Aliko Dangote has announced plans to list the fertilizer and petrochemical business of the Dangote Refinery on the stock exchange in the first quarter of 2025.
The President of Dangote Group, Aliko Dangote, made this statement in a briefing to the media at the Dangote Refinery.
Aliko Dangote also confirmed that NNPC only owns 7.2% stake in the refinery and not the 20% that was publicly stated. The refinery is expected to generate up to $25 billion annually from 2025 when it is fully operational.
According to Aliko Dangote, they are targeting first quarter of 2025 for the listing of the refinery and the fertilizer plans giving Nigerians and opportunity to own a stake in the business.
“Because of the nature of the business we have, both the refinery and the fertilizer, we are targeting end of this year but it depends, most likely, worst case we will be able to list them before the end of first quarter of next year, so that we will sell shares and Nigerians will buy.” Dangote stated
This is coming barely two weeks after Dangote had been reported to have hinted of plans for the dual listing of the refinery on the London and Nigerian stock exchanges.
Aliko Dangote has a history of listing many of his businesses on the stock exchange, providing Nigerians with opportunities to own a stake in them. Currently, his cement, sugar, and allied food businesses are publicly traded.
Dangote Cement, in particular, is the most capitalized company in Nigeria, boasting a market valuation exceeding N11 trillion.
About the refinery
Dangote refinery and petrochemicals is regarded as Africa’s biggest oil refinery and the world’s biggest single-train facility with 650kbpd capacity, state-of-the-art Technologies, dedicated loading gantries with 86 loading bays as well as dedicated marina facilities for offtake of crude and loading of petroleum products.
The facility also has 900 ktpa polypropylene plant, 36 ktpa sulphur and 585 ktpa carbon black production as well as total storage capacity of 4.5 billion litres which can cover -20 days crude requirement and Product storage for 15 days of Nigeria’s gasoline consumption.
The refinery is specially located at the Lekki FTZ which gives it a logistics advantage relative to imports, ready access to the West African and Latin American markets and proximity to Nigeria’s largest market for petroleum products.
The refinery’s configuration significantly enhances its economics by minimising production of low value products (eg, LPFO) and incorporating flexibility to allow the swing to more profitable crudes and products. It must be noted that the large scale minimises production costs and provides ability to serve a large market.
Test run fully completed
The Dangote refinery project is now fully online with successful completion of trial run in January 2024. The refined and intermediate products include polypropylene, naphtha, RCO, gasoline, diesel, and jet fuel/
The steady-state production phase commenced in March 2024. The ramping up production is expected to reach 500kbpd (15 crude cargoes a month) by next August, 550kbpd by end of the year, and 650kbpd by Q1 2025
Gasoline production is expected to commence in July with sales from August and annual revenue projected to exceed $26 billion
More to follow…
