Dangote Refinery Targets 1.4M Barrels Per Day Capacity By 2029

Aliko Dangote, President and Chief Executive of Dangote Petroleum Refinery, announced on Monday, October 12, 2026, plans for significant expansion and assured small investors during the final initial public offering (IPO) roadshow. The virtual event, themed “Back to Where It All Began,” was organized by Financial Derivatives Company in Port Harcourt, Rivers State. Dangote addressed concerns about the IPO's oversubscription and limited share offering, reiterating the company's commitment to accommodating all prospective investors.

The refinery aims to increase its production capacity from 500,000 barrels per day to 1.4 million barrels per day by early 2029. Beyond fuel, the facility projects substantial growth in petrochemical operations, targeting 2.5 million tonnes of polyolefin and 400,000 metric tonnes of linear alkylbenzene. Dangote defended the IPO offer price of N525 per share, describing it as attractive and expressing confidence in the refinery's financial performance.

This planned expansion to 1.4 million barrels per day would represent 10 percent of America's total refining capacity, marking a major milestone for Africa's industrial development. The projected 2.5 million tonnes of polyolefin would be the largest production in African history. Financial Derivatives Company CEO, Bismarck Rewane, projected that the refinery's public listing could significantly expand the Nigerian capital market, potentially exceeding N220 trillion in market capitalization.

For investors, the IPO presents an opportunity to transition from consumers to stakeholders in strategic national infrastructure, with Dangote suggesting potential returns of more than double investments within two and a half years. Economist Dr. Muda Yusuf highlighted that this investment would strengthen Nigeria’s economic fundamentals through industrialization, employment generation, and reduced dependence on imported petroleum products. It also promises increased foreign exchange stability and deeper public participation in the capital market.

The IPO is described as the largest in Africa, with countries like Kenya, Tanzania, and Uganda encouraging their citizens to invest. This domestic refining capacity is expected to reduce disruptions like fuel queues, which were common before the refinery commenced operations. The initiative aims to promote wider ownership of strategic industrial assets and foster a transition towards becoming an African investor, improving economic benefits for all.