near Lagos to end that reliance.
What Dangote said about demand
“Demand is there, enormous demand,” Dangote told reporters in Nairobi, Kenya, on 29 September, as reported by Reuters and Daily Trust. He said Nigeria’s capital market had never been tested on this scale.
He indicated the company may offer more shares if demand keeps exceeding the allocation, Daily Trust reported on 2 October. He gave no subscription figures.
Daily Trust also cited reports of about 21 billion naira (about US$15.8 million) in orders within the first four hours. The Nigerian Exchange has not published an official subscription level.
The terms of the offer
The refinery is offering 4.1 billion new ordinary shares at 525 naira (about US$0.39) each. If fully taken up, that would raise about 2.15 trillion naira (about US$1.62 billion).
The offer opened on Monday 14 September, according to CardinalStone, a Lagos investment bank acting as issuing house. The minimum application is 10 shares, or 5,250 naira (about US$3.95).
CardinalStone says a 15% over-allotment option, known as a greenshoe, may apply if demand is strong. The shares are expected to list on the Nigerian Exchange in Lagos.
All US dollar figures here use about 1,330 naira per dollar, the market rate at Friday’s close on 2 October.
How Nigerians are buying
The company is pitching the deal as a “people’s IPO”, sold through banks, brokers, microfinance lenders and fintech apps. CardinalStone, for example, takes orders through its CS Alpha app and web portal.
Richmond Bassey, head of the investment app Bamboo, told Reuters that retail demand was “more like a tsunami” than a wave. He said new Bamboo accounts rose 350% in the week before the offer opened.
The campaign has reached far beyond Lagos. Roadshows have run in northern cities such as Kano. Dangote also promoted the offer in New York during the United Nations General Assembly.
What the money is for
CardinalStone says the proceeds will help fund an expansion of the plant from about 700,000 barrels a day to 1.4 million. That would place it among the largest single-site refineries in the world.
DW, the German public broadcaster, put the cost of the wider expansion at US$14.3 billion. Raising equity in naira should reduce reliance on costly dollar loans, a Lagos energy analyst told DW.
The refinery reported an after-tax profit of US$1.82 billion in the first half of 2026, DW reported. That followed a US$476 million loss for 2025.
Why the refinery matters to Nigeria
The plant began operating in 2024 and has reshaped Nigeria’s fuel market. According to DW, it turned Nigeria into a net exporter of refined fuel for the first time in early 2026.
It sits in the Lekki Free Trade Zone east of Lagos, beside a deep-sea port. That coastal site lets it import crude when local supply falls short and ship fuel abroad.
Dangote is also planning a second refinery in Kenya, on Africa’s Indian Ocean coast. His Nairobi visit in late September was tied to that project.
What foreign readers should know
The shares are priced and settled in naira, a currency that has lost much of its dollar value in recent years. Returns for a dollar-based investor depend heavily on the exchange rate.
Buying normally requires an account with a Nigerian stockbroker. Foreign residents should check eligibility, fees and repatriation rules with a licensed broker before applying.
Some business leaders and analysts have urged investors to judge the deal on its fundamentals, not on the founder’s fame. The Emir of Kano, Muhammadu Sanusi II, warned buyers not to use money needed for family obligations.
What to watch next
The Dangote Refinery IPO closes on 13 October. The key questions are whether the offer is enlarged, how shares are allotted and when trading on the Nigerian Exchange begins.
After that, attention turns to how quickly the expansion money is spent. Securing steady crude supply remains the refinery’s central operational test.
Frequently Asked Questions
When does the Dangote Refinery IPO close?
The offer opened on Monday 14 September and closes on Tuesday 13 October 2026, according to issuing house CardinalStone.
How much does one share cost?
Each share costs 525 naira, about US$0.39. The minimum order is 10 shares, or 5,250 naira (about US$3.95).
Can foreigners buy the shares?
Shares are sold in naira to holders of Nigerian brokerage accounts. Anyone abroad should check eligibility with a licensed Nigerian broker before applying.
What will the money be used for?
The proceeds should help expand the refinery near Lagos from about 700,000 to 1.4 million barrels a day.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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