The ÆŠangote Group has unveiled plans to divest a 10% stake in its 20 billion dollars, 650,000-barrel-per-day refinery through a Pan-African Initial Public Offering (IPO) scheduled for 2026.
Aliko ÆŠangote disclosed this at an event hosted by the Atlantic Council in Washington DC on Thursday.
He said the planned share sale is aimed at supporting long-term investments while boosting participation in Africa’s capital markets.
According to him, ÆŠangote Petroleum Refinery and Petrochemicals FZE will pay dividends to shareholders in dollars after listing, although specific financial details of the planned offering were not disclosed.
ÆŠangote said that the company has appointed Stanbic IBTC Capital Ltd., Vetiva Advisory Services Ltd. and FirstCap Ltd. as advisers for the proposed IPO. He said that the share sale aligns with his broader strategy to invest about 40 billion dollars over five years to scale-up operations across refining, fertiliser production and mining ventures in Africa.
Ɗangote said that the expansion plan includes quadrupling fertiliser output, increasing refinery capacity significantly, and establishing potash and phosphate plants in the Democratic Republic of Congo alongside copper refining projects in Zambia. He said that the 650,000 barrels-per-day refinery, Africa’s largest refinery, recently reached full operational capacity, coinciding with supply disruptions linked to tensions in the Middle-East, which boosted demand for its petroleum products globally.
Ɗangote said that the facility has also emerged as a strategic supplier of jet fuel to Europe, reinforcing its growing relevance in international energy markets and enhancing Nigeria’s position in global refining and export chains.
Also speaking, the senior vice-president of refining, chemicals and oil markets at consultancy Wood Mackenzie, Alan Gelder, said that the refinery was highly profitable, adding that the rising export volumes and strong demand fundamentals across multiple product segments.
Gelder said that data indicated that diesel exports rose to about 79,500 barrels per day in April from 73,600 in March, while gasoline shipments declined to 50,100 barrels per day from nearly 102,400 previously.
