Billionaire Femi Otedola Commits $100 Million to Dangote Refinery Private Placement
Billionaire businessman Femi Otedola has announced his readiness to invest $100 million in the private placement of the Dangote Refinery, ahead of its planned public listing in September 2026. The refinery, valued between $40 billion and $50 billion, is set to list on key stock exchange markets across Africa.
Speaking at the Dangote Refinery in Lagos State, in the company of Aliko Dangote, Otedola stated: "I have been here with him five times, and my compensation for that is for him to give me a chance to invest $100 million in the private IPO." Otedola, who has investments in finance and power sectors, revealed that he sold his controlling stake in Geregu Power to fund this position.
Otedola holds a majority stake in First Bank and previously owned a 77% controlling stake in Geregu Power, which he sold for a reported $750 million to free up capital for the Dangote Refinery investment.
About the Dangote Refinery
Located in the Ibeju Lekki area of Lagos State, the Dangote Refinery was commissioned by former President Muhammadu Buhari in May 2023 and began operations in January 2024. It is the world's largest refinery, with a capacity to process 650,000 barrels of petroleum motor spirit daily. Beyond petrol, it produces aviation jet fuel, kerosene, polypropylene, and fertiliser.
Aliko Dangote, Africa's richest man, noted that the refinery cost approximately $20 billion to build, including massive infrastructure such as seaports and concrete roads. The facility can meet Nigeria's daily fuel consumption needs and export surplus to countries like the United States.
The refinery's significance has grown amid the ongoing conflict between the United States and Iran, which has disrupted crude oil supplies from the Middle East.
IPO and Private Placement
Ahead of its September 2026 IPO, the Dangote Refinery has been valued between $40 billion and $50 billion. The Dangote Group plans to float up to a 10% equity stake to the public, potentially raising up to $5 billion in a single transaction.
The private stock offering, which precedes the public offer, is expected to attract significant interest from global capital ventures seeking a strong position in Africa's energy market.
Future Expansion
Building on this achievement, Aliko Dangote has expressed readiness to construct another refinery in Eastern Africa. He recently met with Kenyan President William Ruto and Ugandan President Yoweri Museveni to discuss the planned facility. Dangote's net worth has reportedly doubled to $30 billion since the refinery began operations.
