The Vice President, Oil and Gas, Dangote Industries Limited, Edwin Devakumar, has assured prospective investors that the ongoing Initial Public Offering of Dangote Petroleum Refinery and Petrochemicals presents an opportunity to participate in one of Africa’s largest industrial ventures.
Devakumar said investors who subscribe to the offer could benefit from the refinery’s expected long-term growth, citing its operational performance, expanding market presence and strategic position in Africa’s energy market.
He made the remarks as the refinery’s public offer, which opened on September 14, continues to attract attention from institutional and retail investors. The IPO involves 4.1 billion ordinary shares priced at N525 each, with the offer scheduled to close on October 13, 2026.
According to Devakumar, the refinery has already started generating profits and was established to address Nigeria’s longstanding dependence on imported refined petroleum products, strengthen energy security and conserve foreign exchange.
He described the refinery as a major industrial investment capable of serving both Nigeria and international markets, particularly as demand for refined petroleum products continues to grow across Africa.
Devakumar said the objective of the IPO goes beyond raising capital, arguing that the offering would broaden ownership of the refinery by giving Nigerians and international investors an opportunity to acquire shares in the business.
He said proceeds from the offer would support the company’s expansion plans, operational optimisation, working capital requirements and other strategic investments across the petroleum value chain.
The refinery currently has a production capacity of about 700,000 barrels per day, according to Reuters, while the company plans to expand capacity to 1.4 million barrels per day over the next three years. Reuters also reported that the refinery posted a net profit of $1.82bn in the first half of 2026 on revenue exceeding $13bn.
Devakumar also pointed to the refinery’s integrated structure, deep-water port, logistics infrastructure and ability to process different crude grades as factors supporting its commercial prospects.
The facility produces several petroleum products, including petrol, diesel, aviation fuel and liquefied petroleum gas, as well as petrochemical feedstocks. The company has said the combination of refining, petrochemicals and logistics gives the business multiple sources of revenue.
On concerns about the effect of fluctuations in crude oil prices on the refinery’s profitability, Devakumar said the company’s performance was primarily driven by refining margins rather than the absolute price of crude.
He acknowledged that the disruption to global energy supplies caused by the ongoing US-Iran conflict had created additional profitability for refiners but cautioned that such exceptional market conditions should not be treated as the basis for the refinery’s long-term investment projections.
The IPO has also introduced incentives aimed at encouraging retail participation. According to Premium Times, eligible retail investors who subscribe to at least 10 shares and hold them continuously for 12 months will receive one additional share for every 10 shares held in each of the first two years after listing.
However, the Securities and Exchange Commission has advised prospective investors to carefully study the approved prospectus and use only authorised receiving agents and subscription platforms. The commission warned investors against transferring funds to unauthorised individuals or responding to unsolicited offers promising preferential allotments.
The official IPO information also cautions that investing in shares carries risks, noting that the value of an investment can rise or fall and investors may not recover the amount invested.
Devakumar nevertheless expressed confidence in the refinery’s long-term prospects, saying its expanding production, export potential and strategic position within Africa’s energy sector could create sustained value for shareholders.
The IPO is expected to provide a wider group of investors with an opportunity to hold shares in the refinery as it seeks to expand production and strengthen its presence in domestic and international petroleum markets.
