Dangote refinery could be listed on the Nigerian stock exchange within five months, according to Aliko Dangote, the founder and president of the plant. The move will allow Nigerians to buy shares directly in the refinery and earn dividends in either naira or dollars.
Speaking during an interview, Dangote explained that NNPC currently holds 7.25% equity in the refinery on behalf of Nigerians. He added that the stake gives citizens indirect ownership ahead of the planned public offer.
The Dangote refinery, located in Lekki, Lagos, has a capacity of 650,000 bdp, making it the largest single train refinery in Africa. It was built to reduce Nigeria’s dependence on imported petroleum products and ease pressure on foreign exchange.
Dangote noted that the working relationship between the refinery and NNPC has improved under the current leadership of the state oil firm.
“But right now the relationship with the new set of people we have at NNPC, I think the sky is the limit and we will cooperate and make sure that we work together to make Nigerians proud,” he added.
He stated that the 7.25% stake held by NNPC is larger than the shares Elon Musk holds in Tesla.
“They’re holding that on behalf of Nigerians so that individually Nigerians would have an opportunity in the next maximum four five months there would be options to buy their shares,” Dangote explained.
Shareholders to earn in dual currencies
Furthermore, Dangote stated that retail investors will have flexibility in how they receive returns once the shares are offered.
“And like what I promised before we have a choice to either have their dividends in Naira or to get their dividends in dollars because we handle Dollars,” he said.
The refinery processes crude oil into petrol, diesel, aviation fuel and other refined products for both domestic supply and export.
Export sales are largely denominated in Dollars, which supports the option of foreign currency dividends.
Meanwhile, the president of the refiery disclosed that discussions are ongoing to expand cooperation with NNPC beyond refining into upstream oil assets.
When asked whether there were other areas of collaboration between the refinery and NNPC beyond the ongoing expansion plans, Dangote said discussions were already underway to deepen the relationship.
“Yes definitely that’s what we’re looking at block 71,72 we’re doing, but we’re going to look much deeper most likely depending on our own discussions with them we’ll partner with them maybe in some of the upstream and they’ll also partner with us here,” he stated.
He added that planned output of the detergent raw material will reach £400,000, compared with about £100,000 in Algeria and £50,000 in Egypt.
“We’re going for £400,000 and we’ll deliver all these in the next 30 months,” he added.
The proposed listing would open direct ownership of the refinery to Nigerians for the first time. If completed within the stated timeline, it could expand public participation in Nigeria’s refining and petrochemical sector.
