The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on its members nationwide to invest in the planned Initial Public Offering of Dangote Petroleum Refinery, describing the share sale as a chance for petroleum marketers to move from being mere buyers of refined products to becoming shareholders in the country’s largest refining project.
The association’s call comes as the Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, projected that Nigeria’s economy could grow from a nominal Gross Domestic Product of $278bn in 2025 to about $600bn by 2030, driven largely by increased private-sector investment and the multiplier effects of major industrial projects such as the Dangote refinery.
In a statement issued on Thursday and signed by its National President, Abubakar Shettima, IPMAN congratulated the management and board of Dangote Petroleum Refinery and Petrochemicals on the planned commencement of the IPO and public share offering.
Shettima said the proposed listing would create an opportunity for Nigerians and participants in the petroleum industry to acquire direct ownership in the refinery, transforming it from a privately held industrial project into a wider investment opportunity.
According to IPMAN, the development is particularly significant for the downstream petroleum sector, given the refinery’s growing role in supplying refined products to the domestic market.
The association said increased refining capacity would help Nigeria cut its reliance on imported petroleum products, conserve foreign exchange and strengthen energy security.
It therefore encouraged its members to participate actively in the offer instead of remaining solely off-takers of products from the refinery.
“The National President of IPMAN therefore calls on her members nationwide to aggressively capitalise on this share sale, as it is a rare, strategic opportunity to evolve from off-takers of petroleum products into equity owners of the primary production infrastructure.
“This investment will similarly strengthen our collective capacity to guarantee affordable, steady, unhindered fuel distribution across all 36 states, and ensure price stability at our pumps,” he said.
The Dangote refinery, which has a nameplate capacity of 700,000 barrels per day, has progressively increased the production of petrol, diesel and other petroleum products since commencing crude processing.
Its expansion has continued to reshape Nigeria’s downstream petroleum market, with the facility emerging as a major source of locally refined fuel.
However, while backing the IPO, IPMAN also urged the refinery’s management to expand its direct petrol allocation arrangement to accommodate all registered independent petroleum marketers.
Shettima warned that restricting direct supplies to only selected marketers could create distribution bottlenecks, increase logistics costs and ultimately affect consumers.
“Abubakar Shettima also strongly appeals to the management of the Dangote Petroleum Refinery not to discontinue its direct allocation of Premium Motor Spirit to independent marketers.
“Rather than limiting access or cutting off select distribution channels, IPMAN urges the refinery to expand its direct allocation framework to comprehensively capture every registered independent marketer nationwide, instead of a select few, as this is crucial to eliminating anti-competitive bottlenecks, suppressing exorbitant logistical middlemen fees, and ensuring that affordable, locally refined fuel reaches every citizen,” the statement said.
Rewane projects $600bn economy
Meanwhile, Rewane has outlined an economic outlook that could see Nigeria’s economy more than double in nominal terms by 2030 if investment, production and other key economic indicators improve as projected.
He made the projection in Abuja during an investor roadshow organised ahead of the planned IPO of Dangote Refinery and Petrochemicals.
Rewane’s presentation showed that Nigeria’s nominal GDP could rise from $278bn in 2025 to approximately $600bn by 2030.
The projection is based on stronger private-sector investment, higher oil production, improved manufacturing activity and the multiplier effects of large-scale industrial projects.
Real GDP growth, according to the projection, could increase from about four per cent to between seven and eight per cent, while inflation could decline from 15 per cent to a range of eight to 10 per cent.
Non-oil GDP growth is also projected to rise from between four and five per cent to between seven and eight per cent.
At the same time, crude oil production could increase from about 1.5 million barrels per day to 2.2 million barrels per day.
Rewane expects investment to account for 36 per cent of GDP, up from the current 26 per cent, while manufacturing growth could accelerate from three per cent to between eight and 10 per cent.
The projection also assumes an expansion in energy supply and improvements in its reliability, alongside stronger economic activity across productive sectors.
Under the projected $600bn economy, household consumption is expected to account for about $240bn, or 40 per cent of GDP. Investment would contribute $216bn, representing 36 per cent, while government consumption would account for $36bn, or six per cent.
Net exports are projected at $108bn, representing 18 per cent of the economy.
Rewane said the Dangote refinery could contribute significantly to this outlook through its impact on investment and related economic activities.
“What the Dangote refinery is doing is getting into investment and adding that, and that gives you a multiplier effect,” he said.
He added, “If you look at that, let’s project forward what will happen after this investment is completed. This is what it’s going to look like. What was $278bn? It’s going to be about $600bn, and all the variables change.”
According to the economist, higher investment and stronger net exports could also strengthen the naira and improve Nigeria’s external reserves.
“This means the naira gets stronger, the reserves get valuable, and Nigerians begin to benefit from this private sector-led investment. So the government creates the environment. The private sector invests. International investors come in. Domestic investors come in. African investors come in. And there’s a significant expansion of the economy,” he said.
Rewane also highlighted the economic value of processing crude oil locally rather than exporting it in its raw form.
“If you export one barrel of oil, you get $100 per barrel today. If you do the value add and transform this into a conversion to wealth, you get the equivalent of $200 per barrel,” he said.
He argued that increased domestic refining could strengthen import substitution, deepen the Nigerian capital market and reduce Africa’s dependence on refined petroleum products supplied from Europe and the Middle East.
Dangote targets N2.15tn from IPO
Speaking on the planned share sale, President of the Dangote Group, Aliko Dangote, said the company plans to raise N2.15tn, equivalent to about $1.6bn, through the offering.
The proceeds, he said, would be deployed to fund the refinery’s expansion programme.
Dangote’s message was delivered at the investor roadshow by the Senior Adviser, Special Projects and Strategic Relations to the Group President, Dangote Industries Limited, Fatima Wali-Abdurrahman.
The shares are being offered at N525 each, with investors required to subscribe for a minimum of 10 shares.
Dangote said the pricing and minimum subscription threshold were deliberately structured to encourage broad participation.
“The offer price and minimum subscription level is to allow for wider participation as we want every Nigerian to own a piece of this asset. That is why we have called it The IPO for the People,” he said.
He also disclosed that the Dangote Group was considering listing in about six additional African countries as part of its broader continental expansion plans.
Earlier, the Chairman of the event, Oluwagbenga Oyebode, said the offer consists of 4.1 billion ordinary shares priced at N525 each.
He put the expected net proceeds at about N2.1tn and said the offer represents 3.3 per cent of the refinery’s issued capital.
According to Oyebode, the funds raised would be used entirely as growth capital for the next stage of the refinery’s expansion rather than to repair or restructure its balance sheet.
He also projected that the listing could increase the total capitalisation of the Nigerian stock market from about N160tn to N225tn.
The promoters, he added, are targeting participation from approximately 10 million retail investors.
The Chairman of Jaiz Bank, Mohammed Bintube, said the IPO had also undergone Sharia compliance screening.
He described the structure as an innovation capable of widening access to investment opportunities in Nigeria’s capital market.
Also speaking, Uche Uwaleke of Nasarawa State University advised investors to approach the investment with a long-term outlook.
He noted that the prospectus provides an additional share as a bonus for investors who retain their holdings for at least one year.
Uwaleke further encouraged wider participation among ordinary Nigerians, including workers, artisans and small-business owners, as the refinery’s planned listing opens another avenue for retail investors to participate in the country’s energy sector.
