Dangote Refinery Set to Triple Capacity by 2029

Aliko Dangote, President and CEO of Dangote Petroleum Refinery, announced that the refinery aims to boost its capacity from 500,000 to 1.4 million barrels per day by early 2029. This ambitious expansion positions the facility to contribute approximately 10% of the total refining capacity in the U.S.

Speaking at the final IPO roadshow in Port Harcourt, Dangote reassured all Nigerians, including small and low-income investors, that they would be prioritized during the ongoing initial public offering (IPO). He emphasized that returns on investments would be made in dollars, making it an attractive option for potential investors.

Dangote projected significant growth in the refinery’s petrochemical operations, anticipating production of 2.5 million tonnes of polyolefin and 400,000 metric tonnes of linear alkylbenzene. He described these milestones as critical for Africa's industrial development.

The IPO, touted as the largest in Africa, has garnered widespread interest, but concerns about oversubscription were addressed by Dangote, who promised that smaller investors bidding for fewer shares would be accommodated.

Defending the IPO price of N525 per share, he expressed confidence in the refinery's robust financial outlook, suggesting that investors could see returns exceeding double their investments within two and a half years.

Bismarck Rewane, CEO of Financial Derivatives Company, encouraged Nigerians to transition from consumers to investors in national infrastructure, highlighting the IPO's potential to significantly boost the Nigerian capital market's value beyond N220 trillion.

Dr. Muda Yusuf, an economist, noted that the investment would enhance Nigeria's economic fundamentals, leading to industrialization, job creation, and reduced reliance on imported petroleum products. He emphasized the positive ripple effects on industries reliant on locally processed materials.

Paul Usoro, SAN, called on the South-South region to seize the opportunity presented by the share offering. He reflected on the past fuel shortages in Nigeria, asserting that domestic refining capacity could alleviate such issues.

With the refinery's public listing on the horizon, there is a palpable sense of optimism about its potential to reshape Nigeria’s economy and empower its citizens through increased investment opportunities.