Africa’s richest man Aliko Dangote’s $1.6 billion refinery IPO could multiply Nigeria’s active investors fivefold and connect its shares to markets across Africa

Africa’s richest man, Aliko Dangote, could bring millions of Nigerians into the stock market through the $1.6 billion public offering of his oil refinery, according to the head of the country’s exchange. Temi Popoola, chief executive of Nigerian Exchange Group, said the landmark share sale could multiply Nigeria’s active investor population by between three and five times.

• Aliko Dangote’s refinery IPO could increase Nigeria’s active investor population by between three and five times.
• The company is offering 4.1 billion shares at $0.39 (₦525) each, targeting about $1.6 billion.
• The Nigerian Exchange is pursuing links with markets including Egypt, Kenya, Botswana and Ethiopia.
• Depositary-receipt arrangements could eventually allow investors to access shares across different African markets.

The refinery is offering 4.1 billion ordinary shares at $0.39 (₦525) each, placing the initial size of the transaction at approximately $1.6 billion (₦2.15 trillion). Investors can subscribe for a minimum of 10 shares, costing about $3.90 (₦5,250).

The offering, which opened on 14 September, is scheduled to close on 27 October after Nigeria’s Securities and Exchange Commission approved an extension intended to accommodate wider participation.

If completed at its targeted size, it would become Africa’s biggest initial public offering and open public ownership in the continent’s largest refinery, while Dangote retains control of the business.

Reuters reported⁠ on 22 October that Popoola expects the offer to produce three to five times the number of active investors currently trading in Nigeria. Although roughly 12 million Nigerians participate in capital markets in some form, only hundreds of thousands trade actively.

Dangote’s IPO reaches investors beyond traditional brokers

The exchange and participating institutions are promoting the offer through digital channels, point-of-sale terminals, WhatsApp and basic mobile phones. The strategy is designed to reach Nigerians who may not have conventional brokerage accounts.

Dangote has called the transaction an “IPO for the people”, presenting it as an opportunity for ordinary Africans to own part of one of the continent’s most valuable industrial businesses.

The official offer portal⁠ states that investors can subscribe for as few as 10 shares. This relatively low entry point could broaden participation beyond pension funds, asset managers and wealthy investors.

The refinery began production in 2024 and has since helped reduce Nigeria’s dependence on imported petroleum products. Its current processing capacity is about 700,000 barrels per day, with plans to increase capacity to 1.4 million barrels per day.

Proceeds from the offering are expected to support that expansion and other investments associated with the refinery and its petrochemical operations.

Connecting Nigeria’s shares with other African markets

The potential impact extends beyond Nigeria. Popoola said the Nigerian Exchange was strengthening links with exchanges in Egypt, Kenya, Botswana and Ethiopia.

These connections would rely partly on depositary receipts, financial instruments that represent shares in a company but can be traded on another market. Some of the necessary arrangements are already in place, while others still require regulatory approval.

The infrastructure could eventually allow investors in participating African countries to obtain exposure to Nigerian-listed businesses without completing every transaction directly through the Nigerian market.

It does not mean that Dangote refinery shares are already trading simultaneously on all the named exchanges. Cross-border access remains dependent on regulatory approvals, participating brokers and the completion of the relevant depositary-receipt arrangements.

Popoola said more Nigerian companies were also considering listings in London, New York and the Middle East. Seplat Energy, Airtel Africa and Guaranty Trust Holding Company already maintain secondary listings in London, while Dangote Cement is considering an international listing.

The refinery offer is more than a test of investor demand for Dangote’s flagship asset. It will also show whether Nigeria can turn millions of savers into active shareholders and strengthen investment links across Africa.