Excitement is building across Nigeria’s investment community as the Dangote Petroleum Refinery and Petrochemicals FZE opens its much-anticipated initial public offering (IPO) today, September 14, giving retail investors an opportunity to buy shares in one of Africa’s biggest industrial projects.
The offer, which runs from September 14 to October 13, 2026, is offering 4.1 billion shares at N525 each, with investors able to subscribe for a minimum of 10 shares, worth N5,250.
Analysts say the relatively low entry point is expected to draw significant interest from retail investors, many of whom are participating in the capital market for the first time.
For days, conversations around the offer have moved from investment circles into family WhatsApp groups and social media, with prospective investors asking how many shares they should buy, how to open investment accounts and whether the refinery can deliver the kind of returns being predicted by its founder, Aliko Dangote.
But while the excitement is high, investors are being reminded that buying into an IPO is an investment decision, not a guaranteed route to wealth.
The proceeds from the offer are expected to support the refinery’s expansion programme, with the company targeting an increase in capacity from about 700,000 barrels per day to 1.4 million barrels per day.
The scale of the transaction has made the Dangote Refinery IPO one of the most closely watched capital-market events in Nigeria in years.
‘Nigerians should buy into businesses they understand’
Amidst the high expectations, a shareholder activist, Adeleke Adebayo described the refinery as a good buy because of his understanding of the oil and gas industry.
Speaking on the public offering, Adebayo said he would be buying into the company, stressing that investors should generally put their money into businesses they understand.
He argued that the fundamental business model of refining was relatively straightforward: purchasing an input, adding value to it and selling the resulting products into a market where demand remains strong.
In a chat with Daily Trust, he said, ‘My personal expectation, number one, is to declare that I am buying the IPO. I am buying into it.
‘Number two, I have always encouraged people to buy into businesses they understand. I understand the petroleum industry. I spent 12 years of my life working in that industry, so I think I have a very good grasp of how it works.
‘There is no, quote-unquote, hard-and-fast rule about refining. You buy the crude, you process it, and you sell the refined products. So, fundamentally, it is about what you buy as your input, the value you add to it, and then the output that you sell.
‘And the output is always in demand because these are consumable products. The fact that you bought fuel for your car last week does not mean you will not buy again, unless you want to demobilise yourself.
‘In spite of the developments around electric vehicles, solar-powered vehicles and CNG, the reality is that about 99 per cent of our mobility is still fuel-dependent. That is the truth.
‘And we should not look at this business only from the perspective of petrol. I have heard a lot of people talk about petrol, petrol, petrol. What about diesel? What about kerosene? What about aviation fuel?’
He also said the recent statement attributed to Dangote that the share price could become N10,000 is in order.
He however stated that the investors must understand that it is an investment which does not translate to wealth immediately.
‘We are not looking at a quick gain from the refinery. So, anybody who wants to double their money within seconds, six months or one year, perhaps this is not the stock for them to buy. This is a long-term business.
‘It is capital-intensive. Now that the refinery has commenced operations, the rate of depreciation will be very high and investors need to understand the financial implications and where they are putting their money.
‘But, all said and done, Dangote Refinery and Petrochemicals is, in my view, a very good buy and it is going to be a wealth builder for investors over a long term,’ he added.
What Aliko Dangote said
President of the Dangote Group, Alhaji Aliko Dangote who spoke on the IPO said, ‘This IPO is not only about raising capital; it is about democratizing wealth creation, broadening participation in Africa’s industrial future and giving millions of investors the opportunity to own a stake in a world-class enterprise, it’s a legacy we are laying down, nobody will live forever.’
Speaking at the 2026 ADF Africa Diaspora Leadership Programme Young Global Leaders Convening in Lagos, Dangote hinted that his ambition had always gone beyond accumulating wealth to building enterprises capable of creating jobs, opportunities and prosperity across the continent.
He expressed confidence that the refinery could eventually become Africa’s largest company by size and profitability, drawing parallels with global corporations such as Amazon, Microsoft, Tesla and Alibaba, which grew substantially after entering the public markets.
‘By the grace of God, this refinery will be the largest company in Africa by size and profitability,’ he said.
He said the Group’s wider mission was to reduce the perceived risks associated with investing in Africa and demonstrate that globally competitive enterprises could be built successfully on the continent.
Managing Director of Dangote Petroleum Refinery, David Bird explained that since the commencement of production in January 2024, Dangote Refinery has rapidly emerged as a key player in the global energy market expressing excitement that the facility last June, surpassed the United States to become the largest external supplier of jet fuel to Europe, a position it maintained in July, further underscoring its growing influence in international petroleum trade.
Former United States Assistant Secretary of State for African Affairs and Co-Chair of The Africa Center, Ambassador Jendayi Frazer, said the proposed IPO could connect African industrial production with African and diaspora capital, broadening participation in the value created by the continent’s strategic assets.
Frazer said the refinery had already ‘changed the equation’ for Africa, with implications extending far beyond petroleum production into the continent’s geopolitical standing.
She said the refinery demonstrated what was possible when African ambition was matched by capital, technical knowledge, partnerships and disciplined execution.
Mallam Mohammed Mustapha Bintunbe, former Jaiz Bank Chairman, and one of the team members of the Independent Shariah Compliance Evaluation of the Dangote refinery, disclosed that the facility did well in Shariah assessment carried out by his team.
He added: ‘The Independent Shariah screening reviews have confirmed that the upcoming Dangote Refinery listing meets the required Shariah compliance frameworks (such as the standard AAOIFI metrics). This opens the door for Islamic institutional investors and ethical funds to participate heavily in the public offer.’
Besides, analysts say the eventual listing of the refinery on the Nigerian Exchange later this year could significantly reshape the country’s capital market landscape, potentially increasing the exchange’s total market capitalization by more than one-third.
Investor appetite for the refinery has been evident in recent months. In July, the company raised $2.5 billion through a private placement targeted at institutional investors and high-net-worth individuals, with demand exceeding the offer size by 270 per cent. Market observers believe substantial unmet demand from that exercise could flow into the public offering.
Stanbic IBTC, Joint Lead Issuing House, Joint Stockbroker and Receiving Bank to the IPO, said in a statement that eligible retail investors may receive up to two additional shares at no additional cost, subject to the terms of the prospectus
It added: ‘Upon launch of the IPO, investors will be able to subscribe through the Stanbic IBTC Mobile App, Stanbic IBTC Internet Banking or the Stanbic IBTC e-subscription platform.’
How Nigerians can buy the shares
For Nigerians looking to participate, the first requirement is to have an investment account ready with a stockbroking firm.
Existing users should ensure their accounts are active and their details are up to date before attempting to subscribe.
The next requirement is a Bank Verification Number (BVN).
The BVN is used to verify an investor’s identity. Investors who already have one should ensure that the information associated with the BVN matches the details on their investment account.
Those without a BVN will need to complete enrolment through a commercial bank using valid identification.
Investors also need a Central Securities Clearing System (CSCS) account, where their shares will be held after allotment.
KYC must be completed
Investors must also complete their Know Your Customer (KYC) requirements before participating.
The process requires information including the investor’s BVN, bank account details and proof of address.
Investors whose KYC has already been approved do not need to repeat the process, but those with incomplete verification are advised to resolve the issue before attempting to subscribe.
The importance of completing these steps ahead of time is particularly significant because demand is expected to be strong when the offer opens.
Minimum subscription is N5,250
Once the account, BVN, CSCS and KYC requirements are in place, investors can subscribe.
When the offer is open, investors can select the Dangote Refinery IPO banner under the Quick Actions section, select the offer and enter the number of shares they wish to purchase.
The minimum subscription is 10 shares at N525 each, bringing the minimum investment to N5,250.
Additional subscriptions must be made in multiples of 10 shares.
An investor seeking 100 shares, for example, would need N52,500, while 200 shares would cost N105,000 at the offer price.
Investors are, however, being advised to determine how much they can comfortably invest before entering the subscription process rather than making decisions under pressure.
Dangote predicts N10,000 share price
The enormous interest in the offer has also been fuelled by comments from Dangote, who has predicted that the company’s shares could eventually rise from the IPO price of N525 to N10,000.
Dangote, in an interview with Abis Fulani, said investors could potentially see substantial gains if the share price reaches that level.
He used a N5 million investment as an illustration, saying it could become more than N50 million if the shares eventually rise to N10,000.
He also highlighted the possibility of dividends being paid to shareholders in naira or dollars.
The comments have added to the enthusiasm surrounding the IPO, particularly among retail investors looking for long-term opportunities.
However, the projection is a forecast and not a guarantee of future performance.
The eventual value of the shares will depend on the company’s financial performance, growth prospects, market conditions and investor demand once the shares begin trading on the Nigerian Exchange (NGX).
What happens when the shares list?
The next major milestone will be the listing of the shares on the Nigerian Exchange (NGX).
At that point, the shares will trade in the secondary market, and their price will no longer be fixed at the IPO price of N525.
The shares could begin trading above the offer price if demand is strong. They could also trade below it if investors reassess the company’s prospects.
That means investors who buy during the IPO should be prepared for the possibility of price movements after listing.
Investors who miss the public offer will also have an opportunity to buy the shares after listing through the secondary market, subject to market availability.
However, they will have to pay the prevailing market price rather than the ?525 IPO price.
A test for Nigeria’s capital market
Beyond the Dangote Group, the IPO is also being watched as a test of the depth of Nigeria’s capital market and the appetite of ordinary Nigerians for equity investments.
The low minimum subscription has opened the door to investors who may previously have viewed the stock market as something reserved for wealthy individuals and institutional investors.
For many first-time investors, therefore, the Dangote Refinery IPO may represent their first direct experience of owning shares in a major Nigerian company.