By Ukumbi Afrika 
Thursday, 13th August 2026
Abuja— Nigeria’s Dangote Petroleum Refinery is targeting about $5 billion from an initial public offering (IPO) expected to conclude in October, potentially making it Africa’s largest-ever stock market listing, according to a source familiar with the plan.
The Lagos-based refinery, majority owned by Africa’s richest man Aliko Dangote, has submitted an initial IPO application to Nigeria’s Securities and Exchange Commission, with regulatory approval expected in the coming weeks.
The refinery could publish a prospectus as early as September, the source said, although the final size of the offering will depend on the outcome of the regulatory review.
Funds To Support Expansion
Dangote plans to use proceeds from the IPO to increase production capacity at its 650, 000-barrel-per-day refinery and support ambitions to replicate the project elsewhere in Africa.
Dangote has previously said he wants the refinery's output eventually increased to 1.4 million barrels per day.
The company is also considering the development of a refinery along Kenya's coast in partnership with East African governments, although it remains unclear whether IPO proceeds would be allocated to that project.
The broader strategy reflects Dangote's ambition to reduce Africa's dependence on imported petroleum products while positioning the continent as a major refined-fuel exporter.
Pan-African Investor Interest
The planned IPO has attracted interest from capital markets across Africa.
Stock exchanges and financial-market authorities in South Africa, Kenya, Egypt, Ghana and Rwanda have held discussions with the refinery's advisers about participating in the transaction.
Kenya could potentially raise as much as $500 million of the IPO target, according to the source, with local pension funds and other institutional investors showing strong interest.
However, the refinery is not currently planning a conventional dual listing outside Nigeria.
Instead, regional investors could gain exposure through structured instruments such as global depositary receipts or exchange-traded instruments linked to shares listed in Nigeria.
$40 Billion Valuation Under Scrutiny
The proposed IPO comes after a $2.5 billion private placement for a 6% stake in the refinery last month, implying a valuation of roughly $40 billion, according to a source familiar with that transaction.
Such a valuation would place Dangote Refinery well above several publicly traded refining companies.
Turkey's Tupras, which has roughly the same combined refining capacity across four plants, has a market value of about $12 billion, while U.S.-listed HF Sinclair, with refining capacity of about 678, 000 barrels per day, has a market capitalisation of around $16 billion.
The valuation and size of the IPO are therefore likely to be closely watched by African and international investors.
Impact On Nigeria's Capital Market
A $5 billion offering would be significant for Nigeria's stock market.
The target represents more than 4% of the Nigerian All Share Index's total market capitalisation, which stood at about $116 billion at the time of the Reuters report.
Nigeria's main board generally requires companies to maintain a minimum 20% free float, although exceptions exist. Dangote Cement, another company within Dangote's industrial empire, has a free float of just over 12.7%.
The refinery's IPO could therefore substantially deepen Nigeria's capital market and provide pension funds, institutional investors and retail investors with access to one of Africa's largest industrial assets.
African Energy Champion
Dangote, whose estimated wealth stands at between $31 billion and $35 billion, has built a conglomerate spanning cement, sugar, salt and vehicle assembly across several African countries.
The refinery IPO is intended to have a distinctly pan-African character, according to the source, allowing capital markets across the continent to participate in what Dangote sees as an African industrial champion.
Investors are expected to have the option of receiving returns in either naira or U.S. dollars, according to the source.
The refinery, which cost roughly $20 billion, began operations in 2024 and reached full capacity earlier this year. Nigeria's state-owned oil company, NNPC, holds a stake of slightly more than 7%.
If completed at the targeted size, the transaction would mark a major milestone for Nigeria's capital markets and potentially reshape how large African infrastructure and energy projects access domestic and regional investment capital.
Source: Reuters
Reporting: Duncan Miriri, Chijioke Ohuocha, Macdonald Dzirutwe, Alex Lawler.
Editing: Silvia Aloisi& Emelia Sithole-Matarise