Nigerian business magnate Aliko Dangote has announced plans to list his $20 billion oil refinery on the Nigerian Exchange Limited (NGX).
This move marks a significant step forward for Dangote Industries, Africa’s largest conglomerate.
In a recent interview with the Financial Times, Dangote confirmed that the company has overcome challenges related to crude oil supply, paving the way for the refinery’s listing.
The listing is expected to boost investor confidence and unlock further growth opportunities for Dangote Industries.
“We have resolved all the issues with crude oil supply,” Dangote stated. “We are now ready to move forward with our plans to list the refinery on the Nigerian Exchange Limited.”
The Dangote Refinery is Africa’s largest single-train refinery, with a capacity of 650,000 barrels per day. It is expected to transform Nigeria’s oil and gas sector, reducing the country’s reliance on imported fuel and generating significant export revenue.
Dangote also expressed his vision for the refinery to eventually become an independent entity, further solidifying its position as a leading player in the global oil and gas industry.
The listing of the Dangote Refinery on the NGX is expected to attract a wide range of investors, both domestic and international. It will also boost the liquidity of the Nigerian stock market and enhance its reputation as a regional investment hub.
Dangote confirmed his refinery startup in December 2023, saying that 350,000 barrels per day is the first target of the refinery.
According to Dangote, the long-awaited refinery is starting with 350,000 barrels a day, He also confirmed that a deal had already been clinched for the first cargo of about 6 million barrels of crude for delivery in December 2023.
- “We are starting with 350,000 barrels a day. The challenges that we faced, I don’t know whether other people can face these challenges and even survive. It is either we sink, or we sail through. And we thank Almighty that at least we have arrived at the destination.”
Dangote highlighted that he held a strong belief in the refinery’s capability to achieve its maximum output of 650,000 barrels per day by the end of 2024.
Expanding on the refinery project, Dangote expressed that this kind of project won’t emerge in Nigeria within the next twenty years.
He also said the company did not cut corners or seek applause, but the project was done for the sake of posterity.
Nairametrics reported the NNPC acquired about 20% of the equity of Dangote Refinery in 2021 in a deal that valued the refinery at about $20 billion.