• Aliko Dangote plans to sell a 10 per cent stake in the Dangote Refinery through a Pan-African IPO in 2026
• The refinery is valued at about $20 billion and currently processes 650,000 barrels of crude oil per day
• Investors in the IPO are expected to receive dividends in dollars after listing

The Dangote Group is pressing ahead with plans to sell a 10 per cent stake in its 650,000-barrel-per-day refinery through what could become one of the biggest cross-border share offerings in Africa.

Speaking at an event organised by the Atlantic Council in Washington DC on Thursday, April 16, Aliko Dangote said the Pan-African IPO would help support long-term investments and encourage wider participation in African capital markets.

According to Dangote, shareholders in Dangote Petroleum Refinery and Petrochemicals FZE will receive dividends in dollars after the company is listed, although he did not reveal the full financial details of the planned share sale.

He also disclosed that the company has appointed Stanbic IBTC Capital Ltd., Vetiva Advisory Services Ltd. and FirstCap Ltd. as advisers for the IPO.

Dangote said the proposed listing is part of a broader strategy to invest about $40 billion over the next five years to expand refining, fertiliser production and mining operations across Africa.

The expansion plan includes quadrupling fertiliser output, significantly increasing refining capacity, and developing potash and phosphate plants in the Democratic Republic of Congo, alongside copper refining projects in Zambia.

Dangote added that the 650,000-barrel-per-day refinery, which is the largest in Africa, recently reached full operational capacity.

He noted that this came at a time when supply disruptions caused by tensions in the Middle East had increased global demand for its petroleum products.

He further said the refinery has become a major supplier of jet fuel to Europe, strengthening its role in international energy markets and boosting Nigeria’s position in global refining and exports.

Also speaking, the senior vice president of refining, chemicals and oil markets at consultancy Wood Mackenzie, Alan Gelder, said the refinery remained highly profitable.

He said this was due to rising export volumes and strong demand across several product categories.

Gelder said data showed that diesel exports increased to about 79,500 barrels per day in April from 73,600 barrels per day in March, while gasoline shipments fell to 50,100 barrels per day from nearly 102,400 barrels per day previously.

Dangote refinery secures $4bn loan as Afreximbank takes lead

Meanwhile, TheRadar earlier reported that the African Export-Import Bank had taken the lead in a major $4bn financing deal for Dangote Petroleum Refinery and Petrochemicals, underwriting $2.5 billion of the senior syndicated term loan aimed at strengthening the refinery’s financial structure and supporting its expansion.

The loan is designed to consolidate existing debt, optimise the refinery’s capital framework, and align its financing with its current operational phase.

Described as a landmark transaction, the deal reinforces the refinery’s position as Africa’s largest, boasting a capacity of 650,000 barrels per day.