The Securities and Exchange Commission (SEC) has moved to protect investors and preserve market integrity after uncovering what it described as an unauthorised campaign promoting a purported Initial Public Offering (IPO) of Dangote Petroleum Refinery and Petrochemicals FZE.
In a strongly worded public notice on Tuesday, the commission said it had neither received nor approved any application for a public offering or IPO by the refinery, warning that ongoing promotional activities surrounding the alleged offer amounted to a serious breach of capital market regulations.
The intervention follows the circulation of advertisements, flyers, digital banners and targeted electronic messages across social media platforms and investment channels claiming that investors could secure allocations in a proposed Dangote Refinery share sale.
SEC said its concern was heightened by the alleged involvement of some registered Capital Market Operators (CMOs), who were reportedly soliciting advance subscriptions and encouraging investors to position for allocations in an offering that does not exist in any approved form.
The regulator described the activities as potentially misleading and capable of distorting market expectations around one of Nigeria’s most strategically important industrial assets.
By ordering an immediate halt to all promotional activities linked to the purported offer, SEC has effectively drawn a regulatory line against speculative fundraising and unauthorised capital market promotions.
The commission directed stockbrokers, digital investment promoters and other registered operators to cease all marketing activities relating to the alleged offer, stop distributing promotional materials and remove existing content from websites, social media platforms and messaging channels within 24 hours.
More significantly, SEC ordered operators to stop accepting deposits, commitments, account openings and expressions of interest linked to the purported offering.
It further directed that all funds already collected from investors in connection with the alleged share sale be refunded within 24 hours.
Market analysts say the regulator’s swift response reflects growing determination to enforce provisions of the Investments and Securities Act (ISA) 2025 and strengthen investor protection in an era of increasing digital investment promotions.
The incident also highlights the enormous investor interest that any potential public offering involving the Dangote Refinery would attract.
Since commencing operations, the refinery has become one of the most closely watched industrial projects in Africa, with investors frequently speculating about the possibility of future public participation in the business.
That heightened interest appears to have created fertile ground for unauthorised promotions seeking to capitalise on the refinery’s profile and perceived investment appeal.
SEC warned that invitations asking investors to create accounts, pre-fund wallets, or secure guaranteed share allocations in anticipation of an IPO constituted market manipulation and violated provisions of the ISA 2025.
The commission advised investors to rely solely on official regulatory disclosures and approved offer documents when making investment decisions.
It also urged the public to disregard high-pressure sales tactics and requests for transfers of funds tied to any purported pre-IPO placement involving the refinery.
According to SEC, should Dangote Petroleum Refinery and Petrochemicals FZE decide to pursue a public offering in the future, the process would be subject to regulatory review and approval, after which an authorised prospectus would be made available to investors in accordance with the law.
The regulator warned that any operator found violating its directives would face sanctions under the ISA 2025 and existing SEC rules, signalling a tougher stance against activities capable of undermining confidence in Nigeria’s capital market.