Otedola Plans $100m Investment in Dangote Refinery Ahead IPO
Nigerian billionaire and Chairman of First HoldCo, Femi Otedola, has announced plans to invest $100 million in the Dangote Refinery as the facility prepares for a proposed public listing.
Otedola made the disclosure after leading top executives of First HoldCo on a tour of the refinery complex in the Lekki Free Zone, Lagos. The investment is expected to form part of the refinery’s ongoing $2 billion private placement aimed at attracting strategic investors ahead of its anticipated Initial Public Offering (IPO).
Speaking during the visit, Otedola revealed that he had secured an allocation of shares worth $100 million following several engagements with Africa’s richest man, Aliko Dangote. He also disclosed that proceeds from the sale of his stake in Geregu Power would partly fund the investment.
Industry analysts say the move signals growing investor confidence in the refinery, which is regarded as one of Africa’s biggest industrial projects. The 650,000 barrels-per-day refinery has already begun supplying refined petroleum products to the Nigerian market and is expected to significantly reduce the country’s dependence on imported fuel.
The refinery’s planned IPO is projected to attract both local and international investors, with reports suggesting Dangote may offer up to 10 percent equity to the public. The listing is also expected to become one of the largest corporate offerings on the Nigerian capital market.
