Why Dangote Refinery IPO is successful — Petroleum minister

Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), has claimed the success of the Dangote Petroleum Refinery's initial public offering (IPO) is due to the Federal Government's deregulation of the petroleum sector. This statement came during a National Summit of the Forum of Former Presiding Officers of State Houses of Assembly of Nigeria in Abuja on Thursday.

The Dangote Refinery IPO, which began on September 14, involves 4.1 billion ordinary shares at N525 per share, aiming to raise N2.15tn. Described as Africa's largest IPO, the success of the offering is attributed to the government's decision to allow private-sector participation. Lokpobiri highlighted that the National Petroleum Company (NNPC) no longer imports refined products, thanks to the refinery becoming a shareholder of Dangote Refinery.

The minister expressed optimism that the IPO would be oversubscribed and connected the reduction of fuel queues since 2023 to the reforms in the sector. He emphasized that these successes are a result of President's decision to fully deregulate the petroleum sector, leading to increased foreign exchange earnings, which account for about 85 percent of the country's forex.