By Benson Daniel
The valuation of Dangote Petroleum Refinery has become a major focus of investor attention ahead of the company’s planned initial public offering, with the landmark share sale expected to become one of Africa’s largest capital market transactions.
The refinery is preparing to offer 4.1 billion ordinary shares at ₦525 each in an IPO designed to raise approximately ₦2.15 trillion from investors.
The offering is scheduled to open on September 14 and close on October 13, with the company expected to begin trading on the Nigerian Exchange later in the year.
The IPO will give investors an opportunity to take part in the ownership of the massive refinery while providing the company with additional capital to support its ambitious expansion plans.
The refinery currently has a processing capacity of about 700,000 barrels per day and plans to increase this to 1.4 million barrels per day by 2029. The expansion programme is expected to cost about $14.3 billion.
The company has also recorded a significant improvement in its financial performance. In the first half of 2026, the refinery posted an after tax profit of $1.82 billion, compared with a loss of $476 million recorded for the whole of 2025.
Its stronger earnings have added to investor interest in the IPO and strengthened expectations that the refinery could become one of the most valuable companies listed on the Nigerian capital market.
The refinery was built at an estimated cost of about $20 billion and has become a major force in Nigeria’s petroleum market since beginning operations. Its growing production has also allowed it to supply refined petroleum products to markets outside Nigeria.
The proposed share sale will initially represent only a minority portion of the business, meaning Aliko Dangote will continue to maintain overwhelming control of the refinery after the offering.
The transaction is also expected to broaden the refinery’s investor base, with the company targeting substantial participation from Nigerian retail investors as well as investors across Africa.
The size of the planned valuation has nevertheless generated debate among market participants, particularly when compared with established international refining companies with similar processing capacities.
Beyond raising funds, the IPO is expected to provide greater visibility into the financial performance of the refinery and create a market based valuation for one of Nigeria’s most important private sector investments.
For the Nigerian capital market, the transaction represents an important test of investor appetite for large scale industrial assets. A successful offering could strengthen confidence in the ability of the local market to support major companies seeking substantial long term capital.
The refinery’s expansion, meanwhile, is expected to increase its role in Nigeria’s energy supply chain and strengthen its position as a major exporter of refined petroleum products.
As the September 14 opening date approaches, investor attention is likely to remain focused on the company’s valuation, financial performance, future expansion plans and the potential returns available to shareholders.
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