LAGOS (Realist English). Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) — the company operating Africa’s largest oil refining complex in Lagos — has completed a $2.5 billion private placement of shares.
According to the Financial Times, the deal is the largest publicly disclosed primary private equity placement in the continent’s history.
The placement was oversubscribed 3.7 times, with total demand reaching nearly $4 billion. For the first time in its history, the refinery has attracted external capital beyond its original shareholder base.
As Aliko Dangote, Chairman and President of Dangote Industries, stated: “This is a strategic step to deepen and institutionalise the company’s shareholder base while simultaneously raising capital for expansion.”
Who Invested
Key investors include:
- Africa Finance Corporation (AFC) — a leading African infrastructure investment company;
- India Infra Buildco — an investment vehicle established with the support of the African Export-Import Bank (Afreximbank) ;
- Sovereign wealth funds, institutional investors, and private individuals.
The minimum participation package was 1 million shares ($350,000), with the option to purchase additional blocks of 500,000 shares. The shares are subject to a 365‑day lock‑up period.
Expansion Plans: 1.4 Million Barrels Per Day by 2028
The funds raised will go toward expanding the refinery, which is already Africa’s largest. The company aims to increase processing capacity from the current 650,000 barrels per day to 1.4 million barrels per day by 2028.
This would make the plant one of the largest in the world, potentially surpassing India’s Jamnagar complex.
The expansion also includes increasing polypropylene production by 900,000 tonnes per year — to 2.4 million tonnes — as well as launching production of base oils and linear alkylbenzene.
Geopolitical and Economic Context
The refinery, which cost $20 billion to build and reached full capacity in February 2026, has become critically important amid the reshaping of global energy supply chains and the escalation of the US‑Iran conflict.
In April 2026, the plant became the world’s largest exporter of jet fuel (according to S&P data). It has also allowed Nigeria — a major crude oil producer — to halt imports of most petrol and diesel.
As Dangote emphasised, the new investment “demonstrates our deep commitment to developing domestic refining and petrochemical capacity, reducing Africa’s dependence on imported petroleum products, and strengthening the continent’s energy security.”
Preparing for the IPO: $40 Billion Valuation
The private placement serves as a rehearsal for the initial public offering (IPO) on the Nigerian Exchange, scheduled for September 2026. The IPO is expected to raise an additional $1.5–2 billion** and become the largest in African history. The company’s anticipated valuation is approximately $40 billion.
DPRP also raised $750 million in debt financing earlier in 2026.
The refinery expansion is part of Aliko Dangote’s broader plans to invest $46 billion in refining, cement, and fertilisers in 2026–2028, including the construction of a new 700,000‑barrel‑per‑day refinery in Kenya.
