Nigeria’s flagship refining project, Dangote Petroleum Refinery, is seeking to raise approximately $1 billion through a private placement in a move that could pave the way for one of the most anticipated public listings in Africa’s energy sector.

According to sources familiar with the transaction and a placement document circulated among potential investors, the refinery is offering 3 billion ordinary shares at $0.35 per share, placing the company’s valuation at about $39.1 billion. Investor appetite appears robust, with indications of interest already exceeding $2 billion, more than double the targeted raise.

The private placement is aimed at institutional investors and high-net-worth individuals. Prospective investors are required to subscribe to a minimum of one million shares, valued at $350,000, with any additional purchases to be made in blocks of 500,000 shares. All subscribed shares will be subject to a one-year lock-up period.

The capital injection is expected to support expansion initiatives and general corporate activities as the refinery accelerates production and strengthens its foothold in Nigeria’s downstream petroleum industry.

Since commencing operations in 2024, the 650,000-barrels-per-day refinery has emerged as a transformative force in the country’s energy landscape. The facility has expanded production across diesel, aviation fuel, naphtha and petrol, helping to reduce Nigeria’s reliance on imported refined products while improving domestic fuel availability.

Industry analysts believe part of the new funding could be deployed toward expanding logistics networks, storage facilities and distribution infrastructure. The refinery is also expected to explore opportunities in the petrochemicals value chain as it seeks to diversify revenue streams and enhance operational efficiency.

Officials of the refinery did not respond to requests for comment on the proposed fundraising exercise.

Market observers view the private placement as a strategic precursor to a public offering, following earlier indications by billionaire industrialist Aliko Dangote that the refinery could be listed on the stock exchange before the end of 2026.

If completed successfully, the transaction would rank among the largest private capital raises ever undertaken in Africa’s energy industry, underscoring investor confidence in the refinery’s long-term prospects and reinforcing its ambition to become a leading refining and petrochemical hub for the continent.

Caption: Investor demand tops $2 billion as Dangote Refinery seeks fresh capital to fund expansion, strengthen market dominance and prepare for a potential stock market listing valued at over $39 billion.