Dangote Targets $50bn Valuation for Refinery Ahead of Landmark IPO

Dangote Group is targeting a $50 billion valuation for its refinery business as it prepares for a major initial public offering (IPO) in Nigeria later in 2026, in what could become one of the country’s largest capital market transactions.

The planned listing will allow the group to sell up to a 10 per cent stake in the refinery, potentially raising about $5 billion, according to reports cited by Bloomberg and company sources.

The refinery in focus is the Dangote Refinery, a massive 650,000-barrels-per-day facility located in the Lekki Free Zone in Lagos. It is currently Africa’s largest single-train refinery and has already reshaped Nigeria’s fuel import dependence since beginning operations.

The refinery, commissioned in 2023, has significantly boosted domestic fuel production and now supplies more than 90 per cent of Nigeria’s petrol demand, while also exporting refined products such as diesel and aviation fuel to several African countries, including Ghana, Cameroon, Togo, and Tanzania.

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According to the report, the company has appointed a consortium of advisers to handle the IPO. These include Stanbic IBTC Capital for international investors, Vetiva Capital Management for retail investors, and FirstCap Limited for institutional placements.

The refinery’s valuation has surged sharply in recent months, with earlier estimates placing it between $20 billion and $25 billion. That figure has now climbed to as high as $50 billion, driven by stronger production output, rising global fuel demand, and improved revenue performance.

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Aliko Dangote is also introducing an unusual dividend structure for the IPO, allowing investors to purchase shares in naira but receive returns in US dollars, supported by estimated annual export revenues of $6.4 billion.

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The IPO prospectus has already been submitted for regulatory approval, with a subscription window expected to open by August 2026. If successful, it would mark the first time the refinery becomes available for public ownership and is expected to significantly deepen Nigeria’s capital market while expanding participation in the country’s energy sector.

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