Aliko Dangote says his company's expansion plans will help African countries become energy self-sufficient. — Photo: Reproduction/Reuters
The Nigerian billionaire called the IPO the "People's IPO [initial public offering]" — promoting the sale as an opportunity for citizens to own part of a company that many Nigerians already consider a national asset.
Reuters news agency reported that if all 4.1 billion available shares are sold, the company will raise 2.15 trillion Nigerian naira — or US$1.6 billion — to help expand its refinery, which already has the capacity to process around 700,000 barrels of crude oil per day.
On the first day of share sales, investment apps had technical difficulties dealing with the high demand for shares.
Bamboo, the company that manages one of Nigeria's most popular investment tools, collapsed after the sale of Dangote shares — Photo: REUTERS
Despite the great enthusiasm of investors, analysts warn that share prices could fall or rise.
"They should only invest money that they won't need for the next three, four or five years," financial consultant Abdulrazak Ibrahim Fagge told the BBC.
But what is known about Aliko Dangote, and his promise to bring prosperity and financial independence to African citizens?
Who is Aliko Dangote?
At 69 years old, Dangote is the richest person in Africa, with a fortune of more than US$51.5 billion, according to data from Forbes magazine on September 20.
Dangote has dominated Nigeria's cement, sugar, salt and fertilizer markets for decades.
By 2024, his empire represented a third of the value of all companies listed on the Nigerian stock exchange.
He is known for his mild temperament — and often drives his own car between meetings.
When he was still at school, he bought sweets in large quantities, hired other children to sell them, and took a share of the profits.
His mother's side of the family already had a large estate, and his great-grandfather was the richest man in West Africa when he died.
"He comes from a family with a tradition in the business world," Lekan Sote, a columnist for the Nigerian newspaper The Punch, told the BBC.
After graduating in business administration, Dangote started his own commodities trading business with a loan of 500,000 naira (then about R$2,000). It was a great success and he paid off the loan in less than 6 months.
Today, its portfolio includes Dangote Cement, Africa's largest cement producer, and the Dangote oil refinery, which began production in 2024, and is now one of the largest in the world.
What is Dangote's strategy?
Dangote's strategy has focused on import substitution — meaning his companies locally produce goods that Nigeria traditionally buys from abroad.
Several African countries suffer from the inability to process their raw materials and, consequently, purchase products processed from them, which increases costs. Governments often subsidize prices.
The ability to create a final product locally would reduce the need for this type of support.
However, critics of import substitution argue that controls on competition can cause prices to rise and boost inflation.
Nigeria is Africa's largest oil producer, but until the opening of the Dangote refinery, most of the country's fuel was imported due to a lack of refining capacity. This meant that Nigeria had to purchase refined oil at a high cost.
Currently, the refinery supplies more than 70% of Nigeria's energy consumption.
The share offering document states that Dangote intends to double the refinery's capacity.
Monopoly accusations
In 2024, the charity Oxfam reported that Dangote "holds a 'near-monopoly' in the cement sector in Nigeria. His empire's expansion into oil has raised concerns about a new private monopoly."
But, according to journalist Lekan Sote, some analysts believe that the billionaire is simply filling gaps that the government cannot fill: "He knows that the government is slow. Anyone who is bold enough, who can play hardball and be present in this market, will take advantage of what is happening."
Dangote denies accusations of practicing monopolies.
"We have been willing to invest significantly, demonstrating our commitment to excellence. We recognize the potential of the manufacturing sector in Nigeria and the rest of Africa, and have harnessed it when others have failed," he said.
He claims that the refinery expansion will boost the region's economic independence. Last month, he told the BBC that his plans will have "a huge impact", helping some of the continent's nations become energy self-sufficient.
"This ensures that countries receive their own product. They will no longer live in poverty. The refinery is there, it is for them," he said.
But claims that the refinery expansion will bring economic independence to parts of Africa are "probably exaggerated," says Sote. The journalist, however, recognizes that the refinery could lower prices in the region "due to the economies of scale that will arise when production capacity eventually increases."
Nigerians may have saved money by reducing fuel prices, but some argue that the wealth generated is not reaching ordinary people.
Kingsley Moghalu, former deputy governor of the Central Bank of Nigeria, wrote in the Nigerian newspaper Premium Times in July 2025: "Dangote's wealth is personal. She has not enriched Nigerians in any meaningful way."
But he questions whether enriching Nigerians should be a concern for Dangote, who is, after all, a businessman.
"Is this his responsibility?"
Enthusiasm amid criticism
The company's stated attempts to increase African self-sufficiency helped generate excitement around the share sale, investment analyst Oluwasina Oluwaleke told the BBC.
"The nation strongly supports this initiative because it recognizes the economic drive for independence, not just for Nigeria, but for West Africa and Africa in general."
However, BBC editor Simon Jack says: "There are accusations that Dangote does not do enough for low-income people in northern Nigeria and concentrates his wealth in the south."
Dangote's businesses have come under criticism due to their environmental impacts.
In 2020, legal action was taken against the Dangote group on behalf of people suffering from health problems believed to be linked to its cement industry.
Dangote Cement paid a compensation package of US$270,000 to people living around one of its factories.
Demand for the refinery's products was driven by supply disruptions related to the war with Iran — Photo: BBC via Getty
'Opportunity'
Dangote said he wants to give ordinary Nigerians the opportunity to participate in the oil refinery's success and "democratize wealth creation."
The minimum purchase is 5,525 naira (equivalent to R$20) — a lower outlay than many other share offers.
"Every day, Nigerians use products that rely on refined petroleum. What makes this IPO unique is that it offers people the opportunity to not only consume, but also participate as owners in the industrial system that drives economic life," Dangote said before the sale.
Oluwaleke says supply disruptions related to the war with Iran have increased demand for the refinery's products, boosting expectations around the sale: "Social media and media outlets are full of news."
However, some analysts are more cautious, believing the shares will fall in value if current high profits disappear.
Among the investors is Isah Salisu, who told the BBC that he withdrew 50,000 naira (R$190) from his savings to invest.
"My hope is that my little money will one day multiply. I don't want to miss this opportunity as many people I know are also investing," he said.
But economics expert Abdulrazak Ibrahim Fagge warns that share prices could fall, meaning people could lose some of their money.
He warns: "What potential buyers, especially those who are buying shares for the first time, should know is that they should not invest all their money — or the money they will need in a few months."
