Africa’s richest man, Aliko Dangote, is targeting a valuation of up to $50 billion for the Dangote Refinery ahead of its planned listing on the Nigerian stock market later this year.
According to a Bloomberg report citing sources familiar with the development, the company plans to sell up to a 10 per cent stake in the refinery, potentially raising about $5 billion in what could become one of the biggest capital market transactions in Nigeria’s history.
A senior executive at the Dangote Group confirmed that the projected valuation reflects the company’s internal expectations but declined to provide details on the timing or structure of the offering.
Located in the Lekki Free Zone in Lagos, the refinery has a production capacity of 650,000 barrels per day, making it Africa’s largest single-train refinery.
Since commencing large-scale production of petrol, diesel, and aviation fuel, the refinery has significantly reduced Nigeria’s dependence on imported petroleum products while boosting local refining capacity.
The planned listing comes amid rising global crude oil prices and stronger domestic fuel demand, both of which have strengthened the refinery’s commercial outlook.
Bloomberg reported that the Dangote Group has appointed a consortium of financial advisers to oversee the transaction.
Stanbic IBTC Capital will lead the international book-building process and engage foreign portfolio investors under the Standard Bank network.
Vetiva Capital Management will coordinate retail investor participation within Nigeria, while FirstCap will focus on placements with Nigerian institutional investors, especially pension funds.
Dangote recently hinted that Nigerian investors would soon be given an opportunity to directly acquire shares in the refinery business as part of efforts to deepen local participation in the energy sector.
The initial public offering is expected to feature a unique dividend structure that allows investors to buy shares in naira while receiving returns in US dollars.
The structure is reportedly backed by an estimated $6.4 billion in annual petrochemical export revenue generated by the refinery.
With the prospectus already submitted for regulatory review and the subscription window expected to open by August 2026, analysts say the IPO could redefine the scale of African equity markets.
The refinery, commissioned in May 2023 after nearly a decade of construction, was built at an estimated cost of about $20 billion.
By February 2026, it had reached full operational capacity, processing 650,000 barrels of crude oil daily.
Earlier valuations released in 2025 estimated the refinery’s worth at between $20 billion and $25 billion. However, stronger operational performance and increased global demand for refined products have reportedly pushed its valuation to between $40 billion and $50 billion.
Across the Dangote Group’s businesses, revenues have grown from $3.3 billion to $18 billion over the past five years, while EBITDA increased from $1.8 billion to $2.8 billion during the same period.
The refinery currently exports refined products to several African countries, including Ghana, Cameroon, Togo, and Tanzania, as well as markets in Europe.
It reportedly supplies more than 90 per cent of Nigeria’s petrol demand and has exported over 456,000 tonnes of refined fuel to five African countries.
Beyond fuel production, the refinery also manufactures petrochemical products such as polypropylene, which is widely used in plastics manufacturing and industrial packaging.
The petrochemical division has become a major source of revenue and is central to the refinery’s planned dollar-denominated dividend structure.
Jet fuel exports from the facility reportedly rose by 770 per cent between 2024 and 2026, with Europe receiving approximately 70,000 barrels daily to help offset supply disruptions linked to tensions in the Middle East.
The refinery is also supported by an extensive pipeline network spanning about 1,100 kilometres, connecting crude oil supply routes to processing and distribution infrastructure.
