Dangote Refinery, an indigenous refinery, plans to pursue a dual listing on the London Stock Exchange (LSE) and the Nigerian Stock Exchange (NSE), a senior executive announced on Tuesday. This strategic move aims to leverage broader financial markets to support its expansive operations.<\/p>\n
Aliko Dangote, Chairman of Dangote Group, was quoted in media reports indicating a potential listing of the company on the Nigerian Stock Exchange by the end of the year. However, Devakumar Edwin, an executive at Dangote Refinery, clarified to Reuters that the NSE alone lacks the capacity to handle the refinery’s massive scale, necessitating a concurrent listing on the LSE.<\/p>\n
\u201cWe have listed all our businesses. The NSE (Nigerian Stock Exchange) will not have adequate depth to handle exclusively the petroleum refinery. We would have to take it to LSE (London Stock Exchange) but also list in NSE,\u201d Edwin explained.<\/p>\n
Aliko Dangote, Africa\u2019s richest man, has diversified interests including Dangote Cement, Dangote Flour Mills, and Dangote Sugar, all listed on the Nigerian Stock Exchange.<\/p>\n
The refinery, located on a peninsula on the outskirts of Lagos, the commercial capital, was built for $20 billion after several years of delays. With a capacity to refine up to 650,000 barrels per day (bpd), it will be the largest in Africa and Europe once it reaches full capacity this year or next. Dangote has been working to secure crude supplies for the refinery, recently securing a deal with oil major TotalEnergies for crude oil supply. Despite being situated in Africa\u2019s biggest oil producer, the refinery has had to import oil from the United States in recent times.<\/p>\n
The planned dual listing coincides with the refinery\u2019s plans to start producing Premium Motor Spirit (PMS). Alhaji Dangote, Chairman of the refinery, stated that refining of PMS would begin next month, contrasting with the more conservative timeline suggested by Standard and Poor\u2019s (S&P) analysts, who projected a rollout in the fourth quarter of the year.<\/p>\n
The Dangote refinery has faced challenges in meeting production timelines, having only begun distributing diesel and aviation fuel almost eight months after its commissioning in May last year. Nevertheless, the refinery aims to significantly reduce energy importation not only in Nigeria but across West Africa.<\/p>\n
As the refinery prepares for its dual listing, industry observers are optimistic about the potential benefits of accessing both the Nigerian and London financial markets. The dual listing is expected to attract a broader base of investors, providing the necessary capital to support its operations and future expansions.<\/p>\n
The ambitious project, once fully operational, is poised to transform Nigeria’s energy landscape by decreasing dependence on imported refined products and boosting local production capacity. The refinery\u2019s success will also have broader economic implications, potentially stabilizing fuel prices and creating thousands of jobs in the region.<\/p>\n","protected":false},"excerpt":{"rendered":"
Dangote Refinery, an indigenous refinery, plans to pursue a dual listing on the London Stock Exchange (LSE) and the Nigerian Stock Exchange (NSE), a senior executive announced on Tuesday. This strategic move aims to leverage broader financial markets to support its expansive operations. Aliko Dangote, Chairman of Dangote Group, was quoted in media reports indicating […]<\/p>\n","protected":false},"author":27,"featured_media":32974,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-32965","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/32965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=32965"}],"version-history":[{"count":3,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/32965\/revisions"}],"predecessor-version":[{"id":32985,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/32965\/revisions\/32985"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/32974"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=32965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=32965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=32965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}