Dangote IPO Could Lift GDP to $600bn — Rewane

Economist and Managing Director of Financial Derivatives Company, Bismarck Rewane, has said the proposed Initial Public Offering of Dangote Petroleum Refinery could contribute significantly to Nigeria’s economic expansion and help push the country’s Gross Domestic Product towards $600 billion.

Rewane spoke at the Lagos Economic Summit, where business leaders and economic experts examined opportunities for investment, industrialisation and economic diversification.

He said Nigeria was gradually moving away from a consumption-led economic model towards one increasingly driven by investment and production.

According to him, sustained investments in productive sectors would stimulate economic growth, create jobs and improve living standards.

The proposed Dangote Refinery IPO is expected to be one of the largest equity offerings in Nigeria’s capital market. The Securities and Exchange Commission has approved an offer involving 4.1 billion ordinary shares at ₦525 per share, with the transaction capable of raising about ₦2.15 trillion if fully subscribed.

The offering is expected to deepen public participation in the ownership of the refinery while providing additional capital for the company’s expansion plans.

Rewane said investments of this scale could have broader effects on the economy by increasing production capacity, creating employment and strengthening domestic value chains.

The Dangote Refinery, located in Lagos, has a nameplate capacity of 650,000 barrels per day, although the facility has recently demonstrated the ability to process up to 700,000 barrels per day.

The company has also announced plans to expand the refinery’s capacity to 1.4 million barrels per day, a move expected to further increase Nigeria’s refining capacity and reduce dependence on imported petroleum products.

The refinery’s operations are already contributing to changes in Nigeria’s petroleum market, including increased domestic supply and growing exports of refined products.

Rewane’s comments come as investors increasingly focus on large-scale Nigerian businesses capable of attracting domestic and international capital.

Other participants at the summit also stressed the importance of industrialisation, improved access to credit, skills development and policies that encourage local production.

The planned IPO is expected to broaden the refinery’s shareholder base and give more Nigerians and institutional investors an opportunity to participate in the ownership of one of Africa’s largest industrial projects.

Rewane’s projection highlights the potential wider economic impact of the refinery beyond the capital raised through the share offering, particularly through increased production, investment, employment and industrial activity.

Nigeria’s ability to sustain such investments, he noted, will be critical to achieving stronger and more inclusive economic growth.