morgaNABLE business/finance
Dangote described the level of investor interest as overwhelming, pointing to previous fundraising efforts that significantly exceeded expectations.
KaNo—
The President and Chief Executive Officer of the Dangote Group, Aliko Dangote, has confirmed that the Abu Dhabi National Oil Company (ADNOC) and other strategic investors have expressed strong interest in acquiring stakes in the Dangote Petroleum Refinery, one of Africa’s largest industrial projects.
However, he declined to provide further details, citing binding non-disclosure agreements with prospective partners.
Dangote made the disclosure on Monday while speaking with journalists in Lagos shortly after a signing event linked to the refinery’s planned share offering.
The billionaire industrialist was responding to questions regarding reports that ADNOC was considering a significant investment in the multibillion-dollar facility.
While acknowledging the interest, Dangote emphasized that confidentiality agreements prevented him from revealing specifics about the negotiations or the identities of all interested parties.
“I don’t want to-you know, there is what you call an NDA, a non-disclosure agreement. So, we have agreements with other people; it’s not only ADNOC. Other people too are very, very interested,” he said.
Shares Not Limited To Corporate Investors
He further hinted that interest in the refinery was not limited to corporate investors alone, noting that certain governments had already taken positions and were considering further investments.
“There are other governments too; they have invested and they are also investing more money,” he added.
Dangote described the level of investor interest as overwhelming, pointing to previous fundraising efforts that significantly exceeded expectations.
According to him, an earlier private share offering aimed at raising $1 billion attracted subscriptions worth $3.7 billion,more than three times the target.
“When we wanted to sell only $1 billion worth of shares to our private investors, we got 3.7 times the demand. What was paid into our accounts was $3.7 billion instead of $1 billion. We had to be forced to take $2.5 billion, and we returned $1.2 billion,” he explained.
“I’m sure if we open for even two days and close, the number of shares we want to sell will be fully subscribed,” he said.
Dangote Says Refinery Profits Based On Long Term Market Conditions
Addressing concerns about whether the refinery’s profitability could be sustained beyond current geopolitical disruptions, Dangote insisted that the company’s financial projections were based on stable, long-term market conditions rather than temporary global crises.
He clarified that the refinery’s initial public offering (IPO) and investment strategy were conceived well before recent tensions in the Middle East and the ongoing Russia-Ukraine conflict.
“This IPO started a long time ago. It did not start because of the war in the Middle East. Our calculations are based on normal day before the crisis. What money can we make when we refine oil under standard conditions?” he said.
Dangote stressed that the company deliberately avoided building its business model around volatile or short-term global events, which could distort long-term planning and shareholder expectations.
“You cannot base your business on crisis. The Middle East crisis or the Ukraine-Russia conflict will not go on forever. One day, they will stop,” he noted.
He added that any additional gains arising from such disruptions should be seen as a bonus rather than a foundation for the company’s strategy.
“Whatever we have over and above is icing on the cake. That’s what we are checking. But we base our business on normal trends,” he explained.
The Dangote Petroleum Refinery, widely regarded as a transformative project for Nigeria’s oil and gas sector, is designed as a long-term investment expected to operate for several decades.
“This is a lifetime investment. It’s not about 10 years, 20, or even 50 years. This refinery will outlive all of us here. It should be running for the next 50, 60, even 70 years,” Dangote said.
He cautioned that basing projections on temporary crises could jeopardize the company’s ability to deliver consistent returns to shareholders in the future.
“If you base your projections on crisis, what happens when those issues are resolved? It means you may not be able to satisfy your shareholders,” he warned.
Dangote described the level of investor interest as overwhelming, pointing to previous fundraising efforts that significantly exceeded expectations.
Dangote described the level of investor interest as overwhelming, pointing to previous fundraising efforts that significantly exceeded expectations.
Dangote Clarifies IPO Not Aimed At Raising Capital
According to him, the company has successfully raised funds through bonds and private placements, while the refinery itself is generating substantial revenue.
“It’s not really about raising money. We have very good free cash flow, and we’ve already raised quite a lot through bonds and private placements,” he said.
Instead, he explained that the decision to open up the company to a wider pool of investors was driven by a desire to promote inclusive ownership, particularly among Africans.
“It’s about getting Africans to be part and parcel of this refinery. This will be the biggest company in Africa, and I think every African should have a stake in it,” Dangote stated.
He revealed that the company is targeting up to 10 million shareholders across Africa and other parts of the world, allowing individuals from different income levels to participate in the ownership structure.
“It doesn’t matter if you can afford ten shares or one million shares. We want as many Africans as possible to be involved,” he said.
Dangote noted that if the primary goal had been to raise funds, the company could have offered a significantly larger portion of its equity to investors.
“If we wanted to raise money, we could have offered up to 20 percent of the company. But that is not the objective. We have a limit because this is about inclusion, not just capital,” he explained.
Industry analysts say the refinery, with its massive refining capacity, has the potential to reshape Nigeria’s energy landscape by reducing reliance on imported petroleum products, stabilizing fuel supply, and boosting foreign exchange earnings.
The strong interest from global and regional investors further underscores confidence in the project’s long-term viability and its role in transforming Africa’s largest economy.
As the share offering progresses, market watchers expect continued high demand, particularly from institutional investors seeking exposure to large-scale infrastructure assets in emerging markets.
For Dangote, however, the vision goes beyond financial returns. By opening up ownership to millions of Africans, he aims to ensure that the benefits of the refinery are broadly shared, cementing its place not only as an industrial giant but also as a symbol of economic inclusion and continental growth.
