The President of Dangote Group made the disclosure on Monday, October 12, during a virtual session at the refinery’s final initial public offering (IPO) roadshow, themed “Back to Where It All Began.” The event was organised by Financial Derivatives Company in Port Harcourt, Rivers State.

Dangote said the planned expansion would position the refinery among the world’s largest refining facilities. He also outlined plans to produce 2.5 million tonnes of polyolefin and 400,000 metric tonnes of linear alkylbenzene, chemicals used in manufacturing plastics, detergents and other industrial products.

He described the projected output as a major development for Africa’s industrial sector, noting that expanded refining and petrochemical operations could supply raw materials to a wider range of businesses.

The industrialist also addressed concerns about the refinery’s ongoing share offering, assuring smaller investors that the company intended to accommodate subscribers applying for 50,000 shares or fewer.

The public offer is priced at ₦525 per share, with a minimum subscription of 10 shares valued at ₦5,250. The offer is designed to give eligible investors an opportunity to acquire an ownership stake in the refinery.

Dangote defended the offer price, expressing confidence in the company’s financial performance and suggesting that its earnings could exceed earlier projections. He also presented the shares as a long-term investment opportunity, predicting that investors could potentially more than double their investment within two and a half years.

However, such returns remain a projection rather than a guarantee. Share prices and investment outcomes can change, and investors may lose money.

The public offer has attracted considerable attention, with concerns emerging over demand and whether smaller applicants would receive the number of shares they requested. In response, Dangote reiterated his intention to ensure that smaller subscribers were not excluded from the process.

The IPO opened on September 14 and was initially scheduled to close on October 13. On Tuesday, October 13, reports said the offer had been extended to October 27 following regulatory approval, giving prospective investors additional time to participate.

Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, said the share offering could deepen Nigeria’s capital market by allowing more citizens to participate in the ownership of major industrial assets. He projected that the refinery’s listing could help push total market capitalisation beyond ₦220 trillion.

Economist Muda Yusuf also highlighted the potential wider economic benefits of the refinery, including increased industrial production, employment opportunities, lower dependence on imported petroleum products and support for foreign exchange stability.

He noted that the refinery’s importance extends beyond fuel production to petrochemicals, packaging, plastics and other industries that depend on locally available raw materials.

Senior Advocate of Nigeria Paul Usoro encouraged residents of the South-South, particularly people from oil-producing communities, to consider participating in the share offering. He said wider local ownership could give Nigerians a stake in an industrial business built around the country’s resources.

The planned expansion comes as the refinery continues to develop its operations and pursue additional investment through the capital market. The company’s longer-term ambitions include increasing processing capacity and expanding its petrochemical portfolio.

If delivered, the proposed expansion could strengthen Nigeria’s domestic refining and industrial production capacity. Its ultimate impact will depend on the execution of the investment programme, market conditions and the refinery’s ability to sustain commercially viable operations.

Reporting by TalkNaijaMedia