Dangote Refinery Records $1.82bn Profit as IPO Opens

Dangote Petroleum Refinery has reported a $1.82 billion net profit for the first half of 2026 as its historic public share offering opens to investors in Nigeria.

The refinery generated more than $13 billion in revenue during the six months to June, marking a dramatic turnaround from the $476 million loss recorded in 2025.

The results come as Dangote Refinery launches Africa’s largest initial public offering (IPO), giving members of the public an opportunity to buy shares in the company.

The refinery is offering 4.1 billion shares at ₦525 each, targeting about ₦2.15 trillion, or roughly $1.6 billion, if the offer is fully subscribed.

The offer opened on September 14 and is scheduled to close on October 13, with the company expected to list on the Nigerian Exchange later in November.

From Loss to Record Profit

Dangote Refinery’s latest financial performance represents a major turnaround for the business.

The refinery recorded a $476 million net loss in 2025 but moved into a $1.82 billion profit in the first half of 2026 as production increased and international fuel prices strengthened.

The facility has been operating at its full 700,000-barrel-per-day capacity since February.

Its performance has also benefited from disruption to global fuel supplies following the conflict involving Iran and the wider instability affecting energy markets.

Dangote Refinery has become an increasingly important supplier of refined petroleum products to both Nigeria and international markets.

Growing Role in Europe

The refinery has also expanded its exports to Europe, particularly jet fuel and diesel.

Reuters reports that Dangote supplied about 80,000 barrels per day of jet fuel to Europe during the second quarter of 2026, making it the region’s largest jet-fuel supplier after the United States during that period.

The refinery has benefited from shortages caused by disruptions to Middle Eastern fuel supplies, helping it increase exports at a time when global refining markets have been unusually tight.

The development represents a major change for Nigeria, which for years depended heavily on imported refined petroleum products despite being one of Africa’s largest crude oil producers.

What Investors Are Being Offered

The IPO is designed to allow ordinary Nigerians and other investors to take a direct stake in the refinery.

The offer price is ₦525 per share, with a minimum purchase of 10 shares.

That means an investor can start with a minimum subscription of ₦5,250 before applicable charges.

The company is seeking to attract millions of individual investors through digital investment platforms and other distribution channels.

Aliko Dangote has described the offering as a “people’s IPO”, presenting it as an opportunity for Nigerians to participate in the growth of one of Africa’s largest industrial projects.

Dangote is expected to retain a controlling stake in the refinery after the offer.

What the IPO Money Will Fund

The funds raised will support the refinery’s expansion plans.

Dangote Refinery intends to increase its processing capacity from 700,000 barrels per day to about 1.4 million barrels per day.

The planned expansion is expected to require billions of dollars in additional investment.

The company has also said the public listing will give it greater access to the Nigerian capital market and provide a platform for raising additional funds in the future.

The refinery was built over roughly a decade at a cost of about $20 billion and is currently valued at around ₦63 trillion, or approximately $47.6 billion, according to Reuters.

Why the IPO Matters

The share sale is significant beyond Dangote’s business interests.

It represents one of the largest attempts to bring a major Nigerian industrial company directly to the public market and could attract millions of new retail investors.

It also comes at a time when Nigerians are facing high fuel prices and pressure on household budgets.

The refinery’s ability to produce fuel domestically has already reduced Nigeria’s dependence on imported petrol, while its growing exports are giving the country a larger presence in international refined-fuel markets.

However, investors will also have to consider the risks.

The refinery’s exceptionally strong first-half profit came during a period of unusually high global refining margins and major disruptions to international fuel supplies. Future earnings could therefore be different if global fuel prices and refining margins weaken.

For investors, the key question will be whether Dangote Refinery can maintain strong profits after current global supply disruptions ease and as it takes on the cost and risks of expanding to 1.4 million barrels per day.

Key Facts

• Dangote Refinery recorded $1.82 billion in net profit in the first half of 2026.

• Revenue exceeded $13 billion during the period.

• The refinery recorded a $476 million loss in 2025.

• The refinery currently has a capacity of 700,000 barrels per day.

• The company is offering 4.1 billion shares at ₦525 each.

• The IPO is targeting approximately ₦2.15 trillion, or $1.6 billion.

• The minimum subscription is 10 shares, costing ₦5,250 before applicable charges.

• The offer opened on September 14 and closes on October 13.

• Dangote plans to increase refinery capacity to 1.4 million barrels per day.