By Ayomide Otitoju
Aliko Dangote is targeting a valuation of about $50 billion for his refinery business ahead of a planned initial public offering (IPO) in Nigeria later this year, according to a Bloomberg report citing people familiar with the matter.
The proposed listing could involve the sale of up to a 10 per cent stake in the business, potentially raising about $5 billion in what would rank among Nigeria’s largest capital market transactions.
A senior executive at the Dangote Group said the valuation reflects internal expectations but declined to comment on the timing or structure of the planned deal.
The 650,000-barrels-per-day refinery, located in the Lekki Free Zone in Lagos, has significantly reshaped Nigeria’s fuel market by reducing reliance on imported petroleum products. It is currently Africa’s largest single-train refinery.
The planned IPO comes amid stronger crude oil prices and rising domestic fuel demand, which have improved the refinery’s commercial outlook. The group has reportedly engaged a consortium of advisers, including Stanbic IBTC Capital, Vetiva Capital Management, and FirstCap, to manage different aspects of the offering, from international investors to local institutional and retail participation.
Dangote had earlier indicated plans to open up ownership of the refinery to Nigerian investors, marking its first public listing since it began operations. The facility, commissioned in May 2023 after nearly a decade of construction and about $20 billion in investment, reached full capacity of 650,000 barrels per day by February 2026.
Earlier market estimates placed the refinery’s value at $20–$25 billion, but improved operational performance and stronger global demand have pushed recent valuations to between $40 billion and $50 billion.
The refinery now supplies more than 90 per cent of Nigeria’s petrol demand and exports refined products, including diesel, aviation fuel, and petrol, to several African countries and international markets. It has also expanded petrochemical production, including polypropylene, which supports its dollar-denominated dividend structure backed by export earnings.
With regulatory approval still pending and a subscription window expected by August 2026, the IPO is set to be a landmark transaction in African equity markets.
