By Ayomide Otitoju
Economist Bismarck Rewane has urged Nigerians to take advantage of the Dangote Refinery Initial Public Offering (IPO), saying investment in the company could offer greater long-term value than selling their Permanent Voter Cards (PVCs) for short-term gains.
Speaking on the potential impact of the IPO, Rewane said the offering could deepen Nigeria’s investment culture by encouraging more Nigerians, particularly those with lower incomes, to become shareholders and participate directly in the capital market.
“You are better off with your N5,000 share than selling your PVC for N10,000 or N15,000 and consuming it,” Rewane said.
He said the IPO could help shift Nigerians from short-term consumption towards long-term investment, describing the plan to attract 10 million investors as a significant milestone.
“The reality is that targeting 10 million investors is also a milestone,” he said.
According to Rewane, if 10 million Nigerians become shareholders in Dangote Refinery, the company could have one of the largest shareholder bases globally.
He said the significance of the IPO goes beyond the number of shareholders, arguing that widespread participation could help foster an investment culture among Nigerians.
Rewane also contrasted investment with gambling and betting, saying investments are based on identifiable parameters, while gambling largely involves taking chances.
“The difference between a gambling act, a lottery act and an investment is that in one case, you are investing based on known parameters; in the other one, you are actually just gambling and taking a chance,” he said.
The economist described the potential participation of millions of Nigerians in the IPO as a form of economic democratisation, saying it would allow citizens to participate directly in the country’s economic process.
“Therefore, you are democratising the market and economic process as distinct from democratizing the electoral process,” he said.
Rewane added that investing in Dangote Refinery would enable Nigerians to participate in the growth of a major domestic company rather than remain only consumers of its products.
He also highlighted the refinery’s potential role in the African petroleum industry, saying it could become a major refining and petroleum products marketing hub for West and Central Africa.
“So it is a compelling investment opportunity which puts revenue and profits and dividends into the pockets of consumers and investors, puts a lot of tax revenue in the pockets of the government,” Rewane said.
