Dangote: ₦525 Refinery Shares Could Rise to ₦10,000

Investors who buy into the Dangote Petroleum Refinery may see the value of their holdings multiply significantly in the years ahead, according to Aliko Dangote.

The businessman said the refinery’s shares, which will be offered at ₦525 each, could eventually climb as high as ₦10,000.

The projection comes ahead of the company’s much-anticipated initial public offering, which is scheduled to open on September 14 and close on October 13.

Dangote used a hypothetical ₦5m investment to illustrate his expectation, saying such an investment could be worth more than ₦50m if the share price eventually reaches his projected target.

The IPO will put 4.1 billion ordinary shares on offer, with investors able to apply for as few as 10 shares, equivalent to ₦5,250.

A major feature of the offer, according to Dangote, is that smaller investors will be given preference when shares are allocated.

He said people investing modest amounts such as ₦50,000 or ₦100,000 would be prioritised ahead of institutional investors seeking much larger allocations.

He also highlighted dividends as another potential attraction, saying shareholders may have the option of receiving their returns in either naira or US dollars.

Dangote argued that receiving dividends in dollars could be particularly useful for Nigerians who have expenses outside the country.

He cited parents with children studying in the United Kingdom as an example, noting that currency fluctuations can significantly increase the cost of foreign expenses.

The Dangote Group president recalled the naira’s steep decline against the dollar, saying the exchange rate had moved from around ₦400 to about ₦1,800 to a dollar, creating difficulties for families and businesses with foreign obligations.

Beyond the potential returns for shareholders, the IPO is expected to help finance the refinery’s expansion plans. The company wants to raise its capacity from roughly 650,000–700,000 barrels per day to 1.4 million barrels per day.

However, the ₦10,000 figure should not be interpreted as a guaranteed future share price. Once the company is listed on the Nigerian Exchange, its market value will be influenced by demand and supply, business performance, investor confidence, refining margins and wider economic conditions.

The company expects the proceeds from the share sale to support its expansion and other corporate needs, while investors will only know the exact number of shares allotted to them after the offer closes and applications are processed.

Dangote’s comments therefore offer an optimistic outlook for prospective shareholders, but the eventual performance of the investment will depend on how the refinery and the wider market perform after listing.