Africa's richest man launches continent's biggest share sale
Nigerian billionaire Aliko Dangote has launched the largest-ever public share offering in Africa, selling a stake in his oil refinery in a deal that could raise up to $2.1bn.
Nigerian businessman Aliko Dangote has launched what is being described as Africa's largest-ever initial public offering (IPO), putting roughly 3% of his oil refinery up for sale to the public. The deal could raise as much as $2.1bn. Dangote said he wanted to give ordinary Nigerians a chance to benefit from the refinery's success.
The refinery began operating in 2024 and is one of the largest in the world, having taken more than a decade to complete. It now supplies over 70% of Nigeria's energy consumption. Many Nigerians have shown strong interest in investing — the minimum purchase is 10 shares, costing around $4, and the offer will run for a month.
Warnings for investors
Economy and business expert Dr Abdulrazak Ibrahim Fagge called the event historic, but warned that share prices could fall, meaning investors could lose some of their money. He advised people not to invest all their savings or money they might need in the coming months, but only funds they could go without for several years. He also warned of scammers who might try to exploit inexperienced investors, urging people to deal only with officially listed institutions.
About the refinery and its owner
Nigeria is Africa's biggest oil producer, but before the refinery opened, most fuel had to be imported due to a lack of domestic refining capacity. Dangote, 67, whose net worth is estimated at around $28bn, originally built his fortune in cement and sugar before expanding into 16 other African countries.
The Lagos refinery was first announced in 2013 with an estimated cost of around $19bn, but construction did not begin until 2017 and was further delayed by the Covid-19 pandemic. The site, near the Lekki Free Zone, required extensive land reclamation, moving 65 million cubic metres of sand. The refinery has a processing capacity of 650,000 barrels per day, making it the seventh-largest in the world. Proceeds from the share sale are intended to help double that capacity.
