By Franklin Adole
Africa’s largest refinery, owned by billionaire industrialist Aliko Dangote, is intensifying preparations for its anticipated initial public offering (IPO), with plans to raise about $2 billion from private investors while simultaneously expanding petroleum exports across major European markets.
Dangote disclosed the planned private placement on Wednesday during a visit by Femi Otedola, chairman of First HoldCo, who led top executives of the financial institution on a tour of the refinery and fertiliser complex located in the Lekki Free Trade Zone in Lagos.
The delegation also inspected major infrastructure projects within the facility, including the refinery’s jetty designed to receive large cargo vessels.
The proposed $2 billion fundraising drive is the latest step in Dangote Refinery’s broader IPO strategy expected later this year.
Earlier this month, Bloomberg reported that the refinery could be valued at as much as $50 billion ahead of the planned listing. Dangote had previously indicated that up to 10 per cent of the company could be offered to investors, a stake estimated at roughly $5 billion based on the projected valuation.
Although no official date has been announced for the IPO, the refinery is expected to go public before the end of the year.
Dangote has also signalled plans for a cross-border listing, saying the move would allow Africans to directly participate in financing the continent’s industrialisation drive.
Meanwhile, fresh shipment data released by S&P Global Energy showed that Dangote Refinery is rapidly increasing jet fuel exports across Europe, with products now reaching the United Kingdom, Netherlands, France, Spain, Italy, and Morocco.
The data, presented during an industry briefing in Kazakhstan on Wednesday, highlighted rising export volumes of jet fuel, gasoline, gasoil, and naphtha from the Lagos-based refinery between 2024 and 2026, underscoring its growing influence in international fuel supply chains.
Analysts attributed Europe’s rising appetite for Nigerian aviation fuel to tightening global fuel supplies triggered by geopolitical tensions in the Middle East, disruptions along major oil shipping routes, and refinery outages in key markets.
Industry reports indicate that the United Kingdom currently accounts for about 20 per cent of Dangote Refinery’s jet fuel exports as airlines and fuel distributors seek alternative supply sources ahead of the busy summer travel season.
Other European countries, including France, Spain, Italy, and the Netherlands, are also increasingly sourcing fuel from the refinery as part of efforts to diversify energy supplies away from conflict-prone regions.
Since reaching full operational capacity earlier this year, the 650,000 barrels-per-day refinery has steadily ramped up exports of refined petroleum products to markets across Africa and beyond.
Energy experts say the refinery’s Atlantic coastal location and expanding production capacity have positioned Nigeria as a strategic supplier in Europe’s evolving aviation fuel market.
The export growth is also expected to strengthen Nigeria’s role in the global downstream oil sector while boosting foreign exchange earnings and refining competitiveness.
Speaking during the visit, Otedola also announced plans to personally invest $100 million in the refinery as part of the ongoing private placement.
“On a personal note, I’ve appealed to him,” Otedola said. “I’ve been here with him 25 times, so my compensation is that he’s going to allocate to me shares worth 100 million dollars in the private placement.”
The billionaire investor added that he sold his stake in Geregu Power Plc partly to free up funds for investment in the Dangote Refinery IPO.