morGANABLE business/energy& industry
The decision means that the $20bn refinery, owned by Africa’s richest man, Aliko Dangote, will initially concentrate on the Nigerian capital market, with the planned domestic IPO designed to broaden local ownership and allow Nigerians to participate in the company’s growth
KaNo —
The Dangote Petroleum Refinery has said it will wait at least three years before pursuing a foreign stock market listing, as it seeks to establish a strong production and financial track record capable of attracting a higher valuation from international investors.
The refinery’s Chief Executive Officer, David Bird, disclosed this in an interview with Reuters on Friday, while confirming that preparations for the company’s planned October initial public offering on the Nigerian Exchange remained on schedule.
Bird said the company would first build at least three years of proven operational and financial performance before considering an international listing.
The decision means that the $20bn refinery, owned by Africa’s richest man, Aliko Dangote, will initially concentrate on the Nigerian capital market, with the planned domestic IPO designed to broaden local ownership and allow Nigerians to participate in the company’s growth.
“Dangote Petroleum Refinery’s planned October IPO, which could become Africa’s largest, is designed to let Nigerians share in the company’s growth, adding that a foreign listing is at least three years away. We really want to drive participation. The mandate of the IPO was to be the people’s IPO,” Bird said.
The refinery has applied to the Securities and Exchange Commission for an IPO that could raise as much as $5bn, according to a source familiar with the matter cited by Reuters.
Bird, however, declined to comment on the proposed size of the offering or the valuation the company would seek through the listing.
He explained that waiting until the refinery had accumulated three years of proven production and financial performance could strengthen its position when it eventually approaches international investors.
The proposed foreign listing would therefore depend largely on the company’s ability to demonstrate sustainable earnings, consistent production and expanding market share over the coming years.
The planned Nigerian IPO follows a $2.5bn private placement completed in July, which valued the refinery at approximately $40bn.
The transaction, led by Africa Finance Corporation alongside strategic investors, was reportedly 3.7 times oversubscribed and attracted strong demand from African and international institutional investors.
Bird said investor interest during the pre-marketing exercise and private placement had been strong, adding that preparations for the October IPO remained on schedule.
The planned listing comes as the refinery continues to expand its presence in both the Nigerian market and international fuel markets.
The development highlights the growing international role of the refinery, which has increasingly become an important supplier of refined petroleum products beyond Nigeria.
The company is also targeting a major expansion of its refining capacity.
Dangote Refinery To Scale Up Production
According to Bird, the facility plans to increase its capacity from the current 650,000 barrels per day to 1.4 million barrels per day within three years.
The expansion is expected to be funded partly through proceeds from the IPO and debt financing.
Bird said the expansion would cost substantially less than the approximately $20bn spent on constructing the original refinery, potentially allowing the company to increase capacity while benefiting from economies of scale and its existing infrastructure.
He also argued that the refinery had advantages over comparable refining assets in the United States because of its access to local crude supplies, strong domestic demand and integrated operations.
“Africa remains structurally short of refined fuels and petrochemicals, creating significant room for growth,” Bird said.
The refinery currently supplies most of Nigeria’s petrol and diesel demand and all of its jet fuel requirements.
Its increasing production has also altered Nigeria’s petroleum products supply structure, reducing the country’s reliance on imported refined products.
The planned foreign listing would come after the company has established a longer operational history, potentially giving international investors greater visibility into its earnings, production capacity and long-term growth prospects.
NUPRC Plan Crude Swap To Boost Refinery Supply
Meanwhile,the Nigerian Upstream Petroleum Regulatory Commission,said it has begun consultations with relevant industry stakeholders on a proposed domestic crude oil and gas swap arrangement aimed at reducing supply costs and ensuring that more crude is available to Nigerian refineries.
The initiative is expected to strengthen compliance with the Domestic Crude Supply Obligation and Domestic Gas Supply Obligation while reducing the need to physically transport crude over long distances to meet supply requirements.
In a statement issued by the NUPRC Head of Media and Corporate Communications, Eniola Akinkuotu, on Friday, Eyesan said the proposed arrangement would enable producers and refiners to optimise existing logistics and supply networks.
She said the commission was consulting relevant stakeholders to develop the modalities for the scheme, which would also involve the Gas Aggregation Company Nigeria Limited.
Eyesan explained that a swap arrangement would allow crude producers with export facilities to meet the obligations of producers located closer to domestic refineries.
Under the proposed system, producers would be able to exchange their supply obligations rather than transporting crude unnecessarily across the country.
“The Nigerian Upstream Petroleum Regulatory Commission is consulting widely with stakeholders in the industry on the idea of a domestic crude oil and gas swap that would reduce cost and increase availability of products in the country,” she said.
She added that once the modalities were finalised, compliance with the Domestic Crude Supply Obligation and Domestic Gas Supply Obligation would improve.
“Instead of trying to move from one end to the other, we just agree on a swap arrangement, and there is a mechanism for them netting off,” Eyesan explained.
The proposal comes against the backdrop of an improvement in crude deliveries to domestic refineries.
53.7m Barrels Of Crude Supplied To Local Refineries
NUPRC data showed that 53.7 million barrels of crude oil were supplied to local refiners between April and June 2026, representing a 97.4 per cent performance under the DCSO during the second quarter.
Refiners have repeatedly complained that some crude producers sell locally supplied crude at premium prices, making Nigerian crude more expensive for domestic refiners than imported alternatives.
Industry operators have argued that such pricing practices undermine the competitiveness of local refining and make it difficult for domestic plants to operate at full capacity.
The proposed swap mechanism is therefore expected to address some of the logistical and cost challenges associated with domestic crude supply.
Eyesan said the persistence of crude imports despite improvements in domestic supply had made it necessary for the commission to explore more efficient mechanisms for allocating and delivering crude to Nigerian refineries.
She, however, stressed that discussions on the crude oil and gas swap remained at an early stage.
According to her, all necessary modalities and operational arrangements would have to be agreed upon with stakeholders before the scheme could be implemented.
For the Dangote refinery, improved domestic crude supply could have significant implications as the company prepares for its planned IPO and expansion.
A more reliable and cost-effective supply of Nigerian crude would potentially strengthen the refinery’s production economics, while expanded capacity could further increase its role in Nigeria’s petroleum market.