Africa’s biggest oil refinery has cut its debt by $570 million as it increased production and sales ahead of its planned initial public offering, which could become the continent’s largest share offering.
- Africa’s largest oil refinery, Dangote Petroleum Refinery, has slashed its debt by $570 million while ramping up both production and sales ahead of a landmark IPO.
- The refinery made a dramatic financial turnaround, posting a $1.82 billion profit in H1 2026 after a significant loss the previous year.
- Dangote plans to raise about $1.6 billion in its IPO, with a possible increase to $2.1 billion, making it Africa’s biggest-ever share offering.
- Currently processing 700,000 barrels of crude daily, the $20 billion facility aims to double output by 2030 through another massive expansion valued at $14.3 billion.
Dangote Petroleum Refinery and Petrochemicals FZE had $5.67 billion in total secured debt at the end of June, down from $6.24 billion at the end of December, according to its IPO prospectus.
The debt reduction came as the refinery swung to a $1.82 billion after-tax profit in the first half of 2026, compared with a loss of $476 million in the same period of 2025.
The refinery is preparing to raise about $1.6 billion through the IPO by offering 4.1 billion shares at ₦525 each, according to the prospectus.
The offer could be expanded by as much as 30%, taking the potential proceeds to about $2.1 billion, subject to investor demand and approval from Nigeria’s Securities and Exchange Commission. The IPO is scheduled to open on September 14 and run for about a month.
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Refinery targets bigger output by 2030
The $20 billion refinery currently processes up to 700,000 barrels of crude oil per day and is targeting a doubling of that capacity by 2030 through a planned $14.3 billion expansion.
Dangote Refinery has played a major role in changing Nigeria’s position in the regional fuel market, helping the country move from heavy reliance on imported petroleum products toward becoming a fuel exporter.
The company said the planned expansion does not represent an immediate funding requirement, suggesting that its current operations and financial position can support the next phase of growth.
