By Jelili Gbadamosi
The sustainability of crude oil supply and Nigeria’s governance structure will be critical factors for investors considering Dangote Refinery’s planned $5 billion Initial Public Offering (IPO), petroleum economist Prof. Wunmi Iledare has said.
Iledare, Professor Emeritus of Petroleum Economics, gave the assessment while speaking exclusively with DAILY POST on the prospects of the refinery’s planned listing.
The IPO, initially scheduled for September 2026, has been moved to October following the refinery’s successful securing of a $1 billion underwriting commitment.
Despite the concerns that investors may have, Iledare said the outlook for the investment remains positive, describing the refinery’s prospects as good.
He explained that investors would particularly assess whether the company could maintain reliable access to crude oil, which remains essential to the continuous operation of the refinery.
“What investors are looking at is the prospect. And the prospect is good,” he said.
Iledare noted that the availability and accessibility of raw materials are crucial to the success of any manufacturing business.
He added that Dangote Refinery’s capacity to pay for crude and other inputs would be important in securing continuous supplies, particularly where the company can obtain most of its requirements locally.
The planned IPO is expected to give investors an opportunity to acquire equity stakes in the refinery while enabling the company to raise substantial capital to strengthen its operations.
Dangote Refinery, Africa’s largest single-train refinery, has become a major player in Nigeria’s downstream petroleum industry, supplying refined petroleum products to the domestic market and other destinations.
