Aliko Dangote secured a $2.5 billion private capital raise for his refinery, funding a capacity expansion to 1.4 million bpd ahead of a potential $40 billion IPO that analysts say could be Africa's largest public listing.
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Africa's richest man, Aliko Dangote, secured a record $2.5 billion private capital injection for his Dangote Petroleum Refinery and Petrochemicals, funding a capacity expansion and advancing plans for what could be the continent's largest-ever initial public offering.
The financing, announced by Dangote Industries, is the largest publicly disclosed private capital raise in Africa, Business Africa reported. The investment will lift the refinery's processing capacity from 650,000 barrels of crude oil per day to 1.4 million barrels per day by 2028, according to the Financial Times.
The fundraising drew institutional investors including the Africa Finance Corporation and African Export-Import Bank (Afreximbank), signaling sustained appetite for the project ahead of a planned listing on the Nigerian Exchange.
"This capital raise demonstrates global investor confidence in our vision to transform Africa's energy infrastructure," Dangote Industries said in a statement.
Located in the Lekki Free Zone near Lagos, the refinery began production in 2024 after years of delays. It has since ramped up output of gasoline, diesel, and jet fuel, cutting Nigeria's reliance on imported refined products while supplying customers across Africa and international markets.
Nigeria is one of Africa's largest crude oil producers but has historically imported most of its refined fuel because domestic refining capacity was insufficient. The refinery's expansion could further tighten regional fuel supply dynamics and reduce import costs for several African nations, industry observers said.
The capital raise comes ahead of an IPO that analysts told the Financial Times could become the largest public offering in African history. The FT reported that the refinery could be valued at roughly $40 billion, though the company has not set a timeline for the listing.
Dangote, whose holdings span cement, fertilizer, sugar, and energy, has said the refinery aims to improve Africa's energy security by expanding domestic processing capacity and cutting the continent's dependence on imported fuels.
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