Otedola To Invest $100m In Dangote Refinery Ahead Public Offer

Chairman of First HoldCo, Femi Otedola, has announced plans to invest $100m in the Dangote Refinery as the refinery accelerates preparations for its anticipated initial public offering (IPO).

Otedola disclosed the planned investment on Wednesday after leading senior executives of First HoldCo on a tour of the refinery complex owned by Africa’s richest man, Aliko Dangote.

The investment forms part of the refinery’s ongoing $2bn private placement targeted at strategic investors ahead of the proposed IPO, which is expected to attract both domestic and international participation. Although a listing date has yet to be announced, market analysts believe the offering could rank among the largest corporate listings in Africa.

Speaking during the visit, Otedola said he had secured an allocation of shares worth $100m in the private placement after several engagements with Dangote over the refinery project.

“On a personal note, I’ve appealed to him. I’ve been here with him 25 times, so my compensation is he’s going to allocate to me shares worth $100m in the private placement,” Otedola said.

He added that proceeds from the sale of his stake in Geregu Power Plc would be channelled into the refinery investment, underscoring his confidence in the long-term prospects of the project.

“That’s one of the reasons why I sold my stake in Geregu plant — to come and invest my proceeds in the IPO of Dangote refinery,” he stated.

The planned investment further strengthens ties between two of Nigeria’s most influential businessmen and signals growing investor confidence in the 650,000 barrels-per-day refinery, which is expected to significantly reduce Nigeria’s dependence on imported petroleum products and conserve foreign exchange.

The refinery, located in Lagos, has been described as one of Africa’s largest industrial projects and is projected to reshape the continent’s energy and refining landscape.

Industry stakeholders believe the IPO could provide investors with a rare opportunity to participate in a strategic infrastructure asset with regional significance.

Dangote had earlier indicated that up to 10 per cent of the refinery could be offered to investors during the listing. According to estimates by Bloomberg in October 2025, the proposed stake sale could value the offering at approximately $5bn.

The businessman is also pursuing a cross-border listing strategy aimed at widening the investor base and attracting capital from both African and global markets.
Dangote previously said the planned listing is intended to democratise wealth creation and allow Africans to participate directly in the continent’s industrial transformation story.

In a separate report published on May 12, Bloomberg said the refinery’s valuation could rise to as much as $50 billion ahead of the IPO, potentially making it one of the most valuable companies on the African continent.

Analysts say Otedola’s proposed investment could boost investor sentiment toward the offering and encourage broader institutional participation once the refinery opens its books to the public market.