Dangote Refinery secures $2.5bn in Africa’s largest private equity placement

DANGOTE Petroleum Refinery and Petrochemicals FZE (DPRP) has successfully raised approximately $2.5 billion through a landmark private equity placement, marking what is being described as Africa’s largest publicly disclosed primary equity private placement to date.

The transaction represents the first time the 650,000 barrels-per-day refinery has admitted external investors beyond its core shareholders, underscoring growing investor confidence in the continent’s largest single-train refinery and Nigeria’s energy sector.

According to the company, the fresh capital will finance the expansion of its refinery and petrochemical complex, strengthen its balance sheet and enhance financial flexibility for future growth initiatives.

The equity offering attracted a broad range of investors, including international and African institutional funds, sovereign-related investment vehicles, development finance institutions, strategic partners and high-net-worth individuals. Among the notable participants were the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle supported by the African Export-Import Bank (Afreximbank).

President and Chief Executive of Dangote Industries Limited and Chairman of DPRP, Aliko Dangote, described the transaction as a strategic milestone for the company.

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“This placement represents a strategic step to deepen and further institutionalise the Enterprise’s shareholder base, while raising capital to complement our internal cash flows and external funding as DPRP advances its expansion agenda,” Dangote said.

He added that the fundraising reinforces the company’s commitment to expanding Africa’s refining and petrochemical capacity, reducing dependence on imported petroleum products and strengthening the continent’s energy security.

Managing Director and Chief Executive Officer of Dangote Petroleum Refinery & Petrochemicals, David Bird, said the strong investor appetite reflected confidence in the refinery’s operational performance and long-term prospects.

“The exceptional response we witnessed is a testament to our operational excellence, execution capability and the confidence investors have in DPRP’s leadership and future potential,” Bird said.