Dangote Group, owned by Africa’s richest person Aliko Dangote, has announced plans to list its subsidiary Dangote Petroleum Refinery & Petrochemicals on the Nigerian stock exchange in early 2025. The group also intends to list another multi-billion-dollar subsidiary, Dangote Fertiliser Limited, on the domestic stock market in the first quarter of next year.
The Dangote refinery, which is Africa’s biggest and newest crude processing facility, has been increasing its imports of U.S. crude oil, signaling that American barrels are currently competitively priced in the international market. So far in 2024, the refinery has purchased over 16 million barrels of West Texas Intermediate (WTI) crude, and it is set to further raise its U.S. crude imports in August and September, as evidenced by recent tenders.
The move to list the refinery and fertiliser subsidiaries on the Nigerian stock exchange is aimed at alleviating foreign exchange pressures on the economy. By increasing domestic production and reducing Nigeria’s reliance on imported refined products, the Dangote Group hopes to contribute to the country’s economic growth and stability.
Despite these efforts, Nigeria’s state-owned oil company has recently disputed claims by Aliko Dangote that it failed to meet its payment obligations to increase its stake in the mega refinery to 20% from 7.2%. As the Dangote Group continues to navigate challenges and pursue opportunities for expansion, the listing of its key subsidiaries on the stock exchange is expected to attract significant investor interest and bolster Nigeria’s capital markets.
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