Otedola Seeks $100m Stake in Dangote Refinery Ahead of IPO

Otedola Seeks $100m Stake in Dangote Refinery Ahead of IPO

Chairman of First HoldCo Plc, Femi Otedola, has disclosed plans to invest $100 million in the proposed initial public offering (IPO) of the Dangote Petroleum Refinery and Petrochemicals.

Otedola made the disclosure during a visit by the boards and management teams of First HoldCo Group companies to the Dangote Refinery and Dangote Fertiliser plants in Ibeju-Lekki, Lagos.

Speaking during the visit, Otedola revealed that he sold his stake in Geregu Power Plc to position himself for investment in the refinery’s listing, which he described as a major industrial project capable of reducing Africa’s dependence on imported petroleum products.

“He is a genius and one of the greatest men to emerge from Africa. What he has achieved is helping to liberate the continent from economic dependency and import reliance,” Otedola said while commending Aliko Dangote for building what he described as the world’s largest single-train refinery.

Otedola also expressed confidence in the planned expansion of the refinery’s production capacity from 650,000 barrels per day to 1.4 million barrels per day, noting that Africa’s growing energy demand supports further investment in refining infrastructure.

Responding, Dangote assured that the refinery’s IPO would provide opportunities for ordinary Nigerians and Africans to participate in the ownership of the business.

“We want ordinary Africans to participate in the value being created,” Dangote said. “What companies like Amazon and Apple achieved globally in terms of wealth creation is what we seek to replicate in Africa.”

He stated that the Group intends to democratise investment opportunities by making the IPO accessible to retail investors across Nigeria and the continent.

Dangote also disclosed plans for a proposed 700,000 barrels-per-day refinery in East Africa, alongside polypropylene and base oil production facilities, which he said could commence within the next three to four years.

According to him, the planned project was not initially included in the Group’s Vision 2030 strategy, indicating the company’s ambition to exceed its long-term growth targets.

Chief Executive Officer of FirstBank Group, Olusegun Alebiosu, described the refinery as a symbol of industrial vision capable of inspiring economic transformation across Africa.

“If you see this refinery and realise that an individual conceived and delivered a project of this magnitude, already helping to stabilise energy supply across Africa, you cannot help but be inspired,” Alebiosu said.

Dangote further highlighted the Group’s investments across cement, refining, petrochemicals and fertiliser production, noting that its cement operations now span 11 African countries with production capacity reaching 55 million tonnes annually.

“Africa must stop exporting raw materials and importing finished goods. That amounts to exporting jobs and importing poverty,” he said.

He added that investor interest in the refinery’s IPO and private placement has remained strong, with demand already exceeding $2 billion.