• Femi Otedola sold his stake in Geregu Power to invest in Dangote Refinery’s planned IPO
• He seeks $100 million worth of shares in the refinery’s private placement
• Otedola described Dangote Refinery as a transformative project capable of reducing Africa’s dependence on imported fuel

Nigerian billionaire investor Femi Otedola has revealed that he sold his stake in Geregu Power Plc to free up capital for investment in the planned initial public offering of the Dangote Petroleum Refinery, which he described as a game-changing project for Africa’s industrial future.

Otedola made the disclosure during a visit by the board and management of FirstHoldCo to the 650,000-barrel-per-day refinery and Dangote Fertiliser Limited in Ibeju-Lekki, Lagos.

Speaking during a tour of the refinery, the Chairman of FirstHoldCo praised Aliko Dangote for building what he called one of Africa’s most transformative industrial projects.

“He is a genius and one of the greatest men to emerge from Africa. What he has achieved is helping to liberate the continent from economic dependency and import reliance,” Otedola said.

The billionaire businessman disclosed that he had repeatedly requested an allocation of $100m worth of shares in the refinery’s proposed listing, adding that the move influenced his decision to exit Geregu Power.

“I have visited this refinery more than 25 times, and I have consistently appealed for $100m worth of shares during the private placement. That informed my decision to sell my stake in Geregu so I can reinvest in the Dangote Petroleum Refinery,” he stated.

Otedola also expressed optimism about the refinery’s planned expansion from 650,000 barrels per day to 1.4 million barrels daily, noting that rising demand for refined petroleum products across Africa presents a strong case for increased investment in local refining capacity.

Responding, Dangote assured that the refinery’s IPO would allow ordinary Nigerians and Africans to participate in the company’s growth and wealth creation journey.

“We want ordinary Africans to participate in the value being created. What companies like Amazon and Apple achieved globally in terms of wealth creation is what we seek to replicate in Africa,” Dangote said.

“We want people to invest, grow with us, and share in the prosperity,” he added.

Dangote further disclosed plans for a proposed refinery project in East Africa with an estimated refining capacity of 700,000 barrels per day. The project will also include polypropylene and base oil production facilities and could begin within the next three to four years after construction starts.

According to him, the expansion project was not initially included in the group’s Vision 2030 strategy, highlighting the pace of growth and ambition within the conglomerate.

The industrialist also highlighted the group’s dominance across its major business sectors, including cement production in 11 African countries, refining, petrochemicals and fertiliser manufacturing.

Dangote said cement production capacity had risen to 55 million tonnes annually, supported by clinker export terminals designed to strengthen regional trade and industrial integration.

“We have built businesses that address Africa’s critical needs and create long-term value for the continent. Africa must stop exporting raw materials and importing finished goods. That amounts to exporting jobs and importing poverty,” he said.

Chief Executive Officer of FirstBank Group, Olusegun Alebiosu, described the refinery as a landmark achievement capable of inspiring industrial development across the continent.

“If you see this refinery and realise that an individual conceived and delivered a project of this magnitude, already helping to stabilise energy supply across Africa, you cannot help but be inspired,” Alebiosu said.

He added that delegates from the United Kingdom and several African countries who visited the refinery would return home encouraged to pursue similar transformational industrial projects.

Dangote also revealed that investor demand for the refinery’s private placement and planned IPO had exceeded expectations, with subscriptions already surpassing $2bn.

“There is significant interest in both the IPO and the private placement. While we are not able to meet all requests, the strong demand reflects investors’ confidence in the refinery and in Africa’s industrial future,” he noted.

Dangote unveils plan for mega Tanzania refinery to rival Lagos plant

Meanwhile, TheRadar earlier reported that Africa’s richest industrialist, Aliko Dangote, had unveiled plans to construct a new oil refinery in Tanzania, modeled after his flagship 650,000 barrels-per-day facility in Lagos.

The proposed refinery will be located in Tanga and is expected to process crude oil sourced from countries such as the Democratic Republic of Congo and South Sudan.

The project is designed to serve as a regional energy hub for East Africa.