Dangote Targets 1.4m Barrels Daily Refining Capacity by 2029

* Promises to accommodate small bidders

Blessing Ibunge Blessing in Port Harcourt 

President of Dangote Industries Limited, Aliko Dangote, has unveiled plans to expand the capacity of the Dangote Petroleum Refinery to 1.4 million barrels per day by early 2029, while assuring small investors that they would be accommodated in the company’s ongoing Initial Public Offering (IPO).

Dangote, who disclosed this on Monday during the final IPO roadshow, themed ‘Back to Where It All Began,’ held in Port Harcourt, said the planned expansion would position the refinery among the world’s largest refining complexes and strengthen Nigeria’s industrial capacity.

Speaking virtually at the event organised by Financial Derivatives Company for Dangote Petroleum Refinery, he said the refinery’s current capacity stood at 500,000 barrels per day, with further expansion expected to raise output substantially.

“But what we have today, we are at 500,000 barrels per day. And by the beginning of 2029, we will be at 1.4 million barrels per day,” he said.

Dangote added that the expansion would be accompanied by significant growth in petrochemical production, including a projected 2.5 million tonnes of polyolefins and a 400,000-metric-tonne linear alkylbenzene plant, which he described as the largest of its kind in Africa.

He also highlighted plans for a 1,900-kilometre pipeline intended to extend the refinery’s reach into eastern and southern Africa, underscoring his ambition to build an industrial platform serving markets beyond Nigeria.

“We’re not even started,” he said, signalling further expansion opportunities.

Addressing concerns about the reported oversubscription of the IPO and the limited number of shares available to the public, Dangote assured retail investors that smaller bidders would not be shut out.

“Yes, definitely. Most of the smaller people who are bidding for 50,000 shares and below will definitely be sure that we accommodate all of them,” he said, drawing applause from participants.

He also defended the offer price of N525 per share, describing it as attractive in view of the refinery’s financial performance and growth prospects.

“I think it’s an extremely very, very good price,” Dangote said, adding that the company expected its full-year performance to exceed earlier projections.

He expressed confidence that investors would benefit from the refinery’s expansion, declaring: “This is the right shares to buy. This is the shares of the future.”

Speaking at the event, Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, described the IPO as an opportunity for Nigerians to move beyond being consumers of the country’s industrial output to becoming investors who could benefit financially from its growth.

He said the listing could significantly expand the Nigerian capital market, attract more investment and deepen public participation in strategic industrial assets.

Rewane also highlighted the refinery’s broader economic significance, including its potential to stimulate industrial development, improve productivity and create investment opportunities across the energy value chain.

Similarly, economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, said the refinery could strengthen Nigeria’s macroeconomic fundamentals by reducing dependence on imported petroleum products, easing pressure on foreign exchange and supporting industrialisation.

He noted that its impact extended beyond fuel production to petrochemicals, plastics, packaging, logistics and other related industries.

Yusuf also said the IPO had generated unprecedented public interest in the capital market, creating opportunities for broader investment participation and wealth creation.

In his remarks, Chief Paul Usoro (SAN) urged Nigerians, particularly residents of the oil-producing South-south region, to participate in the share offer, arguing that communities supplying the country’s crude oil should also have a stake in its refining and downstream value chain.

He recalled the long queues that once characterised fuel distribution in Nigeria, saying investment in domestic refining could help sustain improvements in petroleum supply, while giving shareholders an opportunity to participate in the industry’s growth.

Usoro disclosed that he had invested in the company, urging prospective investors to consider the refinery’s potential economic and commercial benefits.