Umaru Kwairanga, chairman of the Nigerian Exchange Group (NGX), revealed on Monday that two important firms within the Dangote Industries Group, a leading conglomerate led by Africa’s richest individual, Aliko Dangote, are preparing to float on the exchange in the near future.
During a ceremonial occasion marking the Senate Committee on Capital Markets and Institutions’ visit to the NGX offices in Lagos, Kwairanga announced that the Dangote Oil Refinery and Dangote Fertilizer Company will be listed on the exchange soon. According to Kwairanga, the move reflects the private sector’s dedication.
“During negotiations last week, the president of Dangote Group, Aliko Dangote, confirmed to me that the Dangote Refinery will soon be listed on this market. Kwairanga further stated that he intends to IPO the fertilizer company, Dangote Fertilizer.
Kwairanga stressed the necessity of increasing market participation, encouraging more power generation firms (GenCos) and institutions such as the Nigerian National Petroleum Corporation Limited (NNPCL), Nigeria LNG (NLNG), and Pension Fund Administrators (PFAs) to explore listing on the exchange. This, he stated, will ensure that all listings benefit the investing public.
Kwairanga’s revelation matches an earlier statement made by Dangote in an interview last year, in which he hinted to the refinery’s potential listing but did not provide a date. The revelation is consistent with many forecasts for 2024, which anticipate the refinery’s listing and expect a considerable increase in market value.
The Dangote Oil Refinery, with a capacity of 650,000 barrels per day, aims to supply Nigeria’s full demand for refined petroleum products such as petrol, gasoline, kerosene, and aviation fuel. The refinery now produces automotive gas oil (diesel) and JetA1 (aviation fuel) as part of its operations.
Marketers connected with the Major Oil Marketers Association of Nigeria (MOMAN) have signed agreements with Dangote Oil Refinery to lift and distribute refined petroleum products. Conoil, run by telecom and oil entrepreneur Mike Adenuga, is a key member in this partnership, as are other industry giants such as Total Nigeria, NNPC Retail, and Ardova (previously controlled by Nigerian billionaire Femi Otedola).