Dangote Refinery Cuts Debt Ahead of $2.1 Billion Africa's Largest-Ever IPO
Dangote Petroleum Refinery & Petrochemicals has made significant strides in reducing its debt ahead of Africa's largest-ever Initial Public Offering (IPO). The refinery, capable of processing 650,000 barrels per day, has cut its outstanding debt by $570 million, bringing total borrowings down to approximately $3.65 billion from a peak of over $9 billion.
The reduction in debt is not coincidental; the refinery is gearing up for an IPO that could raise as much as $2.1 billion if overallotment options are exercised. The offering will see 4.1 billion ordinary shares sold at a price of 525 Nigerian naira each, translating to a base raise of approximately $1.63 billion.
The refinery has been consistently generating revenue from operating cash flow, rather than relying on fresh equity. In the first half of 2026, Dangote Petroleum posted revenue of 19.13 trillion naira, roughly $13.91 billion, representing a 121% year-over-year increase. The facility has also demonstrated its capacity by occasionally exceeding its nameplate rating during production tests.
The IPO proceeds are intended to support the refinery's expansion plans, which include doubling refining capacity to 1.4 million barrels per day by 2029 at an estimated cost of $14.3 billion. This ambitious project aims to break Nigeria's reliance on imported refined petroleum products and capture market share from suppliers.