Dangote refinery expansion seeks US$1.6bn in Africa’s biggest IPO

The proposed expansion of Nigeria’s Dangote oil refinery marks a significant step in the West African country’s push to build up domestic fuel production and reshape its role in the continent’s oil industry

An initial public offering (IPO) in the refinery has attracted “enormous” support from investors, according to the group’s founder, Aliko Dangote.

The US$1.6bn IPO is now open in a bid to raise additional funding to double capacity.The Lagos refinery is a key installation to ease energy shortages in the West African country, one of the continent’s biggest oil and gas producers.

The funds will partially finance a massive capacity expansion to 1.4 million bpd by 2029.

The IPO comes as Nigeria seeks to strengthen its domestic energy supply and reduce reliance on imported refined petroleum products, while also positioning itself as a major refining hub for West Africa.

The scale of the expansion also reflects the growing ambitions of Africa’s private sector to finance large, strategically important infrastructure projects through local capital markets.

Dangote told reporters in Kenya, where the group plans a separate refinery, that the outlook for the IPO is encouraging.

“Demand is there, enormous demand,” he was quoted as saying by Reuters.“In fact, I didn’t know the depth of our capital markets until now, really, because we have never tested it,” he added.

The IPO, Africa’s largest to date, is scheduled to close 13 October, 2026.

The Nigerian refinery, located in Lekki, Lagos, commenced operations in 2024, and is the largest single-train oil refinery in the world.

In Kenya, Dangote is hoping to replicate its refining ambitions in East Africa with a planned 700,000 bpd refinery in Lamu, although the project has faced local challenges.