Nigerian tycoon Aliko Dangote has revealed plans to list his $20 billion oil refinery on the Nigerian Exchange Limited (NGX), a significant development for Dangote Industries, the largest conglomerate in Africa.
In a recent interview with the Financial Times, Dangote shared that the company has successfully addressed challenges related to crude oil supply, clearing the path for the refinery’s listing. This strategic move is anticipated to instill confidence among investors and open up new avenues for growth for Dangote Industries.
“We have resolved all the issues with crude oil supply,” Dangote affirmed. “We are now ready to move forward with our plans to list the refinery on the Nigerian Exchange Limited.”
As the largest single-train refinery in Africa, with a capacity of 650,000 barrels per day, the Dangote Refinery is poised to revolutionize Nigeria’s oil and gas sector. It aims to reduce the country’s dependence on imported fuel while contributing significantly to export revenue. Dangote envisions the refinery evolving into an independent entity, solidifying its standing as a major player in the global oil and gas industry.
The listing of the Dangote Refinery on the NGX is expected to attract a diverse range of investors, both domestic and international, thereby enhancing the liquidity of the Nigerian stock market and reinforcing its reputation as a regional investment hub.
Dangote confirmed the refinery’s startup in December 2023, with an initial target of 350,000 barrels per day. He revealed that a deal had been secured for the first cargo of approximately 6 million barrels of crude, scheduled for delivery in December 2023.
“We are starting with 350,000 barrels a day. The challenges that we faced, I don’t know whether other people can face these challenges and even survive. It is either we sink, or we sail through. And we thank Almighty that at least we have arrived at the destination,” Dangote remarked.
Expressing confidence in the refinery’s potential, Dangote stated his belief in achieving the maximum output of 650,000 barrels per day by the end of 2024. He emphasized the uniqueness of the project, asserting that a venture of this magnitude would not emerge in Nigeria for the next two decades. Dangote underscored the company’s commitment to the project’s integrity, emphasizing that it was undertaken for the sake of posterity, without compromising quality or seeking mere applause.
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