Dangote Refinery IPO Set to Test Depth of African Capital Markets

Africa’s largest refinery is preparing to tap investors through a major stock market listing. The planned offer is expected to become a key test of the continent’s ability to mobilise large-scale investment capital.

Standard Bank Group has been selected to play a leading role in the planned $50 billion initial public offering (IPO) of Dangote Petroleum Refinery, scheduled for September. Through its Nigerian subsidiary, Stanbic, the bank will advise on the structuring, execution and marketing of the transaction.

The listing marks a significant step in Aliko Dangote’s long-standing ambition to take the refinery public and is widely viewed as a measure of investor appetite and liquidity in African capital markets.

Standard Bank Group Chief Executive Sim Tshabalala said the transaction aligns with the lender’s strategy of attracting both domestic and international investors, including sovereign wealth funds, pension funds and institutional asset managers, into major development projects across the continent.

Funds raised through the IPO will support Dangote Group’s plans to invest $40 billion over the next five years to expand refinery operations and boost urea fertiliser production.

With a processing capacity of 700,000 barrels per day, the Lagos-based refinery is the largest in Africa. The facility has already begun reshaping Nigeria’s fuel supply chain by reducing reliance on imported refined petroleum products, easing pressure on foreign exchange demand and strengthening the country’s energy security.

Dangote has repeatedly stated his ambition to help transform Africa from a net importer of refined fuel into a more self-sufficient energy market through large-scale industrial investment.

For Standard Bank, the deal also highlights its role in arranging financing for transformative projects while mobilising external capital rather than relying primarily on its own balance sheet. The lender says it remains committed to managing its exposure to upstream oil and gas activities while continuing to expand renewable energy financing across its markets.