Nigeria’s Dangote refinery plans $14 billion expansion as it signs IPO documents

Nigeria's Dangote oil refinery aims to expand its processing capacity by $14.3 billion, according to the company's announcement on Monday, as it prepares for its initial public offering (IPO) slated to become Africa's largest. The expansion project, slated to be completed by 2029, would increase the refinery's capacity from 700,000 barrels per day to 1.4 million barrels per day.

The IPO, which aims to raise approximately 2.15 trillion naira ($1.63 billion), will be open for trading from September 14 to October 13. Shares may start trading in late November, as indicated in the indicative listing timetable. The refinery, which began operations in 2024, is part of Africa's richest man Aliko Dangote's expansive business empire, which includes cement and sugar assets.

Dangote stated that the refinery has benefited from supply disruptions caused by conflicts in the Middle East and Ukraine, exporting jet fuel across Africa and into Europe. United Arab Emirates state oil company ADNOC (ADNOC.UL) has shown interest in investing in the plant but declined to comment further due to non-disclosure agreements. The IPO prospectus revealed that the refinery made an after-tax profit of $1.82 billion in the first half of 2026, compared to a $476 million loss for all of 2025.

The IPO initially offers 4.1 billion ordinary shares at 525 naira each, with a "greenshoe option" that allows for up to 30% more shares to be sold if demand exceeds the initial offering. Dangote plans to use the IPO to enable widespread participation, allowing Nigerians and the Nigerian diaspora, as well as Africans more broadly, to benefit from the wealth created by this iconic industrial asset. Additionally, Dangote intends to build a new refinery on Kenya's coast in partnership with East African governments.