By Barnabas Esiet.
The Nigerian Exchange Group (NGX Group) has intensified efforts to attract investors from across Africa to the proposed initial public offering (IPO) of Dangote Petroleum Refinery and Petrochemicals, describing the offer as an opportunity to deepen financial integration and promote shared industrial growth across the continent.
The Chairman of NGX Group, Alhaji (Dr.) Umaru Kwairanga, disclosed this during engagements with the Egyptian Exchange, Ethiopian Exchange and Botswana Stock Exchange as part of efforts to expand participation in the refinery’s share offer beyond Nigeria.
Kwairanga said the initiative was designed not only to attract investment into the refinery but also to strengthen cooperation among African capital markets and improve cross-border investment opportunities.
He described Dangote Refinery as one of the world’s largest and most modern petrochemical complexes, noting that its operating performance and expansion plans presented investment opportunities for investors across the continent.
According to him, the company’s ongoing expansion is expected to position it as the world’s largest refinery.
“We are here primarily to market the Dangote Refinery IPO to our African brothers and sisters, which we believe, based on its current track record of performance and the future ambitions of the company, is a good offer,” he said.
The NGX Group chairman stressed that the initiative went beyond the sale of shares in a major Nigerian enterprise, arguing that it could help advance the development of a more integrated African capital market capable of competing with established markets in the West and Far East.
He said achieving that ambition would require larger companies, stronger financial markets that transcend national boundaries and increased participation by investors willing to explore opportunities across Africa.
Kwairanga also highlighted the role of the African Continental Free Trade Area (AfCFTA) in promoting economic integration, saying the continent’s financial markets must complement the framework by providing effective channels through which capital could support businesses operating across national borders.
He noted that the Dangote Refinery IPO offered an opportunity to demonstrate how African industrial development could be financed through greater financial cooperation and broader ownership.
Cross-border investor participation
Explaining the rationale behind the international investor engagement, Kwairanga said NGX Group had received numerous inquiries from investors within and outside Africa seeking opportunities to participate in the refinery’s share offer.
He said the growing interest had prompted the Nigerian exchange, in collaboration with the issuer, to visit selected African countries and engage their stock exchanges on ways to facilitate cross-border participation.
According to him, the initiative recognises the international reach of Aliko Dangote’s businesses and the need to extend investment opportunities beyond Nigeria.
Kwairanga maintained that the refinery’s share offer could provide investors across the continent with an opportunity to participate in the financial returns and risks associated with the expansion of African industrial capacity.
He linked the initiative to the broader vision of continental cooperation, recalling the establishment of the African Union more than five decades ago to promote unity, coordinated policies and development among African countries.
While acknowledging the challenges associated with achieving that vision, he said Dangote’s industrial investments across several African countries demonstrated how private-sector initiatives could contribute to economic integration.
He cited industrial projects in Nigeria, Ethiopia, Kenya and Namibia as examples of investments reflecting a broader ambition to promote African development through industrialisation.
Kwairanga said the proposed IPO would provide an avenue for investors to participate in that ambition by acquiring shares in the refinery.
Towards an integrated African capital market
The NGX Group chairman said the refinery’s offer could serve as a starting point for wider collaboration among African exchanges, helping to improve access to investment opportunities across national markets.
He emphasised that the development of larger and more liquid capital markets would be critical to mobilising the funding required for major industrial projects and strengthening Africa’s position in the global financial system.
The initiative also aligns with efforts to deepen economic ties across the continent by encouraging African investors to direct more capital towards businesses and projects within Africa.
Kwairanga described the proposed offer as an opportunity to broaden ownership of a major African industrial enterprise and involve investors in the continent’s economic transformation.
He said the campaign was intended to kick-start a broader investment movement through what he called “Africa’s People IPO.”
The proposed Dangote Refinery IPO is expected to provide a platform for investors to participate in the company’s business and growth ambitions, while the NGX Group’s engagements with other African exchanges seek to widen the pool of potential investors and strengthen cross-border capital market cooperation.
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