LAGOS, July 18 – Dangote Petroleum Refinery has raised $2.5 billion through a private placement, strengthening its capital structure ahead of a planned initial public offering (IPO) later this year.
The fundraising was confirmed on Friday by Devakumar Edwin, an executive at the refinery, as the company accelerates efforts to expand operations and meet growing demand in both domestic and international fuel markets.
The fresh capital is expected to finance the continued expansion of the 650,000-barrel-per-day refinery, which began commercial production in 2024 and has significantly reduced Nigeria’s dependence on imported refined petroleum products.
Since commencing operations, the refinery has steadily increased production of diesel, petrol, jet fuel and naphtha, emerging as a major supplier to Nigeria’s domestic market while expanding exports to regional and international buyers.
Ahead of the successful fundraising, sources familiar with the transaction had disclosed that the refinery was offering 3 billion ordinary shares at $0.35 per share, with investor commitments already exceeding $2 billion before the placement was completed.
Under the terms of the offering, investors were required to subscribe for a minimum of 1 million shares, valued at $350,000, with additional investments accepted in blocks of 500,000 shares. The shares are also subject to a 365-day lock-up period, limiting their sale during the first year after issuance.
The successful private placement represents another significant milestone for the Dangote Refinery as it strengthens its financial position ahead of its anticipated public listing, which is expected to broaden its investor base and support the next phase of growth.
The refinery remains one of Africa’s largest industrial investments and is expected to play a central role in improving energy security, reducing fuel imports and expanding refined petroleum exports across the continent.
