Aliko Dangote, President of Dangote Industries Limited, has announced plans to expand the Dangote Petroleum Refinery’s capacity to 1.4 million barrels per day by early 2029, while assuring small investors that they will be accommodated in the company’s ongoing initial public offering (IPO).
Dangote disclosed the plan on Monday during the final IPO roadshow in Port Harcourt, themed Back to Where It All Began. The event was organised by Financial Derivatives Company for Dangote Petroleum Refinery.
Speaking virtually, he said the refinery’s current capacity stood at 500,000 barrels per day, with the planned expansion expected to significantly increase its output and strengthen Nigeria’s industrial capacity.
“But what we have today, we are at 500,000 barrels per day. And by the beginning of 2029, we will be at 1.4 million barrels per day,” he said.
The expansion will also include a significant increase in petrochemical production, with projected output of 2.5 million tonnes of polyolefins and plans for a 400,000-metric-tonne linear alkylbenzene plant, which Dangote described as the largest of its kind in Africa.
He also highlighted plans for a 1,900-kilometre pipeline designed to extend the refinery’s reach into eastern and southern Africa, reinforcing the company’s ambition to serve markets beyond Nigeria.
“We’re not even started,” Dangote said, signalling further expansion opportunities.
Dangote Assures Small Investors Over IPO
Addressing concerns about the reported oversubscription of the IPO and the limited number of shares available to the public, Dangote assured retail investors that smaller bidders would not be excluded.
“Yes, definitely. Most of the smaller people who are bidding for 50,000 shares and below will definitely be sure that we accommodate all of them,” he said, drawing applause from participants.
He also defended the offer price of ₦525 per share, describing it as attractive given the refinery’s financial performance and growth prospects.
“I think it’s an extremely very, very good price,” Dangote said, adding that the company expected its full-year performance to exceed earlier projections.
Expressing confidence in the company’s prospects, he urged investors to consider the long-term opportunities associated with the refinery’s expansion.
“This is the right shares to buy. This is the shares of the future,” he said.
Rewane Highlights Capital Market Opportunities
Speaking at the event, Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, described the IPO as an opportunity for Nigerians to move beyond consuming the country’s industrial output and become investors who could benefit financially from its growth.
He said the listing could expand Nigeria’s capital market, attract additional investment and deepen public participation in strategic industrial assets.
Rewane also highlighted the refinery’s potential to stimulate industrial development, improve productivity and create investment opportunities across the energy value chain.
Muda Yusuf Highlights Economic Benefits
Economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the refinery could strengthen Nigeria’s macroeconomic fundamentals by reducing dependence on imported petroleum products, easing foreign exchange pressures and supporting industrialisation.
He noted that the refinery’s economic impact extended beyond fuel production to related industries, including petrochemicals, plastics, packaging and logistics.
Yusuf also said the IPO had generated significant public interest in the capital market, creating opportunities for wider investment participation and wealth creation.
Usoro Urges South-South Residents to Invest
Chief Paul Usoro (SAN) urged Nigerians, particularly residents of the oil-producing South-South region, to participate in the share offer.
He argued that communities supplying Nigeria’s crude oil should also have a stake in its refining industry and downstream value chain.
Recalling the long queues that once characterised fuel distribution across the country, Usoro said domestic refining investment could help sustain improvements in petroleum supply while giving shareholders an opportunity to benefit from the industry’s growth.
He disclosed that he had invested in the company and encouraged prospective investors to consider the refinery’s potential economic and commercial benefits.
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