Dangote Refinery IPO better than selling PVC for N10,000, Rewane says

Economist Bismarck Rewane has advised Nigerians to invest in Dangote Refinery's Initial Public Offering (IPO) instead of selling their Permanent Voter Cards (PVCs) for a quick financial gain. According to Rewane, the IPO could encourage millions of Nigerians, especially low-income earners, to shift from short-term consumption to long-term investment by becoming shareholders in one of the country's largest companies.

Speaking on Channels Television's Business Morning, Rewane stated, "You are better off with your N5,000 share than selling your PVC for N10,000 or N15,000 and consuming it." He added that the investment could generate up to N300,000 within 2 to 3 years, depending on the final figures disclosed in the prospectus.

Rewane emphasized that the IPO could also mark a significant milestone for Nigeria's capital market if it attracts around 10 million investors. The economist noted that the refinery’s revenue and revenue profile far exceed the Nigerian budget for the Nigerian state, as evidenced by the half-yearly revenue reported by the Dangote Refinery.

The planned scale of the IPO could create a vast shareholder base for the refinery, making it the company with the largest number of shareholders globally, according to Rewane. He argued that widespread participation in the IPO could foster a stronger investment culture in the country.

Contrasting investment with gambling and betting, Rewane described investment as a process based on known parameters, while gambling involves taking a chance on uncertain outcomes. He described the broader participation in the IPO as economic democratisation, enabling Nigerians to directly contribute to the growth of a major domestic company.

In addition to potential financial benefits, Rewane argued that the refinery could become a major petroleum refining and marketing hub for West and Central Africa, potentially benefiting investors through dividends, profits, and government revenue.