By Spy Uganda
Nigeria’s Dangote Oil Refinery is planning a massive $14.3 billion expansion that will double its processing capacity to 1.4 million barrels per day, as the company moves ahead with plans for what is expected to become Africa’s largest-ever initial public offering.
The expansion, which is expected to be completed by 2029, will increase the refinery’s capacity from the current 700,000 barrels per day to 1.4 million barrels per day, according to the company’s IPO prospectus released as documents were signed on Monday.
The planned expansion represents another major investment by Africa’s largest privately owned refinery, which has already transformed Nigeria’s fuel market since beginning operations in 2024.
The refinery plans to raise approximately 2.15 trillion Nigerian naira, equivalent to about $1.63 billion, through the initial public offering.
The offer is scheduled to run from September 14 to October 13, with the company targeting broad participation from retail investors. An indicative timetable presented at Monday’s signing ceremony suggests that trading in the shares could begin in late November.
Dangote Refinery is initially offering 4.1 billion ordinary shares at 525 naira each. The offering also includes a greenshoe option that would allow the company to sell up to 30% additional shares if investor demand exceeds the initial allocation.
The company says the IPO is designed to give ordinary Nigerians, members of the Nigerian diaspora and other African investors an opportunity to participate in the ownership of one of the continent’s most significant industrial assets.
David Bird, chief executive of Dangote Refinery, described the offering as a people’s IPO aimed at widening participation in the wealth created by the refinery.
The planned expansion comes as the refinery reports a dramatic improvement in its financial performance.
According to the IPO prospectus, Dangote Refinery recorded an after-tax profit of $1.82 billion in the first half of 2026, a sharp turnaround from the $476 million loss recorded for the whole of 2025.
The company has also benefited from disruptions in global energy markets, including supply disruptions associated with conflicts in the Middle East and the war in Ukraine.
Since commencing operations, the refinery has expanded its role in regional fuel supply, including exports of jet fuel to markets across Africa and Europe.
Dangote, who is Africa’s richest man, said the refinery had benefited from geopolitical disruptions but stressed that the company’s investments were intended to remain sustainable over the long term.
Built at a cost of approximately $20 billion on the outskirts of Lagos, the Dangote refinery is one of the largest single-train refineries in the world.
Its development was driven by Dangote Industries as part of the broader business empire of Aliko Dangote, which has major interests in cement, sugar and other sectors across Africa.
The refinery was established as part of efforts to reduce Nigeria’s dependence on imported petroleum products while positioning the country as a major refining and fuel-exporting hub.
The planned expansion to 1.4 million barrels per day could further strengthen that position, potentially giving the facility an even greater role in supplying Nigeria and international markets.
At Monday’s signing ceremony, Aliko Dangote also revealed that Abu Dhabi National Oil Company (ADNOC) is interested in investing in the refinery alongside other potential investors.
Dangote did not provide details of the potential investment, citing non-disclosure agreements.
ADNOC had not immediately commented on the matter.
An investment by the United Arab Emirates’ state-owned energy giant would potentially deepen international participation in the Nigerian refinery and reinforce its growing importance in global energy markets.
Dangote’s ambitions extend beyond Nigeria, with the billionaire also planning to establish a refinery on Kenya’s coast in partnership with East African governments.
The proposed investment could potentially add another major refining project to the region’s energy infrastructure and deepen Dangote’s presence in East Africa.
For now, however, the immediate focus remains on expanding the Lagos refinery and completing the IPO, which could mark a significant milestone in Africa’s capital markets.
If successful, the offering would not only provide Dangote Refinery with additional capital for expansion but could also open ownership of one of Africa’s most strategically important industrial projects to a much wider pool of investors.
