Dangote dangles dollar dividends to lure investors for refinery IPO

Aliko Dangote, president of Dangote Group, has announced plans to introduce an unprecedented dividend structure for his $20 billion oil refinery when it lists on the Nigerian Exchange next year, allowing shareholders to earn returns in US dollars despite purchasing shares in naira.

Dangote disclosed the arrangement during an address in Lagos on Thursday, saying the company is collaborating with the NGX and the Securities and Exchange Commission to finalise the framework ahead of the 2026 initial public offering.

“You buy in naira, but you get dividends in dollars,” Dangote told the audience at Eko Hotel, describing a model that could provide Nigerian investors with a hedge against currency volatility.

Read also: Foreign investors return to Nigeria stocks after FX reset

According to Dangote, the dollar-denominated payouts will be supported by $6.4 billion in anticipated revenue from petrochemical exports, particularly polypropylene and fertiliser, he explained.

The announcement forms part of a broader growth strategy that sees the Dangote Group projecting revenues of $100 billion by 2030, up from the current $18 billion.

Such expansion, Dangote said, would position the conglomerate among the world’s 100 largest companies. The group is also targeting a market capitalisation exceeding $200 billion.

Dangote noted that group revenues have climbed from $3.3 billion to $18 billion over the past five years, while earnings before interest, tax, depreciation and amortisation have increased from $1.8 billion to $2.8 billion during the same period.

The industrialist confirmed that a 10 percent stake in the refinery and petrochemicals complex will be offered to the public through the NGX. Although the possibility of international secondary listings has not been ruled out, Dangote made clear that the Nigerian market remains the priority.

“We want the Dangote Refinery to be the golden stock of the Exchange,” he said.

The 650,000-barrel-per-day facility, which commenced diesel and aviation fuel production in January before adding petrol in September, is viewed as critical to Nigeria’s ambitions of achieving fuel self-sufficiency.

Read also: Africa urged to speed up reforms as investors seek clearer entry into Nigeria

Dangote revealed plans to expand the refinery’s capacity to 1.4 million barrels per day within three years, more than double its current output.

Industry observers say the dollar dividend proposal could set a precedent for Nigerian companies seeking to attract investment amid persistent naira depreciation, though questions remain about regulatory approval and the mechanics of sustained hard currency payouts in a foreign exchange-constrained economy.

Dipo Oladehinde is a skilled energy analyst with experience across Nigeria's energy sector alongside relevant know-how about Nigeria’s macro economy.

He provides a blend of market intelligence, financial analysis, industry insight, micro and macro-level analysis of a wide range of local and international issues as well as informed technical rudiments for policy-making and private directions.

Join BusinessDay whatsapp Channel, to stay up to date