Nigerian billionaire investor Femi Otedola said Wednesday he plans to invest US$100 million in a proposed private placement, marking it a major endorsement of Africa’s largest refinery as it seeks fresh capital ahead of potential public listings.
Otedola, chairman and largest shareholder of financial services group, disclosed the plan during a visit by the company’s management team to the refinery in Lagos.
He said the investment would be funded partly from proceeds of the sale of his stake in power generation company, which he previously listed on the Nigerian stock exchange in 2022.
“On a personal note, I have approved him. I’ve been here with him 25 times, so my compensation is that he’s going to allocate to me shares valued at US$100 million in the private placement,” Otedola told journalists, referring to billionaire industrialist, owner of the refinery.
The announcement comes as Dangote Petroleum Refinery prepares to raise around US$2 billion through a private placement targeting institutional investors and high-net-worth individuals, according to people familiar with the matter.
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The fundraising is part of a broader capital strategy that also includes plans for a potential initial public offering that could raise up to US$5 billion, equivalent to about 10 percent of the company’s estimated valuation.
Industry estimates have previously valued the refinery at around US$50 billion ahead of the planned share sales, reflecting its scale and strategic importance in global energy markets.
The refinery, located in Lagos, is Africa’s largest and one of the world’s biggest single-train refining complexes, designed to reduce Nigeria’s dependence on imported refined petroleum products.
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It is expected to play a key role in reshaping fuel supply dynamics across West Africa by processing crude oil domestically and supplying gasoline, diesel and jet fuel to regional markets.
Otedola said his decision to invest in the project was influenced by both personal conviction and the sale of assets in the power sector.
He recently divested from Geregu Power in a transaction valued at about $750 million, a move he said was partly intended to free up capital for new strategic investments, including participation in the refinery’s fundraising.
The billionaire investor has in recent years repositioned his portfolio, moving away from traditional energy generation assets and increasing exposure to infrastructure-linked and financial services investments.
His backing of the refinery is expected to strengthen investor confidence in the private placement, which aims to attract a mix of domestic and international institutional capital.
Dangote Petroleum Refinery has already drawn significant attention from global investors due to its scale, integrated petrochemical operations and potential to reduce Africa’s reliance on imported refined fuels.
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The facility is also seen as a flagship project for Nigeria’s industrialisation agenda, with expectations that it could improve foreign exchange stability by reducing fuel import bills.
However, analysts have cautioned that large-scale refinery operations face execution risks, including feedstock supply stability, logistics constraints and fluctuations in global oil prices.
Despite these challenges, the project has been widely regarded as a landmark investment in Africa’s downstream oil sector.
Otedola’s planned participation adds to growing high-profile backing for the refinery, underscoring its appeal among Africa’s wealthiest investors.
The proposed listings across multiple stock exchanges are expected to broaden the investor base and enhance liquidity, although timelines for the public offering have not yet been finalised.
For now, attention remains focused on the private placement, which is expected to be a key step in determining the refinery’s financial structure and future expansion plans.
As Africa’s energy landscape continues to evolve, the project is increasingly being viewed as a test case for large-scale private sector-led industrial development on the continent.
