The $20 billion Dangote Oil Refinery is poised to be listed on the Nigerian Stock Exchange (NSE) by December 2024, according to statements made by Aliko Dangote, Chairman of the Dangote Group.
Dangote, Africa’s richest man, expressed his enthusiasm for involving Nigerians, Africans, and other investors in what he described as a historic move.
Speaking to The Africa Report, he affirmed, “The listing, most likely, I won’t be surprised if we list (on the Nigerian Stock Exchange) by the end of this year. We will do that.”
This listing, expected to attract significant investor interest, could potentially add about N8 trillion to N10 trillion to the market capitalisation of the Nigerian Stock Exchange, as predicted by economy and capital market analyst Rotimi Fakayejo.
He said such a listing would not only distribute wealth but also attract foreign portfolio investment to the country, bolstering the economy with additional foreign exchange.
Fakayejo further elaborated on the potential impact of the Dangote refinery listing, stating, “It is also going to engender foreign portfolio investment. Such listing will affect individuals in the country and the stocks listed on the Nigerian exchange.”
David Adonri, Vice President of Highcap Securities Limited, echoed this sentiment, highlighting the significance of the listing for the Nigerian capital market.
He said the listing would provide Nigerians with the opportunity to share in the considerable wealth generated by the refinery.
However, uncertainties loom regarding the Dangote refinery’s crude oil supply chain. While Dangote confirmed the refinery’s decision to import crude oil from the United States due to fluctuating Nigerian oil production figures, Minister of State for Petroleum (Oil), Heineken Lokpobiri, denied knowledge of such imports.
Despite this discrepancy, Dangote defended the decision, stating, “We have tendered to buy some WTI oil from the US because the size of our refinery is very big, and we have to make sure that we secure the raw materials for our production.”
With the refinery set to attain a capacity of 500,000 barrels per day by July and reach its full capacity of 650,000 barrels per day by the end of the year, expectations are high for its transformative impact on Nigeria’s energy sector and broader economy.
The impending listing of the Dangote Oil Refinery represents a significant milestone in Nigeria’s quest for economic growth and diversification.
As stakeholders eagerly await further developments, the prospect of increased market capitalisation and enhanced investor participation holds promise for the country’s economic future.