Otedola mulls $100m investment in Dangote refinery

Nigerian billionaire Femi Otedola has announced plans to invest $100 million in the Dangote Oil Refinery following a high-level visit to the facility in Lagos.

Otedola, chairman of First HoldCo, made the disclosure on Wednesday after touring the refinery in the Lekki Free Zone alongside senior executives from his company.

The investment is expected to position him as a key private investor in the refinery as it transitions toward a public listing.

He said the investment would be made through the refinery’s $2 billion private placement targeted at select investors before its planned initial public offering.

“From a personal note, I’ve appealed to him (Aliko Dangote). I’ve been here with him 25 times, so my compensation is he’s going to allocate to me shares worth $100 million in the private placement,” Otedola said.

He added that his decision to invest was partly funded by proceeds from the sale of his stake in Geregu Power Plant.

The Dangote refinery is expected to sell up to a 10 per cent stake in its anticipated IPO, which analysts estimate could raise about $5 billion, depending on market conditions.

The listing, which has no fixed date yet, is part of plans to open up the project to both local and international investors, with discussions also pointing to possible cross-border listings.

Aliko Dangote has previously said the IPO is designed to democratise wealth creation and enable broader participation in Africa’s industrial growth.

Market projections suggest the refinery could be valued at up to $50 billion, positioning it as one of the largest listings in Africa’s capital markets.

The 650,000 barrels-per-day facility, developed by Aliko Dangote at an estimated cost of $23 billion, is preparing for an initial public offering on the Nigerian Exchange, which analysts say could happen as early as mid-2026.

Market projections indicate the refinery could be valued between $40 billion and $50 billion, with plans to raise up to $5 billion through the sale of a 10 per cent stake—potentially making it the largest public offering in Africa’s capital market history.

Analysts view Otedola’s investment as a major vote of confidence in the project, which is expected to play a key role in reducing Nigeria’s dependence on imported petroleum products.

The refinery has already begun supplying refined products to the domestic market and is currently processing over 500,000 barrels of crude oil per day, with plans to reach full capacity before the end of the year.

Its operations have started to reshape regional fuel trade, cutting gasoline imports into West Africa and positioning Nigeria as an exporter of products such as jet fuel and naphtha.

The investment also comes amid growing investor interest ahead of the refinery’s planned listing, with discussions reportedly ongoing around potential dual listings on international exchanges.

While details of the equity stake and timeline for the investment were not disclosed, further information is expected as part of the refinery’s investor roadshow and regulatory filings.