The ability of Dangote Refinery to maintain steady access to crude oil will be a major consideration for investors ahead of its planned $5 billion Initial Public Offering (IPO), petroleum economist Prof. Wunmi Iledare has said.
Iledare, Professor Emeritus of Petroleum Economics, stated this while assessing the prospects of the refinery’s planned listing in an exclusive interview with DAILY POST.
He, however, said the refinery presented a positive investment outlook, noting that investors would mainly be interested in the sustainability of its operations and access to the raw materials required for production.
The IPO, earlier expected in September 2026, has been shifted to October after the refinery secured a $1 billion underwriting commitment.
Iledare explained that reliable crude supply would be crucial to the refinery’s ability to operate efficiently and deliver returns to shareholders.
“What investors are looking at is the prospect. And the prospect is good,” he said.
According to him, investors would also consider Nigeria’s governance structure and the refinery’s ability to secure crude at sustainable and competitive terms.
He noted that the ability to pay for crude and other necessary inputs would strengthen the refinery’s chances of maintaining uninterrupted supplies, particularly if it can source a significant portion of its requirements locally.
The planned IPO is expected to allow investors to acquire equity in the refinery while providing the company with additional capital to support its operations and future expansion.
Dangote Refinery, described as Africa’s largest single-train refinery, has become a significant player in Nigeria’s downstream petroleum sector, supplying refined petroleum products to the domestic market and other destinations.
