'This is our company': Nigerians show off oil wealth after share-buying frenzy

'This is our company': Nigerians show off oil wealth after share-buying frenzy

Aliko Dangote wanted all Nigerians to get involved in the share offer

Every Nigerian is now an oil magnate.

At least that is what the social media memes would have you believe as investor fever sweeps the country.

Nigerians have been keen to get a stake in the energy business built by the country’s — and the continent’s — richest man, Aliko Dangote.

More than four billion shares in his huge oil refinery — a little over 3% of the company — were put on the market on Monday in Africa’s biggest-ever sale of this type.

The minimum buy was 10 shares for about $4 (£3), and although that amounts to only a tiny slice of the firm, many are now joking and celebrating their newly acquired (part-)owner status.

One widely shared social media video shows a Nigerian describing how he stopped a speeding Dangote company lorry driver and told him not to be reckless with company property.

Other memes depict investors trying to call Dangote to talk about business issues.

And the phrase "Yangote" — a pun in the Hausa language that essentially means "we all have a share now" — has been trending on social media.

On the first day of the Initial Public Offering (IPO), investment apps crashed because they could not cope with the surge in demand.

The Bamboo trading platform also crashed as so many people attempted to buy the shares.

Bamboo, which operates one of the most popular investor tools in the country, later apologised, saying: "We know we let you down."

Public affairs analyst Jamil Ubah said he had rarely seen Nigerians this excited about anything. He said it tapped into the hope that it could bring greater wealth to a population often struggling to make ends meet.

"I think the hope for the common man is that his money will grow into something big, and don't forget this is coming at a time when many are struggling as the economy is not doing great," he told the BBC.

Dangote wanted this to be "the people's IPO", giving drivers, cooks, cleaners and servants the chance to be part of something big.

And they took him at his word.

Twenty-five-year-old clothes seller Idris Lawal Musa made his first stock exchange purchase ever and told the BBC he was pleased after putting 21,000 naira ($16; £12) into 40 shares.

"It is no longer Dangote but 'Yangote', the company belongs to us now," he said, laughing.

But he may sell quickly.

"I am a trader by profession and when I see that the shares have increased in price I will sell," he noted.

Newspaper adverts encouraged people to invest in the refinery

The enthusiasm also reflects a growing investment culture among younger Nigerians who have embraced mobile trading platforms, cryptocurrencies and digital savings products.

But fear of missing out may also have driven some into investing.

Ahead of the IPO, social media was filled with financial discussion. People shared subscription guides, debated valuation metrics and urged friends and family to take part.

But amid the frenzy, experts warned of risks — shares can fall in value as well as rise, meaning people could lose some or all of their investment.

Financial analyst Shuaib Uwais said prospective investors should not view the IPO as a guaranteed path to wealth.

He urged people to weigh several factors that could affect the refinery’s future performance, including disruptions to crude oil supply, operational challenges, regulatory changes and shifts in demand for refined petroleum products.

"If for any reason the company experiences difficulty in sourcing its raw materials, there could be challenges," he told the BBC.

Even so, the IPO has given people the opportunity to be part of this home-grown success story.

Dangote’s vast refinery on the outskirts of Lagos, which started operating two years ago and now processes around 700,000 barrels of crude a day, has changed the fortunes of Nigeria’s oil sector.

Until recently, Africa’s biggest crude oil producer had no refining capacity and had to import the finished product. Now the Dangote refinery is supplying much of domestic demand.

But for Dangote, the share offer is about raising cash to finance the business’s growth, something the country’s mini-magnates may now be able to support.