President of Dangote Industries Limited, Aliko Dangote, has projected that shares of the Dangote Petroleum Refinery, currently being offered at N525 each, could rise to as much as N10,000 in the future.
Dangote also assured small-scale investors interested in the refinery’s Initial Public Offering (IPO) that they would receive priority in the allocation of shares.
He made the remarks in Hausa during an interview with Abis Fulani, which was translated by Google Gemini. The interview was published on Thursday and gained wider attention on Saturday.
According to Dangote, retail investors seeking to purchase shares worth N50,000, N100,000 or other smaller amounts would be prioritised ahead of large institutional investors during the allotment process.
“When you do something like this—what is called an IPO—all the small-scale investors are the ones who will be given priority first,” he said.
He explained that institutional investors requesting large allocations might not receive their full applications, while smaller retail investors would receive priority allocations before the remaining shares were distributed.
Shares Could Reach N10,000
Dangote said the refinery’s current offer price of N525 could appreciate significantly over time, projecting that the shares could eventually trade at N10,000.
“As I was saying, this share, if you look at it, we are currently at N525. A day will come when this share will reach N10,000,” he said.
He illustrated the potential gain by saying an investment of N5m at the current price could be worth more than N50m if the shares eventually reached N10,000.
However, the projection does not constitute a guarantee of future returns. Once listed, the market price of the shares will be determined by demand and supply and could rise or fall depending on the refinery’s performance, investor sentiment, refining margins and wider economic conditions.
Dividends Could Be Paid in Naira or Dollars
Dangote also said shareholders could have the option of receiving dividends in either naira or US dollars, arguing that the dollar option could help investors hedge against currency depreciation.
He said the option could particularly benefit Nigerians with financial commitments abroad, including parents paying school fees for children studying in the United Kingdom.
According to Dangote, holding the shares would allow investors to continue with their regular businesses while potentially receiving dividend payments in a currency of their choice.
He recalled the sharp depreciation of the naira against the dollar, noting that the exchange rate had risen from around N400 to the dollar to about N1,800.
Dangote said the dollar dividend option could help investors avoid some of the financial pressures associated with such exchange-rate movements.
IPO to Raise N2.15tn
The Dangote Petroleum Refinery IPO comprises 4.1 billion ordinary shares priced at N525 each. If fully subscribed, the offer is expected to raise approximately N2.15tn.
The minimum subscription is 10 shares, costing N5,250, while the offer is scheduled to run from September 14 to October 13, 2026.
Following the close of the offer, applications will be processed and investors will be notified of their allotments. Investors who apply for a specific number of shares are not guaranteed to receive the full amount requested, particularly if the IPO is oversubscribed.
The shares are expected to be listed on the Nigerian Exchange Main Board after the allotment process. Their market value will subsequently be determined by trading activity on the exchange.
While Dangote has projected that the shares could eventually reach N10,000, the current N525 offer price does not guarantee a future market value or investment return.
Refinery Expansion
Proceeds from the IPO are expected to support the refinery’s expansion plans.
The company intends to increase its refining capacity from approximately 650,000–700,000 barrels per day to 1.4 million barrels per day.
The planned expansion is expected to further strengthen the refinery’s role in Nigeria’s petroleum industry and increase its capacity to supply refined products to the domestic and international markets.
