LAGOS, Nigeria — Dangote Petroleum Refinery has secured Sh323 billion ($2.5 billion) from private investors to finance an ambitious expansion of Africa’s largest oil refinery, as billionaire industrialist Aliko Dangote accelerates plans to strengthen the continent’s refining capacity, including a proposed mega refinery in Kenya.
The investment, announced on Thursday, marks the largest publicly disclosed private capital raise for an infrastructure project in Africa, according to the company.
The funding gives private investors a stake in the 650,000-barrels-per-day (bpd) refinery, which began operations two years ago and is currently the largest refinery on the African continent.
Until the latest investment round, the Nigerian National Petroleum Company Limited (NNPCL) was the only external shareholder, holding approximately 7.2 per cent of the refinery.
Dangote Petroleum Refinery and Petrochemicals said the private placement is expected to pave the way for an Initial Public Offering (IPO) later this year, allowing members of the public to invest in the refinery.
Company founder Aliko Dangote, Africa’s richest person, said the fresh capital would complement internally generated funds and existing external financing as the company pursues its long-term expansion strategy.
“The funds raised will complement our internal cash flows and external funding as we advance our expansion agenda,” Dangote said.
The company plans to increase refining capacity from 650,000 barrels per day to 1.4 million barrels per day, a move that would make the facility the largest oil refinery in the world, overtaking India’s Jamnagar Refinery, currently regarded as the world’s biggest refining complex.
The expansion is also expected to support Dangote’s regional growth strategy, which includes plans to construct a 700,000-barrels-per-day refinery in Lamu, Kenya.
According to the Africa Finance Corporation (AFC), Africa imports more than 70 per cent of its refined petroleum products despite being rich in crude oil reserves. The continent also spends about $230 billion annually importing essential commodities, including fuel, food, fertiliser, plastics and steel.
Dangote said the latest investment will help reduce Africa’s reliance on imported refined products while strengthening the continent’s energy security and industrial development.
The refinery has already begun reshaping Nigeria’s downstream petroleum sector by increasing domestic fuel production, reducing import dependence and positioning the country as a potential exporter of refined petroleum products to African and international markets.