Otedola to Invest $100m into Dangote Refinery Before Planned IPO

Billionaire businessman Femi Otedola has announced plans to invest 100 million dollars in Dangote Refinery, as Nigeria’s largest refinery prepares for a major Initial Public Offering (IPO) designed to attract both local and international investors.

Otedola disclosed the investment plan after leading First HoldCo executives on a visit to the refinery, signalling growing confidence among Nigeria’s business elite in the viability of the country’s downstream energy sector.

The planned investment forms part of a broader 2 billion dollar private placement that Dangote Refinery is currently pursuing ahead of its public listing. A private placement involves raising capital by selling shares directly to selected investors before a company goes public.

Dangote Group founder, Aliko Dangote, had previously indicated that the refinery could sell up to a 10 percent stake during the listing. Bloomberg earlier valued the planned stake sale at approximately 5 billion dollars, with reports suggesting Dangote is targeting an overall refinery valuation of up to 50 billion dollars.

The IPO is expected to be structured as a cross-border listing, enabling the refinery’s shares to be traded on stock exchanges in more than one country. The move is aimed at broadening investor access and allowing Africans to participate directly in industrial wealth creation.

The refinery, located in Lekki, Lagos, is one of the largest single-train refineries in the world and has been central to Nigeria’s push for energy self-sufficiency and reduced dependence on imported petroleum products.

No specific date has been announced for the IPO, but the ongoing private placement and high-profile investment commitments suggest the listing process is gathering momentum.