President of Dangote Group, Aliko Dangote, says the Dangote Petroleum Refinery plans to increase its capacity from 500,000 barrels per day to 1.4 million barrels per day by early 2029.
The industrialist also assured small investors that they would be accommodated in the refinery’s ongoing initial public offering, IPO, despite concerns about reported oversubscription and the limited number of shares available.
Dangote gave the assurances on Monday during a virtual session at the final IPO roadshow, themed “Back to Where It All Began”, organised by Financial Derivatives Company in Port Harcourt, Rivers State.
He disclosed that the planned expansion would also increase the refinery’s petrochemical production, with targets of 2.5 million tonnes of polyolefin and 400,000 metric tonnes of linear alkylbenzene.
Dangote described the proposed expansion as a significant development for Africa’s industrial sector, saying the refinery was expected to reach a capacity of 1.4 million barrels per day by the beginning of 2029.
He added that the facility’s planned polyolefin output would represent a major milestone for the continent’s petrochemical industry.
Addressing concerns about the IPO, Dangote assured prospective investors seeking 50,000 shares or fewer that the company intended to accommodate them despite the reported high demand for the offer.
The industrialist also defended the offer price of ₦525 per share, describing it as attractive and expressing confidence in the refinery’s financial prospects.
He said the company’s performance could exceed its projected full-year earnings, while presenting the shares as a long-term investment opportunity. However, any potential returns would depend on the company’s performance and market conditions and are not guaranteed.
Speaking at the event, Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, urged Nigerians to view the IPO as an opportunity to become investors in strategic national infrastructure rather than remain only consumers of its products.
Rewane projected that the refinery’s public listing could significantly expand Nigeria’s capital market, potentially pushing total market capitalisation above ₦220 trillion.
Economist Muda Yusuf also said the investment could strengthen Nigeria’s economic fundamentals through industrialisation, job creation, reduced dependence on imported petroleum products and improved foreign exchange stability.
According to Yusuf, the refinery’s economic impact extends beyond fuel production to industries such as petrochemicals, packaging and plastics, which rely on locally processed raw materials.
He added that the IPO could broaden participation in the capital market and encourage wider public ownership of major industrial assets.
Senior Advocate of Nigeria, Paul Usoro, called on residents of the South-South region, particularly people from oil-producing communities, to participate in the share offering.
Usoro, who disclosed that he had invested in the refinery, said Nigerians should have an opportunity to own a stake in an industry built around the country’s natural resources.
He also recalled the long queues associated with previous episodes of fuel scarcity, arguing that increased domestic refining capacity could help reduce disruptions in petroleum supply.
The proposed expansion is expected to strengthen the refinery’s role in domestic fuel production and petrochemical manufacturing, although the targets will depend on the execution of the company’s expansion plans.
Source: Vanguard
