Africa's richest man launches continent's biggest share sale
Nigerian billionaire Aliko Dangote says he wants ordinary people to share in the success of his oil refinery.
Africa’s wealthiest man launches continent’s biggest share sale
The refinery, which opened in 2024, is one of the largest in the world
Nigerian billionaire Aliko Dangote has begun Africa’s biggest share sale ever, offering the public a stake in his oil refinery in a transaction that could bring in as much as $2.1bn (£1.6bn).
The initial public offering (IPO) covers about 3% of the Dangote refinery, with the billionaire saying he wanted ordinary Nigerians to have the opportunity to benefit from the plant’s success.
The refinery, which began production in 2024, is among the world’s largest and took more than 10 years to build.
It now provides more than 70% of Nigeria’s energy consumption, and many Nigerians have welcomed the chance to own part of it.
One of them is Isah Salisu, who told the BBC he took 50,000 naira (£28; $37) out of his savings to invest.
"My hope is that my small money will one day grow big. I don't want to miss out as many I know are also investing," he said.
The IPO runs for one month, and the minimum buy-in is 10 shares, costing about $4.
Economy and business expert Dr Abdulrazak Ibrahim Fagge told the BBC that Monday’s event was historic.
However, he cautioned investors that share prices could decline, which could mean people lose some of their money.
"What prospective buyers, especially first-time buyers, should know is that they shouldn't invest all their money or money they would need in a couple of months," he said.
"They should invest something they could do without for the next three, four, five years."
He also urged people to watch out for scammers, saying there are those who would try to exploit people without a strong understanding of the process.
"I will advise people to only deal with the institutions that have been listed," he said.
Nigeria is Africa’s largest oil producer, but before the refinery opened, most of the country’s fuel had to be imported because there was not enough refining capacity at home.
Born in Kano, Dangote, 67, has a net worth of about $28bn, according to Forbes magazine.
He built his fortune in cement and sugar before taking on what many describe as his biggest challenge yet when he launched the refinery.
It was first announced in 2013 with an initial estimated cost of about $19bn, but construction did not start until 2017. The project was then delayed further by the Covid-19 pandemic.
The site, in the Lekki Free Zone near Lagos, needed extensive land reclamation, with 65 million cubic metres of sand moved.
The refinery has a processing capacity of 650,000 barrels per day, making it the seventh-largest in the world.
The funds raised through the share offer are meant to help double its capacity.