By Ejiofor Toochi
Edited by Ezennia Uched
For the first time, Nigerians will be able to directly own a stake in the Dangote Refinery, Africa’s largest single-train oil refinery, after its founder confirmed plans to open part of the company to the public.
Aliko Dangote, president of the Dangote Group, confirmed the development on Saturday while briefing journalists at the refinery in Lagos. He said the Nigerian National Petroleum Company Limited (NNPC) currently holds a 7.25% stake on behalf of Nigerians, but individual citizens will soon be able to purchase shares directly.
“They (NNPC) are holding 7.25% of the shares that we have here, which is more than the shares Elon Musk has in Tesla, and they’re holding that on behalf of Nigerians. But individually, Nigerians too would have an opportunity in the next, maybe, maximum, four or five months.”
He added that shareholders will also have the option to receive dividends in either naira or US dollars, reflecting the refinery’s foreign currency earnings from exports.
“There would actually be options to buy their shares. And what I promised before, people will have a choice, either to get their dividends in Naira or to get their dividends in Dollars, because we earn Dollars.”
The 650,000-barrel-per-day refinery, located in Lagos, is the world’s largest single-train refinery. Built at a reported cost of about $20bn, it began phased operations last year and is expected to reduce Nigeria’s reliance on imported fuel significantly.
Opening shares of the Dangote Petroleum Refinery to the public is expected to broaden ownership of a strategic national asset and strengthen Nigeria’s capital market, according to Nairametrics. Valued at about $20 billion, the refinery’s listing may also enhance investor confidence and market depth, while the option to receive dividends in US dollars could provide shareholders with a hedge against naira volatility.
Details of the share sale, including pricing, are expected to be announced in the coming months.
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