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Dangote Sets $47 Billion Valuation for Nigeria Refinery IPO

By Markets Desk · 2026-09-14 · 1 min read
A large industrial oil refinery complex with tall smokestacks and storage tanks situated near a coastline
Illustration: Tradingbird

Aliko Dangote prices Africa's largest share offer at $47 billion, targeting $1.6 billion in proceeds to fund a massive capacity expansion for his Nigerian refinery.

Aliko Dangote priced his Nigerian refinery at $47 billion on Monday. The offer includes 4.1 billion shares sold at 525 naira each. The subscription period ends on October 13. Full subscription would raise $1.6 billion. The greenshoe option could lift total proceeds to $2.1 billion. This valuation reflects the refinery's processing capacity of 700,000 barrels per day.

The company reported an after-tax profit of $1.82 billion for the first half of 2026. This compares to a loss of $476 million for the full year 2025. Supply disruptions linked to the Iran war increased demand for the refinery's jet fuel. Demand rose across Africa and Europe. Dangote plans to use the raised capital for a $14.3 billion expansion project.

Expansion Plan Targets 1.4 Million Barrels

The $14.3 billion project aims to double daily output by 2029. The new capacity will reach 1.4 million barrels per day. The existing plant outside Lagos began operations in 2024. It currently supplies most of Nigeria's domestic gasoline. The facility is valued at approximately $20 billion before the expansion.

Retail Investors Drive Early Interest

Dangote marketed the offer directly to ordinary Nigerians. Fintech platforms allow purchases of as few as 10 shares. Chris Chijioke, a Lagos business owner, plans to buy 2,000 shares. He described the pricing as overvalued due to expansion risks. Ibrahim Abubakar, a journalist, intends to purchase 2,850 shares. He views the refinery as too big to fail.

Strategic Partnerships and Future Projects

UAE state oil company ADNOC has expressed interest in investing in the refinery. Terms for this investment remain undisclosed. Dangote is separately negotiating a $17 billion refinery on Kenya's Lamu Island. Kenya would hold a 10 percent equity stake worth $500 million. Other East African governments may also take stakes. Dangote expects IPO demand to mirror a July private placement that was 3.7 times oversubscribed. According to GN auto markets/energy: crude oil prices, the broader context supports strong energy sector activity.

Based on reporting by oilprice.com, compiled by the Tradingbird desk.

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