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Chairman, DANGOTE Group, Aliko Dangote
Dangote Refinery Plans Dual Listing on NGX, London Stock Exchange
Nigeria’s Dangote refinery is set to pursue a dual listing on both the London Stock Exchange (LSE) and the Nigerian Stock Exchange (NGX), as announced by senior executives on Tuesday.
Speaking to Reuters, Devakumar Edwin, an executive at Dangote refinery, emphasized the necessity of a dual listing due to the limitations of the NGX. “The Nigerian Stock Exchange alone would not have the adequate depth to handle the refinery exclusively,” Edwin stated. “We would have to take it to the LSE while also listing on the NGX.”
Aliko Dangote, Chairman of the Dangote Group, indicated in media reports that the company could potentially list on the NGX by the end of the year. Dangote Group already has significant interests listed on the NGX, including Dangote Cement, Dangote Flour Mills, and Dangote Sugar.
The Dangote refinery, Africa’s largest, is located on a peninsula near Lagos, Nigeria’s commercial capital. Constructed at a cost of $20 billion after several years of delays, the refinery has a capacity to process up to 650,000 barrels per day (bpd). Once it reaches full capacity, it will be the largest refinery in Africa and Europe. Currently, Dangote is securing crude supplies for the facility, having recently struck a deal with TotalEnergies for crude oil supply. Despite being in Africa’s largest oil-producing country, the refinery has had to import oil from the United States.
The planned dual listing coincides with the refinery’s preparations to start producing Premium Motor Spirit (PMS) next month. This announcement contrasts with a more conservative estimate from Standard and Poor’s (S&P) analysts, who projected a fourth-quarter start for PMS production.
Historically, the Dangote refinery has struggled to meet its production timelines. It only began distributing diesel and aviation fuel almost eight months after its commissioning in May last year. However, once fully operational, the refinery aims to significantly reduce energy importation costs not only for Nigeria but across West Africa.
A previous report by Nairametrics highlighted that the commencement of full production at the Dangote refinery could lead to the closure of some European refineries that currently export gasoline to Africa, thus significantly reducing the $17 billion spent on gasoline imports to the continent.
