The Dangote Petroleum Refinery & Petrochemicals has taken a major step toward going public after submitting its initial application to Nigeria’s Securities and Exchange Commission (SEC) for a proposed $5 billion Initial Public Offering (IPO).
If approved and completed at the targeted size, the offering would become the largest stock market listing in Africa, marking a major milestone for Nigeria’s capital market and the continent’s investment landscape.
According to sources familiar with the transaction cited by Reuters, the refinery submitted its initial application to the SEC and is now awaiting regulatory approval. If the proposal receives the necessary clearance, the company is expected to publish its prospectus in September before launching the share sale in October.
The proposed IPO is expected to raise approximately $5 billion, although the final size will depend on the amount approved by Nigerian regulators. The primary listing is expected to take place on the Nigerian Exchange (NGX).
One source familiar with the transaction said the $5 billion target could represent a significant portion of Nigeria’s equity market. With the NGX All-Share Index’s total market capitalisation estimated at around $116 billion, the proposed Dangote Refinery offering would be equivalent to slightly more than four per cent of the market.
The funds raised through the IPO are expected to support the refinery’s expansion plans. The company intends to increase its Lagos-based facility’s production capacity from its current level to approximately 1.4 million barrels per day, further strengthening its position as one of Africa’s largest refining operations.
The proposed listing is already attracting interest from investors and capital markets across the continent. Stock exchanges and financial market authorities in countries including South Africa, Kenya, Egypt, Ghana and Rwanda have reportedly engaged with advisers working on the transaction.
Kenya, in particular, could become a significant source of demand. One source said investors in the country’s capital market could potentially contribute as much as $500 million to the offering, with pension funds and other institutional investors showing strong interest.
Dangote Refinery also wants the IPO to appeal to investors beyond Nigeria. Rather than pursuing a cross-listing or dual listing on multiple African exchanges, the company is reportedly considering structured investment products that would allow investors in other countries to gain exposure to the shares listed on the Nigerian Exchange.
Such instruments could potentially include global depositary receipts or exchange-traded products that track the underlying Nigerian-listed shares and provide investors with associated dividend rights.
The proposed public offering follows a $2.5 billion private placement completed in the previous month, through which investors acquired a six per cent stake in the refinery. That transaction placed the company’s valuation at approximately $40 billion.
The valuation has attracted attention because it is considerably higher than the market values of some major publicly listed international refiners. Turkey’s Tupras, for example, has a refining capacity comparable to Dangote’s combined operations but a market value of roughly $12 billion. U.S.-listed HF Sinclair, which operates with a refining capacity of about 678,000 barrels per day, has a market capitalisation of approximately $16 billion.
The Dangote refinery reportedly cost around $20 billion to construct. The facility began operations in 2024 and reached full production capacity earlier in 2026, establishing itself as a major component of Nigeria’s strategy to reduce dependence on imported refined petroleum products.
The Nigerian National Petroleum Company Limited (NNPCL) currently holds slightly more than seven per cent of the refinery.
Dangote Industries announced in April that it plans to expand the facility’s capacity to 1.4 million barrels per day, which would further increase its ability to supply refined petroleum products to Nigeria and international markets.
The proposed IPO could also introduce greater flexibility for investors. According to sources familiar with the transaction, investors may have the option of subscribing for the offering and receiving returns in either naira or U.S. dollars.
Beyond raising capital, Dangote is reportedly positioning the IPO as a broader African investment opportunity. The ambition is to turn the offering into what sources described as an “African champion”, allowing investors and capital markets across the continent to participate in financing one of Africa’s most significant industrial projects.
If regulators approve the proposed offering and the refinery succeeds in raising the targeted $5 billion, the IPO would represent a landmark moment for Dangote Refinery, the Nigerian Exchange and Africa’s wider capital markets, potentially setting a new benchmark for large-scale corporate fundraising on the continent.
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