President of Dangote Industries Limited, Aliko Dangote, has announced plans to expand the Dangote Petroleum Refinery‘s capacity to 1.4 million barrels per day by early 2029, from its current 500,000 barrels, amid persistent challenges in the petroleum industry.
Dangote also assured small investors that they would be accommodated in the refinery’s ongoing initial public offering (IPO), signalling plans to widen public participation in the facility’s ownership.
Dangote gave the assurances on Monday during a virtual session at the final IPO roadshow, themed Back to Where It All Began, organised by the Financial Derivative Company on behalf of Dangote Petroleum Refinery in Rivers State.
Dangote also projected significant growth in the refinery’s petrochemical operations, saying the facility would produce 2.5 million tonnes of polyolefin and 400,000 metric tonnes of linear alkylbenzene, which he described as major milestones for Africa’s industrial development.
“By 2029 beginning, we will be at 1.4 million barrels per day. That is a total of 10 per cent of America’s total refining capacity,” Dangote said.
He added, “We will be at 2.5 million tonnes of polyolefin, which is the largest ever in African history.”
Responding to concerns about the reported oversubscription of the IPO and its limited share offering, Dangote assured prospective investors that smaller subscribers would be prioritised.
“Most of the smaller people who are bidding for 50,000 shares and below will definitely be sure that we accommodate all of them,” he said, drawing applause from participants.
The industrialist also defended the offer price of N525 per share, describing it as attractive and expressing confidence in the refinery’s financial performance.
“I think it’s an extremely very, very good price,” he said, adding that the company’s performance could surpass its projected full-year earnings.
Dangote further described the shares as a long-term investment opportunity, saying investors could potentially more than double their investments within two and a half years. However, such returns are not guaranteed.
Speaking at the event, the Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, urged Nigerians to see the IPO as an opportunity to transition from consumers to investors in strategic national infrastructure.
Rewane said the refinery’s public listing could significantly expand the Nigerian capital market, projecting that market capitalisation could exceed N220tn following the listing.
Also , an economist, Muda Yusuf said the investment could strengthen Nigeria’s economic fundamentals through industrialisation, employment generation, reduced dependence on imported petroleum products and increased foreign exchange stability.
He said the refinery’s impact extended beyond fuel production to petrochemicals, packaging, plastics and other industries that depend on locally processed raw materials.
Yusuf added that the IPO would deepen public participation in the capital market and promote wider ownership of strategic industrial assets.
In his remarks, Senior Advocate of Nigeria, Paul Usoro, urged residents of the South-South region, particularly those in oil-producing communities, to participate in the share offering.
Usoro, who disclosed that he had invested in the refinery, said Nigerians should have a stake in an industry built around the country’s natural resources.
He also recalled the long queues that characterised fuel scarcity in the past, arguing that domestic refining capacity could help reduce such disruptions.
