The Dangote Petroleum Refinery has been valued at $39.1 billion as it moves to raise about $1 billion in fresh capital through a private placement, underscoring growing investor confidence in what has become one of Africa’s most significant industrial assets.
According to an Information Memorandum made available to investors, the refinery is offering three billion ordinary shares at $0.35 per share. Market indications suggest the fundraising exercise has already attracted demand exceeding $2 billion, more than double the targeted raise, raising the prospect of an oversubscribed offer.
The transaction values the 650,000-barrels-per-day refinery at approximately $39.1 billion, placing it among the most valuable privately held companies on the continent and highlighting its strategic importance to Nigeria’s energy sector.
The refinery currently has a share capital of about 111.67 billion ordinary shares. Under the terms of the offer, investors must subscribe for a minimum of one million shares, equivalent to $350,000, with additional subscriptions accepted in multiples of 500,000 shares. Investors will also be subject to a 365-day lock-up period from the date of allotment.
According to the memorandum, proceeds from the fundraising will support ongoing expansion projects and general corporate purposes as the company seeks to consolidate its position in regional energy markets.
The capital raise comes amid growing recognition of the refinery’s role in reshaping Nigeria’s petroleum industry. Since commencing production in 2024, the facility has expanded operations across multiple product lines, including diesel, aviation fuel, naphtha and premium motor spirit (PMS), significantly reducing the country’s dependence on imported refined petroleum products.
Industry analysts say the refinery has already altered fuel supply dynamics within Nigeria while opening new export opportunities across West Africa and beyond.
The valuation also reflects expectations that the refinery will continue to generate substantial earnings from both domestic supply and regional exports. Investors appear to be betting on sustained demand for refined petroleum products as well as the facility’s scale advantages as one of the world’s largest single-train refineries.
While the memorandum does not provide a detailed breakdown of expansion projects, market participants expect further investment in logistics infrastructure, storage capacity and distribution networks. Additional expansion into related petrochemical operations is also widely anticipated.
The fundraising effort is likely to renew speculation about a future public listing of the refinery. Chairman of Dangote Industries, Aliko Dangote, has previously indicated plans to eventually list the refinery on the capital market, although no timeline has been disclosed.
For investors, the private placement offers a rare opportunity to acquire a stake in a strategic asset at the centre of Nigeria’s transition from a major importer of refined fuels to a potential net exporter. If completed as expected, the transaction could rank among the largest private capital raises in Nigeria’s corporate history and serve as a major test of investor appetite for large-scale industrial assets.